Topic: Putin is trying to coerce firms into doing business or else... - page 3. (Read 429 times)

On the oil extraction business, it is certain that the extraction, processing and even transportation has become a very specialised business. Even large companies depend on a selected group of technologists and know-how companies. This is nothing like we nationalise and next day we just open as usual. And on the financial side, it is pretty much the same, it is not only the huge investments required, it is the ability to manage efficiently those fluxes of money without loosing them to corruption, inexperience and inflated supply-chains.

If the military invasion of Ukraine by Putin's army is an example of how things are managed in his government, I can already tell you there is plenty of GDP to be lost.

As I know, what concerns the oil and resource research is quite good. At least I've heard they got decent specialists. Also, I agree with your general statement that in globalized world you can't do shit alone (works for any country) but situation with Russia is a bit different. This time there is an external reason for that and since Russia becomes more isolated there is no fear of loosing foreign investors because they already lost them due to other reasons. This rule only applies during the times of free trade.


Venezuela's problems obviously related to their national policy but the kay problem is that the country is run by a drug cartel and they had a specific overall type of management combined with socialistic ideas. Nationalization was one of the most remarkable events but it was not as harmful as their own management.


Also, this topic is kinda overvalued. Many companies did not quit Russia but just froze their operations (just like McDonald's did). It would come to nationalization only in emergency case before getting Russia fully locked, which probably wouldn't happen.

Absolutely none!

The only thing that Russians forget is that even when it comes to oil they can't do shit without western equipment. The first Russian artic platform was 20 years decommissioned Conoco oil platform,  most of the drilling in northern Siberia was actually done by western companies, see the associations with BP and Shell, and what is not western is made in South Korea.

Let's look at the pride of Russia, the Kamaz with 8 times winner in a row truck:

Let's look at something else, the pride of the new Russian air fleet, the Sukhoi Superjet 100:

Yeah, you know what all these have in common with fries?
The ovens at McDonald's are produced in the US, the girls the same, and no, you can't cook hamburgers on Lada radiators, which btw are made by Renault.
 

In a current situation these actions look quite reasonable. Nothing unexpectable.
1. This was done in response for overall cancelling culture around Russia when companies are under pressure in order to leave the Russian market. And since everything was done rapidly, it is reasonable to set some limitations for capital movement.
2. Lots of russian companies have frozen assets in EU. This time even a large part if Russia's central bank reserves were arrested by EU.

In that situation the response from Russia is quite reasonable. Probably, many other presidents would do the same in such sutuation.



So you think there is no difference between oil and burgers?

Reading this reminded me of that video of Chavez casually pointing at a business and saying "Expropriate it" with the owner collapsing in tears as he get pulled away. What is Putin gonna do with all that empty McDonalds he took over? LOL.  This is so totally not gonna bite Russia back /s.


This is going to be East Berlin all over again with walls and guards with their guns pointed IN rather than out.

The moron thinks this is 1819 and nationalizing a shoe factory will simply work from day one like never happened, he could at least have watched what happened in Venezuela when they did the same shit.

Ok, nationalize AvtoVAZ and take over from Renault, you have a car factory! Glory to the might moron!
But in reality, you have a factory without half of the gear for those cars that even now come from Romania and Morocco, good luck trying to persuade the company to sell your those after you have taken over their business. Poeple really think that this substitution works wonders, it doesn't!

One should always look at what happened to Huawei when they were cut from the chips market, they can't launch a 5g phone, even their flagship is 4G, and this is in China where some poeple really believe everything is produced. No, it's made by foreign companies, take over and you won't have anything working anymore.

But what can you tell to the average Russian who thinks that the Sun revolves around Russia, that they are the mightiest, the most technologically advanced, bla bla, they will say of course it works, glory to the USSR and then 4 years later when they are down the drain dirt poor only making vodka from old rags and hay they,  will blame the evil capitalists for their own stupidity.

If they do that then they can say goodbye to any Western company from reopening there again for ages,may be never again.Western corporate businesses sure know business much better than any Russian company and once they see the way they are treated now it is only normal they will not ever again go and open a branch in Russia.

I have said in other threads that what Putin is doing is just making Russia a new North Korea from the level of isolation they will get from such moves.The Russian government doesn't seem to care now but they will soon as the effects of the sanctions are projected to be felt in the long term and who will suffer the most are the Russian civilians.They,the civilians are the only ones who can stop this war but it seems they are in a deep sleep now.

Even if they seize the assets of this foreign individuals, how will they be able to run it as smoothly themselves? I am pretty sure that they're not going to be able to do the same operations as the previous owners and I think that those people who own those businesses have safety net in place when this war started.

Is this a live threat or what... If business operations are not open then sending their representative to jail is the solution? I strongly believe Putin is upto something in this regards, but if should in case its just an ordinary threat to lives and properties then i think the citizens will suffer a great havoc of poverty and hunger for years before they can begin to recover.

Now that the Russians bitcoin investors are going out of the country to seek for better settlement elsewhere is an indication of something terrible and stinky is about to unveil in Russia and those that quickly sensed it has taken a drastic step for an alternative but the poor will suffer this, only few ones will be able to make it out to another country and as the rate of emigration is high he may place embargo on leaving the country. I pray this man does not initiate the third world war.

Putin's latest crazy idea is to coerce Western and multinational firms into keeping their business open in his dominions. The message here is "you have to keep your doors open or I will take all your assets and property and also send your executives to jail".

https://foreignpolicy.com/2022/03/11/russia-mcdonalds-business-seizures/



This is a very peculiar understanding of business and the rule of law. I wonder that, if this is effectively implemented, will we ever see a western company investing or doing business in Putin's dominions? Will the jobs for the Russian people created by this companies disappear for decades to come?