EC - Ecopetrol: The Wave Of Upcoming Higher Geopolitical Risks Makes Them Uninvestable

• It has always been risky for those investing in the Colombian oil and gas company, Ecopetrol with their status as a state-controlled company in a developing nation.
• Now looking ahead, there is a wave of upcoming higher geopolitical risks with Gustavo Petro currently holding a very large lead in the 2022 federal election polls.
• The optics of a possible populist leader who was a former guerrilla from the M-19 rebel group are not positive and create immense uncertainty at a time of heightened issues.
• Sadly, the Interconexion Electrica acquisition will only increase these geopolitical risks since it expands their assets into Brazil, Chile, and Peru, which are all facing similar political situations.
• Whilst they may skate through these highly unpredictable geopolitical risks, it seems that only a neutral rating is appropriate until the next year unfolds with them currently being uninvestable.

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