Jpmorgan Russian Securit... Share Discussion Threads

[galeforce1] 15/12/2016 17:17

logan

JPB is just too small to be investable, IMO. Under £50m. BRLA is the one to go for in that space, I think.

Tracking the discount on Investment trusts is vital. Over 15% and they are almost always investable.

[loganair] 15/12/2016 16:49

Carter Page, a businessman who advised Donald Trump on foreign policy matters during his presidential campaign, has arrived in Moscow to discuss strengthening business ties and normalizing relations between Russia and the United States.

Page said he would meet with “business leaders.”

Page said he believes it is extremely important to address the narratives that led to the sanctions stemming from the Ukraine crisis, and normalize relations between Russia and the West. “It is my firm belief that the opportunities for private sector cooperation in the Russian economy have never been as great as they will be in the coming years."

Page also said he was keen for the Russian market to reopen for American investors who had been stopped from doing business by sanctions.

“US and European companies are very interested in returning to the Russian market,” he said. “Their interest cuts across a vast array of sectors.”

[loganair] 15/12/2016 16:49

Carter Page, a businessman who advised Donald Trump on foreign policy matters during his presidential campaign, has arrived in Moscow to discuss strengthening business ties and normalizing relations between Russia and the United States.

Page said he would meet with “business leaders.”

Page said he believes it is extremely important to address the narratives that led to the sanctions stemming from the Ukraine crisis, and normalize relations between Russia and the West. “It is my firm belief that the opportunities for private sector cooperation in the Russian economy have never been as great as they will be in the coming years."

Page also said he was keen for the Russian market to reopen for American investors who had been stopped from doing business by sanctions.

“US and European companies are very interested in returning to the Russian market,” he said. “Their interest cuts across a vast array of sectors.”

[loganair] 15/12/2016 16:45

gale - I wouldn´t worry too much about the discount to Nav as JP Morgan´s Asian, Brazil, China, Global Emerging Markets and India Trust are all running at similar discount to Nav´s.

Currently I invest via Morgan´s monthly investment plan and 2 1/2 years ago I said to myself once JRS reached 500p and JPB (JP Morgan Brazil) reached 70p I would look at another of JP Morgan´s Investment Trusts to invest in.

Here´s the thing, at the moment other then JPB I can see of no other JP Morgan trust to invest in while I still see tremendous value left in continuing to invest in JRS.

When it comes to investing in Russia and Brazil I was lucky to be in the right place at the right time Russia - the collapse in the price of oil and sanctions, Brazil - their worst recession for 100 years.

[galeforce1] 14/12/2016 11:35

Just look at that NAV! 597 ex income, against a share price to buy of 502.

[its the oxman] 09/12/2016 22:14

Still hold. See further upside. Long term hold.

[galeforce1] 09/12/2016 15:55

The discount to NAV seems to have increased a bit.

NAV ex-income now at 566.

Share price (mid) around 474.

So a discount of over 16%

I think this could carry on up. As long as the oil price holds.

[luckymouse] 09/12/2016 15:35

The evening stars, divergence, chaikin money flow are all screaming top here
BUT - it still looks punchy on natgas and trump effect - 480/500 will decide if its a top conf or a push through

[quepassa] 09/12/2016 11:26

An interesting development.

Thanks.

QP

[loganair] 09/12/2016 11:14

The sale of 19.5% of Russia’s largest oil company Rosneft's (JRS 4th Largest Investment) share package to the natural resource trader Glencore International and a Qatari sovereign wealth fund for over $11 billion has become the biggest privatization deal of 2016.

Sechin informed Putin about the closing of the share package sale and said that the Russian state budget will receive more than a trillion rubles ($17.5 billion) from this deal, and the acquisition of the Russian Bashneft oil company by Rosneft in October.

