Economics
Investors Flee Russia as Morgan Stanley Sees Long Market Chill
- Franklin Templeton, BNP Paribas withdraw from regional funds
- Economy projected to contract 3.5% in 2015 as oil prices slump
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Russia’s cooling market climate has spurred an exodus of international investors. And the forecast calls for the cold snap to linger.
A worsening outlook for the price of crude, the country’s biggest export, and international sanctions that are pushing Russia toward its first recession since 2009 have prompted money managers at Franklin Templeton Investments and BNP Paribas SA to retrench. With the world’s largest energy exporter so dependent on oil, which along with natural gas accounts for half its budget revenue, Morgan Stanley predicts “a long winter” absent any other growth drivers.