Some Russia-exposed stocks rise, traders cite hopes of sanctions shift

LONDON, Nov 18 (Reuters) - Some European stocks with investments in Russia outperformed on Wednesday, with traders citing the possibility that closer co-operation between Moscow and the West over fighting Islamic State in Syria might lead to sanctions being lifted.

Retailer Metro, pharmaceutical firm Stada and Raiffeisen Bank were up 2-4 percent, outpacing the STOXX 600, which fell 0.3 percent.

Traders cited the companies as likely to benefit should France, the United States and their allies decide to ease sanctions against Russia. The current set of measures, imposed over a dispute between the West and Russia over Ukraine, expires in January.

The rouble has rallied this week, helped by expectations Russia may benefit from a thaw in East-West relations after Friday's attacks by Islamic State militants in Paris.

However, other companies with substantial sales in Russia, including Carlsberg (Other OTC: CABGY - news) , Renault (Swiss: RNO.SW - news) and Nokian Tyres, missed out on the rally. The official EU position on sanctions is unchanged. (Reporting by Alistair Smout; editing by John Stonestreet)