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Russia is flat out cheap and I think buying now with the idea of holding for a few years will lead to outstanding gains. Here is how cheap some of the major companies in Russia are right now:
Sberbank down 39% PE 3.3 Div Yield 6.2%
Gazprom down 53% 2.7 10.9%
Lukoil down 45% 3.2 8.5%
Rosneft down 58% 4.4 13.1%
Those are Russian blue chips and they are being sold at prices that suggest the end of Russia, Could they go lower? Sure but in that case you would buy more. Can the dividends get cut? Yes but remember even though the price of oil has went down so has the ruble. The Russians are nearly getting the same amount of rubles that they were getting before. granted this means more inflation for imported goods and any dividends paid will be lose value in the conversion but the case is made that this is a cheap market.
Russian government debt is only around 13% of GDP as opposed to nearly 100% in the US and well over 100% in most Western European countries.The economy in Russia will contract by about 5-10% next year. However oil prices will recover and I suspect that when the sanctions come up for approval in March that the Europeans will balk at continuing them like the US wants. It is simply costing too much money.
It is not time to jump in whole hog but I have got Russia on my watch list and I have a small position in RSX. I think as oil recovers later 2015 that Russia will recover.