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A blog by a native Bostonian who is living, working, and enjoying life in Krasnodar, Russia
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Pleasantly Surprised

Started by Timothy Post · 1 year ago

Back to serious opinions on Russia and where it’s headed under Medvedev and Putin. Below is an opinion piece from today’s JRL (Johnson’s Russia List) by one of the most astute analysts on Russian business today. Roland Nash is a Managing Director at Renaissance Capital in Moscow. The analysis Roland offers below is the very […] ... Continue reading »

2 comments

  • Mostly agreed, except for two points:

    1. The most eye-catching remark in Putin’s speech was clearly his promise to reduce the tax burden on the oil sector ‘to encourage oil production’.

    Oil production decline is not a major issue at a time when the world has passed its oil peak and prices continue to rise fast. In fact if anything it would be a better idea to increase taxes even further so as to slow down extraction rates so as to get a better hand in the future. In any case a much more agreeable use of such a tax cut would be to subsidize wind, solar and nuclear power so as to leave over more oil for export purposes and contribute to developing a modern green economy.

    2. "Making the (large) assumption that the worst is over in global credit"

    That is indeed a very large and IMO flawed assumption.
  • Great analysis.
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