Investing in Russia has been hot since 1997, with capital funds flowing into the Russian market rising from $4.8 billion to $50 billion between 1997 and 2007. –and all time record for the Russian market.

While on paper it is easy to see that investing in Russia looks good –there’s a dramatic increase in wages and standards of living, huge currency reserves, and a fast growing economy, yet in reality these factors that make investing in Russia look so attractive aren’t necessarily as cut and dried.

However charming investing in Russia looks on paper, the country has had its share of problems. Russia has a history of government controlling domestic and international firms doing business there.

Russia also likes playing rough and tough with energy supplies, such that investing in Russia can be a bit too similar to playing Russian roulette. In 2006, for example, Russia cut off energy supplies to Ukraine and …