As widely predicted Russian president Vladimir Putin is back for another six-year term having secured a landslide victory on a decent turnout.

Putting to one side question marks over the validity of the poll and the current deterioration in relations with the West, investment bank UBS remains positive on Russian equities.

It notes the MSCI Russia index is trading on 6.1 times forecast earnings against a long-term average of 6.9 times and sees support from higher oil prices.

It also points to ‘scope for selective higher fiscal spending, a possible tax reform program and, longer term, even pension reform’. It says these would be positive for equity markets if they become reality.

However, the election result has done little to alleviate pressure on UK stocks and funds with exposure to Russia amid the diplomatic spat between the UK and the Kremlin.

Russian property investor Raven Russia (RUS) and investment trust JP Morgan Russian Securities (JRS) are down 3% and 7% respectively since the beginning of March. (TS)

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