Russian stocks plummeted and the cost to protect government bonds from default jumped to the highest in nearly four years as the central bank shored up its currency pummeled by the ongoing conflict in Georgia and tumbling commodity prices. In Moscow, the ruble-denominated RTS benchmark was down 6.51 percent in late afternoon trading, sinking to the 1,400-point level which hasn't been seen since June 2006. Moscow-based analysts say they predict the market going further down to 1,300 points this year. Russia's U.S. dollar-denominated MICEX was down 5.54 percent. Bayerische Motoren Werke AG, the world's largest maker of luxury cars, said sales rose 2 percent last month, boosted by economic growth in China and Russia. Top executives and policy makers will examine Russian investment in a series of exclusive interviews at the second Reuters Russia Investment Summit to be held Sept. 8-10. Russia's huge resources and a consumer products boom may offer growth for another decade, but recent events signal political risks to its financial markets.
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Comments (2)
Being a Russian is hard. You always get asked. And well, I dont know much. Here is what I can say on this subject:
In my experience, I would add the following ‘outsider view”:
Pros:
A. Talented and highly educated people.. (Moscow State University is one of the best I have seen)
B: Rich in natural resources
C: Stoic and determined people
Drawbacks:
[1] Work Ethics: I think its best if I quote a foreign acquaintance of mine here:
“Russians and Indians - have one thing in common — No or low regard for any rule or
law….” (I have edited the remainder :-) ]
[2] Business Culture: has a different meaning than in the West. A la French - if you tell
an average Russian - he/she thinks of the following question “Whom did you rob/steal..”
Alongside ” do you pay taxes” // followed by ” you must know people in the GOVERNMENT” —
and if one happens to eat dinner - after the vodka (perhaps during the vodka) - the following is
omnipresent in conversations “mafia, Putin, State, Politics, taxes, crime, Gucci, Armani.. BMW,
CONNECTIONS ” Compare and contrast this with the West and you will
know..
[3] Belief system: goes something like this : Business = Contacts. Contacts = Government.
Government = Moscow. Moscow = Bureaucrats. KGB = Mafia. Taxes = Evi. Rich people = Models
+ Yachts. real estate = Monaco. Generous = “man who gives gifts” Sorry its not a pretty
picture.. but its not me who said REAL POLITIK”
Regards
Olga Lednichenko
Posted by http://olgalednichenko.wordpress.com/2008/09/05/in![[OpenID Commenter Profile]](http://www.robertamsterdam.com/mt-static/openid-comment/openid.gif)
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September 5, 2008 7:22 PM
Posted on September 5, 2008 19:22
Here is my take on this post:
In my experience, I would add the following
Pros:
A. Talented and highly educated people.. (Moscow State University is one of the best I have seen)
B: Rich in natural resources
C: Stoic and determined people
Drawbacks:
[1] Work Ethics: I think its best if I quote a foreign acquaintance of mine here:
“Russians and Indians - have one thing in common — No or low regard for any rule or
law….” (I have edited the remainder :-) ]
[2] Business Culture: has a different meaning than in the West. A la French - if you tell
an average Russian - he/she thinks of the following question “Whom did you rob/steal..”
Alongside ” do you pay taxes” // followed by ” you must know people in the GOVERNMENT” —
and if one happens to eat dinner - after the vodka (perhaps during the vodka) - the following is
omnipresent in conversations “mafia, Putin, State, Politics, taxes, crime, Gucci, Armani.. BMW,
CONNECTIONS ” Compare and contrast this with the West and you will
know..
[3] Belief system: goes something like this : Business = Contacts. Contacts = Government.
Government = Moscow. Moscow = Bureaucrats. KGB = Mafia. Taxes = Evi. Rich people = Models
+ Yachts. real estate = Monaco. Generous = “man who gives gifts” Sorry its not a pretty
picture.. but its not me who said REAL POLITIK”
Regards
Olga Lednichenko
Posted by http://olgalednichenko.wordpress.com/2008/09/05/in![[OpenID Commenter Profile]](http://www.robertamsterdam.com/mt-static/openid-comment/openid.gif)
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September 5, 2008 7:34 PM
Posted on September 5, 2008 19:34