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 …

Financial News Jason Corcoran in Moscow 28 Jul 2008 Russia’s crowded asset management arena is getting busier. France’s Société Générale Asset Management is the latest foreign investment business to explore launching funds there, as firms are attracted by the wealth being generated within the country. Benelux’s Fortis, Germany’s Allianz, Italy’s Pioneer Investments, Austria’s Raiffeisen, Germany’s DWS, Iceland’s Glitnir and Baltic manager Parex have all launched Russia-domiciled funds in the past few years. Russia’s emerging middle class and a boom in commodity prices have led to annual growth in retail asset management of 50% a year. Société Générale Asset Management, which manages more than £262bn (€332.7bn) worldwide, may be about to join the fray by setting up a retail operation in Moscow, according to sources. It is believed to have applied to the main regulator, the Federal Financial Markets Service, for an asset management license. Société Générale declined to comment on whether it was poised to enter the ...