Posted on 07/06/2009 8:31:40 AM PDT by Tailgunner Joe
MOSCOW (Reuters) - U.S. President Barack Obama's visit to Russia has seen over $1.5 billion (925 million pounds) of company deals unveiled, but a longer term step-change in business between the nations will depend on Moscow boosting the rule of law.
"We need the confidence that things are going to remain stable, that the ground rules are going to remain stable," Samuel Allen, chairman of U.S. farm machinery maker Deere. , told reporters while announcing an investment of $500 million into Russia within the next five to seven years. ....
A breakthrough at these talks would serve as evidence both sides want to "press the reset button" -- to use the U.S. government's phrase -- on U.S.-Russia relations and help boost bilateral trade, which stood at $36 billion last year.
Joining Deere's new investments in Russia are U.S. soft drink company PepsiCo and aircraft maker Boeing.
The Kremlin said Russian oil major LUKOIL wanted to invest in a new refinery on the eastern U.S. coast with ConocoPhillips. ....
PepsiCo said Monday it would boost investment in Russia to $4 billion from $3 billion in the next three years..
"This investment reflects very clearly our great confidence in Russia and our long-term commitment to this very important market," PepsiCo chairman and chief executive Indra Nooyi said.
Boeing will launch a venture with the world's largest titanium producer, Russia's VSMPO-Avisma, Tuesday, industry sources said Monday. The venture will produce $700-$900 million of titanium for Boeing's planned 787 Dreamliner.
In addition to Boeing, John Deere, and PepsiCo, executives from U.S. oil majors ExxonMobil, Chevrov, ConocoPhillips and aluminium major Alcoa are travelling with Obama.
(Excerpt) Read more at uk.reuters.com ...
Posted on Sunday, July 05, 2009 12:51:21 PM ET by ETL:
http://www.freerepublic.com/focus/f-news/2285983/posts
well, now that business has no guarantees that contractual obligations will be honored in either the US or Russia, we are finally on equal footing...
Did they spell “reset” right this time?
The List, ping
Now we know why Pepsi adopted the “Obama” logo.
This is a story WORSE than OBOZO’S alleged savings of One Hundred Million Dollars!! When OBOZO is destroying Trillions in Net Annual Worth and Cash Flow in the United States and the World! OBOZO has the gall to say his trip will bring America $ 1.5 Billion Dollars over a Five Year Period! That wont cover the coost of OBOZO and His Belle going to NYC for dinner and BOOZE more than a few times in the next five years. This guy couldn’t manage a local WENDY’S without Bill Ayer’s help!
Was he talking about Russia or the U.S.A.???
Makes you wonder if these companies expect to be compensated by the US government if the Russians sieze their assets in Russia whenever Putin feels like it.
$1.5 billion in deals created or saved.
20 years after the fall of the Berlin Wall & the collapse of Soviet communism, and we are still facing the fundamental problem that the Russians have no real respect for the Rule of Law. This means that the US Govt. is going to have to continue to underwrite trade deals with the Russians to protect the interests of American companies if the Russians welch.
Another thought: 1.5 billion is really chicken-feed in the overall scope of the problems we face. Obama is really scrambling to manufacture some good News. Underwriting such trade deals is one of the levers at a President’s disposal.
The Kremlin said Russian oil major LUKOIL wanted to invest in a new refinery on the eastern U.S. coast with ConocoPhillips. .... “
*******
Oh yeah, that’s gonna happen. With zero at the helm he!! will freeze over before a new refinery is built in the US.
And good luck to Pepsico and Deere on those donations to the Kremlin kleptocracy.
From this weeks Economist:
Russia’s dismal investment climate
Courting disaster
THE website of Telenor, a state-controlled Norwegian telecoms firm, has a special section dedicated to its investments in Russia and its dispute with Alfa Group, its Russian partner. It is a long and unhappy saga filled with headings such as “Geneva arbitration”, “Court abuses” and “Black PR campaigns”.
[SNIP]
The clearest indictment of Russia’s investment climate came a few days ago from IKEA, a Swedish retail chain, whose local operation has grown quickly since it opened its first store near Moscow in 2000. On June 23rd IKEA said it was suspending its investment in Russia because of the “unpredictable character of administrative procedures”, a euphemism for graft. A symbol of Russia’s economic rebound from the 1998 financial crisis has become an emblem of its dire investment climate.
This seems to fit Putin’s three-legged approach to world dominion; first an alliance with the two major powers U.S.!/?, EU!/?, China!/?, and then on to full exploitation of the developing nations — goodby Kyoto, goodby Copenhagen, hello the New World.
So, when we hear that U.S. President Barack Obama's visit to Russia has seen over $1.5 billion (925 million pounds) of company deals unveiled, we should be wary of the flipside...the things we are giving up in order to get these deals. Ask him when he gets back: at what cost?
He actually told us the cost of Cap and Trade: promising it wouldn't cost any more than a postage stamp per day. He didn't tell you it was a $10 stamp.
Creating 1 million (government-funded) green jobs...at what cost? 2+ million private sector jobs.
"Stimulus is needed immediately"...at what cost? Your children's and grandchildren's future.
Don't trust this guy or his promoters in the media.
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