Under the deal signed with Glencore and the Qatari fund, the natural resources trader and the fund acquired 19.5 percent of the oil company’s shares for €10.5 billion ($11.3 billion). The two buyers formed a joint consortium, in which both of them hold a 50 percent stake, to buy the Rosneft share package. As a result, both of them got 9.75 percent of Rosneft shares each.

Together, they hold the third largest stake of Rosneft shares as more than 50 percent still belong to the company’s largest shareholder – the state-owned oil transportation agency Rosneftegaz, while another 19.75 percent is owned by BP.

Rosneft is Russia’s biggest oil company with the majority owned by the Russian government. In March 2013, after buying TNK-BP, Rosneft became the world’s largest publicly traded oil company. It also purchased 50.755 percent of the shares in the Bashneft oil company, one of the largest Russian crude oil producers, on October 14.

[loganair] 07/12/2016 11:37

Best free things to do in St Petersburg:

It’s well known that St Petersburg isn’t a cheap destination, and most of its entertainment comes with a price tag. But there are still many attractions you can enjoy for free. From St Petersburg’s elegant parks and sprawling flea markets to stunning Orthodox cathedrals and cutting-edge art galleries, there’s something for every penny-pinching traveller. Here’s our pick of the best free things to do in Russia’s imperial capital.

Make use of free-admission days:

Some of St Petersburg’s top museums organise free-entrance days. For the State Hermitage Museum it’s the first Thursday of the month, and for the Kunstkamera the third Thursday each month. Other museums are admission-free throughout the year, for example the Vladimir Nabokov Museum or the Sigmund Freud Museum of Dreams. In many Orthodox cathedrals you also don’t have to pay an entrance fee. While the church architecture is stunning enough from the outside, just wait until you enter – the icon art is breathtaking.

Stroll around Alexander Nevsky Monastery:

The Alexander Nevsky Monastery is the most important Orthodox monastery in St Petersburg; its Church of the Annunciation was the first resting place for the tsarist family. The monastery is magnificent both inside and outside, but for many visitors the major attractions are its four historic cemeteries (which charge a small fee) – this is where you’ll find the graves of Dostoevsky, Tchaikovsky, Roerich and many other great names of Russian culture.

earn about modern Russian art:

You don’t have to spend a fortune on tickets to see modern art in St Petersburg. Some of the city’s most progressive art galleries – Anna Nova (annanova-gallery.ru), Marina Gisich (gisich.com), Art Re.Flex, KGallery (kgallery.ru), Bulthaup (design-gallery.ru) and Name Gallery (namegallery.ru) – don’t charge admission, giving visitors access to enough paintings, sculptures and installations to fill an entire day. On the opening nights you’ll be treated with a glass of champagne and some appetizers; check the websites for dates of new exhibitions.

Visit a flea market:

The biggest flea market in St Petersburg, located in the north of the city, is a place you’ll be telling your friends about for a very long time. ‘Udelka’, as the locals call it (because of its location near the Udelnaya metro station), is an extremely atmospheric place that offers a huge variety of artefacts such as antique icons, hand-painted samovars and, of course, the busts of Lenin. It’s open every weekend.

Explore the underground:

The St Petersburg metro (metro.spb.ru) is one of the most attractive and ornate underground systems in the world – not to mention the deepest. Each station has stunning architecture and its own history. The most beautiful stations are Avtovo, Zvenigorodskaya, Narvskaya, Baltiyskaya and Kirovskiy Zavod, so make sure you break up your journey to admire them. The metro is not only a very impressive place but also the most popular way to travel around the city – it’s cheap, fast and efficient – and no matter how far you need to go, you’ll pay the same fare.

Relax in parks and gardens:

If you love the green spaces, don’t miss St Petersburg’s parks and gardens. There are plenty to satisfy any taste: the small, hidden Yusupov Gardens, the royal Mikhailovsky Gardens, the calm Tavrichesky Gardens, or the famous Summer Garden with its marble sculptures. The recently reopened New Holland Island in the city centre is St Petersburg’s latest cultural hub and a haven for artists, writers, professionals and tourists alike.

