Russia has what the world needs now
Editor’s Note: When a market index rises 50 percent or so in six months, you generally think “bubble.” But Russia today is an exception. While its major indices have soared since January, many Russian stocks with outsized potential remain dirt cheap. Russia has more of what the world needs—i.e., oil and natural gas—than any other capitalistic nation on the globe. The fact that the ruble has been appreciating against the dollar is evidence that the world recognizes Russia’s importance to the global economy. Below, Ross, a Russian-born broker equally comfortable reading English and Russian balance sheets, highlights three of the surest beneficiaries of Russia’s surging capitalism.—SL
One of the world’s cheapest oil companies is Lukoil, the biggest vertically integrated oil company in Russia and the fourth-largest in the world. Doing business in 30 countries, it is a diversified operation active in all aspects of the oil business, from production to the sale of petroleum products. Altogether it accounts for about 20 percent of Russian oil production and 18 percent of Russian refining.
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