May 11th, 2012

Analysts anxious about Putin’s cabinet picks

Natalia Orlova

The Moscow Times reports that market analysts in Russia are anxiously awaiting President Vladimir Putin’s picks for cabinet before prognosticating about the Russian economy.

Investors are waiting to see if Putin’s choices for top economic posts are serious about implementing the reforms necessary — stopping corruption, respecting property rights,  tamping down the bureaucracy — to instill confidence in both domestic and foreign investors.

Alfa Bank chief economist Natalia Orlova told The Moscow News’ Natasha Doff:

The litmus test will be the announcement of a new cabinet and how committed the new team will be to reform. Putin has presented his goals, but the question of who will make sure the goals are implemented depends on the composition of the cabinet.

Deutsche Bank economist Yaroslav Lissovolik added: “A specific list of priorities that may encapsulate a short-term reform program […] is the biggest question mark for investors and it is something that will probably ultimately decide the overall vector of the stock and financial markets this year.”

After last December’s rigged Duma elections and post-election protests, investors pulled out of the market in droves, citing political uncertainty.

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