ABSTRACT
In the years that followed the collapse of the Russian bond and financial markets in August 1998, there was much speculation as to what future Russian economic policy would be. Despite some modest recovery through mid-2000, the Russian stock market has continued to be rather unattractive to foreign investors, who, on one day in August 1998, found themselves denuded of their investments by a Russian government that was de facto bankrupt. Many local investors also continue to have a sceptical view of investment prospects in Russia. The majority of small investors have seen a rapid depreciation of their real savings in the post-crisis period, while most of big investors, the so-called oligarchs, have lost significant parts of their fortunes as a result of the crisis. Those former oligarchs that have managed to retain control of a part of their wealth have preferred to invest it abroad. Some have moved openly into politics in order to protect themselves and their property, while others were trying to resist attempts by the state to take hold of their estates. Overall it can be stated that the investment sector of state economic policy in the post-August 1998 period so far was even less promising than in the hectic and disorderly first years of the Russian reform.
