Ernst & Young expert comments on perspectives of Russian shares

One should not believe that funds received from selling shares in UStelecommunication or some other companies would be immediately invested inRussian shares, Alexander Ivlev, partner of the Ernst & Young company, saidin an interview with RBC. According to him, "it is unlikely to expect thata decrease in US securities can influence the Russian market - positivelyor negatively".Nevertheless, the expert stresses, there are some other logical connectionsthat make analysts forecast an inflow of capital to Russia. "For instance,a drop in the profitability of US government bonds results in a retreat inthe value of money in the whole world and it is good for the Russianmarket", the expert thinks. Moreover, the instability on other theso-called emerging markets "in the long-term perspective may result in theredistribution of risking money from, let's say, Brazilian or Indian toRussian securities". However, in the short-term perspective the instabilitymay lead to a slump in the confidence in all emerging markets, includingRussia, Ivlev stressed. Finally, many investors psychologically preferinvesting in shares that have been advancing over the past one or twoyears, he concluded. .