Russian Roulette: Russia's Economy in Putin's Era — John Shaqi
Russian Roulette: Russia's Economy in Putin's EraVaknin, Samuel
History
Russian Roulette: Russia's Economy in Putin's Era
Vaknin, Samuel
Putin, Vladimir Vladimirovich, 1952-; Russia (Federation) -- Politics and government -- 1991-
The space industry - and particularly the emerging field of launch
technologies - represents one of the few areas in which the former
communist countries may retain a competitive edge and a relative
advantage. The West would do well to encourage the commercialization of
this knowledge.
The alternative is proliferation of missile technologies and military
applications of technology transferred within collaborative efforts on
civilian projects with Western partners. The West can save itself a lot
of money and heartache by being generous early on.
Russia's Vodka Wars
By: Dr. Sam Vaknin
Also published by United Press International (UPI)
Vodka is a crucial component in Russian life. And in Russian death.
Alcohol-related accidents and cardiac arrests have already decimated
Russian life expectancy by well over a decade during the last decade
alone.
Vodka is also big business. The brand "Stolichnaya" sells $2 billion a
year worldwide. Hence the interminable and inordinately bitter battle
between the Russian ministry of agriculture and SPI Spirits. The
latter, still partly owned by the state, is the on and off owner of the
haloed brand "Stolichnaya", James Bond's favorite.
SPI's PR firm, Burson-Marsteller, posits this commercial conflict as a
classic case of the violation of the property rights of hapless foreign
shareholders by the avaricious and ruthless functionaries of an
unreformed evil empire. They question Russia's readiness to accede to
the WTO and its respect for the law.
SPI's latest press release consists of the detailed history of this
harrowing tale. The brand Stolichnaya, as well as 42 others, were
privatized in 1992.
The firm quotes a document, bearing the official seal of the maligned
ministry, which states unambiguously: "VAO Sojuzplodoimport has the
right to export Russian vodka to the USA under the following
trademarks: Stolichnaya, Stolichnaya Cristall, Pertsovka, Limonnnaya,
Privet, Privet Orange (Apelsinovaya), Russian and Okhotnichya."
The privatization was completed in 1997 when the old SPI was sold to
the new SPI Spirits. The new SPI claims to have assumed $40 million in
debt and invested another $20 million to rebuild the company into "one
of the world's leading vodka producers". Yet, the Russian government,
as heavy handed as ever, clearly is unhappy with SPI.
It says the privatization deal was dubious and that SPI paid only
$300,000 (or maybe as little as $61,000 claim other sources) for the
multi-billion dollar brands, including "Stolichnaya", "Moskovskaya",
and "Russkaya". The government values the brands at a far more
reasonable $400 million. Other appraisers came up with a figure of $1.4
billion.
Public-domain text, read in full here on John Shaqi.
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