Streetwise Professor

June 27, 2013

The Sun Rose in the East Today

Filed under: Economics,Energy,Politics,Russia — The Professor @ 3:10 pm

And in other news of the completely predictable, Russia announced that it was backing off on its privatization plans:

The Russian government halved its privatisation target for next year on Thursday, as Kremlin officials loyal to President Vladimir Putin tightened their grip on economic policy.

And I bet that half will be halved.  And that quarter will be halved . . . until in the limit it will approach zero.

And, of course, the reason is that the price isn’t right.  The price is never right.  Bob Barker could never earn a living in Russia:

“The current state of financial markets is such that it would, with rare exceptions, be impossible to avoid lasting damage from selling stakes in these companies,” Olga Dergunova, head of the State Property Agency, told ministers.

Singing the Sechin tune. Russian companies are undervalued! We can’t sell them now!  It’s funny, that.  They’re always undervalued, regardless of the state of the financial markets, frothy or depressed.

And speaking of Sechin, there was no mention of the privatization of Rosneft.

If you are surprised at that, you probably wake up at 4 o’clock in the morning and look west, thinking that today is the day that the sun will rise there.

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  1. Got to have a private 1:1 conversation with Olga Dergunova when she was head of Microsoft Russia. I’ll admit, she was very personable and impressive. I even made it on her Christmas list that year (2004, I think) Looks like her career path has finaly led her to the biggest teat, though. i.e. the government, even after feeding at the VTB trough for a while. Life has been good to her.

    Comment by Howard Roark — June 28, 2013 @ 5:03 pm

  2. this is another sign of why former Soviet states should avoid economic reintegration with Russia along the lines of Putin’s ridiculous Eurasian Economic Union like the kiss of death.

    Comment by lulz — June 29, 2013 @ 9:37 am

  3. @lulz. “Will you step into my parlour, said the spider to the fly.”

    The ProfessorComment by The Professor — June 29, 2013 @ 11:30 am

  4. no kidding. The fact that the Eurasian Economic Union is Putin’s #1 foreign policy goal goes to show how much he is out to drag the rest of the former USSR back into the abyss that Russia is heading towards.

    Comment by lulz — June 30, 2013 @ 2:14 am

  5. Because Ukraine, Belarus, and Kazakhstan are, of course, paragons of privatization, free markets, and good corporate governance.

    Comment by S/O — June 30, 2013 @ 2:04 pm

  6. Of course they aren’t. Which is why it would be better for them to join EU integration projects or orient themselves toward East Asia. As opposed to linking themselves to Russia, where all of 5% of the population is engaged in entrepreneurial initiatives and will go the way of the Soviet Union in a decade or so, once the ethnic Russian population really starts to decline and the Russian army is completely filled with conscripts from the North Caucasus. Belarus’s businessmen want out.

    The Customs Union is now just a great way to move capital illegally –

    haha, Putin’s great foreign policy goal is going right down the shitter, must be really sad to watch for a Putinite goon like yourself, eh Anatoly?

    Comment by lulz — June 30, 2013 @ 2:17 pm

  7. the Russian army is completely filled with conscripts from the North Caucasus.

    You are a clinical idiot.

    Comment by S/O — June 30, 2013 @ 4:48 pm

  8. @S/O-read more carefully. @lulz was making a provocative and somewhat hyperbolic statement about the future (“in a decade or so, once the ethnic Russian population starts to decline . . .).

    The ProfessorComment by The Professor — June 30, 2013 @ 7:52 pm

  9. Russian High Command is already considering introducing Russian language training for its conscripts because populations from the North Caucasus are making up such a large percentage of new forces. And they don’t know Russian.

    And prof, you’ve seen Sublime Oblivion’s joke analysis – you don’t really expect him to know how to read carefully do you?

    Comment by lulz — June 30, 2013 @ 10:48 pm

  10. Chechnya – at this point, even Russians think it is another country

    How much longer till Russian power in the North Caucasus collapses? A decade? Two?

    Comment by lulz — July 1, 2013 @ 5:34 am

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