Topic: Putin is trying to coerce firms into doing business or else... - page 2. (Read 429 times)

Doesn't matter in the slightest that it takes time. There are two things that could be done, first of all you could start right now and it will take a year before you can get the most out of a place and meanwhile let the gas prices be high during that time, or you could use the ones that we already had someone working on and put subsidiaries on it and get them paid a lot more and basically tax payers money would go to lowering the price of gas.

All in all it is sad that it happened after 2+ years of pandemic, so we are reaching to 2+ years of economical chaos around the world. But, it certainly is a better feeling than depending on Russia at all times.

Of course, because socialist ideas only work in the heads of the socialists. A chain has its own suppliers and contracts with many companies. It doesn't have a cleaning lady that does the job but there's a contractor that comes at night and cleans everything, it does not have some guy to change the bulbs but a contractor that manages whole electric equipment in the building. It can offer employees certain benefits, gift cards, private healthcare, savings plans. If you take a chain restaurant and give it to some private guy even a very eager and honest person it's not going to work as efficiently and be able to offer food as cheap as the chain did.

Putin probably doesn't want to give anything to the people. He wants the state to own it all like in the Soviet Union which is his idealized world of dreams.

Judging for Putin's usual modus operandi, he will seize the assets, give them to one of his mafia bosses oligarchs to open a local version (McPutin or Vladpple) and get his cut of the business to buy more flats in London, a larger palace or a couple of islands or archipelagos that he fancies.

He can get very creative and quite persuasive when he wants to take someone else's stuff as you can see right now in Ukraine.

Just used McDonalds since I don't know what other foreign brands have presence in Russia but I suppose there's still the problem of seizing their assets - how do you liquidate it if no one outside is going to buy it?

As for it deterring business, yes it'll have that effect. He could have just shut his mouth. Maybe there would be still some who might come in and do business. But since he dropped the E word, they might have second thoughts about doing business in such a country.

This is similar to what happened in Venezuela where they seized the private sectors businesses, they go inside establishments and take them, giving it to the people. A very bad wrong move, it gave them income, a profit to the government, created jobs, butd now they are destabilize. I wonder how's the case for NK, where they are deprive of these products and services in the first place, they've manage to lived but I don't call it living with such control.

This guy is really starting to do some crazy stuffs that I least expected him to do. He's trying to turn this into something that is bigger than what it is currently. I was expecting that by now this situation would have been something that is totally over. But, I’m surprised that they are still dragging this issue till now and doesn’t want to put an end to it. And what saddens me the most is that people that suffers the most from this war are the poor innocent civilians.

The rich ones can easily leave the country and relocate to a better place, while the poor will just continue to stay there and desperate. Despite they are innocent, they will still suffer from it, suffering from a poor decision that was made by their leader.

I think that if Putin's dominance continues in Russia this will be an obstacle for investors to be able to invest in Russia, because for example, Putin is currently seizing the assets of foreign companies, like his own.

...and if this continues, sooner or later Russia will suffer the same fate as North Korea

Putin seems to recognize nothing more than brute force. But in business, such tactics are always doomed to failure. If the business and property of foreign firms are taken away in Russia, they will go to international courts and all over the world there will be confiscation of property belonging to the Russian Federation in order to compensate for the losses caused. Russia will be completely cut off from the whole world. Considering that this is not a high-tech country, its economy will be thrown back many decades. All this is stupid on the part of Putin, like all his recent actions regarding Ukraine. A terminally ill old man with enormous power just went crazy, but ordinary citizens of Russia will pay for this for a long time to come.

At the moment it is simply an empty threat, one which they tried to pedal back from quietly after the headlines were written. This sort of nationalization would make Russia even more uninvestable in future (when they're already off the charts) because it means the government will seize any potential assets, which obviously makes it impossible for foreign buyers to trust that they'll have anything left. It's almost as if Putin has thrown the last 20 years of relative stability out the window in the space of a couple weeks by all these constant mistakes and just shows how totally clueless the government is, instinctively lashing out in whatever small ways they can against the massive sanctions setup due to their unnecessary invasion.

russians themselves are suffering with this move, because those who are also working on these businesses are russians. so after this, a lot of its constituents don't have jobs and are struggling to survive. and you may be right that the owners of these franchises are also russians. because if you happen to visit this country, they don't patronise much the english language, they stick to their local language. and i don't think many westerners are willing to study a new language to live and work in this country.
but what i am thinking is that if in case Putin will fail on Ukraine, he may possibly be ousted...

Do you work in the oil industry? Do you design mining rigs, pumps, drills? Do you work on an oil field?
Or...you watch Russia today?
The same specialist that we're telling us Russia has the second most powerful army in the world that would be in one week parading in Paris?

No, the situation is not different at all, and you could look at the damn history books and see what shit the USSR ended up producing that wasn't good even for African countries anymore and the same time, for everything that comes to exploring oil deposits, once the Russian available technology peaked in the 70's they started trying to copy everything western to no avail, production peaked and only abundant new fields resources kept it somehow going. That's not the case anymore. Either way, I find it hilarious when politicians who have never worked once in a company that doesn't get magic money from the government suddenly have plans to run a profitable consumer-orientated one or how the guy flipping burgers at McDonald's suddenly is an expert in logistic just because he worked there for a few months.



Rename it McNothing! That name would come in handy and accurate for promos 2-3 months later.  

