Daily Archives: June 14, 2007

June 14, 2007 — Contents

THURSDAY JUNE 14 CONTENTS


(1) Russia: The Ultimate No-Win Proposition

(2) Uranium: Russia’s Energy Achilles Heel

(3) Annals of Russian Insanity

(4) Latynina on Russian Racism

(5) Annals of the Neo-Soviet Internet Crackdown

It’s not Called "Russian" Roulette for Nothing: Russia is the Ultimate No-Win Proposition

An editorial in the Financial Times spells out the risks of foreigners doing business in Russia. When considered, these risks make it clear that nobody should do so, and anyone who does richly deserves the suffering she/he receives. First, the Russian government may simply steal your investment. Ask Mikhail Khodorkovsky. Second, your investment may be eaten up by Russian corruption. Third, you may be killed either because you pose a threat to the Kremlin directly or to some organized criminal cartel within its ambit or opposed to it. Fourth, even if you somehow avoid all these perils, the Russian economy is based on smoke and mirrors (it’s a giant Enron) and may collapse at any time. Finally, even if none of that happens, you will face increasing political attacks from your own government abroad as Russia speedily becomes a loathed international pariah very similar to the position South Africa used to occupy. Your reputation will be tainted as both a supporter human rights atrocities and one who does business by means of corruption (the only way to succeed in Russia).

Now, foreign investor, La Russophobe dares to ask you: Is it worth it?

Some 6,000 delegates attended the St Petersburg economic forum in Russia last weekend, including more than 100 chief executives of leading global companies. It was an impressive demonstration of international interest in the Russian economy. It was also, in the words of one Russian participant, distinctly reminiscent of a Communist party congress, where the only speakers were chosen by the ruling bureaucracy.

The occasion underlined the growing divide between international investors in Russia, who are making excellent returns, and western politicians, who are increasingly concerned at the authoritarian drift in the Kremlin. The businessmen used the St Petersburg forum to heap praises on Vladimir Putin, the Russian president. Some criticised Tony Blair, the British prime minister, for warning of the political risks to future investment. Instead, they should have used the occasion to spell out a few home truths themselves.

In Russia today, the rule of law remains erratic, the courts are corrupt, and property ownership can seldom be guaranteed. Moreover, in an autocratic society – even if it is politely called a “managed democracy” – decision-making is much less predictable than in an open democratic society.

Anyone who does business in Russia must do so with their eyes open. They must recognise that politics, as much as economics, dictates the commercial climate. It is whom you know, as much as what you know, that is the key to success. That means the risks are greater, but so are the rewards. Anything to do with the state, or oil and gas and raw materials, carries the greatest risk of interference or expropriation. Those are the sectors that Mr Putin wishes to control. Others, such as telecommunications, are not level playing fields. The car market is the latest to see renewed state intervention, with Rosoboroneksport, the arms manufacturer, taking control of Lada.

Doing business in Russia also carries a reputational risk: international accountancy firms are finding to their peril that local operations come under enormous political pressure to cut corners.

Of course Russia has changed, beyond all recognition, from the dreadful old world of state controls and five-year plans. But it has yet to decide what sort of capitalism it is going to adopt. Anyone doing business there would do well to remember the words of Vladimir Ilyich Lenin: “A capitalist is someone who sells you the rope with which you hang him.” They have not been entirely forgotten in Moscow.

It’s not Called "Russian" Roulette for Nothing: Russia is the Ultimate No-Win Proposition

An editorial in the Financial Times spells out the risks of foreigners doing business in Russia. When considered, these risks make it clear that nobody should do so, and anyone who does richly deserves the suffering she/he receives. First, the Russian government may simply steal your investment. Ask Mikhail Khodorkovsky. Second, your investment may be eaten up by Russian corruption. Third, you may be killed either because you pose a threat to the Kremlin directly or to some organized criminal cartel within its ambit or opposed to it. Fourth, even if you somehow avoid all these perils, the Russian economy is based on smoke and mirrors (it’s a giant Enron) and may collapse at any time. Finally, even if none of that happens, you will face increasing political attacks from your own government abroad as Russia speedily becomes a loathed international pariah very similar to the position South Africa used to occupy. Your reputation will be tainted as both a supporter human rights atrocities and one who does business by means of corruption (the only way to succeed in Russia).

Now, foreign investor, La Russophobe dares to ask you: Is it worth it?

Some 6,000 delegates attended the St Petersburg economic forum in Russia last weekend, including more than 100 chief executives of leading global companies. It was an impressive demonstration of international interest in the Russian economy. It was also, in the words of one Russian participant, distinctly reminiscent of a Communist party congress, where the only speakers were chosen by the ruling bureaucracy.

