The 2014 All-Russia Research Team: Oil & Gas, No. 3: Pavel Kushnir

Deutsche Bank’s Pavel Kushnir captures the No. 3 position on this roster for a third straight year. His coverage universe spans 15 Russian companies, and clients say the analyst is known for preferring the oil segment over gas players. His reason for so doing, Kushnir explains, is the Kremlin’s support for oil providers through tax concessions and infrastructure investments at a time when it is tightening the domestic gas market. Ufa-based exploration and refining company Bashneft has been among the analyst’s favorite names since November, when he added it to his short list of top picks on the expectation of strong dividends and share buybacks. He was right. Management subsequently announced a 17.9 billion ruble ($545.7 million) repurchase program, and through May shareholders pocketed a 10 percent dividend yield. By that time, Bashneft’s stock had bolted 25.5 percent, to 2,255.50 rubles, and led the sector by 32.8 percentage points. Kushnir still recommends it, with a target price of 2,300 rubles. “By following Pavel’s advice,” says one grateful fund manager, “our desk has made a lot of money.”