Tuesday, February 22, 2005

Yukos a battle over justice?

It’s interesting both sides are fighting for justice, Mikhael for the right to keep his fortune and not face the next ten years in a Russian jail, while the Kremlin is fighting for the Russian taxpayer and the very economic future of Russia. For Europe it would be better that the Kremlin succeeds over Yukos, the EU needs a strong, prosperous and stable Russia to supply its energy supplies and provide new markets for its goods. At least the Putin regime has been delivering the goods, and the Kremlin's Treasury is enjoying its fifth year of budget surpluses, Russia is likely to become a net creditor a prospect inconceivable under the Yeltsin years, investment is up and broad based, though focused on the energy and export sectors and unemployment is down. Russia's reforms are ongoing, but Putin cannot afford to stop his program of reforms if he is to achieve more balanced economic progress for the whole country, rather than at present focused on the city regions of Moscow and St. Petersburg. For an investor as long as you obey the law and do your homework Putin’s Russia looks a good place for investment?