OREANDA-NEWS.  Investors Conference Focuses on Impact of Short-Term Liquidity Crisis and Mid-Term Economic Outlook for Russia.

Against the backdrop of a global credit crisis, Renaissance Capital CEO Alexander Pertsovsky told more than 200 international investors attending the firm’s 6th Annual Investor Conference that Russia is "a safe haven" for investors due to its financial strength and economic independence.

"Once the global markets begin to appreciate that short-term liquidity risks do not undermine Russia’s fundamental economic strength, those investing in Russia will be glad they did," said Pertsovsky. "In fact, in the view of Renaissance Capital, a combination of strong global growth, looser monetary policy and high commodity prices could be a perfectly delightful storm for Russian assets."

Noting Russia’s $450 billion in reserves and a stabilization fund worth $130 billion positions the country well to withstand the current liquidity crunch, Pertsovsky urged investors to focus on the country’s mid-term economic prospects. "Russia’s economic growth remains strong - this year in excess of 7%. But there is a major difference going forward. While growth over the past several years has relied on high oil prices and exploding consumer demand, the real driver of growth over the next few years is going to be a domestic investment boom."

Over the next decade, Russia is expected to spend almost $1 trillion to rebuild its Soviet-era infrastructure. Almost 80% of that money is to be leveraged from the private sector.

"Booming investment and a rapidly developing financial sector are changing the face of the domestic Russian economy. And remarkably, the pace of change has not been slowed by the political calendar. There was fear 12 months ago that the pending parliamentary and presidential elections could destabilize some of Russia’s economic momentum. With five months left before the Presidential elections, it seems likely that politics will have minimal impact on business and finance in Russia," said Pertsovsky.

More than 200 U.S.-based and international investors are attending the two-day conference with Russia’s corporate, industrial and political elite, where they will have more than 30 one-on-one meetings with a selection of over 40 Russian, Ukrainian & Kazakh corporates covering all sectors and industries.