Take a free tour:

Every day at 10:45am, St Petersburg Free Tour (petersburgfreetour.com) offers a 2.5-hour walking tour through the centre of the city, departing from the Alexander Column on Palace Square. The walk covers all the essential sights, and the guides are very passionate and enthusiastic. While the tours are absolutely free, they’re also quite popular so don’t forget to book beforehand.

[loganair] 07/12/2016 11:02

Sanctions against Russia, many European countries reporting they wish to be less reliant on energy, especially gas from Russia.....

On November 25, Gazprom set a new record of daily exports to Europe - 601.2 million cubic meters of gas.

According to Gazprom, from January through October the company pumped 10 percent more gas than in the same period last year.

"Exports to the European market has been steadily growing this year. You know the current record of 160 billion cubic meters of gas was set last year. In the eleven months in 2016, Gazprom has exported more than 160 billion cubic meters. In December, the company can deliver at least 10 billion cubic meters and gas exports will exceed 170 billion cubic meters. This is an absolute record," said the president of the Russian gas society Pavel Zavalny.

Company CEO Aleksey Miller said Europeans still prefer traditional gas exports and Russia’s Nord Stream pipeline to Europe saw a load increase despite limitations from regulators.

[loganair] 07/12/2016 10:47

EBITDA grew by 11% yoy in dollar. Yesterday Tatneft (JRS 10th Largest Investment) has published statements for Q3. 2016 in accordance with IFRS. Revenue, net of taxes and excises, increased by 10% year on year to 147 billion rubles. (2.28 billion US dollars.) And almost unchanged quarter-on-quarter, exceeding market expectations by 5%. EBITDA increased by 14% year on year to 39 billion rubles. (US $ 0.61 billion.), The EBITDA margin increased by 1.1 percentage points year-to-year and fell by 4.2 percentage points qoq to 26.6%. Net profit increased by 15% quarter-on-quarter and decreased by 14% year on year to 27 billion rubles. (0.41 billion dollars), Which is 2% below market estimate.

[loganair] 02/12/2016 10:53

Activity in Russia's manufacturing sector in November expanded at the fastest pace in more than five-and-a-half years boosted by sharper growth in production and new orders, according to a Markit Economics survey.

The seasonally adjusted Purchasing Managers' Index (PMI) climbed to 53.6 in November from 52.4 in October.

“Russia’s manufacturing sector is moving from strength to strength as we approach the end of 2016,” said Samuel Agass, an economist at HIS Markit, commenting on the data.

“The latest figure continued a four-month sequence of growth and indicated a solid overall improvement in the health of Russia’s manufacturing industry,” the report read. The analysts link the increase to stronger demand for Russian goods that is potentially showing up in solid production increases.

“Firms are also experiencing sufficiently low-cost pressures to allow them to solidly raise their buying activity in an effort to sustain this expansion.”

“November̵7;s solid upturn makes for a stark contrast from the beginning of the year, when firms were struggling to contend with waning demand and steeper cost inflation. Now, moving into December, the sector is on course to enjoy its strongest quarter for almost six years,” Mr. Agass commented.

[loganair] 02/12/2016 10:45

Russia aims to return economic growth to no less than 3 percent which will allow the Russian economy to grow at a faster rate than the world average by 2020, Finance Minister Anton Siluanov said on Thursday. Speaking after President Vladimir Putin’s annual state of the nation address, Siluanov said that both the tax system and the budget will be designed to boost economic growth.

[galeforce1] 26/11/2016 17:59

It's interesting to read in The Times today that Francois Fillon, who will probably be the next French President, has a good relationship with Putin.

That has to help in the normalising of the political and economic relationship between the EU and Russia.

[loganair] 25/11/2016 10:41

Russia's Central Bank chief Elvira Nabiullina - Russia should aim for reducing inflation to 4 percent, but no lower, Russia's Central Bank chief, Elvira Nabiullina, said in an interview with Forbes.

