Russian stock market unaffected

VILNIUS - The effects of five-day war in Georgia on Russia's stock markets was far less significant compared with the decline in global crude prices, say Lithuanian analysts polled by the Verslo Zinios business daily.

The analysts agree that the peace mission of French President Nicolas Sarkozy and the order of Russia's President Dmitry Medvedev to halt military action in Georgia have revived Russia's currency and stock markets.

Considering the situation on Russia's stock market, its risks and attractiveness for investments, the experts point out that the effects of now-ended war, on the market have been less significant than anticipated.

Russia's markets have recently been pressured by a string of bad news, which pulled the stock prices down. Experts mention a conflict between Prime Minister Putin and Russia's steel giants Mechel and Euraz.

Currently the funds were being withdrawn from Russia's market by those foreign investors, who were unable to do so immediately after the eruption of conflict between Moscow and Mechel, Gediminas Milieska, a portfolio manager with SEB Investiciju Valdymas (SEB Investment Management), told the daily.

According to Karolis Pikunas, head of investment management division at Orion Securities, the war in Georgia forced both small and large-scale stockholders to review their positions in Russia.