Although Russia is less dependent on oil revenue now vs the past, it helps when the price of crude goes up 23% during the first three months of this year.  The higher economic activity helps to lift prices for key commodities which Russia benefits from.
Russia saw an increase in inflation during the quarter, which resulted in the first rate hike in over two years.  A weaker rouble coupled with stronger commodity prices is good news for the export sector.

Russia is behind on vaccinations with about single digit numbers despite their Sputnik V covid vaccine.  This may relate to ‘rushing slowly’ to get vaccinated and await more numbers to come in and confirm the efficacy.

We have often talked about how cheap the Russian stock market is but when we see the giant company, Gazprom at P/E of 2.7 for 2022 and dividend yield of 15% for 2022, it is hard not to get a bit excited.

Domicile: Bermuda
Source: Bloomberg LP, AP Asset Management, PCM