Russia-focused equity funds may post this year’s biggest outflows in the week ended May 16, with redemptions of $300 million, according to UralSib Capital.
“Russia is not seen as a positive market right now,” Leonid Slipchenko, an analyst at UralSib in Moscow, said by phone. “The oil price is under pressure. For the Russian market that’s very important. Greek weakness has been dragging on.”
Fund outflows for Russia were $188 million in the week ended May 9, the biggest so far this year, according to EPFR Global data. Greece faces a fresh election on June 17 that may boost parties opposed to international bailout conditions, increasing the risk of its exit from the common currency. Oil, Russia’s biggest export earner, lost 4 percent in the week ended May 16 in New York trading.