The occasion underlined the growing divide between international investors in Russia, who are making excellent returns, and western politicians, who are increasingly concerned at the authoritarian drift in the Kremlin. The businessmen used the St Petersburg forum to heap praises on Vladimir Putin, the Russian president. Some criticised Tony Blair, the British prime minister, for warning of the political risks to future investment. Instead, they should have used the occasion to spell out a few home truths themselves.

In Russia today, the rule of law remains erratic, the courts are corrupt, and property ownership can seldom be guaranteed. Moreover, in an autocratic society – even if it is politely called a “managed democracy” – decision-making is much less predictable than in an open democratic society.

Anyone who does business in Russia must do so with their eyes open. They must recognise that politics, as much as economics, dictates the commercial climate. It is whom you know, as much as what you know, that is the key to success. That means the risks are greater, but so are the rewards. Anything to do with the state, or oil and gas and raw materials, carries the greatest risk of interference or expropriation. Those are the sectors that Mr Putin wishes to control. Others, such as telecommunications, are not level playing fields. The car market is the latest to see renewed state intervention, with Rosoboroneksport, the arms manufacturer, taking control of Lada.

Doing business in Russia also carries a reputational risk: international accountancy firms are finding to their peril that local operations come under enormous political pressure to cut corners.

Of course Russia has changed, beyond all recognition, from the dreadful old world of state controls and five-year plans. But it has yet to decide what sort of capitalism it is going to adopt. Anyone doing business there would do well to remember the words of Vladimir Ilyich Lenin: “A capitalist is someone who sells you the rope with which you hang him.” They have not been entirely forgotten in Moscow.

It’s not Called "Russian" Roulette for Nothing: Russia is the Ultimate No-Win Proposition

An editorial in the Financial Times spells out the risks of foreigners doing business in Russia. When considered, these risks make it clear that nobody should do so, and anyone who does richly deserves the suffering she/he receives. First, the Russian government may simply steal your investment. Ask Mikhail Khodorkovsky. Second, your investment may be eaten up by Russian corruption. Third, you may be killed either because you pose a threat to the Kremlin directly or to some organized criminal cartel within its ambit or opposed to it. Fourth, even if you somehow avoid all these perils, the Russian economy is based on smoke and mirrors (it’s a giant Enron) and may collapse at any time. Finally, even if none of that happens, you will face increasing political attacks from your own government abroad as Russia speedily becomes a loathed international pariah very similar to the position South Africa used to occupy. Your reputation will be tainted as both a supporter human rights atrocities and one who does business by means of corruption (the only way to succeed in Russia).

Now, foreign investor, La Russophobe dares to ask you: Is it worth it?

Some 6,000 delegates attended the St Petersburg economic forum in Russia last weekend, including more than 100 chief executives of leading global companies. It was an impressive demonstration of international interest in the Russian economy. It was also, in the words of one Russian participant, distinctly reminiscent of a Communist party congress, where the only speakers were chosen by the ruling bureaucracy.

The occasion underlined the growing divide between international investors in Russia, who are making excellent returns, and western politicians, who are increasingly concerned at the authoritarian drift in the Kremlin. The businessmen used the St Petersburg forum to heap praises on Vladimir Putin, the Russian president. Some criticised Tony Blair, the British prime minister, for warning of the political risks to future investment. Instead, they should have used the occasion to spell out a few home truths themselves.

In Russia today, the rule of law remains erratic, the courts are corrupt, and property ownership can seldom be guaranteed. Moreover, in an autocratic society – even if it is politely called a “managed democracy” – decision-making is much less predictable than in an open democratic society.

Anyone who does business in Russia must do so with their eyes open. They must recognise that politics, as much as economics, dictates the commercial climate. It is whom you know, as much as what you know, that is the key to success. That means the risks are greater, but so are the rewards. Anything to do with the state, or oil and gas and raw materials, carries the greatest risk of interference or expropriation. Those are the sectors that Mr Putin wishes to control. Others, such as telecommunications, are not level playing fields. The car market is the latest to see renewed state intervention, with Rosoboroneksport, the arms manufacturer, taking control of Lada.

Doing business in Russia also carries a reputational risk: international accountancy firms are finding to their peril that local operations come under enormous political pressure to cut corners.

Of course Russia has changed, beyond all recognition, from the dreadful old world of state controls and five-year plans. But it has yet to decide what sort of capitalism it is going to adopt. Anyone doing business there would do well to remember the words of Vladimir Ilyich Lenin: “A capitalist is someone who sells you the rope with which you hang him.” They have not been entirely forgotten in Moscow.

