17:09 GMT +320 August 2019
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    An Aeroflot Airbus A330 aircraft

    Russia's Aeroflot Among Most Attractive Companies for Investors

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    Russia is emerging from economic recession and companies like Aeroflot are providing attractive bets for investors, market analysts told Austria's Die Presse newspaper.

    Last month International Monetary Fund (IMF) Deputy Director of Research Gian Maria Milesi-Ferretti said that the Russian economy is recovering from the shocks of lower oil prices and Western sanctions.

    "Domestic demand is gradually recovering. Monetary policy has started an easing cycle, and…we see the Russian economy moving clearly in the right direction," Milesi-Ferretti told reporters.

    The IMF also released its Global Economic Outlook, which revised Russia’s growth upward. According to the Fund, Russia’s GDP will contract 0.8 percent in 2016 and grow at 1.1 percent in 2017.

    Olle Olsson of investment strategists East Capital told Austrian newspaper Die Presse that several Russian companies are interesting emerging market investors.

    He mentioned X5 Retail Group, an owner of hypermarkets and convenience stores, which is the country's fastest growing retailer. In addition, real estate developers LSR Group and Russian airline Aeroflot are also good investment bets Olsson said.

    "It (Aeroflot) is growing by more than 100 percent per year, and it has very young fleet," Olsson said.

    Founded in 1923, Aeroflot among the world’s oldest airlines but it has one of the youngest fleets in the world. The fleet comprises 190 aircraft, which are modern Airbus A320-family, A330, Boeing 737, Boeing 777 and Sukhoi Superjet 100 airliners. 

    A special Sukhoi Superjet airliner designed in honor of the airline's 90th anniversary
    Aeroflot press office
    A special Sukhoi Superjet airliner designed in honor of the airline's 90th anniversary
    Investors have also noted China's commitment to greater trade with Russia. Just days before the election of the next US President Donald Trump, Russian Prime Minister Dmitry Medvedev met with his Chinese counterpart Li Keqiang met to discuss bilateral cooperation in the energy sector and reiterated their commitment to increasing their bilateral trade to $200 billion per year by 2020.

    November 18, 2016. Russian Prime Minister Dmitry Medvedev speaks at the 2nd World Grain Forum in Sochi
    © Photo : Russian Federation Government Press service
    Medvedev remarked that ten years earlier, Russia and China had targeted a milestone $100 billion in bilateral trade.

    "We practically reached this milestone in 2014. At the same time, we have to recognize that the situation in our countries depends on both domestic and international factors. When economic crisis occurred in 2008-9, our bilateral trade fell by almost one third, and then recovered and peaked in 2014," Medvedev said.

    investment, business, Russia, Austria
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