Connect with us

Latest

News

Staff Picks

Julian Assange and RT attacks were designed to help Hillary Clinton

The simultaneous attacks on Julian Assange and RT in Britain are almost certainly connected. They were almost certainly intended to plug the leaks to help Hillary Clinton’s campaign. Instead they have exposed the arrogance, incompetence and intolerance of the Western establishment and its loss of nerve.

Alexander Mercouris

Published

on

3,249 Views

The crackdown on RT has been a rapidly evolving story, and I do not know the whole truth of it.  However what is clear is that it is a tale of arrogance and stupidity on the part of a Western establishment that has lost its nerve.

First there were reports that RT’s bank accounts in Britain had been frozen.  Then RT released a letter from its British bank – NatWest, which is 70% owned by the British government – saying that its bank accounts were being closed.  No reason was given and the letter said that the decision was final and was not subject to review. 

RT complained that it had been given no notice and that the letter had come as a total surprise out of the blue.

A storm of criticism then followed and significantly not just from Russia, with many British individuals and organisations complaining about an attack on free speech. 

The British government avoided comment, the Treasury denied involvement, and amid rumours that the Russians were threatening to freeze the BBC’s accounts in Russia and to bring complaints to the Organisation for Security and Cooperation in Europe and to other multinational institutions about an attack on free speech, with some talk of a possible challenge to the European Court of Human Rights, NatWest was left throughout the day hanging out to dry. 

Later, after markets closed, NatWest put out a statement saying that the decision would be reviewed after all, and that RT’s accounts with NatWest were still open and operating, and that it was in talks with RT about their future. 

There have been unconfirmed reports that the closure of RT’s accounts has now been put back to December, and that no final decision to close the accounts has been made.  The London Times is talking about a British climbdown.

Simultaneously, on the same day, it became known that the Ecuadorian authorities are denying Julian Assange internet access.

What is happening and are these two events connected as many people think?

The first thing to dispose of is the claim of some people in Britain (eg. Dominic Lawson in The Times) who are trying to defend the British actions against RT by saying they are not an attack on free speech because NatWest’s decision was supposedly a purely a commercial decision, made solely by the bank, with politics playing no part in it.

This claim is silly.  This was a decision made out of the blue with no warning and no reason given.  Given how controversial it was, if there had been some genuine commercial reason for it the bank would have told RT about it. Given the storm of controversy which followed throughout the day, if NatWest had acted for purely commercial reasons it would have put out a statement saying so. 

This would certainly have been the case if the reason for the decision was the one suggested by Dominic Lawson: that RT is about to be sanctioned.  Besides saying this begs the question who told NatWest RT was going to be sanctioned?  As it happens there is no evidence RT is going to be sanctioned, and a meeting of the European Council which took place on Monday ended with no announcement of further sanctions whether against RT or against anyone or anything else connected to Russia.

The fact that the whole day went by without NatWest publicly saying any of these things should put the claim that this was a purely commercial decision to rest.  Frankly I doubt many of the people who make it really believe it.

It is no secret the British authorities have been angry and worried about RT for a long time. 

Supposedly the previous Prime Minister, David Cameron, even convened a special meeting to discuss the channel, where he expressed his frustration on being given legal advice that were no grounds to act against it.

It is also no secret that this anger is shared by other Western governments, including the US government.  US Secretary of State Kerry after all has famously called the channel a “propaganda bullhorn”.

It is also no secret that RT is the subject of a relentless and highly vituperative campaign against it by the Western media, including especially the media in Britain.

That RT should therefore have come under this sort of attack is hardly a surprise.  Why however did it happen now?

Here I am going to align myself with Adam Garrie and with those who think that it is no coincidence that this attack came on the same day as Julian Assange was denied internet access.  Moreover this clearly points to the US Presidential election, and the roles Julian Assange, Wikileaks and Russia, are taking or are supposed to be taking in the election, being the reason for the attack.

Hillary Clinton’s campaign has been hit by a series of leaks of emails published by Julian Assange and Wikileaks. Hillary Clinton, her campaign, the Western media, and US intelligence, are all blaming Russia for these leaks, and are saying that it is Russia that is providing the hacked and stolen emails to Assange and Wikileaks.  The implication is that Assange and Wikileaks, whether consciously or not, are Russian agents. 

