Investors delve into Russia’s regions
Euromoney, is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Investors delve into Russia’s regions

Foreign investors have made fortunes investing in Russia. But now they are looking to go deeper, and are packing their bags to discover Russia’s regions. Julian Evans reports from three of Russia’s developing regions.

Tatarstan: Grandpa’s republic

Krasnoyarsk: a long way from everywhere

Krasnodar: ‘the best place to live in Russia’

MATTHIAS WESTMAN, CEO of Prosperity Capital Management and one of the more experienced western fund managers working in Russia, is excited. He thinks he’s discovered the next big thing in the Russian markets. “It’s a pig farm,” he enthuses. “A pig farm in Yaroslavl. Actually, it’s more like five or six large-scale pig farms. They’ve got around $1 billion in sales a year.” That’s a lot of pigs.

Westman is one of a handful of savvy western investors and financial institutions that are travelling deep into Russia’s regions, in search of hidden bargains. The rationale is simple – Russia has now matured as an economy, and its blue chips like Gazprom or Rosneft are attracting the biggest global institutional funds. So it’s time for more experienced investors to go beyond the obvious assets, beyond Moscow and St Petersburg, and look for undiscovered gems in the regions.

East Capital, another wise old investor in Russia, is pursuing a similar strategy. CEO Peter Elam Håkansson says: “I’ve been to some very strange cities in Russia looking for investments for our small-cap fund.

Gift this article