#6329
#5
strana.ru
June 28, 2002
American Investors in No Rush to Come to Russia
American praise of Russia's investment climate no more than a polite gesture
by Ivan Sas, Novaya Gazeta
According to U. S. Assistant Secretary of Commerce William H. Lash, Russia-U.S. relations have never been so good. U.S. Ambassador to Russia Alexander Vershbow echoes him by saying American investors do come to Russia - albeit not in a hurry.
According to the U.S. Commerce Department, the Russian economy received more than one billion dollars in investment in 2001. One might expect a record level of investment this year, but Lash would not be drawn into speculation when asked for a forecast.
Only the most naive people believe the laudatory rhetoric of American spokesmen praising Russia's investment climate. Their praise is nothing but a polite gesture. One indicator is the itinerary of a recent working visit by William Lash. After holding several meetings in Moscow, he and Vershbow rushed to Gus Khrustalny, a town in the Vladimir region. Why? The high-ranking officials went there to help American investors who had found themselves in a difficult situation.
The fact of the matter is that some time ago, the American company Sawyer Research Products, Inc. bought a factory shop producing quartz crystals. According to some reports, the Americans paid some $4 million dollars, but later other creditors of the enterprise disputed the deal - they claimed the Americans had only covered its residual value instead of paying a market price.
A spate of subsequent court hearings produced an unfavorable verdict as far as the American company was concerned. That turn of events is reported to have been the result of official interference. Vershbow said after returning from his trip to the Vladimir region he felt the interests of the American investors had been ignored, but added that the constructive talks with local authorities and entrepreneurs he had held there should restore justice.
There are at least nine other simmering conflicts, and all of them involve American investors. Lash said each of them would be dealt with, and Vershbow noted that such incidents undermined the image of Russian companies and warded off foreign investors.
The Russian authorities need to learn two lessons. First, if they invite foreign investors to come to Russia, they should have firm guarantees that they will not lose their money.
The other lesson concerns relations between Russian authorities and entrepreneurs. Although Sawyer is a private company, the American state machine safeguards its interests even far away from the United States. The Russian authorities dislike private businessmen, especially those who happen to be in a difficult situation abroad.
Foreign Ministry officials normally leave it to such businessmen to deal with their problems. This fact too has something to do with the country's investment climate. Foreign investors will never trust a government that treats its people in such a way.
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