A Russian play in London
As to Russia, I’ll keep it short but surprising: I’d invest in Rosneft, the country’s giant oil company. But I’d do so through BP plc (ADR) (NYSE:BP). As my Foolish colleague Tyler Crowe noted last weekend, BP owns just under a 20% interest in the big Rusky producer. That stake arriveded through the sale of its half interest in TNK-BP, formerly Russia’s third-largest oil company, to Rosneft.
The result for BP plc (ADR) (NYSE:BP)? A hefty $460 million in annual after-tax dividends. And for investors? A means to participate in Rosneft’s massive expansion with something of a filter from Russian shenanigans.
A Foolish takeaway
So there you have it: CNOOC and BP appear to be the best vehicles for BRIC energy investing. That conclusion is subject to change for a host of reasons, including geopolitics. Nevertheless, it provides a starting point for analyzing the investment opportunities that still exist among the BRICs.
The article Investing Sensibly in China and Its BRIC Buddies originally appeared on Fool.com and is written by David Smith.
Fool contributor David Smith owns shares of Chesapeake Energy (NYSE:CHK) and BP p.l.c. (ADR). The Motley Fool recommends Petroleo Brasileiro (NYSE:PBR) S.A. (ADR). The Motley Fool has the following options: long January 2014 $30 calls on Chesapeake Energy.
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