Siberia will have many investment opportunities over the next 30 years

• An investor said that Russia could offer a great investment opportunity after the war with Ukraine.
• Cheah Ching Hye, coCIO of Value Partners Group, stated that this is because Siberia has vast agricultural land.
• Chinese investors bought Siberia farmland before the war.

Russia may be in the thick of war now — but investing in it may “surprise on the upside” after the conflict with Ukraine ends, a Hong Kong-based fund manager said at the Forbes Global CEO Conference in Singapore on Monday.

“All their vast Siberia land will become the largest, most productive farmlands of the world within the next three decades.” They will be food superpowers,” Cheah Ching Hye, cochief investment officer at Value Partners GroupAn asset management company that manages approximately $7 billion of assets.

Climate change has been Possibilities of negative impactCrop yields, nutritional qualities of major cereals and livestock productivity. However, Siberia holds some of the most valuable reserves of land that isn’t being used for crops and has potential to be developed into huge farms. This was according to Maarten Elferink (agriculture experts) and Florian Schierhorn. DiplomatIn 2019.

“Russia could be the key winner of global warming,” Cheah said. More than two-thirdsValue Partners’ clients are located in China or Hong Kong.

Cheah was referring to unexpected investing opportunities that could lead to “surprise on top.”

Cheah stated, “Right now Russia is not good news to investors, but look longer-term out.”

Although Cheah’s suggestion may seem extreme, Siberia can be a great resource play for investors.

Siberia is a vast region — accounting for about Three-quarters of Russia’s land area is covered by water. — and home to wide swathes of oil and gas fields and farmlands.

Even before the war, investments from China were pouring into Siberia, with at least 865,000 acres of farmland — or 16% of Siberian land used for farming — sold to or leased as of November 2019 by Chinese citizens, BBC’s Russian serviceReports made using data from the state land registry. 

China also has not condemned Moscow for the Ukraine war. China approved wheat imports from all Russian regions in February. This opens up a new market for Russia’s largest exporter. China-Russia trade has increased 31% over the first 8 months of 2022.