Investing.com - Financial Markets Worldwide

Russian Election Special

ByDanske Markets
Published 12/02/2011, 10:07 AM
Updated 05/14/2017, 06:45 AM
Russian parliamentary elections should bring no surprise

The ruling party, United Russia is expected to win the parliamentary elections in Russia on Sunday. In the latest election four years ago, United Russia secured a landslide victory by getting 64.3% of the votes and 70% of the 450 seats in the State Duma. Even though United Russia is expected to lose plenty of support this time, it is likely to secure an absolute majority in the Duma, as opposition still remains very scattered and weak. It is unlikely that any new opposition parties will receive the necessary 7% of the vote, which is a threshold for the Duma.

Russian politicians have recently lost much support – including Prime Minister Vladimir Putin and President Dmitry Medvedev, who were still very popular a year ago. According to polls by Levada Center, in November 2007, 66% of the voters were planning to vote for United Russia, whereas in November 2011 the share was down to 53%. Polls also point out that only 61% of the people are planning to vote at all and the most common reasons not to vote are that United Russia will win anyway, or respondents feel that their vote doesn’t make any difference. In the 2007 election total turnout was 64%.

Even more important presidential elections will be held on 4 March 2012, in which Vladimir Putin really has no notable competition. Despite the fact that both elections seem to have foreseeable results, Russian markets are likely to suffer from pre-election risk aversion. Also, several political decisions, including finalising the rather unpopular WTO-membership are likely postponed to the post-election period. Thus, even though Russian political sphere remains extraordinarily stable and predictable, markets are unlikely to reward that stability before the elections are over.

Latest comments

Loading next article…
Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.