Analysts say foreign investors, who’ve pumped $US 50 BLN into Russia’s economy this year alone, shouldn’t be worried ahead of Sunday’s election.
The 2007 vote is seen as a validation of Putin’s policies which have supported foreign investment. The head of Volkswagen in Russia, Friedrich Lenz, which invested $US 700 MLN in an assembly plant has no doubt. “I have no concerns over elections as there won’t be any modifications. The stability of the economic situation and democratic situation is ongoing and we don’t expect any modification,” Friedrich Lenz notes. For international business Putin is seen as a guarantor of stability and continuity in economic policy. However, some experts say investors will pay close attention to voter turnout. A turnout of 60 percent or more will send a positive signal. Such a turnout would rebuild the confidence of a market that’s been battered by the global credit crisis. A 70 percent turnout would probably cause stocks to rally on Monday.