Nabiullina's target inflation rate is higher than the 2 percent rate common in most developed countries, but decreasing inflation any further could cause new problems, she believes.

"Mass deflation is dangerous," she said. "It decreases the stimulus for investment. In order to avoid this, the inflation level should be around 4 percent." Inflation above 4 percent will also halt investment, she added.

The Central Bank's goal should now be ensuring stable, low inflation and, as a result, stable and low interest rates on loans. These factors are more important than the ruble exchange rate, Nabiullina said.

Russia's annualized inflation for 2016 stands at 6.09 percent. The Central Bank aims to reach its 4 percent target in 2017.

[loganair] 25/11/2016 10:32

Bloomberg - Western investors warm to Russia’s shriveled economy:

Retailers and manufacturers targeting Russia’s battered middle class figure its economy is bound to emerge from the deep freeze of the past two years.

Even before the U.S. presidential election raised hopes of warmer ties with the Kremlin, some big Western companies were betting Russia’s economy will soon come out of the deep freeze.

A number of large Western corporations are increasing investment in Russia, with the country’s economy recovering from its deep decline, according to Bloomberg.

Big global retailers like Sweden’s Ikea Group and France’s Leroy Merlin have begun pumping billions of dollars in new stores and factories, counting on Russia’s consumers to start emerging from hibernation after two years of recession.

Leroy Merlin will reportedly spend €2 billion to double the number of outlets in Russia, while American food corporation Mars has already expanded to produce chewing gum and pet food locally.

IKEA reportedly intends to invest $1.6 billion into new stores over the next five years. Earlier this year, the Swedish retailer opened a $60 million factory in the city of Nizhny Novgorod and acquired land for a third Mega mall near the city. “I strongly believe in the potential of the Russian market long-term.”

“This is the moment for investment, I strongly believe in the potential of the Russian market long-term,” said the general director of IKEA Russia, as quoted by Bloomberg.

The inflow of foreign investment into the country slowed two years ago after a series of anti-Russia sanctions introduced by Western nations over the conflict in Ukraine.

“The last two or three years have been a disaster. Now, the situation is changing as the ruble exchange rate has stabilized and the Russian economy is forecast to return to growth soon,” said Frank Schauff, head of the Association of European Businesses in Moscow.

For many of those who stayed, now is the time to reopen their wallets to get a jump on rivals.

“The last 2-3 years have been a disaster,” said Frank Schauff, head of the Association of European Businesses in Moscow. “Now, the situation is changing as the ruble exchange rate has stabilized and the Russian economy is forecast to return to growth soon.”

Foreign direct investment rose to $8.3 billion in the first nine months this year against the $5.9 billion invested in all of 2015, according to data compiled by the Central Bank of Russia. However, the figure is still below the level seen before the Ukraine crisis.

Tepid forecast:

The government expects only a tepid recovery with growth of 0.8 percent next year. The middle class — the target market for most big foreign investors — has shrunk by 14 million people over the past two years, according to Sberbank CIB, a local investment bank.

Alexis Rodzianko, president of the American Chamber of Commerce in Russia, said geopolitical tensions have been a big deterrent for potential foreign investors.

The election of Donald Trump, who praised President Vladimir Putin and questioned the sanctions during the campaign, could change that. “Trump has a more open mind regarding the U.S.-Russia relationship,” Rodzianko said. “It’s clear there is room for improvement and that in itself is hopeful.”

For those companies not put off by the chilly political winds, adapting to the plunge in the ruble’s value — it’s down about 50 percent since the crisis began in early 2014 — and the drop in Russians’ incomes has required some ingenuity.

Kitchenware:

Ikea is selling fewer big-ticket items like kitchens and more pots and gadgets for Russians who increasingly cook at home because they can’t afford to go out.

