RBK Daily – Alternative investments: what’s available for Russian investors
An article published earlier this week in the Russian publication, RBK Daily, encourages private investors in Russia to venture beyond familiar investment bonds and to consider ‘alternative’ forms of investment.
As discussed in this article, the Private Equity and Real Estate investment market in Russia is now seen as a reliable area of investment. It is certainly a steadfast area of the market – and an area we invest in considerably at VIY Management. It has however been booming to the detriment of other more tangible, rewarding, and unconventional investments. The likes of antiques, vintage wines and classic cars can be equally profitable. In fact stock market analysts place profitability in art 30% higher than direct stock market investments.
It is, however, worth mentioning that the country’s tax and customs systems are lagging far behind the development of ‘alternative’ asset classes. As such the physical presence of vintage wines and art still remains overseas. In fact, current taxes actually prevent trading vintage wines onshore in Russia, whilst the customs regime makes moving any noteworthy piece of art across borders a living nightmare. Those of us in the industry hope that these deferments will gradually disappear as the country’s tax system matures and starts to focus on developing the industry.