The risk inherent in a Russian oil stock means it should be cheaper and probably should have a higher dividend too.
Who can say how risky Gazprom is or whether they have fudged any of the reserve numbers.
One thing that I think will be true is that over the next few years the risks and any fudging of numbers will likely lessen. These stocks will be easier to own and the information will likely be more reliable.
I would not discount more possibility for more peculiar news, like turning off the switch to the Ukraine, in the short run. It makes sense to learn more about all the Russian companies.
1 comments:
Why do I have the feeling that Russia's future course is vastly different than where China is headed. Having Russia's Gas Ministery go private and perform as a business makes sense only if the business has some competition. I can't see (to this point) that the Soviets have learned how to compete in in an open marketplace. Imagine what a Valero or Conoco Phillips could do with those reserves. Tom in Indy
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