Nemstov assassination: Last week’s killing of Russian opposition leader Boris Nemtsov outside the walls of the Kremlin will further worsen Russia’s battered investment climate and is bound create more uncertainty in a market already suffering from Western sanctions and an economic recession, businessmen and investors are predicting. “We are already in a period of great uncertainty and this just creates more uncertainty,” said Martin Graham, chairman of financial advisory firm Oracle Capital Group. “Uncertainty kills investment.”
Although the rouble immediately dropped by 0 .48% to trade at RUB62.2 against the U.S. dollar on news of the murder, there has so far been a generally muted market reaction to the murder and the subsequent 50,000-strong demonstration on Moscow’s streets. However, may people are now expressing the fear that political violence could be on the rise, bringing with it the possibility of destablization and social unrest.
“Any reasonable risk manager has to now ask himself whether the stability personified by one man is an illusion or not,” said Bernie Sucher, a member of the board of directors at Aton brokerage and an investor in Russia for more than 20 years
Nemstov assassination deals further blow to Russian investment climate
Assassinated Opposition leader Boris Nemtsov
Source: The Moscow Times