18 June 2004 12:47
Diversification of Russia`s economy will reduce risks - analyst
"Yukos is an important story to follow as an example of how the system works in Russia and what the risks are
here," Robert Richards, the chief credits officer of the Standard and Poor's rating agency affiliation in
Russia, told Russian Ekho Moskvy radio on 18 June.
"In particular it is difficult for businesses to operate when they have an unpredictable legal system, an
unpredictable regulatory system where things tend to operate less based on rules and institutions and more based on
individual decisions of policy-makers," he added.
Speaking in English with consecutive Russian translation, he spoke in great detail about the company and ways it
evaluates economic and political risks.
Asked which countries may be compared with Russia in this respect, Richards said that one can compare Russia with
countries possessing the same energy resources, like China, Middle East countries and Mexico.
"The situation with Yukos is quite unique, and the willingness of the court and government to intervene in one
of its major industrialists is quite unusual," Richards continued.
He described the situation in Russia as economic nationalism when many investors like former Yukos chief Mikhail
Khodorkovskiy are very keen to allow Russians to develop their resources as opposed to bringing in foreign investors and
diversifying the economy beyond the resource sector", like the case in China, Richards said.
"We see the diversification of the economy would reduce risks and there are a lot of infrastructure needs in
Russia that would provide the foundation of stronger growth", he concluded.
Duration: 35', no further processing planned.
[Ekho Moskvy radio] |
RUSSIA IN FACTS
