Strong Russia diversifies from oil

Russia has one of the best performing stock markets in the emerging markets sector. Over the last five years the RTX (blue chip) index tripled and until the substantial volatility which started halfway through 2004, Russian funds were finding it relatively easy to make great returns. A large degree of this success has been the overwhelming influence of the oil sector on the stock markets and the government's finances. But as Putin discovered, this reliance is a double-edged sword: while the buoyant oil prices have fed economic growth, the Yukos affair threw the international community in...