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Russia's regional differentiation

Overview

Beyond booming Moscow, even faster investment and consumer demand growth may now be found in an increasing number of regions across Russia's vast territory. As investors seek optimal exposure to this regional demand growth, an obvious question is how to pick the best regions.

Close analysis reveals a picture which defies easy generalization. In absolute terms, wealth and investment are concentrated in natural resource-rich but climatically inhospitable regions. Meanwhile, the...

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