I have said previously why I personally doubt this is so, and I have explained why the statement US intelligence has published blaming Russia cannot be taken as proof of this

The US nonetheless publicly insists it is the case, and it has been talking openly of taking retaliatory action against Russia because of the leaks. The cutting off of Assange from the internet and the action against RT look to me like precisely the sort of retaliatory action the US has been talking about. 

To be precise they look to me like an attempt to plug the leaks by simultaneously acting against the person who is producing the leaks and the operation in Britain – the country where Assange is located and where Wikileaks is mainly based – of the Russian television channel the US believes Russia is using to disseminate news of the leaks 

The coincidence of the simultaneous actions against Assange and RT is just too strong to leave me personally in any doubt that the two events are connected.

Presumably Ecuador was warned that Assange by meddling in the US election is abusing his asylum status, and that unless Ecuador takes steps to silence him it will itself be the target of US retaliatory action.  Ecuador, a small country with a fragile economy which uses the US dollar as its currency, had no option but to comply.

As for RT, legal attempts to close the channel having failed, an attempt was made to close down its British operation by denying it banking services.

The latest news from Britain suggests that the action against RT has miscarried.  The British authorities seem to have underestimated the strength of the Russian reaction and the unpopularity of the action taken against RT in Britain. 

I should say that I have not discussed what has happened with anyone I know at RT – including with Peter Lavelle who writes for The Duran – and I have no inside knowledge of what has happened or of what is going to happen next.  However I here express my confidence that RT’s British operation will continue, and that this attempt to close it down will fail.

I also believe the attempt to plug the leaks by denying Assange internet access will also fail.  I have met some of the people who work for Assange and Wikileaks, though I have never met with or had any contact with Assange himself. 

I have had no contact over the last few days with any of these people, and I have not discussed recent events with them, and I do not know what they are going to do.  However they have struck me as extremely determined and resourceful, and I have no doubt they will find a way round.  I therefore have no doubt the leaks will continue.

Which brings me to what stands out most for me from this affair, which is its sheer stupidity.

Since I have no doubt the leaks will continue, I cannot see the point of this whole exercise, which can only make the Western authorities look simultaneously overbearing and ineffective.

More to the point, though I have no idea what any of the leaked emails Assange and Wikileaks may be about to publish contain, I strongly doubt they will have any negative impact on Hillary Clinton’s campaign. 

In my opinion the US public decided long ago that Hillary Clinton is someone they don’t like and who is not to be trusted, which is why she has struggled to ‘seal the deal’ with them in the election.  

Nothing in the emails is going to make the US public think any the worse of Hillary Clinton than they already do.  The veteran and highly professional spin doctors who work for Hillary Clinton’s campaign – with the unstinting help of US intelligence and of the Western media – have anyway managed to divert the whole story from a discussion of the content of the emails to a discussion of their alleged theft and leak by Russia.  Successfully plugging the leak of the emails – even if that were possible – therefore achieves nothing.

Whilst there was nothing to be gained by going after Assange, by doing so the US and the British have not only managed to make themselves look thuggish and vindictive, but the US has also given the impression that it and Hillary Clinton are afraid of him and of whatever it is he is going to leak.  That in turn creates the impression that they really do have something to hide and be afraid of, when on any cool and objective assessment they don’t.

As for RT, not only has the channel and its British staff been treated with a callous and unconscionable  brutality – with many of its workers made cruelly frightened for their next pay cheque – but this banana republic style behaviour, which would be rightly and roundly condemned if it happened anywhere else, betrays an astonishing loss of nerve on the part of the Western establishment.

The deluge of comments which have flooded the media threads in response to the attack on RT show that many of its viewers in Britain and elsewhere reject the label of “propaganda bullhorn” the West is trying to impose on it, and that they have come instead to value RT’s wide international news coverage and its critical point of view.   

Going after RT not only reeks of fear – not just of the channel but of the news it is broadcasting – but calling it a propaganda channel insults the millions of people in the West, including in Britain, who regularly watch the channel by implying that they are too stupid to realise the fact.  Moreover going after RT in this tawdry way – indirectly through its bank accounts whilst hiding behind NatWest – is an implicit admission that there are no actual grounds to close it, and that the claim that it is a propaganda channel not entitled to a broadcasting licence is untrue and a sham.

