News / Economy

Ukraine Strife Complicates Investment Climate in Russia

Ukraine Strife Complicates Investment Climate in Russiai
|| 0:00:00
...  
🔇
X
Jim Randle
March 07, 2014 5:26 PM
Russia’s recent actions in Ukraine shook investors and initially sent stock prices down and gold prices up. One major investor who fled Moscow complains that Russia is already a brutal place to do business. VOA’s Jim Randle reports.
Russia’s recent actions in Ukraine shook investors and initially sent stock prices down and gold prices up.  Investors are also worried about U.S. sanctions and Russian threats to seize foreign assets. 

One expert says any impact on the investment climate may be temporary.  Foreign investors returned to Russia just a few years after the nation defaulted on debt and fought with neighboring Georgia.  One major investor who fled Moscow complains that Russia is already a brutal place to do business.

Russia’s 2008 war with Georgia drew criticism from Western nations and troubled investors.

It was fought over two breakaway regions of Georgia.

War worries investors because it creates uncertainty and greater risk.

Russia’s 1998 default worried investors even more.  Some vowed never to return to the nation that failed to repay billions of dollars in loans.  

But an expert on Ukraine and Russia at the investment advisory firm “Motley Fool,” Rich Smith, says investors eventually go wherever there is money to be made.

“U.S. oil companies were still investing in Russia, U.S. consumer goods companies were still selling things into Russia," he said. "People have short memories, big things happen in Russia and they look very big in the short term, but then things get back to normal."

The founder of Hermitage Capital Management, William Browder, once had huge investments in Russia. He now says Russia’s investment climate is terrible.  

“The rule of law doesn’t exist there, your property rights, completely non-existent," he said. "You could easily lose a lot of money before any of this stuff [the conflict with Ukraine] started happening."

Browder says his attorney Sergei Magnitsky, was beaten in prison and died there.  Magnitsky had accused Russian police of corruption.

According to Browder, corrupt officials retaliated by accusing Magnitsky and Browder of millions of dollars in tax fraud.   

The case prompted Moscow to end U.S. adoptions of Russian orphans in retaliation for Washington imposing financial sanctions on Russian officials.

Browder, now in London, says corruption is widespread in Russia.  He still faces a lawsuit and death threats from Moscow.

“Will the government create such a hostile environment for business, for geopolitics, for people that is it impossible to go there and do business," he said. "And the way it’s going right now, that could easily happen."

In the meantime, tensions over Ukraine are making the investment climate in Russia more complex and difficult.  

Washington is imposing new visa restrictions and financial sanctions on Russians and others it says threaten Ukraine.

The European Union has frozen the assets of some former Ukrainian officials, while at the same time offering the country billions of dollars in aid.

You May Like

Thousands of Ethiopian Israelis Rally Against Racism

PM Netanyahu says he will meet Damas Pakada, the Ethiopia-born Israeli soldier who was filmed being beaten by two policemen More

Ten Migrants Drown in Mediterranean, 4,800 Rescued

All of those rescued are being ferried to Italian ports, with some arriving on Italy's southernmost island, Lampedusa, and others taken to Sicily and Calabria More

HRW: Saudis Using US Cluster Bombs in Yemen

Human Rights Watch says photographs, video and other evidence have emerged indicating cluster munitions have been used in 'recent weeks' in airstrikes in Houthi stronghold in northern Yemen More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
From Aleppo To Berlin: Band of Brothers Escapes Civil Wari
X
Henry Ridgwell
May 03, 2015 1:12 AM
Hundreds of thousands of Syrians have fled the civil war in their country and journeyed to Europe by boat across the Mediterranean. It is a terrifying ordeal with dangers at every turn. A group of Syrian brothers and their friends describe their ordeal as they try to reach Germany. VOA's Henry Ridgwell reports. ...
Video

Video From Aleppo To Berlin: Band of Brothers Escapes Civil War

Hundreds of thousands of Syrians have fled the civil war in their country and journeyed to Europe by boat across the Mediterranean. It is a terrifying ordeal with dangers at every turn. A group of Syrian brothers and their friends describe their ordeal as they try to reach Germany. VOA's Henry Ridgwell reports. ...
Video

Video Rural Nepal Suffers Brunt of Quake’s Devastation

Nepal is still coming to grips with the full extent of the devastation and misery caused by last Saturday’s magnitude 7.8 earthquake. Some of the hardest-hit communities have been cut off by landslides making it difficult to assess the precise toll. A VOA News crew has been among the first to reach a few of the smaller, remote communities. Correspondent Steve Herman reports from the Sindhupolchak district, east of Kathmandu, which suffered greatly in Nepal’s worst quake in more than 80 years.
Video

Video Black Families Use Baltimore Case to Revisit 'Police Talk'

