After Vote, Investors Hope for a Spring of Reform.

(From The Moscow Times)

Business confidence was on the way back up in March as market players looked forward to a spring of reform after President Vladimir Putin's resounding re-election.

The Moscow Times Business Confidence Index, compiled from a pool of managers and market watchers, rebounded slightly by two points to 28. And after hitting a two-month plateau, personal business confidence took a jump of three points to 33. On the MT scale, 10 represents a very negative attitude and 50 a very positive attitude.

Jamison Firestone, founder of Firestone Duncan Ltd., said his confidence hasn't flickered over the past two months. "Let me say this: I am as confident this month as I was last, but I think Russia's a no-brainer. The overall short-term to mid-term business outlook is justifiably high," he said.

But Dmitry Gavrilov, general director of Connection by Boeing Eastern Europe, said the recent top-to-bottom overhaul of the government raises concern of delays. "In general, it's clear what the political line will be, but I hope that the transition will be painless. This is important for us. We need permits approved, and this will be delayed for a month while new people are appointed. But this is temporary."

Despite an overall increase in optimism, inflation fears crept up two notches on the index in March.

Troika Dialog's chief economist, Yevgeny Gavrilenkov, expressed confidence, however, that it could be contained.