In truth it is astonishing that the political, security and media establishment of the West is today so frightened of a single television channel, especially a Russian one. 

Not so long ago such a thing would have been considered inconceivable.  During the Cold War the idea that the mighty Western media and the Western establishment would be running scared of a single Russian television channel would have been thought ridiculous.

That more than anything else shows the extent to which the West is losing the plot, and how the actual balance of power in the world, what some old fashioned Russians still like to refer to – far more accurately – as “the correlation of forces”, is changing and has now shifted decisively against the West.

Continue Reading
Advertisement
Comments

Latest

Russia makes MASSIVE progress on its ‘super-weapons’

Avangard hypersonic glide vehicle moves into serial production, nuclear-engine powered cruise missile tests continue, and more as Russia continues to outdo all Western military tech

Seraphim Hanisch

Published

on

On July 19th and 20th, The Russian Defense Ministry announced several milestones of progress in its advanced weapons systems programs. These programs were revealed to the world in March of this year, when Russian President Vladimir Putin gave the State of the Russian Federation speech.

Support The Duran – Browse our Shop >>

While at first the Western onlookers did not believe the amazing announcements of hypersonic weapons and nuclear-powered cruise missiles with unlimited range, subsequent releases and concurrent observation by the American military experts has shown these developments to be as real as Mr. Putin claimed they are.

TASS, the Russian News Agency, released information on these weapons systems in separate reports:

Kinzhal

The Kinzhal hypersonic missile:

Squadrons of MiG-31 fighter jets armed with Kinzhal hypersonic missiles should enter combat duty in the Black Sea region and at other Russian fleets and flotillas, said Russian military expert Viktor Murakhovsky, the editor-in-chief of the Arsenal Otechestva magazine.

Besides, a squadron (between 12 and 16 aircraft) of MiG-31 fighter jets armed with Kinzhal hypersonic missiles entered combat duty in the Caspian Sea region in April.

“I think at least one squadron of those complexes should be deployed at any fleet, in other words – at all regions where we have fleets and flotillas. We need to deploy them in the regions of the Black Sea, the Baltic Sea, the Northern Fleet. The Pacific region also should not be forgotten,” Murakhovsky said.

He said that such systems can become a “good instrument” against not only vessels equipped with high-precision weapons, but also for countering carrier attack groups.

“We know how expensive a carrier attack group can be. By employing this asymmetric method, which is unbelievably cheap in comparison with building a carrier attack group, we can neutralize this threat almost completely,” the expert said.

Burevestnik nuclear-powered cruise missile trials:

The Burevestnik is an entirely new cruise missile, powered by a nuclear engine. This gives the missile unlimited range. In theory, such a missile could be launched at a target and spend days or weeks in hidden flight using advanced guidance systems, and then close on its target at the optimal time to assure destruction of that target with maximum surprise. The TASS piece goes on to say:

The Russian Defense Ministry announced that Russia was preparing to test upgraded test prototypes of the nuclear-powered Burevestnik cruise missile with an unlimited range.

According to the expert, it is highly likely that the prototype of the missile “has already made a flight.”

“Clearly, it was something like the pop-up trials of Sarmat – a launch without the nuclear-powered engine, in other words, with an ordinary missile booster, conducted in order to assess the possibility of a launch, aerodynamics and the operability of the entire system in general,” [Murakhovsky] said.

Further reporting from TASS had this to add about the Burevestnik program:

Russia is getting ready for flight tests of the Burevestnik nuclear powered cruise missile, an official at the Defense Ministry told reporters on Thursday.

“The missile’s component makeup is being improved based on clarified requirements, while ground tests continue and preparations are being made for experimental flight tests of the improved missile,” the official said.

According to the Defense Ministry, “work on an unlimited-range missile is going according to plan.”

“In the meantime, launching systems are also being designed, while technological processes to manufacture, assemble and test the missile are being improved. This range of work will make it possible to start designing a totally new sort of weapon – a strategic nuclear complex armed with a nuclear powered missile,” the ministry official noted.

