Sunday, October 11, 2009
The Perils of Doing Business in Russia
The story of Hermitage Capital is one that deserves significantly more attention than it's thus far received.
Hermitage invested in a variety of Russian companies and, in the process of rooting out corruption in those businesses, made plenty of enemies.
The Russian authorities, in turn, became involved and -- from all appearances -- ripped off their own taxpayers for a quarter of a billion dollars while blaming Hermitage.
It is a bizarre, disturbing story that highlights Russia's corrupt central government, seemingly dominated by mobsters and charlatans.
Companies doing business in Russia -- or planning to -- should thoroughly familiarize themselves with Hermitage's story.
Hat tip: Zero Hedge.