Back in Moscow at the Prosperity Capital investors event. Impressed by the changes compared to one year ago. The changes are clearly visible on the streets, impressive new roads, pollution came down. People are even starting cycling, Moscovians are paying parking fees and adhere to sophisticated traffic rules. Economically a real revolution is going on due to strong new governance legislation. Next to this sanctions force the country to choose new economic development, agribusiness is growing impressively. Gas export development to China is much bigger as we can read in the western press. Pension funds are now allowed and stimulated to invest in stocks and corporate bonds. Equity investments are only 4% of the total invested assets of the Russian pension funds.

As soon as sanctions are lifted and / or the oil price will go up, the Russian stock market will probably be confronted with a squeeze of epic proportions. There will be simply not enough shares available, entering the market will be difficult at that moment. Valuations are low, regulations improved and companies finding their way already to deal with the circumstances. Last but not least: a total deleveraging of corporate Russia is happening right now.