Investor Jim Rogers became interested in “big privatization” in Russia


American investor Jim Rogers intends to expand its portfolio of Russian assets and is willing to consider the possibility of buying shares in Bashneft and ALROSA, the businessman told Reuters.

“I’m sure that will be a good buy,” said Rogers in a phone interview. He explained that if Bashneft ALROSA and are not under sanctions, it will look to these companies.

Rogers also showed interest in the Russian tourist business. “I’m trying to invest in Russian travel company, I am optimistic about the Russian tourism,” he said, adding that he was going to buy shares of Russian producers.

The investor has also expressed interest in ruble-denominated government bonds. “Two or three weeks ago or a month ago, I bought Russian government bonds… short term. If I had the opportunity, I would have bought even more,” he said, explaining that talking about the rouble-denominated securities, which, according to him, more profitable than Eurobonds.

The businessman has described Russia as a good place for investment that begins to understand more and more people. He noted that Russia is not burdened with such large debts, such as the USA or Portugal. According to Rogers, in the USA and Germany there was no recession, but when it happens, it will be much stronger than in Russia, where it has already occurred.

In the framework of privatization, the sale will be exhibited 50,08% of shares of “Bashneft”, 10,9% ALROSA and 10.9% of VTB. As organizers of transactions Meconematinae selected three Russian financial structure: “Bashneft” will deal with “VTB Capital”, company “Sberbank CIB”, VTB And “the Renaissance the Broker”.

VTB under Western sanctions, and Rogers as an American citizen has no right to invest in this Bank. At the same time, the businessman since 2012 works as a consultant of the company “VTB Capital”, attracting direct investments in Russian agriculture.

According to Thomson Reuters, the yield on Russian government bonds reached last year 40%. Short-term OFZs with maturities of up to three years, according to the Agency, currently traded with a yield of 9.5 — 9.7 per cent and medium-term bonds with maturities of up to seven years have a yield of 9.3 — 9.5%.

In the 1970s, Rogers, along with George Soros established the Quantum Investfond. In Russia he already owns stakes in Aeroflot and the Moscow stock exchange and the manufacturer of fertilizers “FosAgro”. Rogers began investing in Russian debt in April 2015. He refused to disclose to Reuters the size of their ruble-denominated investments.

In late March, Rogers has been ranked among the promising areas for investment in Russia, Kazakhstan, Iran, Nigeria and Colombia. About prospects of the Ukrainian market he put it negatively: “the Ukrainian catastrophe still no end in sight. <…> If you are ready to invest in Ukraine — may be successful in the next 30 years. But I’m not ready. I think, there are much more places where you could invest your money. I’d rather invest money in Kazakhstan in 2016 than in Ukraine”.