[The head] of the 12th Central Research Institute at Russia’s Defense Ministry Sergey Pertsev, in turn, said that the tests of the new cruise missile equipped with a small nuclear power unit had confirmed the accuracy of the technical decisions that Russian researchers, engineers and designers had made. In addition, the tests enabled the researchers “to receive valuable experimental data necessary for specifying a number of requirements.”

“A low-flying and low-observable cruise missile carrying a nuclear warhead, with an almost unlimited range, an unpredictable trajectory and capability to bypass interception lines is invincible to all the existing and advanced air and missile defense systems,” the Russian Defense Ministry stressed.

A further use of the nuclear engine technology is also expected in the Poseidon underwater drone, Mr. Murakhovsky stated that separate systems for the craft have been successfully tested. He further noted that the next task is to design the entire layout, build a test model and begin testing the whole platform.

The Avangard Hypersonic Missile

While the Kinzhal is a Mach-10 capable hypersonic system that can be launched from a fighter, the Avangard is a Mach-20 capable system that has intercontinental reach. There is almost no footage of this system released to the public, but the concept videos show how the system works. TASS reports this status:

Russia’s Strategic Missile Force is preparing a position area for accepting the Avangard hypersonic missile system for service as part of the efforts to strengthen the country’s military security, the Defense Ministry announced on Thursday.

“The Russian defense industry has completed developing the Avangard missile system with the principally new armament – the gliding cruise warhead. Industrial enterprises have switched to its serial production,” the Defense Ministry said.

“A set of organizational and technical measures is underway in the position area of the Dombarovsky large unit of the Strategic Missile Force to accept the Avangard missile system for operation,” it added.

The development of new strategic weapon systems “is aimed at increasing Russia’s defense capability and preventing any aggression against our country and its allies,” the Defense Ministry stressed.

The infrastructural facilities of the large unit’s position area have already been prepared for the missile system’s operation, the ministry said.

“The position area has been prepared in geodesic and engineering terms to accommodate the missile system. Work is underway to build new and reconstruct old facilities to provide for the operation and the combat use of the system. Technical and utility supply lines are being modernized and electric power, communications and command and control cables are being laid. Work has been arranged to train personnel and prepare armament, military and special hardware,” Russia’s Defense Ministry said.

Deputy Commander of Russia’s Strategic Missile Force for Armament Sergei Poroskun has said that the Avangard hypersonic missile system features combat capabilities that “make it possible to reliably breach any anti-missile defenses.”

The Okhotnik attack drone

The Okhotnik (“Hunter”) attack drone is now being viewed as a prototype for Russia’s “sixth-generation” fighter plane. TASS describes this in more detail:

According to [a defense industry] official, although the sixth generation fighter jet project “has not yet taken full shape, its main features are already known.”

“First of all, it should be unmanned and capable of performing any combat task in an autonomous regime. In this sense, Okhotnik will become the prototype of the sixth generation fighter jet,’ the source said, adding that the drone will be able to “take off, fulfill its objectives and return to the airfield.”

“However, it will not receive the function of decision-making regarding the use of weapons – this will be decided by a human,” he said.

TASS was unable to officially confirm the information at the time of the publication.

Another defense industry source earlier told TASS that the prototype of Okhotnik (Hunter) was ready and would start test flights this year.

The Russian Defense Ministry and the Sukhoi Company signed a contract for developing the 20-ton Okhotnik (Hunter) heavy unmanned strike aircraft in 2011. The drone’s mock-up model was made in 2014. According to unconfirmed reports, composite materials and anti-radar coating were used to create the Okhotnik. The drone is equipped with a reaction-jet propulsion and is supposed to develop a speed of 1000 kilometers per hour.

Peresvet laser weapons systems

TASS reported that the Russian military forces are now training for the use of the Peresvet combat laser system:

Russian Aerospace Force has accepted for service the laser complexes Peresvet and the military are now taking drills that involve the novel combat technologies, the Russian Defense Ministry said on Thursday.

“The Peresvet laser complexes have been placed at sites of permanent deployment,” the report said. “Active efforts to make them fully operational are underway.”

“To ensure their proper functioning, the necessary infrastructures and specialized facilities for housing the complexes and duty crews have been built,” the ministry said.