At the malls it owns, managers note the “lipstick effect’’ — makeup and lingerie stores are thriving as consumers treat themselves to lower-cost luxuries, while those that sell more costly clothes and shoes have seen sales plunge.

Ikea and the other big foreign players say their sales have actually gone up in ruble terms over the last two years. Overall, retail sales in Russia are down 5.3 percent this year, having dropped 10 percent in 2015.

“We are seeing signs of improvement,” PepsiCo Chief Executive Indra Nooyi said in September.

Even after the plunge in the ruble, Russia remains PepsiCo’s s third-biggest market after the U.S. and Mexico.

The company expanded cheese output after the Kremlin cleared the market by banning most imports. This month, it announced plans for a new $40 million baby-food plant in southern Russia.

Ford Motor said this month it sees signs of a rebound in car sales, which had been hit especially hard by the recession.

French do-it-yourself retailer Leroy Merlin says its same-store sales are up 5 percent in ruble terms as Russians turn to its low-cost products.

“We are taking a long-term approach, economic growth is set to return, and we are already seeing some improvement,” said country head Vincent Gentil.

Foreign companies are also increasing local production to capitalize on the ruble’s drop.

Ikea aims to bring the share of Russian-produced goods to 80 percent in the next few years and is already exporting Russian-made folding beds to China and linen curtains and wood furniture to Europe.

Red-tape headaches:

Of course, the legendary local bureaucracy remains a problem for many investors. Although Russia has moved up in international rankings for ease of doing business, big foreign players often seem to be targeted.

Wracked by conflicts with local authorities and corruption scandals, Ikea has threatened at least twice since it came to Russia to suspend all investments. Last month, it faced a criminal probe on a 5-year-old tax claim the company said it paid in full.

The company is also fighting lawsuits relating to deals that date back to the 1990s.

“It slows us down and distracts us when these old cases come back that we’ve already resolved and paid for,” said Milen Gentchev, who heads Ikea’s shopping-center unit in Russia.

“But that doesn’t influence our confidence that Russia is a market we should be in.”

[loganair] 25/11/2016 10:31

Bloomberg - Western investors warm to Russia’s shriveled economy:

Retailers and manufacturers targeting Russia’s battered middle class figure its economy is bound to emerge from the deep freeze of the past two years.

Even before the U.S. presidential election raised hopes of warmer ties with the Kremlin, some big Western companies were betting Russia’s economy will soon come out of the deep freeze.

A number of large Western corporations are increasing investment in Russia, with the country’s economy recovering from its deep decline, according to Bloomberg.

Big global retailers like Sweden’s Ikea Group and France’s Leroy Merlin have begun pumping billions of dollars in new stores and factories, counting on Russia’s consumers to start emerging from hibernation after two years of recession.

Leroy Merlin will reportedly spend €2 billion to double the number of outlets in Russia, while American food corporation Mars has already expanded to produce chewing gum and pet food locally.

IKEA reportedly intends to invest $1.6 billion into new stores over the next five years. Earlier this year, the Swedish retailer opened a $60 million factory in the city of Nizhny Novgorod and acquired land for a third Mega mall near the city. “I strongly believe in the potential of the Russian market long-term.”

“This is the moment for investment, I strongly believe in the potential of the Russian market long-term,” said the general director of IKEA Russia, as quoted by Bloomberg.

The inflow of foreign investment into the country slowed two years ago after a series of anti-Russia sanctions introduced by Western nations over the conflict in Ukraine.

“The last two or three years have been a disaster. Now, the situation is changing as the ruble exchange rate has stabilized and the Russian economy is forecast to return to growth soon,” said Frank Schauff, head of the Association of European Businesses in Moscow.

For many of those who stayed, now is the time to reopen their wallets to get a jump on rivals.

“The last 2-3 years have been a disaster,” said Frank Schauff, head of the Association of European Businesses in Moscow. “Now, the situation is changing as the ruble exchange rate has stabilized and the Russian economy is forecast to return to growth soon.”

