According to this article from MarketWatch Russia's foreign reserves are $406 billion.Obviously the country has been helped by strong prices and demand for resources. Russia has also benefited from a strong currency and generally positive economic trends.
There are a slew of political issues that some view as very risky and still others view the various antics as more noise than anything else. I maintain a little exposure for just a few clients (and personally) with Lukoil.
I believe the economy is a juggernaut that is becoming more globally relevant but anyone that adds it to their portfolio needs to realize they are adding volatility, even relative to emerging markets.
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Bureaucratic interference and corruption remain major problems in Russia. I feel that the best way to get exposure to this market is to diversify via a managed fund rather than investing in individual stocks.
As an example, It was just this week that BP was forced to surrender its Siberian gas field to Gazprom as the Kremlin seeks to regain control of its resources from the hands of forgein companies. Fortunately due to BP size this wasn't a huge problem but for smaller company it could have proved catastrophic.
I am invested in a few companies and an ETF that have holdings to some degree in Russia. Knowing the new wave of "communism" is to use other's expertise, capital and tolerance for risk until many results are confiscated and used against the free market is something I accept. China, Venezeula, some ROW countries...they are all of the same ilk.
We are worried about sub-prime and global warming. Ha. Mere peanuts compared to the growing coalition of the ungrateful.
I would recommend a good BRIC like EEB for some exposure in Russia without the risk of an all Russia fund, or worse yet, an individual stock from Russia.
There's going to be a power change there soon with Putin stepping down as a figure-head but remaining in power some say.
http://www.breitbart.com/article.php?id=061223184743.z6vos816&show_article=1
That situation does not look good to me.
http://www.terradaily.com/reports/Policy_Watch_Can_Russia_Improve.html
what does the USA claim to have in reserves?
A buck 280
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