Moscow's Business Gamble: Hope and Reality
Some close to President Donald Trump see Russia as a goldmine for business. They believe the country's vast resources and potential could bring big profits.
Key Players:
- Steve Witkoff, a special envoy
- Jared Kushner, the president's son-in-law
They argue that Russia's return to the global stage could be a win for U.S. investors.
Skeptics Warn of Risks
Experts caution that Russia's weak economy and unpredictable politics make it a risky place to invest.
- Charles Hecker, a regional expert, says Russia isn't the treasure trove some imagine.
- He points to:
- Weak economy
- Authoritarian rule
- Lack of legal protections for businesses
Kushner's Growing Role in Foreign Policy
Kushner has taken a bigger role in foreign policy and, along with Witkoff, has been involved in talks to end the war in Ukraine.
However, Hecker warns that even if a peace deal is reached, Russia's hostility toward the West will likely continue. Western companies shouldn't expect a warm welcome anytime soon.
Investors Remain Cautious
Others agree that Russia is still a tough sell for investors.
- Alexandra Prokopenko, a former Russian central bank official, says the idea of companies rushing back to Russia is just talk.
- Michael Calvey, a financier with decades of experience in Russia, thinks some companies might explore options, but he doubts anyone will invest heavily in the near future.
Russia's Struggling Economy
- Economic size: About the size of Italy's
- Growth prospects: Poor
- Population: Shrinking
- Oil reserves: Declining
Alan Bigman, a former CFO of a Russian oil company, says doing business with Russia only makes sense if it's not aggressive toward its neighbors. But with the current tensions, that's not the case.
