BRICS inch towards alternative to dollar bloc 27 Mar 2013 Brazil and China will use their own currencies for trade and the five nations are still working on creating a rival to the World Bank. With nearly half the world’s population and 15 pct of its trade - and despite flawed policies - the group is a useful counterweight.
The first oligarch dies, his kleptocracy thrives 25 Mar 2013 The exiled Boris Berezovsky was a key figure in the Yeltsin regime but then fell out with Vladimir Putin. He was the main architect of the corrupt system that meshes business and politics, and which still rules Russia today. It survives him in good health.
Cyprus must accept a less Russian future 19 Mar 2013 Nicosia is negotiating with Moscow on how to tax Cypriot bank account holders. If insured funds are spared, the island’s Russian depositors would end up paying 60 pct of its bailout bill. Beyond that, de-russification is the price Cyprus has to pay for staying in the euro zone.
Russia’s central bank can avoid "putinisation" 13 Mar 2013 Vladimir Putin has chosen close adviser Elvira Nabiullina to run the monetary authority. The appointment could give the president too much sway at one of Russia’s few remaining independent and competent institutions. But the ex-economy minister deserves the benefit of the doubt.
Dirty money flight integral part of Putin’s Russia 20 Feb 2013 The head of the central bank says that the same “group of people” controlled half of the $50 billion of illegal money transferred out of Russia in 2012. The government can hardly feign surprise. Its claims notwithstanding, it is at the centre of the country’s web of corruption.
Weakened Gazprom still packs a punch 19 Feb 2013 Gazprom’s grip on European markets is weakening, and it may soon face more competition from fellow Russian producers. But the gas exporter’s customers and rivals can’t get complacent. Gazprom may be a hegemon in retreat, but it’s not a spent force yet.
Bourse listing won’t make Moscow a new Wall St 15 Feb 2013 The damp squib IPO of the Russian stock exchange isn’t the opening bang heralding an era in which Moscow becomes a new global financial centre. The lack of a domestic investor base, and the local business climate, are problems that must be tackled first.
Polyus sale could leave gold deal bulls hanging 6 Feb 2013 Russian billionaire Mikhail Prokhorov’s potential exit from Polyus, the Siberian gold miner, has revived talk of a tie-up with fellow Russian producer Polymetal. An enlarged national player might please the Kremlin, but the industrial logic of gold mergers is weak.
Goldman can’t do much for Russia’s lustre 30 Jan 2013 Moscow has hired the U.S. bank to boost its image among investors. But perception isn’t the problem. Reality is. The Putin government thrives on widespread corruption and the absence of a rule of law. Unless it wants to try regime change, Goldman’s efforts are doomed.
Gazprom bid for Greek gas puts EU in a bind 15 Jan 2013 Brussels might not like that Gazprom and a little-known Russian power group are lead contenders in a Greek gas privatisation. But with Grexit fears lurking, it’s no wonder the sale hasn’t attracted more buyers. An unusual example of self-defeating policies at work.
Spurned by Belgium, LVMH boss can still try Russia 11 Jan 2013 Some countries have standards. Bernard Arnault may not meet Belgium’s and that country could deny him citizenship. If the billionaire boss of luxury giant LVMH really wants to avoid high French taxes, he could try Moscow. For once, Vladimir Putin would import an oligarch.
Depardieu would find heaven in Putin’s Russia 3 Jan 2013 The French actor, who wants to leave France because of the socialist government’s tax policies, has been made a Russian citizen by his friend Vladimir Putin. The local 13 percent flat tax on income is hard to beat. And Depardieu would live under a regime closer to his liking.
Gazprom’s travails encapsulate Russia’s problems 28 Dec 2012 For decades, Gazprom’s grip on EU gas supplies made it a key lever of Russian might. But years of mismanagement have taken their toll. What’s more, gas isn’t what it used to be. The new torch-bearing company may be Rosneft. But Russia remains a badly-managed resource economy.
Abramovich peace mission rewards all at Norilsk 4 Dec 2012 The oligarch is to buy 7.3 pct of the Russian nickel miner. The deal resolves a spat between shareholders Interros and Oleg Derispaka by giving the former management say and the latter dividend security. But Abramovich won’t have broked peace for nothing.
MegaFon should dial down price hopes for IPO 19 Nov 2012 The Russian mobile operator is tackling worries over ownership and governance. But liquidity and country concerns may still deter generalist investors. A maximum $14 bln market capitalisation also looks too rich versus rival MTS, despite MegaFon’s simpler shape and faster growth.
Prokhorov’s RenCap grab likely prelude to a sale 15 Nov 2012 The Russian oligarch has had it with propping up RenCap. He is taking control after the investment bank, hit by sluggish emerging economies, slipped in its domestic core market. For the now politically-focused billionaire, a quick turnaround-and-sale is the order of the day.
Russian economy could lose in state energy grab 8 Nov 2012 Vladimir Putin is reneging on his own government’s privatisation pledges and seems intent on structuring the industry around two national champions, Gazprom and Rosneft. Investors tempted by the Russian energy sector should start applying a heavy Kremlin discount.
Rosneft buy may leave Russian oil industry wanting 24 Oct 2012 The country needs to enhance the efficiency of its lucrative oil business. Rosneft’s $55 bln swoop on Russia’s number-three producer might help, if TNK-BP’s superior oilfield know-how rubs off on the lumbering state-dominated giant. More likely, the deal will stifle competition.
Russian resolution helps put BP in play 22 Oct 2012 The UK oil major is exiting its fractious Russian JV for $12 bln in cash and 19 pct of state-backed Rosneft. If a settlement for the Gulf of Mexico disaster follows then BP will be free of poison pills. Factor in weak shares and wounded management and it’s an enticing bid target.
Rosneft offer could give BP cash flow headache 18 Oct 2012 The Russian state-owned group is about to make an offer for BP’s stake in TNK-BP. The UK oil major would lose access to the cash flows from its Russian joint venture. It would be better if Rosneft bought out BP’s oligarch partners. But Russian energy politics could preclude that.