Who Knew They Had Kangaroos in Russia?
Well, not real hoppy marsupials, actually. But kangaroo courts are definitely native to Russia. Case in point, a story that is bizarre even by Russian standards:
A Russian judge decided to adjourn hearings on a $2.8 billion lawsuit against BP Plc executives on Thursday for one day, saying there were not enough chairs in the courtroom to accommodate the public.
. . . .
Both cases are now due to be heard on Friday, when the judge said the hearings should resume in a bigger room, according to law firm Liniya Prava, which represents the plaintiff.
A spokesman for a law firm which represents BP’s legal interests confirmed the development, calling the decision “a strange twist of the Russian judiciary”.
So somebody wanted a delay in the hearing, and the judge had to come up with some lame excuse.
In another legal story of a company that like BP is ensnared in Russia’s Kafkaesque legal system, Telenor is trying to get an arbitration panel to prevent Alfa Group from engaging in a legal subterfuge in their battle over governance of mobile operator Vimpelcom:
Telenor has asked an arbitration panel to uphold a key shareholder agreement in mobile phone operator Vimpelcom and thereby effectively block the appointment of a new board, the Norwegian firm said on Tuesday.
Telenor’s power struggle with Russia’s Alfa Group intensified in June when Alfa’s Altimo unit said it had cut its stake in Vimpelcom to less than 25 percent, thereby voiding the shareholder deal and allowing a board reshuffle from Dec. 10.
Telenor said in a statement that it believes Altimo sold the stake to a company ultimately controlled by the owners of Alfa Group and that the shareholder pact should therefore be upheld.
“We’re asking the arbitration panel for a temporary injunction to uphold today’s shareholder agreement,” Telenor spokeswoman Marianne Moe said.
And what a coincidence! Mikhail Fridman’s Alfa Group is at the center of both the TNK-BP and Vimpelcom disputes. Beware to investors who get involved in anything with Fridman/Alfa. For you are likely to see kangaroo justice in its native habitat.
As your post was developing, Fridman and Alfa Group popped in my head immediately, only to find that this was exactly where you were heading. That guy is everywhere and he has an incredible knack for winning. If I were 100% Machiavellian, I would definitely want him on my side. But then again, I’m not, so I’d need a pole much longer than 10 feet if I were trying to do business in Russia at that level. The guy can put the smack down on Sechin for crying out loud.
Comment by Howard Roark — November 10, 2011 @ 12:46 pm
One sometimes thinks that Russia, or rather the Putin administration exists only to make the influence peddling of the Obama administration look benign, or at least amazingly inept.
Comment by Sotos — November 10, 2011 @ 1:19 pm
Cry me a river for BP. I hope TNK takes your boys to the cleaners.
Comment by Mr. X — November 10, 2011 @ 1:25 pm
My point is BP broke the contract. Blatantly. So said a Swedish (neutral) arbiter. And it wasn’t a contract signed in the dead of the Nineties when oil prices were in the toilet and Russian pensions were worthless as a result i.e. Shell/Sakhalin.
I have no sympathy for Barack Hussein Obama’s top donor, and neither should you. They made their Corporatist bed and now they have to lie in it. Just like the health care cartel that thought they had locked up a captive market forever with ObamaCare and have ruthlessly maintained the Embargo against Cuba and terrified people about Mexico to keep medical tourism down.
Comment by Mr. X — November 10, 2011 @ 1:32 pm
The concern shown by 1% spokespeople such as SWP for the “human rights” of corporations, and occasionally billionaires, is truly bewildering.
Why not actually cover HR travesties that affect REAL Russians (and Americans)? Say, 13 years of prison for selling poppy seeds, which qualifies as narcotics trading according to the pigs? Or the Gulag-like prison industrial complexes operating in both the US and Russia to service their Orwellian wars on drugs?
The explanation, as I see it, is that SWP is in thrall to the capital. Rich people (pro-Putin ones excepted) can do no wrong.
Comment by Sublime Oblivion — November 10, 2011 @ 1:34 pm
The concern shown by 1% spokespeople such as SWP for the “human rights” of corporations, and occasionally billionaires, is truly bewildering.
You appear to be bewildered by your own straw man.
Comment by Tim Newman — November 10, 2011 @ 1:40 pm
I know that SWP supports drug legalization. He said so a few times in the comments.
Why does he never make combative posts about it, though?
It would make for a great wedge to stick it to The Man in both Russia and the US.
Comment by Sublime Oblivion — November 10, 2011 @ 1:48 pm
@S/O. Believe it or not, there is a distinction between treating corporations as legal persons in some contexts, and “human rights”. The law, in other words, is a little more discriminating than you are here. If you want a succinct and cogent discussion of how corporate “personhood” can be welfare improving, see the excellent Professor Bainbridge blog. Here a couple of good posts.
Re drugs . . . I just might.
@Mr. X. BP=”my boys”? As if. Another example of how you make bullshit assumptions that demonstrate you just don’t get it–or me. FYI, I have been adverse to BP as an expert in 2 rather sizable legal actions, so I am not in their thrall–quite to the contrary. More to the point here, I have routinely criticized BP for enabling the worst aspects of Russian dysfunction/Putinism. I frequently use them as the exemplar of what happens when you lay down in the Russian bed. They are a very useful object lesson. They think they can play the game in Russia, and repeatedly get screwed. But if Russia screws them once–bad on Russia. Russia screws them 5 times: bad on BP. Watch and learn, folks.
Watch Russia disappear:
http://dyingrussia.wordpress.com/2011/11/10/watch-russia-disappear/
Comment by La Russophobe — November 10, 2011 @ 3:05 pm
“3.Cry me a river for BP. I hope TNK takes your boys to the cleaners.”
