« Previous—Next »

BP’s Russian Adventure

7 August 2008

I haven’t written about British Petroleum’s current and future experiences in Russia, mostly because – it’s so sad, and so predictable.  Perhaps it’s also because I happen to be a shareholder, which means it bothers me on a personal level, and because I’m so fed up with the Putin/Stalin thread and Putin’s obvious puppet.

And, perhaps for a minute or two, I thought there really was a chance that Medvedev would act as though he came from, or were hoping now to create, a 20th century country, with 20th century business practices.  It’s never too late, right?

What better way to win a business negotiation than to cancel the CEO’s visa – and that of almost all his key engineering staff?  Or intimidate the CFO until he quits, which happened yesterday?

This goes on, of course, even as Medvedev gives public speeches showing he isn’t really Putin’s Poodle, by appearing to criticize The Boss in public over the importance of property and shareholder rights, and business practices, etc. etc. etc.

BS.

I was going to write a bit about how the Russians would win this argument, using the same fake tax/eco permit/government pressure tactics Shell and others experienced in being squeezed out of their investment positions, but I held off.

That was stupid.

Given the experience that these powerful western companies have had in Russia, why would anyone, underline Anyone, invest there today?  No free speech.  No democracy.  No real parliament.  No rule of law.  A general attitude of thuggery, violence and assassination as common business tactics.  I mean, really, who is dumb enough to say to him or herself, ah, that only happened to those other guys, that could never happen to me?

Even for the most philistine-like business czars, Putin/Stalin’s Russia takes the breath – and the money – away.

Does Russia now end up being the not-secret hub of a new, KGB/FSB global kleptocracy?  Is this a bad 1960s James Bond movie?

With the assassination of Litvinenko by a charged KGB operative who then gets immunity by running for – and achieving – a parliament seat, nothing is too far-fetched, and indeed, the movies seem tame compared to killing with transuranium elements and assassinating critics in cold blood as a little present on Putin’s birthday.

I have noticed McCain raising a little Hell about all this, but why isn’t the world at large taking on the Bear?  Is Europe so cowed over future gas and oil supplies that she dare not peep?  We have a monster rapidly taking shape on the global horizon, and it’s past time for the rest of the world to speak up.

Or, as Robert Mugabe would say, Don’t bother.

7 Responses to “BP’s Russian Adventure”

1. Paolo B Says:
   August 12th, 2008 at 11:21 am

   Well this is the Vladi way to do business isn’t it?

   http://www.time.com/time/world/article/0,8599,1831857,00.html?cnn=yes

2. Tim Coldwell Says:
   August 13th, 2008 at 9:37 am

   Russian underperformance

   http://ftalphaville.ft.com/blog/2008/08/13/15051/russian-underperformance/

   http://www.bloomberg.com/apps/news?pid=20601087&sid=aIGZtwiJi8MA&refer=home

3. Tim Coldwell Says:
   August 18th, 2008 at 5:24 am

   Mean Street: Russia Says “We Will Bury You, Shareholders.”
   Posted by Deal Journal

   This weekend, a Barron’s/Value Line Survey identified America’s best fund manager. It is Jan-Wim Derks of the ING Russia Fund. “This is the best time to make money,” pronounced the No. 1-ranked Derks.

   Ironically, Barron’s real #1, Rupert Murdoch, would beg to disagree. A week ago, in talking about News Corp. in Russia, Murdoch observed, “We have great growing business there but…the more I read about investments in Russia, the less I like the feel of it. The more successful we’d be, the more vulnerable we’d be to have it stolen from us, so there we sell now.”

   http://blogs.wsj.com/deals/2008/08/11/mean-street-russia-says-we-will-bury-you-shareholders/

   Rupert seems to know who is up who

4. Wesley Says:
   August 26th, 2008 at 11:25 am

   Could you give us your opinion on why you think the mainstream media has underreported that Georgia was the initial aggressor killing nearly 2000 people on the first night of the Russian and Georgian conflict?

5. Mark Says:
   August 26th, 2008 at 8:25 pm

   I have almost no respect for the current American media. Ownership is too consolidated, reporting is generally poor, staffs are cut to the bone, and there is almost nothing left of the proud press I grew up depending upon and admiring.

   If you want the news, I would recommend reading the British press, or local press where the news event you care about is happening.

   But you are absolutely right about this story being ignored or suppressed; it didn’t fit our self-styled story of wanting to be the victim, or wanting our side to be the victim.

   In war, truth is always the first casualty.

6. Tim Coldwell Says:
   August 27th, 2008 at 3:59 pm

   I’m afraid that even the BBC coverage has been towing the western political line and in interviews the Russian EU ambassador has run rings around the BBC journos. The Russians, it seems to me, have been perfectly logical in recognizing the breakaway statelets.

7. Paolo B Says:
   August 29th, 2008 at 1:30 pm

   An interesting one from Economist that gives a “Putinseque” vision: http://www.economist.com/daily/columns/europeview/displaystory.cfm?story_id=11999551