LONDON, April 21 Reuters Foreign investors relatively high exposure to Russian equities and the sectors heavy focus on energy could add to pressure on the countrys stocks, which have struggled to weather recent political storms, analysts said.

Russias MSCI equity index has crept some 3 higher since the start of the year, not too far off gains made by the broader emerging market equity index despite Washington slapping a broad array of sanctions on the country, including restrictions on its sovereign debt market.

However, Russias stocks are lagging well beyond other energy dominated bourses such as Saudi Arabia, which has seen its index gain nearly 20 this year, helped by investors rekindled appetite for energy exposure and flows from local investors with deep pockets.

Domestic protests in Russia and geopolitics have something to do with this, as does a relatively smaller surge in local investor flows into equities, said Hasnain Malik at Tellimer.

The challenge for investors looking at Russia is to balance the oil price outlook, which does not have as appealing a longterm outlook as commodities geared to new technology, the risk of an escalation to sanctions that really bite, and, in some cases, attractive valuations in wellrun companies, Malik said.

Washingtons latest sanctions, imposed this month over Moscows alleged interference in the 2020 U.S. election, cyber hacking, bullying Ukraine and other suspected malign actions sent shivers through financial markets,…