Former U.S. Secretary of State Calls Russia “a Gold Mine” for Investment

MosNews ^ | 18.02.2005

[jb6]

Former U.S. Secretary of State George Schultz called Russia “a gold mine” for investment. Schultz was speaking on Thursday, Feb. 17, to a Russian-U.S. symposium on technology, which was held at the Stanford University in Stanford, CA.

If you are looking for a gold mine in the sphere of sciences and technologies, pay attention to Russia, the former U.S. official said, quoted by RIA Novosti. Schultz, who was an architect of the detente policy toward the Soviet Union under the Regan administration, gave high marks to the potential and the role of Russia on the global arena. At the same time, he called Russia’s cooperation with Iran and Syria “bad news” for security in the region.

He also pointed out that despite the fact that Russia has high economic potential, such problems as significant decrease in birth rates, alcoholism and deterioration of health care hinder its progress.

The participants of the two-day forum also include Stanford University professor William Perry, Russian Minister of Education and Sciences Andrei Fursenko, and prominent representatives of Russian and U.S. business circles.

[jb6]

While Iran doesn't bother me, since it's a light water reactor and the EU, apparently now backed by DC, is negotiating the same thing with Iran, Syria is a stupid move.

[wk4bush2004]

I'm not sure if this is a good idea. Putin is becoming more untrustworthy by the day and Russia is still a very corrupt place. And yet the US has no problem trading with China, which is worse. It just seems that Russia may be cooperating with our enemies (ex: Iran, Syria, and China) to work against us.

[cloud8]

There are investment opportunities in Russia, if you want to risk losing your shirt. Pooty has this thing about arresting oil tycoons. I do have a very small amount in a Developing Markets fund that may pay off some day. But I'm sticking with the U.S. Dow up amost 31 today closing at 10,785.22. Woo hoo!

[cripplecreek]

Russian society and government need to be fixed before it becomes a safe investment.

[jb6]

Well, Syria is a stupid move by Putin and Co, plain and simple. I'll definitly agree on that. They'd be better off courting Israel, period.

As for China, hell, we're not setting much of an example since Walmart alone sucks up 10% of Chinese exports and we do everything we can to arm them with the industrial and know-how might that they will then, eventually, use on us.

Remember, only 4 years ago they flat out threatened to melt the western half of our country.

[jb6]

One oil tycoon and these comments were specified at technology and sciences not at resource extraction. One of my former roommates had his whole department (Intel) moved to Russia: Nizhni Novograd.

[bill1952]

In the name of portfolio diversity, I had a bit in emerging markets and bonds back in the 90s.

Lost my shirt in Russian bond defaults and bank freezing, and lost it again in the criminal freezing of Malaysian stocks.

Screw that, never ever again.
Anywhere that Putin is, my money stays away from.

To elaborate:
Sitting in a hotel bar in Moscow, the night before leaving, a Russian said to me, "you Americans came here and took all our money." I looked at him and said, "you got that half right."

Stay with the US and stay rich.

[TexasCajun]

Terms: Prior Payment Please

[tomahawk]

I respectfully disagree.

If you bought Russian equities after the '98 bond default, when there was "blood in the streets", you could have made 10 times your investment. I did with several Russian stocks.

I own quite a few natural resources companies that operate in the former Soviet Union. They are doing well, and I expect them to continue to do well.

[bill1952]

If you bought Russian equities after the '98 bond default, when there was "blood in the streets", you could have made 10 times your investment.

Well, hell, sure you could have if you had the stones to throw your money in a country that just ripped you right off.

I have done very well by staying right here, and were it not for those foreign entanglements, I would be up over another mil.

[littlelilac]

Agreed that Putin is unreliable and the Russian Mafia has too much control over the economy, certainly more than organized crime in North America or perhaps I'm just naive,

but maybe the way to keep Russia behaved is indeed to "conquer" her economy? n'est-ce pas?

Heads of state usually are more concerned with their main investors than their allies even......

[cloud8]

> his whole department (Intel) moved to Russia

Yeah, but don't forget what happened to those guys from Qualcomm who were setting up a cellular system over there.
I just don't have the expertise (or the balls :) to sink my hard earned into a place that's looking more and more like the bad old days.

[cloud8]

Great story!

[Eric in the Ozarks]

Without the rule of law, you could lose the gold mine and get the shaft.

[jb6]

Actually it's ratings have been going up, including last year. Viplecom has the biggest cell network and Tyoto, Nissan and Honda are scheduled to open plants this year (there are 5 new foreign autoplants there now, since the tariffs were set in). Intel and IBM are huge investors.

[jb6]

bump

[endthematrix]

Re: "Russia “a gold mine” for investment"

I remember statements like that in 1990!

[GarySpFc]

Re: "Russia “a gold mine” for investment"

I've been to Russia several times, and was stunned at the progress I saw. I put a large piece of change in a mutual fund with a focus on Russia. It is doing far better than my American and European investments.