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3 Mar, 2008 06:09

Medvedev will cause investment surge: analysts

With Dmitry Medvedev’s win in the presidential election investors have got what they crave – stability and a clear direction. Analysts are now predicting an investment surge in Russia.

“Our international investors and stock markets will have a positive reaction to the news. For them this is good, because Russia will continue on the same course of economic reforms which it has followed in the last eight years,” said Kostin

Putin's presidency co-incided with massive economic growth. Business has flourished and average wages have soared.

Medvedev’s election and his closeness to Putin, who’ll become prime minister, is re-assuring for business.

But, despite the views of some western commentators, Medvedev will set his own course. He’s already identified the need to diversify the economy away from oil and gas.

“Over the next four years, we should focus on the four main directions, the so-called ”four i’s« – institutes, infrastructure, innovation and investment,» Dmitry Medvedev stressed.

For the moment though, Russia's growth remains dependent on oil, which for the time being is okay. Prices continue to soar, as the credit squeeze wreaks havoc on financial markets. And metals prices are also on the rise, which again is good for Russia.

Analysts say Medvedev’s election will be the catalyst for an investment surge in Russia.

“It all comes together for the Russian investment case. People really want to invest in Russian stocks. What I think they're waiting for is some kind of catalyst to open new positions,” believes Erik Depoy, Strategist at Alfa-Bank.