Motorola Takes on Russia

PanAsianBiz ^ | June 22, 2006 | Dr. Bill Belew

[G. Stolyarov II]

Russia is growing, and so are the shadows that are cast over the business proceedings there.

The bureaucracy is still extremely burdensome and growing. And laws are a matter of convenience and seemingly circumvented at will -- or at least when you have the right connections.

Corruption and middlemen are a matter of course, and bribes are expected and given.

Confiscation of private goods -- i.e., Motorola's ongoing fiasco -- and resale for profit is old news.

Legitimate dealings are called smuggling. And smuggling is called smuggling.

Russian law allows confiscated material in criminal investigations to be sold or destroyed before the case is completed.

Motorola had $2 million worth of phones destroyed but still has 117,000 or $15 million worth of additional phones that it is going to fight for.

Motorola ought not hold its breath.

The seizure and disposal of commercial goods without appeal is common, and RussGPS owner says that judges cost about 3 kopecks.

Russia will host the upcoming G8 meeting. At the meeting, Russian government officials hope to convince the world that Russia -- especially her oil -- is worth investing in.

Fat chance of that happening. No? But then again, somebody with money to burn will surely take the risk.

What do you think?

[G. Stolyarov II]

Russia's corrupt bureaucracy and rapidly expanding government are quickly becoming impediments to legitimate business there. If this trend continues, it will not only drive away business but impoverish the Russian people. We should hope that Motorola continues to staunchly resist the Russian regime's attempts to steal the rest of its property. See Dr. Belew's blog at PanAsianBiz

[AntiGovernment]

So the Russian govt still has no respect for private property? The more things change, the more they stay the same.