Tag Archives: mcdonald’s

EDITORIAL: The Foundering Putin Economy

EDITORIAL

The Foundering Putin Economy

Last week saw another epic tidal wave of bad economic news sweep over the helpless shores of Vladimir Putin’s Russia.

It was announced that Russia had lost a whopping $30 billion in capital flight last year, a stunning four times more than the Kremlin had predicted would occur.  The bloodletting continued in shocking fashion this year, when capital outflow in January alone reached $13 billion despite a rising oil prices that should have redirected foreign money towards Russian assets.  At this rate, capital flight in 2011 will be even higher than it was last year.

Then the world learned that Russia has the lowest foreign investment rate of any emerging economy on the planet. Major retailers like Wal-mart and Carrefour have rejected the Russian market entirely, while others like Ikea have ceased further investment.  Foreign banks too, it was reported, are fleeing the Russian market, lest their capital be stolen by the so-called “government” they find there.

Continue reading

EDITORIAL: Russia and Mickey D

EDITORIAL

Russia and Mickey D

There are 235 McDonald’s restaurants in Russia.  Before this year is out, that number will increase by a whopping 20% as the company spends $150 million on the Russian business.

Russian McDonald’s outlets are twice as busy on average in Russia as one of the chain’s locations in the United States, seeing an average 850,000 customers compared to just 400,000 in the USA.

Over 125,000 Russian workers owe their income to McDonalds.  That number, of course, is increasing just as rapidly as the number of restaurant locations.  Whole industries previously unknown in Russia have been created to supply the burger chain with the 300 different ingredients it needs to produce its daily menu of American cuisine.

Continue reading