From the CEO OF EMIS

There is an interesting tension between Russia’s political and business establishment that has been under-reported but that is likely to have a profound effect on the direction of that country’s ailing economy. The tension is between a finance ministry looking to extract more revenue from the country’s dominant industry and the powerful energy lobby which represents a sector already under strain from low prices and sanctions.

The conundrum for Russia is that is needs more income to finance its commitment to a strong military and to fund social services for an increasingly poor population while, at the same time, not risking the long-term prospects of a sector that is responsible for half of government revenues.

The outcome of this particular battle could shape the country’s future for many years. If the Finance Ministry get their way, the economy will be shored up in the short-term, reducing the risk of political instability and allowing President Putin to retain his influence in the wider world. But business investment in the sector would decline as a result, reducing Russia’s market share (and government revenues) in the long-term. If the oil companies resist successfully, the government will have some painful choices to make on expenditure, increasing the risk of internal strife.

The best solution would be for Russia to move away from its over-reliance on the oil sector and to diversify its revenue streams. This is a rebalancing act that requires a strong nerve on the part of policymakers in an increasingly unstable economy.


Best wishes,

Guy Dunn
Chief Executive Officer

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We asked investment professionals which emerging economies and regions are most attractive to them and there was one clear winner – India.Not only did some 77% of respondents say that India was the preferred and most preferred country of the BRICS to invest in, but about 34% of respondents – the highest proportion by some way – said India was the emerging economy that most interested them.

In a move to de-normalise tobacco use in Singapore, changes to a tobacco bill mean all tobacco products, will be banned from being displayed in shops.

Azerbaijan attracted $7.5 billion in foreign direct investments (FDI) last year, local media reported citing figures from the Central Bank of Azerbaijan.

There were no takers on the P123 billion Laguna Lakeshore Project, a 47-kilometer toll road which will run from Taguig in Metro Manila to Laguna.

According to information published by Valor Economico International, WEG, headquartered in Jaraguá do Sul, Brazil, announced the acquisition of Bluffton Motor Works.

The 2016/17 sugarcane cycle in the South Central region of Brazil, which remains the most productive area in the country is expected to start officially on Friday.

Digicel will invest $389 million in Barbados, Trinidad and Tobago to set fiber-to-the-home infrastructure and launch pay-TV and fixed broadband services.

Russia will provide some 100 sappers together with dog handlers to help the mine clearing of the ancient Syrian city Palmyra, newswire ITAR-TASS reported.

The outgoing managing director of carmaker Dacia, Nicolas Maure, urged Romania to improve its road infrastructure to create a strong local auto market.

Latvia’s agro sector seeks a EUR 21 mn financial support from the government this year. Another EUR 32 mn will be required next one.

US-based electric power generation company Endeavor Energy is looking for a funding of a US$ 900 mn gas-fired power project in Ivory Coast.

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According to Nigeria’s Association of Electricity Distributors (ANED), the country needs US$ 40 bn in order to meet the target of 20,000 MW of electric power generation by 2020.

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Dubai-based shopping mall operator reported a 29% increase of net profit over the last year. The company posted net profit of AED 3.3 bn (US$ 898 mn) as of end-2015.

EMIS operates in and reports on countries where high reward goes hand-in-hand with high risk. We bring you time-sensitive, hard-to-get, relevant news, research and analytical data, peer comparisons and more for over 120 emerging markets.

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