MOSCOW. May 27 (Interfax) - The outflow of capital to funds that invest in Russia and the CIS totaled $261 million in the seven-day period ending May 25, compared with an outflow of $353 million in the preceding week, according to data from Emerging Portfolio Fund Research (EPFR).
However, there has been a net inflow in the year so far totaling $3.815 billion.
The outflow in the latest week is the result of lower commodity prices and greater uncertainty on global markets. "Investors have pulled $614 million out of the Russian funds in the last two weeks, of which ETF [Exchange Traded Funds] accounted for 92%. The main risk factor for the Russian market is that of the $4.4 billion invested in Russia in the first four months of the current year, $2.9 billion was received via ETF. A large portion of that ETF money represents a bet that oil prices will stay high. If oil prices drop more substantially, another $2.3 billion in ETF money is at risk," Uralsib said in a note to investors.
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Rosatom Wants to Renew Siemens Partnership, FT Deutschland Says
By Sheenagh Matthews - May 27, 2011 9:31 AM GMT+0200
Rosatom Corp. wants to revive ties to Siemens AG (SIE) even after the German engineer signaled a strategy shift, Financial Times Deutschland reported, citing Nikolai Spassky, deputy chief of the Russian nuclear company.
Rosatom wants to “hold serious talks to renew the level of our partnership” with Munich-based Siemens, which could deliver technology and factory parts, the German newspaper cited Spassky as saying.
Siemens has said it will discuss with its Russian partner the implications of an arbitration tribunal decision forcing the German company to pay France’s Areva SA 648 million euros ($923 million) following its exit from a nuclear joint venture. Talks will “take into account the events in Japan and the worldwide market environment as well as the social and political aspects,” Alfons Benzinger, a Siemens spokesman, said in an e- mail May 23.
To contact the reporter on this story: Sheenagh Matthews in Frankfurt at firstname.lastname@example.org