Deconstructing Putin
February 5, 2009
In the most recent issue of Mergers & Acquisitions, we asked the question of whether or not Russia still belongs with the rest of the BRIC economies. The country continues to emerge, but it's more often the case these days that it's emerging as a peculiar place to conduct business.
Take Vladimir Putin's chest-beating episode with Michael Dell in February at Davos. Much of the echo chamber in the days and weeks following focused on the Russian prime minister’s aggressive response to Dell’s query of how tech companies could help Russia. But the former KGB agent’s “tough, demeaning streak” or “caustic response” are not really newsworthy items. There’s so much more to the story than whether Putin’s outburst was uncalled for. The real story is the subtext of his response.
While the rest of the developing world has been busy rolling their sleeves up, generally attempting to develop into cooperative global partners, Russia has chosen instead to circle its wagons around several sectors that it considers to be “strategic industries.” Putin has stated in no uncertain terms that Russia will never give up control over what one deal pro calls the nation’s “crown jewels.”
Which industries are included among the “crown jewels” of the former superpower? Luckily, Russian Parliament has made it very clear for us. Last April, the State Duma passed the “Federal Law on Foreign Investment in Strategic Sectors,” a federal legislation that defined the nation’s strategic sectors, and pledged more stringent restrictions on foreign investments into these sectors.
Strategic sectors included oil and gas (anyone recall BP’s little soiree into Russia last year?) and – you guessed it! – tech and telecom.
It’s amazing that more businesses aren’t cluing in. Putin, apparently, is equally astonished. Despite his heavy-handed interference into business matters and a few instances of government expropriation in these strategic sectors, businesses leaders are still asking, “How can we help you?”
If Putin’s answer wasn’t clear enough, here’s my translation of his response: “You can help by moving away from Russia’s strategic industries. Step in, Mr. Dell, and you’re just asking for trouble.”
Although the prime minister is known for his aggressiveness, he is no loose cannon. You can bet this explosion was calculated.
Let’s just hope global investors’ response will be equally calculated.
19 Comments
As we show below, louis vuitton outlet have a number of Louis Vuitton Earrings, louis vuitton replica handbags, in different styles for your selection.They're not chosen, so one of these ideal for you. For more flexibleness a lot more like these, there are lots of discount louis vuitton uk.
Posted by: coach outlet c | February 18, 2012 4:06 AM
As we show below, louis vuitton outlet have a number of Louis Vuitton Earrings, louis vuitton replica handbags, in different styles for your selection. They're not chosen, so one of these ideal for you. For more flexibleness a lot more like these, there are lots of discount louis vuitton uk. http://www.louisvuittonoutletuk.org.uk http://www.louisvuittonoutletuk.org.uk
Posted by: coach outlet c | February 18, 2012 4:05 AM
coach outlet online develops very quickly because it runs by its own special way and it contents the customers greatly.By the fashion, novel appearance, sophisticated technology, superior quality, coach outlet won domestic and international customers, their products exported to the Middle East, Southeast Asia and other regions.
Posted by: coach outlet c | February 18, 2012 2:56 AM
Awesome blog. I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new citalopram hbr articles. Keep up the good work!
Posted by: minli c | February 18, 2012 12:55 AM
If you want to buy quality Coach products at lower prices, visiting coach outlet online can be your best decision.The most incredible knack about the coach bag of coach outlet online is that it would excellently please your minds beyond your mind's eye. For example, if you want to become the Angelina Julie, you will immediately need to wear the coach handbag around your shoulder.
Posted by: coach outlet c | February 18, 2012 12:31 AM
Hello my friend! I wish to say that this article is amazing, great written and come with approximately all important infos. I'd like to see more posts like this binary options broker
Posted by: yasir r | February 12, 2012 3:33 AM
Hi,Avram.I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work! gallbladder
Posted by: sajib k | February 11, 2012 11:03 PM
Thank you all for a very great read, I actually learned a lot & love this site for this very reason :Dfeliz aniversario
Posted by: ranasohail s | February 9, 2012 2:01 PM
Who cares what the picture of Russia in the west is, the picture has always been portrayed in less than favourable light anyway. Let those self hating whites rejoice because their kith & kin in the US & western europe will soon become the minority after a few years if current trends are not drastically reversed. I think Putin knows this dangers & won't permit it hence his teaming with Rogozin which is driving the liberals of russia & the west crazy. All the guilt ridden white liberals making foolish comments can go jump the river urals but they the russian nationalists this country to be fashioned after your Godforsaken image generic cialis reviews
Posted by: ranasohail s | February 6, 2012 7:27 AM
Putin's advisors must have been reading ZH!Femigra
Posted by: ranasohail s | February 5, 2012 6:34 AM
I will keep visiting this blog very often.Hopefully I can learn more from your valuable experience. Thanks I found your website perfect for my needs. It contains wonderful and helpful posts. essays | Courseworks | Assignments | Dissertations | Theses
Posted by: padma l | February 1, 2012 11:33 AM
There's so much more to the story than whether Putin's outburst was uncalled for. The real story is the subtext of his response. web design, ecommerce website design, websites design
Posted by: paul y | January 31, 2012 4:22 AM
I recently came across your blog and have been reading along. I thought I would leave my first comment Nice blog, I will keep visiting this blog very often.Hopefully I can learn more from your valuable experience. Thanks I found your website perfect for my needs. It contains wonderful and helpful posts. I have read most of them and got a lot from them. To me, you are doing the great work Tadalafil 20 no prescription
Posted by: jimmy r | January 25, 2012 3:29 PM
well these situations always seem to turn the same as unhappy divorices and become illict married affairs like so many marital affairs not a good ending, so why not give it all up and start a small pet sitting service to get away from the norm.
Posted by: clarke b | January 24, 2012 11:06 PM
Putin has stated in no uncertain terms that Russia will never allopurinol 300 mg give up control over what one deal pro calls the nation's "crown jewels."
Posted by: kash k | January 23, 2012 3:14 AM
companies formation internet marketing loan company email hosting website design ecommerce developer ecommerce web design company loans singapore Registered office
Posted by: sed d | January 17, 2012 5:14 AM
beauty online store mall shops Singapore hotel 5 stars hotel Halo rooftop lounge calling philippines Qrcode website development company online ecommerce ecommerce company
Posted by: sed d | January 17, 2012 5:14 AM
bailey uggs on sale cheap ugg bailey button as usual uggs classic mini just leaning on the stairs going up. Xu two leave this sentence uggs classic short tall uggs for sale and can not dance. Dai Yuqing burst of concern uggs bailey buttons said: "What the table does not table ugg bailey button cheap
Posted by: cheapuggs b | January 16, 2012 9:21 PM
coach outlet online coach outlet louis vuitton uk louis vuitton coach outlet online coach factory outlet coach outlet coach outlet store online louis vuitton sale louis vuitton outlet coach factory outlet coach factory online coach factory outlet coach factory outlet online louis vuitton uk louis vuitton coach outlet online coach outlet coach outlet store coach outlet store online coach bags coach outlet store coach outlet coach outlet store online hermes birkin hermes bags gucci uk gucci uk sale louis vuitton outlet louis vuitton bags
Posted by: CHEN M | January 14, 2012 2:21 AM
Add Your Comments...
Already Registered?
If you have already registered to Money Management Executive, please use the form below to login. When completed you will immeditely be directed to post a comment.
Not Registered?
You must be registered to post a comment. Click here to register.