Saturday 21 December 2013

Khodorkovsky Pardon Won’t Reverse Putin’s Stock Rout - Bloomberg

Khodorkovsky Pardon Won’t Reverse Putin’s Stock Rout - Bloomberg:

"While Mikhail Khodorkovsky has gained his freedom, he won’t get back the $36 billion oil company that was taken from him and minority shareholders a decade ago. The memory of those losses lingers for investors who pulled $3.5 billion from Russian equity funds this year.

Russia’s benchmark Micex stock index gained less than 1 percent yesterday, after President Vladimir Putin announced the pardon, and just 0.3 percent today following his release. The arrest of the former Yukos Oil Co. owner 10 years ago had sent the Moscow index down as much as 15 percent.

“Anyone changing their perception of Russia on the back of this Khodorkovsky pardon would be naive in the extreme,” said William Browder, the founder of Hermitage Capital Management, who shut his Russia fund in March after being tried in absentia for tax evasion. “The investment climate in Russia has been thoroughly destroyed in the last 10 years,” said Browder, who denies the charges."

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