Russia is a great investment choice thanks to healthy oil and energy companies there, says Mark Mobius, executive chairman of Templeton Asset Management's Emerging Markets Group.
Corporate governance concerns, meanwhile, are overblown.
Big oil companies like BP have run into problems investing in the former superpower, but Mobius says snags with state-owned partners were deal-specific.
BP agreed to explore the Arctic for oil with state-owned Rosneft , which collapsed because the global oil giant was unable to get the green light from the co-owners of another Russian joint venture, TNK-BP.
"Russia is at the top of our investment list these days, resources companies and the oil companies in particular," Mobius tells Investment Week.
"Russians do need investment, they do need external expertise to invest in the Arctic Circle, whether it be BP, Shell, or whomever. TNK-BP, which we hold in some of our portfolios, is actually turning out to be a very good company in the way it (combines) local knowledge with BP's expertise."
Russia is "no worse or no better than anyone else, providing you have your eyes open," when it comes to corporate governance. Mobius adds.
High oil prices have been good to oil-rich countries like Russia, who are not bound to politically-charged output limitations dictated by OPEC agreements.
Others like Russia as well.
"Russian equities are cheap because the market there is so heavily tilted towards oil, gas, and mining that it skews valuations lower," says Ed Kuczma, a senior emerging markets analyst at Van Eck, a New York investment fund, according to Forbes.
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