Why are people not interested in investing in oil companies in russia that has been lucrative?

Question

There are few investors who earn big.They came to know about this through inside info and have had hundreds of income turnovers.

Answer 1

Just read the financial pages.   See what is happening to BP, and their Russian oil venture.   How can you trust the Russians in business?

Answer 2

Because if you cross Putin (and maybe even if you don't), your assets get confiscated & you get put in jail.  BP is just one example.  How about the former head of Yukos??  

Unless you are politically connected with Putin, or his cronies, forget about it.

Answer 3

Corruption, government control,and ugly trading methods.

Answer 4

With Russia you have to deal with corrupt politicians, remnants of the old Communist party, the Russian mob, a mediocre infrastructure and a workforce that hasn't accepted capitalism or is as educated as those in other parts of the world. Tough to succeed there.

Answer 5

Also recall that Russia recently passed legislation limiting the amount of foreign investment in "critical" resources such as oil and defense.

And don't forget that oil output in Russia is tapering off and may begin to fall.  One of the reasons oil prices are rising.

Now that Iraq is stabilizing, there are better opportunities for oil investors to profit in other markets.