Russia’s stock market trades on a hefty discount

Senior Russians point out that similar problems, sadly, are found in many other countries, including its fellow Brics. But Russia’s nominal per capita income is more than twice that of China, eight times that of India. Its lack of legal protections is arguably the biggest factor separating it from the more prosperous nations whose ranks it aspires to join. It may also harm Russia’s prospects of making that transition. It is surely at least one of the factors why Russia’s stock market trades on a hefty discount to other big emerging markets. It may be a reason why foreign direct investment is not picking up, post-crisis, as quickly as the government would like.

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