Putin Considering Nationalizing Businesses

Russia is on a path to greater nationalization of private business, and the country has become a “value trap,” Hermitage Capital Management CEO William Browder told CNBC on Tuesday.

As a result, there is little value to be found in the country for investors, the outspoken critic of President Vladimir Putin said in a CNBC “Squawk Box” interview.

“It’s a value trap right now. Low price-to-earnings ratio only helps you if you get those earnings in the end,” Browder said. “None of that money is going to come to you. You’re either going to lose it from capital controls, from expropriation, or from fraud.”

Russia is facing its worst currency crisis since 1998, and manufacturing has fallen to the lowest level in 5½ years.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza