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.
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