Russian Metals and Mining - New Tax Proposals Send Sector Tumbling
President Vladimir Putin's economic advisor, Andrei Belousov, has proposed developing a tax mechanism that would increase the tax burden on M&M and fertilizer companies, which are currently generating "excess profits" (his words) thanks to positive global price trends and the weak ruble. We see the introduction of new taxes as unlikely, since the budget's main problems have already been solved and this year should see a comfortable surplus. We believe the sector's market reaction today was overdone, though volatility is likely to remain high in the near term.
Sberbank CIB Investment Research is a research firm offering equity, fixed income, economics, and strategy research. It covers analysis on all aspects of Russia’s capital markets, issues and industries. The firm analyzes trends in Russia and combines local knowledge with a global perspective. It processes macroeconomic data, market and company-specific news, stock quotes and other information for providing research reports. The firm provides details and latest prices on the most traded names and most traded paper on all segments Russian market. In strategy research, it provides thematic research, tips and descriptions of the methodology used to evaluate companies.
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