We're using cookies, but you can turn them off in your browser settings. Otherwise, you are agreeing to our use of cookies. Learn more in our Privacy Policy

Bridge over ocean
1 July 1997 Financial Analysts Journal Volume 53, Issue 4

Russia's True Economy: More Inviting to Investors

  1. Lee Shama
  2. Avraham Shama

Financial analysts' opinions about investing in Russia are often based on incomplete and misleading official Russian data and on observations made during short trips to Russia. In Russia, what you see is not what you get. This study provides an assessment of Russia's true economy and its attractiveness to foreign investment. Based on personal interviews with Russian managers and with experts working in Russia, investing in that country appears to be potentially twice as lucrative as previously thought. Russia's true economy may be twice as large as officially reported, because private-sector companies, which constitute more than half of Russia's economy, do not report 90 percent of their revenues and profits. Investors and mutual fund managers must find unconventional ways to interpret Russian data and supplement that information with additional primary research.

Read the Complete Article in Financial Analysts Journal Financial Analysts Journal CFA Institute Member Content