Thread: Economic Sanctions against Russia and Russia’s Retaliatory Trade Measures

Originally Posted by Serge_spb

I wonder if Hanna or anyone else here are able to see the connection between:

1. "System" shares growing from 6 to 14 roubles (!) in one day, 18 December
(check АФК Система, акция обыкновенная. , section "График архивных значений..."

.... and this

2. http://www.ft.com/cms/s/0/6b5cd064-8...44feabdc0.html

(Russian investigators release billionaire Vladimir Yevtushenkov - December 17, 2014 7:54 pm)

Russian economy is like: Putin said smth, shares go up, Putin said smth else - shares go down. Anyone notable got arrested
(ordinary thing for Russia - google Yukos history) - shares plunge immideately.

In a long term perspective that is extremely risky choice. Since "АФК Система" contatains "Rosneft" oil company.
And you can`t predict if oil prices will go up. I believe, they won`t. Even in 1-2 years.

Same with Gazprom.

P.S. You can keep "Magnit", though. That`s a great company. (Food retail: stable and fast growing)

I had no idea about that guy, but that 150% growth in a day did seem extremely strange to me. Even if there was no sanctions/oil/currency rates background, such growth alone would look pretty suspicious, and I would probably refrain from becoming a shareholder of such a company. It's an indicator of something serious going on in its internals. I think you're right about this - there's no correlation between that temp growth and the value of its shares in a long term perspective.

Btw, isn't that dude on the pic the ruler of a country where $1 is traded for more than 10,000 in their local currency?

Originally Posted by Eric C.

I had no idea about that guy, but that 150% growth in a day did seem extremely strange to me. Even if there was no sanctions/oil/currency rates background, such growth alone would look pretty suspicious, and I would probably refrain from becoming a shareholder of such a company. It's an indicator of something serious going on in its internals.

Exactly.

Originally Posted by Hanna

Sistema is a telecoms & IT company.

No offends, but you should read first what do other post here. Not only write down your beliefs. It`s always kinda weird when someone not enough competent is trying to tell me what is going on in my own country.

АФК Система recently lost its large part - the oil company called Bashneft (I`ve made a mistake in earlier post, mixing its name). Which was purchased by Sistema in 2009. And got nothing in return. Welcome to Russia. That`s a real act of nationalization. It`s CEO finally got released (normal scheme for Russia: arrest for nothing->make him scared->take his company with no objections...) «Башнефть» перешла в собственность государства :: Бизнес ::

Yes, they still have got another notable active - MTS, the mobile operator. But don`t think that government or anyone else gives a sht about its future. Sistemas shares fell significantly since Evtushenkoves arrest and I doubt that without oil incomes they will ever recover. АФК Система, акция обыкновенная. [/url] (check them in 3 years perspective - График архивных значений.... on АФК Система, акция обыкновенная. ). MTS is not the only major operator, btw, others are Megafon, Beeline and Tele2. If MTS will disappear one day - no one will suffer much.

And concerning communists - a complete laughter. Obviously you don`t understand the Russian reality. Because they will never win any elections. Simply because we don`t have any elections. And, moreover, there are few real communists in Russia these days. That`s a fake party. The real risk of turning to mass nationalisations and plain economy ended with 1993 political crisis. They won`t have any chance to rule the country in old-faschoned manner. So funny, that many europeans don`t get that. Russians would better support Putin than those clowns.

There is no way that any US sanctions can hold Russia down in a longer perspective!

The country is falling into big big trouble fast. Since you still do not see the real problems of russians economy - I feel sorrow for you. I wrote enough in my neighbour thread. Sanctions are nothing but a catalyzer. There even was no need for USA to try hard (just like in 1991).