Foreign direct investment rose to $8.3 billion in the first nine months this year against the $5.9 billion invested in all of 2015, according to data compiled by the Central Bank of Russia. However, the figure is still below the level seen before the Ukraine crisis.

Tepid forecast:

The government expects only a tepid recovery with growth of 0.8 percent next year. The middle class — the target market for most big foreign investors — has shrunk by 14 million people over the past two years, according to Sberbank CIB, a local investment bank.

Alexis Rodzianko, president of the American Chamber of Commerce in Russia, said geopolitical tensions have been a big deterrent for potential foreign investors.

The election of Donald Trump, who praised President Vladimir Putin and questioned the sanctions during the campaign, could change that. “Trump has a more open mind regarding the U.S.-Russia relationship,” Rodzianko said. “It’s clear there is room for improvement and that in itself is hopeful.”

For those companies not put off by the chilly political winds, adapting to the plunge in the ruble’s value — it’s down about 50 percent since the crisis began in early 2014 — and the drop in Russians’ incomes has required some ingenuity.

Kitchenware:

Ikea is selling fewer big-ticket items like kitchens and more pots and gadgets for Russians who increasingly cook at home because they can’t afford to go out.

At the malls it owns, managers note the “lipstick effect’’ — makeup and lingerie stores are thriving as consumers treat themselves to lower-cost luxuries, while those that sell more costly clothes and shoes have seen sales plunge.

Ikea and the other big foreign players say their sales have actually gone up in ruble terms over the last two years. Overall, retail sales in Russia are down 5.3 percent this year, having dropped 10 percent in 2015.

“We are seeing signs of improvement,” PepsiCo Chief Executive Indra Nooyi said in September.

Even after the plunge in the ruble, Russia remains PepsiCo’s s third-biggest market after the U.S. and Mexico.

The company expanded cheese output after the Kremlin cleared the market by banning most imports. This month, it announced plans for a new $40 million baby-food plant in southern Russia.

Ford Motor said this month it sees signs of a rebound in car sales, which had been hit especially hard by the recession.

French do-it-yourself retailer Leroy Merlin says its same-store sales are up 5 percent in ruble terms as Russians turn to its low-cost products.

“We are taking a long-term approach, economic growth is set to return, and we are already seeing some improvement,” said country head Vincent Gentil.

Foreign companies are also increasing local production to capitalize on the ruble’s drop.

Ikea aims to bring the share of Russian-produced goods to 80 percent in the next few years and is already exporting Russian-made folding beds to China and linen curtains and wood furniture to Europe.

Red-tape headaches:

Of course, the legendary local bureaucracy remains a problem for many investors. Although Russia has moved up in international rankings for ease of doing business, big foreign players often seem to be targeted.

Wracked by conflicts with local authorities and corruption scandals, Ikea has threatened at least twice since it came to Russia to suspend all investments. Last month, it faced a criminal probe on a 5-year-old tax claim the company said it paid in full.

The company is also fighting lawsuits relating to deals that date back to the 1990s.

“It slows us down and distracts us when these old cases come back that we’ve already resolved and paid for,” said Milen Gentchev, who heads Ikea’s shopping-center unit in Russia.

“But that doesn’t influence our confidence that Russia is a market we should be in.”

[loganair] 25/11/2016 10:17

Putin "Buys The Dip" - Russia's Gold Buying In October Largest This Millenium by Tyler Durden:

Russia gold buying accelerated in October with the Russian central bank buying a very large 48 metric tonnes or 1.3 million ounces of gold bullion. Russia now now has an official 50.9 million ounces (1583.167 tonnes) in total gold reserves.

This is the largest addition of gold to the Russian monetary reserves since 1998 and could be seen as a parting 'gift' by Putin to his rival ex-President Obama.

Commerzbank went with the simple explanation - “Clearly the central bank was taking advantage of the stronger ruble – which has made gold cheaper in local currency – to buy more gold.”

