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Foreign Investors in Russia Vital to Sanctions Debate
Foreign Investors in Russia Vital to Sanctions Debate
By LANDON THOMAS JR.
As the United States and Europe move to punish Russia for its conduct in Ukraine and Crimea with official sanctions, a subtle approach could prove more powerful: pressuring large global investors to reduce their sizable holdings in Russia.
Since central banks began injecting enormous amounts of cash into the worldwide economy in 2009, more than a quarter of a trillion dollars has flowed into the coffers of Russia Inc., part of a broad push by yield-hungry investors into emerging markets.
Most has found its way to companies controlled by the state. Gazprom, the Russian energy giant at the heart of evolving dispute with the West, counts the American mutual fund giants Pimco and BlackRock among its largest investors and creditors...some analysts and economists are pushing for an end to this easy money, a move that would choke off critical funds.
Officials are not likely to take such a major step soon — or ever. Governments are loath to interfere with the free flow of capital; the Obama administration has urged caution in pushing measures that might upset fragile markets. And institutions, with a penchant for profit, generally do not like such restrictions.
- more -
http://dealbook.nytimes.com/2014/03/17/foreign-investors-in-russia-vital-to-sanctions-debate/
By LANDON THOMAS JR.
As the United States and Europe move to punish Russia for its conduct in Ukraine and Crimea with official sanctions, a subtle approach could prove more powerful: pressuring large global investors to reduce their sizable holdings in Russia.
Since central banks began injecting enormous amounts of cash into the worldwide economy in 2009, more than a quarter of a trillion dollars has flowed into the coffers of Russia Inc., part of a broad push by yield-hungry investors into emerging markets.
Most has found its way to companies controlled by the state. Gazprom, the Russian energy giant at the heart of evolving dispute with the West, counts the American mutual fund giants Pimco and BlackRock among its largest investors and creditors...some analysts and economists are pushing for an end to this easy money, a move that would choke off critical funds.
Officials are not likely to take such a major step soon — or ever. Governments are loath to interfere with the free flow of capital; the Obama administration has urged caution in pushing measures that might upset fragile markets. And institutions, with a penchant for profit, generally do not like such restrictions.
- more -
http://dealbook.nytimes.com/2014/03/17/foreign-investors-in-russia-vital-to-sanctions-debate/
Londongrad Dealmakers Face Sanctions Hit After $180 Billion Boom
http://www.democraticunderground.com/10024680947
