Tag Archives: exxon

EDITORIAL: The Russian Hallucination

EDITORIAL

The Russian Hallucination

Russia’s most valuable company, Gazprom, has a market capitalization about $150 billion.  That seems impressive, until you know that Exxon, America’s most valuable company, has a market capitalization more than double that of Gazprom.

Flip your perspective, and you see something even more amazing. Gazprom’s value constitutes more than ten percent of the total gross domestic product of Russia.  Exxon’s value? It’s less than two percent of America’s GDP.

In other words, because the American economy is ten times larger than Russia’s, Exxon can fail and America will go merrily on, almost oblivious. But if Gazprom fails, Russia crashes into poverty and absolute collapse. And competing head to head in Russia’s area of greatest strength, America still wins hands down, in dominating fashion.

How is it, then, that Russians dare to continue to adopt such a provocative and hostile attitude towards the USA?

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Putin Shows Exxon how “Business” is Done in Russia

Streetwise Professor reports:

A few days back I wrote about ExxonMobil was facing the prospect of losing its right to export gas from its Sakhalin I project to China, and sell it instead in the Russian domestic market at below market prices.  Today Bloomberg carries another article that dovetails perfectly with that story:

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