The crews assigned to the Peresvets have taken upgrader courses at the Alexander Mozhaisky Military-Space Academy in St Petersburg.

The Russian military strategy of “asymmetric response.”

The overall defense strategy is termed an “asymmetric response”, and Mr. Murakhovsky explained the principle in this way:

“This is an asymmetric response, in which new classes of weapons are created, instead of new types within the framework of the existing systems. Other states are not expected to have anything of this kind [in the near future],” he said.

The expert described this response as “quite an efficient one, all the more so because it requires no additional investment – all the works are being carried out within the framework of the state procurement program.”

He added that unlike the Soviet Union, Russia avoids being dragged into a direct arms race and searches for cutting-edge solutions instead of simply increasing the number of weapons.

“The development of counter-weapons to those arms [may be possible] in distant future, but it does not mean that they can be created at all,” Murakhovsky added.

Continue Reading

Latest

From McCain to Brennan, Deep State soft coup against Trump picks up steam (Video)

The Duran – News in Review – Episode 59.

Alex Christoforou

Published

on

After Trump’s meeting with Putin in Helsinki, the Deep State smells blood, and is moving quickly to depose of US President Donald Trump.

Government officials and mainstream media puppets from left and right are condemning the US President over his press conference with Vladimir Putin.

Leading the charge are the usual Deep State, suspects, starting with John McCain and ending with the man many believe is behind the entire Trump-Russia collusion hoax, former Obama CIA boss John Brennan.

RT CrossTalk host Peter Lavelle and The Duran’s Alex Christoforou examine the soft coup aimed at removing US President Trump by the November 2018 midterms. Remember to Please Subscribe to The Duran’s YouTube Channel.

Via The Independent

Conservative John McCain, who is facing a rare and terminal brain cancer, unleashed a damning statement against Mr Trump’s conference with Mr Putin, describing it as “one of the most disgraceful performances by an American president in memory”.

“President Trump proved not only unable, but unwilling to stand up to Putin,” he said.

“It is tempting to describe the press conference as a pathetic rout — as an illustration of the perils of under-preparation and inexperience. But these were not the errant tweets of a novice politician. These were the deliberate choices of a president who seems determined to realise his delusions of a warm relationship with Putin’s regime without any regard for the true nature of his rule, his violent disregard for the sovereignty of his neighbours, his complicity in the slaughter of the Syrian people, his violation of international treaties, and his assault on democratic institutions throughout the world.”

The conservative senator’s comments arrived after the US president declined to name Russia as the adversary behind coordinated attacks on the 2016 presidential election.

While discussing whether he thought Russia was behind hacks against the 2016 election — as the US intelligence community has determined —the president said: “I don’t see any reason why it would be.”

“Dan Coats [the US Director of National Intelligence] said its Russia. President Putin says its not Russia,” said Mr Trump. “I don’t know why it would be…..I have confidence in both parties. President Putin was extremely strong and powerful in his denial today.”

That set off a wave of condemnations from Democrats and Republicans alike.

“President Trump’s press conference with Putin was an embarrassing spectacle,” Bernie Sanders wrote in a tweet. “Rather than make clear that interference in our elections is unacceptable, Trump instead accepted Putin’s denials and cast doubt on the conclusions of our intelligence community. This is not normal.”

Jeff Flake, one of the only frequent Republican critics of Mr Trump in Congress, said the conference was “shameful” in a statement he posted across social media.

“I never thought I would see the day when our American President would stand on the stage with the Russian President and place blame on the United States for Russian aggression,” he said. “This is shameful.”

Former CIA Director John Brennan released a statement calling for Mr Trump’s impeachment and describing his comments as “treasonous”.

“Donald Trump’s press conference performance in Helsinki rises to & exceeds the threshold of ‘high crimes and misdemeanours,'” Mr Brennan wrote on Twitter. “It was nothing short of treasonous. Not only were Trump’s comments imbecilic, he is wholly in the pocket of Putin. Republican Patriots: Where are you???”

Elizabeth Warren also slammed the president for failing to hold Mr Putin accountable, writing on Twitter: “Russia interfered in our elections & attacked our democracy. Putin must be held accountable – not rewarded.”

“Disgraceful,” she concluded.