However, the Russian Central Bank has quietly been buying huge volumes of gold over the last 10 years. This diversification into gold accelerated since the financial crisis and since relations with the U.S. deteriorated in recent years. Russia bought gold systematically both when the ruble was strong and when it was weak.

In 2015, Russia added a record 208 tons of gold to her reserves compared with 172 tons for 2014.

Total gold mining production globally is around 3,200 metric tonnes per year. Thus, Russia's purchase of 48 metric tonnes is around 1.5% of total annual global gold production. This is a very large amount for one country to buy in just one month.

The Russian central bank is buying all of Russian gold production currently at about 26 metric tonnes per month and sometimes buying gold on the international market.

If Russia is doing this not to weaken an aggressive US presidency, then we would guess that their reasoning in purchasing so much gold so fast is to hedge/replace their bond holdings. It would be a logical move as bond yields rising lower the value of existing bond-holdings - and Russia holds a lot of bonds. With the massive rise in bond yields in November, we would expect Russia to purchase even MORE gold in November.

if we continue to see this large buying from Russia moving forward, then this was about putting central bank assets into gold as an alternative to bonds and to avoid some of the bloodbath that bond investors are seeing right now as yields are rising. If that is the case, then this event is extremely positive for gold, the gold ETFs, and gold miners as a buyer buying 48 tonnes per month of gold would soak a little over 500 tonnes per year or almost 20% of all newly mined gold. From one buyer…

This could also signal buying from other central banks as Russia is a large enough central bank to warrant other central banks following in their footsteps. Additionally, the move is quite logical as it does protect against rising bond yields and provides an asset that protects against inflation.

We wish we had a crystal ball to see into next month's report but unfortunately we do not. One thing is for certain, next month's report of Russian gold holdings will be extremely important and we advise gold investors to pay particularly close attention to it.

Russia is an increasingly wealthy nation with thousands of millionaires and hundreds of billionaires including mega rich oligarchs. It seems likely that some of these Russian investors are also diversifying into gold. Clearly, Russia puts great strategic importance on its gold reserves. Both Prime Minister Medvedev and President Putin have been photographed on numerous occasions holding gold bars and coins. The Russian central bank declared in May 2015 that Russia views gold bullion as “100% guarantee from legal and political risks.”

[r ball] 18/11/2016 20:53

Jam attractive too.

[loganair] 18/11/2016 09:32

The currency crisis and a drop in real wages make Russia attractive for foreign manufacturers searching for cheaper labor costs. Besides providing jobs, this could make the country a regional production hub in the near future.

The Russian currency lost about 40 percent against the US dollar in the past two years following the collapse in global crude prices, leaving the ruble about 30 percent below its peak in June 2013.

Last year, Russian salaries in dollar terms slid below wages in Brazil, China and members of the former Eastern bloc such as the Czech Republic, according to the Moscow-based Higher School of Economics.

That makes Russia a broadly competitive platform for new plants and factories. For example, South Korea's Samsung has begun exporting Russian-made washing machines to 20 European countries. The Wrigley subsidiary of US confectioner Mars has started producing Juicy Fruit chewing gum at a facility in St. Petersburg.

In the last ten months, industrial output has risen 0.3 percent, which appears to show a turnaround in the country's declining factory production, according to new data. The Economy Ministry expects an annual increase of 0.4 percent after a contraction of 3.4 percent last year.

“This is a strong statement that we can do something really competitive from Russia. Russian suppliers are competitive today mainly because of the currency situation. I don’t think this is temporary,” said Magnus Benon, head of purchasing operations in Russia for IKEA, the world’s largest furniture retailer, as quoted by Bloomberg.

[loganair] 09/11/2016 10:53

What will a Trump win do for Russia as he has vowed to forge a closer relationship with Russian President Vladimir Putin, whom he has praised as a strong leader.