The ineffectiveness of the economic policy of the Kremlin is obvious to everyone except the Russians
August 16, 2016 – 12:21
In may 2008, Gazprom briefly became the third company in the world. At the peak of his value exceeded $ 365 billion. Alexey Miller said that in 2015-2016, the capitalization is expected to grow to one trillion. Russia was in the G8, the economy grew, the reserves close to a trillion and projections Miller looked quite enforceable.
January 1, 2009, in 20-degree cold, Gazprom stopped gas supplies to Ukraine, and on 7 January Russia completely stopped gas supplies to Europe. It has affected many countries, especially in Eastern Europe. No gas left Bulgaria, Turkey, Greece and Macedonia.
Was conducted a powerful propaganda campaign to blame the Ukraine. However, for Western investors the reputation of Gazprom as a reliable supplier, has been undermined. The fact that instead of the court proceedings in the Kremlin used the open blackmail in which the damage was caused to third States adversely affected the image of Russia.
In 2010-2013, Gazprom was in the middle of the second ten of the world’s largest companies by market capitalization and at the same time in the first place in terms of revenue. Its assets gradually fell, despite rising gas prices and record profitability. Finished off the gas company scandals and external adventures of the Kremlin in the spring of 2014.
Now, the capitalization of Gazprom is $57 billion and dangles in the middle of second hundred world rating. Instead (according to the promises of Miller) to become three times more expensive, Gazprom fell seven times compared to the 2008 high.
In 2015, the Russian GDP has dropped below the level of 2007 and continues to fall. Russia’s nominal GDP today is less than the GDP of new York. Capitalization of all Russian public companies combined is less than the capitalization of Google. This is to make it clear what weight do you see the Kremlin in developed countries.
While the Russian economy feels the bottom for the bottom, other countries are growing. Last year Russia overtook the country that one can hardly find on the map. But South Korea all these years, no one fought. Even with its Northern neighbor, with which largely takes the example of the current Russian leadership.
The ineffectiveness of the economic policy of the Kremlin marked contrast with the opportunities offered by a free market economy in a country with established democratic institutions.
Muscovite Sergey Brin, born in 1973, by 2004, was able to create a company with a market capitalization of $23 billion, which was three times less than Gazprom. By 2008 the gap reduced to two times. Today, Google is worth more than all that were able to create the builders of communism, and stately with knees together since 1917. Although, stately did not really established, but only take the rent was created before them.
Yuri Christensen