However, Mr Trump’s typical roster of critics weren’t the only legislators rebuking his bizarre denials of US intelligence. Lindsey Graham also criticised Mr Trump’s performance, adding that his denial of US intelligence will “be seen by Russia as a sign of weakness and create far more problems than it solves”.

“Missed opportunity by President Trump to firmly hold Russia accountable for 2016 meddling and deliver a strong warning regarding future elections,” he said.

The Republican senator added a suggestion to Mr Trump: review the soccer ball Mr Putin gave to him as a gift for “listening devices” and “never allow it in the White House.”

Thomas Pickering, a regarded statesman and the former US ambassador to Russia, told MSNBC that he was in utter disbelief after the press conference was held on Monday.

“It’s a breathtaking denial of something that clearly is so obviously true,” he said. ”it represents the epitome of President Trump’s effort at self-promotion over the notion of defending the national interest of the United States.”

Mark Warner, a Virginia senator, also suggested Mr Trump committed a clear violation of his responsibilities as president.

Mr Trump committed “a breach of his duty to defend our country against its adversaries,” Mr Warner said. ”If the President cannot defend the United States and its interests in public, how can we trust him to stand up for our country in private?”

Meanwhile the latest Deep State leak, via the NYT, claims that US President Trump was told by Obama holdovers that Putin was involved in cyberattacks during the 2016 election. US intelligence told Trump this information days before the inauguration.

Via The Gateway Pundit

The same liberal hacks who illegally leaked this information want Americans to trust them as they continue to destroy this duly elected president.

President Trump on Wednesday told CBS anchor Jeff Glor that he has no confidence in the tainted intelligence by far left hacks Clapper, Brennan and Comey.

And, once again, the timing of this leak is not an accident.

Liberals are outraged that President Trump refused to chest bump Putin in Helsinki.

The deep state leaked this information to pile on the Republican president.

The New York Times reported…

Two weeks before his inauguration, Donald J. Trump was shown highly classified intelligence indicating that President Vladimir V. Putin of Russia had personally ordered complex cyberattacks to sway the 2016 American election.

The evidence included texts and emails from Russian military officers and information gleaned from a top-secret source close to Mr. Putin, who had described to the C.I.A. how the Kremlin decided to execute its campaign of hacking and disinformation.

Mr. Trump sounded grudgingly convinced, according to several people who attended the intelligence briefing. But ever since, Mr. Trump has tried to cloud the very clear findings that he received on Jan. 6, 2017, which his own intelligence leaders have unanimously endorsed.

Continue Reading

Latest

Russia ranks HIGHER than Switzerland in these areas of doing business

Some curious things happened with several businesspeople who attended World Cup events in Russia.

Published

on

Russian President Vladimir Putin

One of them was a distinctly renewed interest in doing business inside the country, and another was the realization to what extent perceptions have been tainted by media and political rhetoric directed against any real or imagined nastiness attributed to Russia these days.

These past few weeks have been invaluable, at the very least by affording a clear picture of Russia through which almost all anxiety-ridden preconceptions were illuminated and dispelled. More disturbing was the fact that the several businesspeople I was dealing with were furious. They were livid for being played for fools, and felt victimized by the dismally untrue picture painted about Russia and Russians in their home countries, both by their own politicians and the press.

Support The Duran – Browse our Shop >>

Most felt that they have been personally sanctioned by their own countries, betrayed through lack of clear unbiased information enabling them to participate and profit from Russia opportunities these past three growth years in spite of “sanctions”.

The door to doing good business in Russia has been and is open, and has been opening wider year after year. That is not just “highly likely”, but fact. Consistently improving structures, means and methods to conduct business in Russia sustainably, transparently and profitably are now part of the country’s DNA. It is a process, which has been worked on in the west for more than a century, and one, which Russia has only started these past 18 years.

True, there are sanctions, counter-sanctions, and regulations governing them that must be studied carefully. However if you are not a bank or doing business with those persons deemed worthy of being blacklisted by some countries “sanctions list”, in reality there are no obstacles that cannot be positively addressed and legally overcome despite the choir of political nay-sayers.

