Russia needs to properly adapt to the current situation and to get off the “oil needle”, says the Chairman of the group, responsible for emerging markets, mark Mobius.
MOSCOW, 14 Jan. The fall in world oil prices could eventually result in Russia a real success, despite the negative impact on the economy at the moment, said in an interview with Bloomberg, the Chairman of the group, responsible for emerging markets in a global investment firm Franklin Templeton Investments mark Mobius (Mark Mobius).
This forecast is realized, if the country will be able to properly adapt to the current situation and to get off the “oil needle”. “There is a silver lining. The situation can be a boon for Russia if the country can diversify the economy so that the income ceased to be so dependent on the oil market,” said Mobius.
Mobius believes that in almost every sector of the Russian market has considerable potential, but Russian stocks are undervalued. And the main factor of growth of stock market of Russia, the expert believes support from foreign investors, which had declined significantly in connection with the anti-Russian sanctions.
“As the sanctions persist, the Outlook for the Russian stock market may not be positive,” he said.
According to Mobius, attracting foreign money for investment in non-oil sector of the Russian economy can become a key factor of diversification, as low cost of hydrocarbons reduces the investment capacity of the state: while oil prices are at such a level, the Russian budget will be in bad condition that will deter any stimulus measures that the government might want to apply.