I have followed some Russian energy companies and one steel company for some time and have been impressed by the investment and effort they are giving to modernize.
Gazprom (OGZPY.PK $61), Lukoil (LUKOY.PK $104) and Mechel (MTL $155) are no longer cheap.
Two that still have low share prices and may be worth a study are (1) Gazprom Neft ( GZPFY.PK $32) which is said to be the planned oil equivalent to Gazprom. (2) Rosneftegazstroy, also called RNGS, (RNGZY.PK Around 60 cents.) a construction company for pipelines, gas processing plants, and tank farms + some realestate construction. This company was earlier "The Ministry for Oil and Gas Construction". The interesting details are that RNGS ownes 75% of Rosneft shares and 10.74% of Gazprom shares. Gazprom owns "less than 50%" of RNGS and RNGS does rural NG pipeline construction for Gazprom. With thousands of km of Russian NG pipeline needing replacing, there should be work enough for RNGS: Share details and profitability details are misteries. Just remember, past failures are no guarentee of future successes !!! Hugh
Hugh, how do you get past the fact that you don't a free market in Russia. Read a piece over the weekend about the corruption in Russian companies and in the end Putin or whoever could do whatever they please with your investment. Hare
Hare, I know people who have done business for years with the Russians and their view is that the top Russian companies are, in general, more honest than the average US company. An American friend accepted a job in Moscow. He just returned from Moscow where he stayed with an old close friend of his who has lived and worked there for two years. His friend told him, ignore what the US controlled media says about Russia, it is mostly untrue BS.
Anyway, my gain on my longer term Russian companies has been +172%, +203%, and +501% and on the one shorter term company, +21%. I have owned one less than two days, so I don´t know if it has gained or lost. I have two other state controlled companies, Petrobras +261% and Statoil +133%.
The only irritation I have had was that a Russian chrome miner that I had great hopes for was just bought cheaply by Mechel after the share value crashed. (+ 50% instead of my hoped for ten bagger.) No chrome---no stainless steel. Hugh