Many regimes make the errors venezuela did after nationalizing the private sector operations of kelloggs, toyota and other businesses. Leaders there confiscated all assets and sold them off to fatten their own pockets. It resulted in a negative trend where jobs were lost and never returned. The economy was weakened by significantly reduced local production of goods, which converged with currency devaluation to drive costs upwards as the bolivar hyperinflated.

Putin will not follow the precedent of venezuela. His goal will be to reopen businesses seized to keep job markets and local economic production intact. Whether he can achieve this feat, will come down to whether he can negotiate with or replace suppliers. He can seize and re-open McDonald's with generic ingredients and dishes that are not from official sources. This is easier to do today than ever. DNA identification in the food industry allows identification of secret ingredients and (perhaps) secret recipes. Every food item prepared by restaurants like McDonald's could be identified by DNA testing and perhaps reverse engineered.

There definitely is a blueprint for Putin's approach potentially being successful. Whether or not he can succeed at this venture, which has not been tried before is anyone's guess.

I think that it's not the best example.
MacDonald's works as a franchise business. So the owners of the actual restaurants (hence the assets) are (probably) Russians.
They were paying for the rights and recipes and parts and MacDonald's was actually having all the contracts right so the suppliers keep sending what's needed where's needed.


However, there's nothing for Putin to seize in MacDonald's. Maybe from other businesses. But going on this track he ensures Russia will become a big no for... basically every goods and services that matter (but I'm no longer surprised; I'm curious how long will it take until most Russians get to understand what happens there).

Closing each other, accusing each other, forcing each other between foreign companies, elbowing each other between Russia, the EU, and even the US. That is the fact that we are now witnessing. No one wants to give in, no one wants to submit. All for the sake of showing who is in charge of the world's economic industry. Russia, Saudi Arabia, and North Korea collaborated to shut down the oil business, which made prices in the US soar by more than 50%. Foreign companies operating in Russia began to close and resign. So and will continue to do so during the process of the selfishness of each one who does not want to budge. Who is to blame? who wants to be blamed? all want to win. Is not it?

Watching the news all day is filled with very saturated news.

I think it's counterproductive depending on what company's assets they seize. Let's take McDonalds for example. Say the company decide to leave and then Putin seizes the assets, what is he gonna do with it? Would he be able to just make the stores run like nothing happened, is gonna retain the employees, etc? I think even if he decides to just shut them down and liquidate, who he gonna sell those too? Even if he sell those to his cronies, the money would still be coming from within Russia, no new money comes in.

Makes you wonder how much of the companies leaving has nothing to do with wanting to but they are being forced to.
It's tough to sell burgers in McDonalds if you can get meat in from the outside world.
I can sell donuts & coffee at Dunkin Donuts if the beans & dough can't make past the border.
And if they do, there is no way to get my money back out.

So a business might want to stay open, but there is no way for them to.

As for large amounts of their 'home grown' products being sourced from all over the world, as others have said that is just about everything everywhere.

Which was way so many people were laughing at the Trump people cheering when they were "going to bring manufacturing back to the USA" No, you are going to try to bring assembling things to the USA.

-Dave

The guy is under extreme pressure, he knows he is done and therefore he is trying to make sure that the country is able to secure funds and according to the sources he have already asked China for supplying military aid or necessary financial aid which does mean that he is loosing the war and he knows that, therefore the latest threats are going to the companies who have their institutions set up in Russia already, even if the government seizes them still the companies won't be able to function because of the visa, Mastercard, international payments not being made which means they don't even have any basis to stay in Russia, if they are not leaving to protect ukraine they might as well be leaving because of the sanctions. He needs to know that without sanctions being lifted and him stopping this madness nothing he say is going to work, no threats, no nothing.

This is just so low for a president. To utter such words and to even make it into actions is just pure absurd. This just shows how incompetent he is in terms of leading and when it comes to the economy such as business matters. If he will continue to act like this, most probably the western countries will be turn off with his attitude. Exhibiting such behavior is just manipulative. The moment the western investors come into their senses, probably they will just pull out instead of staying.

This will do no good to Russia's economy. Instead of betterment, they will have nothing in their side once investors lose interest on them. I just hope it won't really go that far because Russian citizens are also affected by their president's acts of incompetency and aggresiveness.

If we know that a man is ready to invade a sovereign country militarily, to destroy everything in his path without any mercy - then why would it be strange to want to nationalize the property that will remain behind the companies that cease to operate in that country? All these companies must take into account the risk of such events, in every business you can profit and you can lose.

All of these companies may one day return if the government in that country changes, and that new government will then do the right thing and return the property to its owners. While everyone is focusing on how many companies are leaving Russia or temporarily shutting down, the drug manufacturing sector is not covered by sanctions and continues to operate normally, despite some wondering how moral it is - but the fact that oil and gas are still flowing from Russia to the countries that impose the biggest sanctions is no less moral.

Of course, Russia will lose a lot of jobs with the closure of all these companies, but this is their internal problem that they have created for themselves - maybe these people will now be redirected to other sectors.

That is straight up threat to the White Collar jobs and they not gonna like it. In fact I assume that they might have started the migration process from the Russia as we speak. They will do so because the future is not good in the Russia and the acts of them have put Russia on hundreds of sanctions. Its not about the business anymore when you are in the Russia, but its all about the sparing the life of themselves and praying to get into jail if they dont listen.

Its too bad, he openly challenged them. He is nuts, he is a "educated illiterate" I would say. The same companies are actually thriving the homes of his own peeps, the families are getting paid by working under those companies.

Until the air clears, they gonna keep it low, but once its done these businesses not gonna step into Russian Land.