Early this week, we introduced the idea of buying the ABCs – Australia, Brazil, and Canada – as a way to own commodities for the long term. Several DailyWealth readers wrote to ask, “Great… but what about Russia?”

Two things about Russia: One, the country has extraordinary resource wealth. It’s the world’s second-largest producer of crude oil. It’s the largest producer of natural gas. It has huge stores of timber, diamonds, and minerals. Two, Russia is new to this “capitalism thing.” Most who have done business there believe the government is as crooked as a dog’s hind leg.

This corruption makes Russia a more speculative way to own commodities than say Australia or Canada. But it’s a speculation the market likes right now. Let’s look at Central Europe and Russia Fund (CEE). This ETF is one of the most liquid ways to buy Russian stocks. A big chunk of the fund is in Gazprom, the world’s largest natural gas company. Monster base-metal miner Norilsk Nickel also carries a large weighting.

The bull market in resources has helped the CEE gain 450% in the past five years. As you can see from today’s chart, Russia may be corrupt, but in a world of $130 oil, the market is saying, “Who cares about corruption? Just give me a good commodity play.”

Source: The Corrupt Way to Own Commodities