Claude I read your usually informed and intelligent posts with interest, but your quasi demand that PS produce something on Russia is unfair - they are not your local MP but a sales and marketing organisation– and therefore lead/follow popular sentiment Can’t say that Russia fits that mould, and the costs of truly investigating and setting up a particular deal I imagine are fairly substantial.

Claude - seems strange you want us to produce a book on a country where it's pretty clear we don't recommend. Sure, for those who like high risk/high return why not - but anything we produced would advise against it I would think! Still, we'll see what these city based reports bring. You never know!

Pretty convincing. Is it really that bad?! I gotta wonder why you'd live there!

Hi D. Just to let u know, I am not Russian so my name fits my unrussianness fairly well! :) I am quite familiar with Russia, ive been there over 15 times and hence I know most of the true facts u stated, but I also know that some of facts u stated are plain wrong. For a start, I am a non resident in Russia and I do hold two current accounts, once with Citibank and the other one with Reiffeisen. Second, most bank branches offer a "settlement" service for real estate transactions. Therefore u actually turn up with ur money into the bank to finalise the deal and u dont have to do it under a bridge risking life and life savings. As for the political situation, well as I said in an earelier post, I am no fan of the entire place or its leader but would I have bought an offplan in Russia in 2003? The answer is a big massive YES. Anyhow, as I Said it before, I am not asking PS to stitch up a deal in Moscow right now cause we all know it is too late. For your info, PS have been sponsoring deals for quite a few years now and I personally would have appreciated if they informed us on Russia a little more than they did up to now. After all, this is still by far the biggest market in eastern europe. C.

I think Huws points are spot on. The biggest fact for me is that Russia is not part of the EU. Where do you get any assurance that the legal system and the police will protect you Claude? I trust you realise that some major oil and gas companies have had contracts with the Russian government, yet when circumstances changed (price increases and cost overuns) these contracts were not honoured. These points along with my personal experiences in Russia are enough to make it easy for me to sit this market out. The risk is too high for me but maybe it is exciting for others. Good luck.

Hi Claude It's worth knowing that while a couple of banks here offer a settlement service, most Russians won't use them, cos they don't want the transaction going thro any official channels. So if for instance you sell a flat for $500,000 it's absolute standard practise that on the sale / tax paperwork the price will be entered as $250,000, and the buyer will give you $250,000 in cash. It's almost impossible to sell a flat here if you insist on doing it above board. That this goes on is widely known. There are now numerous cases of compulsary purchase of the homes by the government, who then insist on paying only the declared price to the owner being forced to sell, ie just half the property price. D

What a great post! If we had such informed and enlightening posts on other topics we'd all be much the wiser. Thanks D. Claude, I you couldn't pick too many holes in this one could you (apart foom maybe being able to open a bank account!)? As it happens all my points were facts most people would accept as hard. You didn't deny any specifically. Huw

Sorry, meant to add - how can you deny wider political issues are relevant? Surely these are vitally important wherever you invest? Huw