News that President Dmitry Medvedev has ordered Russia’s top prosecutor to review the conviction of jailed former Yukos CEO Mikhail Khodorkovsky has prompted some international investors to exhibit optimism over the Russian markets, reports Bloomberg News. The Financial Times called the review a “pleasant surprise” for investors.
Traders often cite the Khodorkovsky case as an example of the failure of Russia’s legal and judicial system. Roland Nash, chief investment strategist at Verno Capital in Moscow, told Bloomberg that a decision to free Khodorkovsky “may add 10 percent to the value of Russian stocks.”
In the last six months, the Russian benchmark MICEX index has risen only three percent, while the S&P 500 has climbed 15.5 percent.
