Russian volatility scaring off foreign investment

By Joe Vladeck 

Russia's economy is stagnating, and domestic turbulence is not helping. 

The CEO of Uralkali, the world's largest potash company, is under house arrest in Belarus, even as the company is up for sale. Stocks in Tinkoff Credit Systems, a charge card company, modeled after Capital One, fell by 40 percent in a single day on rumors that its business model would be outlawed by the Russian parliament. And the Russian central bank just shut down a large retail bank, Master Bank, which counts among its board members a follower of Nicholas Roerich, a mystical guru and painter influential in early 20th-century Russia. 

These and other revelations are hurting Russian companies seeking to raise much-needed equity. Trading volumes are decreasing as foreign investors look elsewhere, increasing the volatility -- and the risk -- in a cycle that looks hard to break. Euromoney has the report.

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