Russia was one of the biggest winners in the runup in oil prices, but now the country and its exchange traded fund (ETF) are falling back on hard times. The country is becoming no stranger to scaling back, but even in these lean days, Russians are finding the silver lining.
Plans for a controversial skyscraper have been delayed over financing. Architects, residents and preservationists are celebrating the conservation of St. Petersburg’s low Baroque-styled skyline as a result, reports Andrew E. Kramer of The New York Times.
Gazprom, the Russian state-owned energy goliath, was helping with the financing of St. Petersburg’s first skyscraper, but plans fell through as the company suffered from reeling energy prices.
The new building would have reached 1,299 feet which would have broken the czarist-era rule that no building, other than a church spire, may exceed the height of the Winter Palace, now Hermitage Museum.
With rising energy prices, Gazprom stock was doubling weekly. Ever since the peak of energy prices in May, Gazprom has seen its stock fall 70%.
The Market Vectors Russia (RSX) is down 64.6% year-to-date. Gazprom is 7.6% of the fund.
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