READ MORE: Russia just dumped $80 BILLION in US debt

The days of quickly turning over Russia opportunities into short-term cash are rapidly fading, they are a throwback to the 1990’s. Today the major and open opportunities are in the areas for Foreign Direct Investments. The nature of FDI is long term to make regularly recurring sustainable returns on investment.

Long term, Russia always was and increasingly confirms that it is a vibrant and attractive market. There is a significant consumer market with spending power, a well-educated workforce, a wealth of resources and the list goes on. The economic obstacles encountered have largely been imposed from without, and not from the dynamics and energies of the Russian economy itself.

Eventually sanctions will end, although the timeline is anyone’s guess. Meanwhile business continues, and any long-term engagement within Russia by establishing a working presence will yield both short and long-term investment rewards. These will only be amplified when the sanctions regimes are removed. In any event, these aspects are long-term investment decisions and one of the criteria in any risk assessment.

For some added perspective, Russia is ranked by the Financial Times as the No.2 country in Europe in terms of capital investments into Europe. It has a 2017 market share of 9% (US$ 15.9 billion) and includes 203 business projects. This is 2% higher than 2016 and better that 2014/2015 when sanctions were imposed.

Another item of perspective is the Country Risk Premium. All investors consider this when calculating the scope for long-term return on investments. What may surprise some is that Russia is no longer ranked as a very high-risk country. For comparisons sake: The risk premium for Germany is zero (no extra risk), the risk premium for Italy is 2.19%, and for Russia, it is 2.54%. When compared to politically popular investment destinations like Ukraine the risk premium is 10.4%  – food for thought. Bottom line is that the risks of investing in Russia are a smidge higher than investing in Italy.

Russia is ranked 35 among 190 economies in the ease of doing business, according to the latest World Bank annual ratings. The ranking of Russia improved to 35 in 2017 from 40 in 2016 and from 124 in 2010. It may also surprise some to learn that as concerns protecting the rights of minority investors, paying taxes, registering property and some other aspects of the World Bank comparisons, Russia comes out better than Switzerland (See: Rankings).

From operational standpoints, establishing an invested presence in Russia does not mean one must adopt Russian managerial methods or practices. The advantages for established foreign companies is that their management culture is readily applied and absorbed by a smart and willing workforce, enabling a seamless integration given the right training and tools.

The trend towards the ultimate globalization of business despite trade wars, tariffs, sanctions and counter-sanctions is clear. The internet of the planet, the blockchain and speed of information exchange makes it so whether we wish it or not. Personally, I hope that political globalization remains stillborn as geopolitics has a historical mandate to tinker with and play havoc with international trade.

Russia occupies a key strategic position between Europe and Asia. The “west” (US/Europe) have long had at times rather turbulent relationships with China. At the same time the Chinese are quite active investors in both the US and Europe, and western companies are often struggling to understand how to deal with China.

The answer to this conundrum is Russia: this is where East and West will ultimately come together with Russia playing a pivotal role in the relations between the west and China. At the end of the day, and taking the strategic long-term economic view, is what both Chinese and Western companies are investing in when they open their activities in Russia.

If long-term commitment and investment in Russia were simply a matter of transferring funds then I would not be bothering with this opinion article. Without a doubt, there are structural issues with investing in Russia. A still evolving and sometimes unclear rule of law, difficulties obtaining finance for investments directed towards Russia, the unique language and culture of business in the country. Nevertheless, companies that have an understanding and vision of global strategy will manage with these issues and have the means to mitigate them.

Money and other invested resources do not and should not play politics; any investment case when evaluated on objective financial criteria will reveal its fit, or lack of, within a company’s global strategic business objectives. The objective criteria for Russia over any long term horizon is both convincing and strong. This has been repeated by all of the businesspeople I have met with these past few weeks. Without doubt we shall see some new companies coming into the Russian market and objectively exploring the gains their playing fair business football here will yield.

Continue Reading

JOIN OUR YOUTUBE CHANNEL

Advertisement

Your donations make all the difference. Together we can expose fake news lies and deliver truth.

Amount to donate in USD$:

5 100

Waiting for PayPal...
Validating payment information...
Waiting for PayPal...
Advertisement
Advertisements
Advertisement
Advertisements

Quick Donate

The Duran
EURO
DONATE
Donate a quick 10 spot!

The Duran Newsletter

Trending