In 2009, attention has been moving away from the more established private equity spheres and towards the emerging markets. This, combined with relative political stability and legislative reforms aimed at making equity investments into Russian companies (in particular onshore investment vehicles) more attractive, has changed and will continue to change the nature of private equity deals in Russia.
Foreign investor confidence surrounding onshore investments does tend to fluctuate. There remain general concerns about unpredictable court decisions, such as the recent award of $1.7 billion in damages against the Norwegian telecommunications company Telenor in relation to its shareholding in VimpelCom (at the time of writing, an appeal against the decision is scheduled to be heard on 30 September 2009). It is to be hoped that the development of court practice around the recent legislative reforms may assist in addressing the perception of investment risk in relation to investments in Russia.