It’s not Called "Russian" Roulette for Nothing: Russia is the Ultimate No-Win Proposition

An editorial in the Financial Times spells out the risks of foreigners doing business in Russia. When considered, these risks make it clear that nobody should do so, and anyone who does richly deserves the suffering she/he receives. First, the Russian government may simply steal your investment. Ask Mikhail Khodorkovsky. Second, your investment may be eaten up by Russian corruption. Third, you may be killed either because you pose a threat to the Kremlin directly or to some organized criminal cartel within its ambit or opposed to it. Fourth, even if you somehow avoid all these perils, the Russian economy is based on smoke and mirrors (it’s a giant Enron) and may collapse at any time. Finally, even if none of that happens, you will face increasing political attacks from your own government abroad as Russia speedily becomes a loathed international pariah very similar to the position South Africa used to occupy. Your reputation will be tainted as both a supporter human rights atrocities and one who does business by means of corruption (the only way to succeed in Russia).

Now, foreign investor, La Russophobe dares to ask you: Is it worth it?

Some 6,000 delegates attended the St Petersburg economic forum in Russia last weekend, including more than 100 chief executives of leading global companies. It was an impressive demonstration of international interest in the Russian economy. It was also, in the words of one Russian participant, distinctly reminiscent of a Communist party congress, where the only speakers were chosen by the ruling bureaucracy.

The occasion underlined the growing divide between international investors in Russia, who are making excellent returns, and western politicians, who are increasingly concerned at the authoritarian drift in the Kremlin. The businessmen used the St Petersburg forum to heap praises on Vladimir Putin, the Russian president. Some criticised Tony Blair, the British prime minister, for warning of the political risks to future investment. Instead, they should have used the occasion to spell out a few home truths themselves.

In Russia today, the rule of law remains erratic, the courts are corrupt, and property ownership can seldom be guaranteed. Moreover, in an autocratic society – even if it is politely called a “managed democracy” – decision-making is much less predictable than in an open democratic society.

Anyone who does business in Russia must do so with their eyes open. They must recognise that politics, as much as economics, dictates the commercial climate. It is whom you know, as much as what you know, that is the key to success. That means the risks are greater, but so are the rewards. Anything to do with the state, or oil and gas and raw materials, carries the greatest risk of interference or expropriation. Those are the sectors that Mr Putin wishes to control. Others, such as telecommunications, are not level playing fields. The car market is the latest to see renewed state intervention, with Rosoboroneksport, the arms manufacturer, taking control of Lada.

Doing business in Russia also carries a reputational risk: international accountancy firms are finding to their peril that local operations come under enormous political pressure to cut corners.

Of course Russia has changed, beyond all recognition, from the dreadful old world of state controls and five-year plans. But it has yet to decide what sort of capitalism it is going to adopt. Anyone doing business there would do well to remember the words of Vladimir Ilyich Lenin: “A capitalist is someone who sells you the rope with which you hang him.” They have not been entirely forgotten in Moscow.

It’s not Called "Russian" Roulette for Nothing: Russia is the Ultimate No-Win Proposition

An editorial in the Financial Times spells out the risks of foreigners doing business in Russia. When considered, these risks make it clear that nobody should do so, and anyone who does richly deserves the suffering she/he receives. First, the Russian government may simply steal your investment. Ask Mikhail Khodorkovsky. Second, your investment may be eaten up by Russian corruption. Third, you may be killed either because you pose a threat to the Kremlin directly or to some organized criminal cartel within its ambit or opposed to it. Fourth, even if you somehow avoid all these perils, the Russian economy is based on smoke and mirrors (it’s a giant Enron) and may collapse at any time. Finally, even if none of that happens, you will face increasing political attacks from your own government abroad as Russia speedily becomes a loathed international pariah very similar to the position South Africa used to occupy. Your reputation will be tainted as both a supporter human rights atrocities and one who does business by means of corruption (the only way to succeed in Russia).

Now, foreign investor, La Russophobe dares to ask you: Is it worth it?

Some 6,000 delegates attended the St Petersburg economic forum in Russia last weekend, including more than 100 chief executives of leading global companies. It was an impressive demonstration of international interest in the Russian economy. It was also, in the words of one Russian participant, distinctly reminiscent of a Communist party congress, where the only speakers were chosen by the ruling bureaucracy.

The occasion underlined the growing divide between international investors in Russia, who are making excellent returns, and western politicians, who are increasingly concerned at the authoritarian drift in the Kremlin. The businessmen used the St Petersburg forum to heap praises on Vladimir Putin, the Russian president. Some criticised Tony Blair, the British prime minister, for warning of the political risks to future investment. Instead, they should have used the occasion to spell out a few home truths themselves.

In Russia today, the rule of law remains erratic, the courts are corrupt, and property ownership can seldom be guaranteed. Moreover, in an autocratic society – even if it is politely called a “managed democracy” – decision-making is much less predictable than in an open democratic society.

