The turmoil of recent months has hit Russia particularly hard, with last autumn’s stock market crash, falling oil prices and a devaluing rouble. Patrick McCurry reports.

For private equity players the name of the game is helping portfolio companies through the storm and, for those with cash to spend, looking to pick up bargains when the dust has settled. A year ago the Russian market was proving to be a magnet for many PE investors, with its high economic growth, buoyant revenues from natural resources and rapidly developing consumer market. But then last September trading was suspended on the Russian stock markets as shares nosedived in the wake of the collapse of Lehman Brothers and plunging stocks on Wall Street, which saw foreign capital hastily withdrawn from the country.

The hostilities between Russia and Georgia last August didn’t help investor sentiment and since then the country has found itself painted as the aggressor in other international incidents, notably the stand-off with Ukraine over gas supplies.

So, from an increasingly attractive investment destination a year ago, Russia experienced rapid capital outflows in the autumn, much of which was from local oligarchs protecting their assets as the economy looked ready to tank.

But despite the problems, there are also likely to be opportunities going forwards for those PE houses still in the game and willing to invest. Vladimir Andrienko, a managing director at Russia Partners, says...

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