Following Freddie Gray’s death in police custody this month, VOA interviewed black families throughout the eastern U.S. city of Baltimore about how they discuss the case. Over and over, parents pointed to a crucial talk they say every black mother or father has with their children. Victoria Macchi has more on how this conversation is passed down through generations.
Video

Video Middle East Atheist Channel Defies Taboo

In Egypt, a deeply religious country in a deeply religious region, atheism is not only taboo, it is dangerous. It is sometimes even criminal to publicly declare nonbelief. Despite the danger, one group of activists is pushing back with a new online channel that defends the right not to believe. VOA’s Heather Murdock reports.
Video

Video Nepal Quake Survivors Tell Their Stories

Against all hope, rescuers have found a few more survivors of the devastating earthquake that hit Nepal last Saturday. Mountain climbers and hikers trapped in remote places also have been airlifted to safety, and aid is finally reaching people in the areas closest to the quake's epicenter. Survivors and rescuers are now recounting their experience. Zlatica Hoke has this story.
Video

Video Lessons for Germany, Europe Remain on Anniversary of WWII's End

The 70th anniversary of the end of World War II will be marked May 8-9 in all European countries except Germany, which lost the war. How is the war viewed there, and what impact is it still having? From Berlin, VOA’s Al Pessin reports.
Video

Video 'Woman in Gold' Uses Artwork as Symbol of Cultural Identity

Simon Curtis’ legal drama, "Woman in Gold," is based on the true story of an American Jewish refugee from Austria who fights to reclaim a famous Gustav Klimt painting stolen from her family by the Nazis during World War II. It's a haunting film that speaks to the hearts of millions who have sought to reclaim their past, stripped from them 70 years ago. VOA's Penelope Poulou reports.
Video

Video Nepal Town Destroyed By Quake Counts Itself Lucky

Foreign search teams on Wednesday began reaching some of the communities outside Kathmandu that suffered worse damage than Nepal’s capital from last Saturday’s massive earthquake. VOA Correspondent Steve Herman is in Sankhu - a town of about 10,000 people - where there is relief the death toll is not higher despite widespread destruction.
Video

Video First Surgical Glue Approved for Use Inside Body

While medical adhesives are becoming more common, none had been approved for use inside the body until now. Earlier this year, the first ever biodegradable surgical glue won that approval from the U.S. Food and Drug Administration. VOA’s Rosanne Skirble reports on the innovation and its journey from academia to market.
Video

Video Somali Hotel Chain Owner Strives to Make a Difference

Many in the Somali diaspora are returning home to make a new life despite the continuing risks. Since 2011 when a military campaign against Al-Shabab militants began making progress, members of the diaspora community have come back to open hospitals, schools, hotels, restaurants and other businesses. Abdulaziz Billow in Mogadishu profiles the owner of a chain of hotels and restaurants who is helping to bring change to the once-deadly Somali capital.
Video

Video Study: One in Six Species Threatened with Extinction

Climate change is transforming the planet. Unless steps are taken to reduce global warming, scientists predict rising seas, stronger and more frequent storms, drought, fire and floods. As VOA’s Rosanne Skirble reports, a new study on species extinction underscores the need to take action to avoid the most catastrophic effects of rising temperatures.
Video

Video Taviani Brothers' 'Wondrous Boccaccio' Offers Tales of Love, Humor

The Italian duo of Paolo and Vittorio Taviani have been making movies for half a century: "The Night of the Shooting Stars," "Padre Padrone," "Good Morning, Babylon." Now in their 80s, the brothers have turned to one of the treasures of Italian culture for their latest film. VOA’s Carolyn Weaver reports.
Video

Video Child Migrants Cross Mediterranean Alone, Face Unknown Future

Among the thousands of migrants making the deadly journey by boat to Europe, there are unaccompanied girls and boys. Some have been sent by relatives to earn money; others are orphaned or fleeing war. From a shelter for young migrants in the Sicilian town of Caltagirone, VOA's Henry Ridgwell reports.
Video

Video Baltimore Riots Shed Light on City’s Troubled Past

National Guard troops took up positions Tuesday in Baltimore, Maryland, as authorities tried to restore order after rioting broke out a day earlier. It followed Monday's funeral of a 25-year-old black man who died while in police custody earlier this month. VOA's Chris Simkins reports.
Video

Video Challenges Await Aid Organizations on the Ground in Nepal

A major earthquake rocked Nepal on Saturday and killed thousands, injured thousands more and sent countless Nepalese outside to live in makeshift tent villages. The challenges to Nepal are enormous, with some reconstruction estimates at around $5 billion. Aid workers from around the world face challenges getting into Nepal, which likely makes for a difficult recovery. Arash Arabasadi has the story from Washington.

Poll: Baltimore Police Charged

Poll archive

VOA Blogs

World Currencies

EUR
USD
0.8916
JPY
USD
118.82
GBP
USD
0.6479
CAD
USD
1.2019
INR
USD
63.500

Rates may not be current.