As Russia's stock market tanks to a 12-month low, investors could be forgiven for a crisis of faith in the country's investment climate but business leaders were divided on why the market had sold off.
Russian equities fell to a 12-month low on Friday after U.S. 10-year government bond yields rose above 2.5 percent for the first time since August 2011 on the back of nerves over when the Federal Reserve will begin tapering its bond-buying program.
Jochen Wermuth, founder and CIO of Wermuth Asset Management, said investors were losing faith in the Russian market, but that could present a good buying opportunity.
"Russia is at a record discount of 60 percent to BRICS and a record discount of 30 percent to its own P/E ratios, so what an opportunity," he said.
(Read More: Europe Shares Close at Lowest Since January)
"I think that on liquid space, if the U.S. has a cough; Russia has pneumonia so there is real risk of listed assets, liquid assets that will have a crash. The ruble is quite weak, it's good to be short the ruble, it's good to be short Russian liquid assets."
"Russian stocks are trading below five times because Russia's reputation and rule of law are absent. We've done an estimation that Russian assets could be worth $40 trillion more if only Russia adopted the acquis communautaire, if Russia had the rule of law that Norway and Turkey adopted and accepted the court of European law in Luxembourg as its key authority," Wermuth added. "That's $40 trillion by doing one decision."
His comments came as the chief executive of Russia's VTB Bank, Andrey Kostin, said Russian equities could come under further pressure. "If we see further changes from the Fed I think we can expect a worsening situation in the Russian stock market," Kostin told CNBC at the Saint Petersburg International Economic Forum.