Tuesday, May 8, 2012

Stocks up on Putin news

(KBHM) Russian stock futures climbed as Vladimir Putin returned to Russia’s presidency for a third term promising to forge ahead with state asset sales and improve the nation’s investment climate. 

These valuable state assets being sold could create great business opportunities for Russians and foreigners alike. It remains to be seen if they will be given to "preferred businessmen" i.e. Putins oligarchs? Or will there be a honest and fair sale procedure?

Putin, whose first eight years in the Kremlin saw average economic growth of 7 percent as oil prices rose fivefold, signed at least a dozen decrees after being sworn in yesterday and said the world’s biggest energy exporter was beginning a “new stage” in its development. 


Russia’s Micex Index has tumbled 20 percent since Putin passed on the presidency to Dmitry Medvedev in May 2008 because of term limits. Gazprom, Russia’s state-run natural gas monopoly, rose two percent to $11.01 in New York yesterday, after slumping to $10.79 on May 4th, the weakest since December 30th.

This continues my thought to the fact that Putin may very well be bad for Russians, but good for Gazprom?