 Good day, fellow investors. Is there blood on the streets in Russia? As I'm writing this yesterday, the Russian ETF lost 12% in a day, some other companies lost even more. And as many investors know, you need to buy stocks when there is blood on the streets. So let's see if there is actual blood on the streets or these are the first drops of a real bloody showdown. Let's take a look at what's going on, give a fundamental perspective, let's see what can happen and give a perspective on how to invest in such a market as Russia. On Friday, Trump designed sanctions on 7 Russian oligarchs and 12 companies they own or control plus 17 Russian government officials and the state-owned Russian weapon trading company. The reasons are, according to Treasury Secretary Mnuchin, that the Russian government engages in a range of mailing activity around the globe. So US persons are generally prohibited from dealing with them, where also a non-US person could face sanctions for facilitating their transactions. The companies affected are Norilsk, Gazprom, Renova, Rassal and plus on the London Stock Exchange. So the key is Deripaska, the CEO of Rassal, where it is answered and whether the company will be allowed to sell aluminium on the global market and the company is producing 7% of the global aluminium. Deripaska is accused of money laundering and accused of treating part in extortion and racketeering. I thought that in the US you are not guilty until proven otherwise in a courtroom. But ok, that's politics. Nevertheless, this is exactly the risk I have been discussing when investing in Russia. Even if the cheapest stock market today, it is so for a reason. If all holders of the E-Rus ETF from the US or from Europe are forced to sell their holdings like those owning Rusell or Nplus are forced to sell those holdings according to some information that I found by May 7, the stock price would see huge, huge declines. As always, investing in Russia is a political thing first, secondly come the fundamentals. But if there is blood on the street, that's also an opportunity. Let's take a longer term look. In 2014-15 the Russian ETF lost 50% on lower oil prices and sanctions. Then there was a bit of a quiet period political wise and slowly people have been forgetting about the risks with higher commodity prices and the Russian ETF is 50% higher. However, those who bought when there was blood on the street did well with a 50% return since January 2016. The key now is to see whether there is blood on the street as I said or it's just a few drops. And whether the sanctions will have an impact on the actual businesses and your ownership. But let's first look at the fundamentals. The PE ratio of the Russian ETF is 6. Yes, that's the cheapest market in the world. The price to book ratio is 0.8 and the dividend yield is 5.7. However, let's look at sanctions and see whether this is cheap or not. Sberbank, the largest Russian bank, had a PE ratio of 2 if I remember well in 2015. So it can drop to 2 price earnings ratio if there is more trouble. Another interesting company is Norilsk that mines nickel, copper, gold, palladium, which are products that will be sold perhaps to China on a global marketplace because it's unlikely that China will put the same sanctions on Russia. So it is questionable whether the company like Norilsk or Russel will be able to approach financial markets, global financial markets, and then there is always the fear I have already read somewhere that some are saying, okay, probably the company will have to be bailed out by the government. If a bailout doesn't happen, then it's the best time to invest in a company. So you have to see how that fits the companies you are interested in Russia and if we are there yet. Norilsk also over the past five years did pretty good in the last three years. However, if there is some retaliation from Russia, the EU gets on in the sanctions commodity bear market that hits profits and cuts the dividends where we see another 2015 situation, those stock prices that seem cheap now might be even cheaper in the future. If investors are forced to sell their ownership, then it will be even worse. The key takeaway is that if stock prices can fall 20% in a day, as it was the case for Norilsk, it can fall much, much more if there is more turmoil. So what's the strategy on investing in Russia? The key is to implement the political component into the risk story where one can take advantage of the selloffs, thus buy when there is blood or some way of seeing it in the streets. And as much as I hate politics, it is a factor that has to be assessed when doing such investments in Russia, in China, but also all over the world. The more I dig into things, the more I see what's going on behind the curtains in politics, the more I want to throw up. Nevertheless, the key is if the Russian company can survive without approaching financial markets, then they will be making money. The Russian oligarchs won't care about their stock prices because their focus, at least of some of them, is on the dividends to pay for their luxury lives and their many wives. So you have to see what is the cyclical dividend yield for a specific Russian company? What are the company risks and how much risk can you take? If another 1998, 2009, 2015 happens, would you be happy or not? Always position yourself so that if something like that happens, you are happy because it provides you an opportunity. Don't get caught in not thinking, oh, three years, nothing happened, there is no risk. Further, patiently and constantly rebalance around the position as the volatility will definitely be there. As we have seen last Monday, a two-sigma event is not uncommon. So the key takeaways are if you are a US citizen, this might be just the beginning. And what happens is that you might be forced to sell your holdings at the bottom, like it is the case for N+, the stock that fell 50% when you account for the decline in the rubble. If you are not a Russian citizen and you understand the risks where your money can be confiscated or similar things can happen, you might want to take advantage of the swings by carefully allocating a small part of your portfolio to such trades where the risk is high. But at some point, of course, there is always the political risk which has to be implemented and that's why the whole market trades at a discount. So don't get burned on Russia, take advantage, have your eyes open if you can, if you feel so, but don't risk losing anything important.