Russia’s benchmark Micex index has declined about 15 percent since Feb. 17, the day before Ukrainian police fired on protestors in Kiev’s Independence Square, and Russian stocks may drop more following the March 16 referendum in Crimea on joining Russia, Streshinskiy said. If stocks fall further, Usmanov’s company may consider buying shares of wireless operator OAO MegaFon and Internet company Mail.ru Group Ltd., he said.
“Mail.Ru and MegaFon revenue is coming from Russia and people won’t stop making calls and using the Internet,” Streshinskiy said. “If the events will further escalate, we will be buying shares. Crisis is always a good opportunity as valuations become cheap.”
Crimea Crisis
Usmanov’s Metalloinvest, Russia’s largest iron ore producer, may switch to shipping to China and other markets should Europe apply sanctions on its exports due to the crisis in Ukraine’s Crimea region, Streshinskiy also said. German Chancellor Angela Merkel last week threatened sanctions against Russia if President Vladimir Putin doesn’t halt efforts to seize Crimea.
“We are concerned with the possible sanctions against Russia but don’t see any dramatic repercussions for our business,” Streshinskiy said. “China is unlikely to impose any sanctions. So, we will be trading in rubles, yuan, Hong Kong or Singapore dollars.”