Anyone who does business in Russia must do so with their eyes open. They must recognise that politics, as much as economics, dictates the commercial climate. It is whom you know, as much as what you know, that is the key to success. That means the risks are greater, but so are the rewards. Anything to do with the state, or oil and gas and raw materials, carries the greatest risk of interference or expropriation. Those are the sectors that Mr Putin wishes to control. Others, such as telecommunications, are not level playing fields. The car market is the latest to see renewed state intervention, with Rosoboroneksport, the arms manufacturer, taking control of Lada.

Doing business in Russia also carries a reputational risk: international accountancy firms are finding to their peril that local operations come under enormous political pressure to cut corners.

Of course Russia has changed, beyond all recognition, from the dreadful old world of state controls and five-year plans. But it has yet to decide what sort of capitalism it is going to adopt. Anyone doing business there would do well to remember the words of Vladimir Ilyich Lenin: “A capitalist is someone who sells you the rope with which you hang him.” They have not been entirely forgotten in Moscow.

Uranium: Russia’s Achilles Heel

Two items from the blogosphere document Russia’s Achilles Heel on energy: Uranium, to fuel its vital nuclear power plants. Siberian Light reports:

Russia doesn’t mine anywhere near enough uranium to fuel all its nuclear reactors (military or civilian) or to cover the massive amount of uranium it has agreed to export to other countries.

Take a look at these numbers from 2000:

  • 3,260 tonnes: Uranium mined in Russia
  • 8,000 tonnes: Uranium used in Russian reactors
  • 16,000 tonnes: Uranium exported abroad

Although production is on the increase, Russia used or exported seven times as much uranium as it was able to produce in 2000. The only way that Russia can fuel its nuclear reactors, and meet its export obligations is to dip into its steadily diminishing stockpile of uranium, which currently stands at around a half a million tonnes. At the current rate of depletion, Russia’s uranium stockpile will be gone entirely in little more than 20 years.

Taking the baton, the Russia blogosphere’s most prominent member Robert Amsterdam has been quick to pressure the Australians to do the right thing as they are pressed to fill Russia’s shortfall, as National Nine News reports:

An international human rights lawyer is calling on the Australian government to impose strict conditions on a new uranium deal with Russia and condemn the country’s human rights abuses. Canadian lawyer Robert Amsterdam is in Australia to hold talks with government officials about their role in dealing with what he says is the departure from the rule of law in Russia. Mr Amsterdam is defence lawyer for one of the world’s highest-profile political prisoners, Mikhail Khodorkovsky, the former chief executive of Russian oil giant Yukos. Mr Amsterdam said Mr Khodorkovsky has been jailed because of his vocal opposition to the President Vladimir Putin’s regime and his support for pro-democracy parties and organisations. Since his arrest by the secret police and deportation in 2005, on the last day of his client’s appeal, Mr Amsterdam has set out to inform the world about the actions of the Russian government, which he says is rapidly moving towards authoritarianism.

“One of the things I swore to myself when I was being deported was not to remain silent about not only the trial that I had been (involved) with but what I had witnessed,” Mr Amsterdam told AAP. He said that included colleagues jailed, murdered and disbarred, and his clients’ illegal incarceration and stabbing because of their opposition to the Russian regime.

Mr Amsterdam said Australia had a role to play in addressing the situation in Russia, including ensuring that a new uranium deal with Russia was tied to a condition of improving democracy. In April, Foreign Minister Alexander Downer revealed the government may expand its uranium deal with Russia, allowing Australian producers to supply Russia’s nuclear power industry. “In respect of the uranium deal (Australia should impose) conditionality, in other words, making sure that the Kremlin’s control of this uranium is conditional on an improvement of the democratic situation in Russia,” Mr Amsterdam said. Mr Amsterdam said public condemnation of Russia’s behaviour by the federal government would also help. “Even the simple pronouncement of what’s going on in Russia by responsible members of the government dramatically helps the situation in Russia,” he said. “It is the silence of the west and the complicity of some of our business community … that is to some significant extent also complicit in what’s going on in Russia today.” He said Australia should care about the actions of the Russian government because Russia is a major nuclear power, and it’s one of Australia’s only resources and commodities competitors.

On top of that, he said, Australia has an obligation as a signatory to the UN charter on civil and political rights. “Mr Putin will be coming to the APEC meeting and I think it’s important for people to understand that Russia’s departure from the rule of law and Russia’s move away from a free market in terms of energy has long term implications to the future of Australia,” he said. “Russia has declared an energy war on four or five of the governments of Europe just recently, they’ve declared cyber war on Estonia, and last week they threatened Europe with re-targeting missiles. “You simply can’t close your eyes to what’s happening to human rights in Russia and carry on as if business is usual.”