MEGA DITTOS!!!!
Comment by La Russophobe — November 10, 2011 @ 3:06 pm
“4.My point is” that BP is a company that helps to faciliate dictatorship in Russia and imperialist agression against Russia’s tiny neighbors by funding the Putin oligarchy with investment. We hope BP loses its shirt and so do its stockholders. They richly deserve it.
Comment by La Russophobe — November 10, 2011 @ 3:08 pm
“You appear to be bewildered by your own straw man.”
What bewilders him is the fact that the only thing he has between his ears is the flatulence of Putin.
Comment by La Russophobe — November 10, 2011 @ 3:12 pm
Ah Phobie, got kicked off another blogging platform again? Was it a libel complaint this time, or abuse?
Comment by Mr. X — November 10, 2011 @ 3:46 pm
Mr X-please clarify concerning your comment about Shell/Sakhalin in the dead of the 90’s. I really do not understand the reference.
Comment by pahoben — November 10, 2011 @ 8:14 pm
I think he’s referring to the PSAs negotiated in the 90s when the price of oil was in low double digits. Putin et al think that these were tantamount to theft.
I hope I am wrong but I suspect it means you are a completely ignorant @ss.
Comment by pahoben — November 10, 2011 @ 8:24 pm
…without any depth nor ethical standards.
Comment by pahoben — November 10, 2011 @ 8:27 pm
Mr X-using the Russian standard you are Mr бла-бла-бла бла-бла-бла
Comment by pahoben — November 10, 2011 @ 8:31 pm
This comment is so incredibly far from reality. Shell had minimum involvement in Sakhalin during the dead of the 90’s.
Comment by pahoben — November 10, 2011 @ 8:34 pm
You a libertarian-please spare me. You are a complete consumer of BS.
Comment by pahoben — November 10, 2011 @ 8:36 pm
In the lowest place in this world I can’t imagine stumbling on a less ethical person than you.
Comment by pahoben — November 10, 2011 @ 8:43 pm
Your “ethics” are strictly based on how can I appear compliant so that I maximize my prospects for work. You should be ashamed of your self.
Comment by pahoben — November 10, 2011 @ 8:47 pm
Is pahoben drunk, suddenly schizophrenic, or hijacked?
Comment by Sublime Oblivion — November 10, 2011 @ 10:18 pm
I honestly don’t understand what on Earth he is trying to say up there.
Comment by Sublime Oblivion — November 10, 2011 @ 10:18 pm
Shell had minimum involvement in Sakhalin during the dead of the 90’s.
Well spotted that man! 🙂
Comment by Tim Newman — November 10, 2011 @ 11:27 pm
Putin et al think that these were tantamount to theft.
Yes, but ironically the Sakhalin II project is held up as the flagship of modern Russia as an energy provider (seriously, the propaganda about Yuzhno-Sakhalinsk hailing this great “all Russian” project is nauseating). Putin might have considered it theft, but deep down in his angry little heart he knows full well the likes of Gazprom could never have done it themselves. The state of Russia’s own oil and gas projects are proof enough of that.
Comment by Tim Newman — November 10, 2011 @ 11:32 pm
MR. X: DR is on the same platform as LR, you hilariously ignorant, illiterate inbred goat. Every time you speak you make Russia look like a nation of drunken gorillas.
Comment by La Russophobe — November 11, 2011 @ 6:53 am
@Tim–a foolish consistency is the hobgoblin of little minds, dontcha know. 🙂 The fact that Putin’s dark heart knows fully well Gazprom could have–and still couldn’t–done it themselves is exactly why he is so livid and resentful. Like a teenager who knows he can’t make it on is own and takes it out on mom and dad.
I first started following Russia closely right about the time Putin started venting about PSAs. He did bring them up consistently in the context of Sakhalin and Shell.
Telenor has received proof that the June sale of Vimpelcom’s nearly 6% preferred shares to Forrielite–a Cyprus-based company owned by one of Alfa Group’s founders, Oleg Kiselev–was illegal, the agency reported the company as saying.
The transaction allowed Altimo to lower its stake in VimpelCom to below 25% and initiate a breach of shareholder agreement, something Telenor wanted to avoid. If the agreement is broken, Egyptian billionaire Naguib Sawiris–who earlier sold some of his telecom assets to Vimpelcom–will be able to put his own people on the board, it said.
Arne Treholt
Vice President, Business Development Director
Mr Treholt retired from his diplomatic career and moved to Moscow, where he became CEO of ISMOS Trading, followed by his position of CEO of Rim Investment Management and FMC Securities in Cyprus. Mr Treholt joined United World Capital Ltd in June 2009 as Vice President, and he is also in charge of the business development and portfolio asset management of the company. He is the author of five books and numerous articles on economics and politics. http://www.uwcfx.com/about/team/index.html
Comment by Anders — November 11, 2011 @ 11:25 am
@Anders–thanks a lot. Very interesting and informative.
“I honestly don’t understand what on Earth he is trying to say up there.” Pahoben pulled a Phobie and started spewing insults because Shell was a minor part of the Sakhalin deal until they bought into Sakhalin II, and they perhaps inherited some sweetheart Nineties PSAs, so he accused me of being a liar, when the point was the companies can’t bitch and moan if they don’t get 100% of the upside if they got in at $10 a barrel and suddenly the price is $90.
“I first started following Russia closely right about the time Putin started venting about PSAs. He did bring them up consistently in the context of Sakhalin and Shell.” In other words, you started caring about Russia when a PM took office who was tired of the foreign pillaging. Which suggests that a hell of a lot of the Western media grievance against the Russian leadership of the last ten years has to do with resentment of Russian resource nationalism, not loftier things like human rights. If it was about human rights, we’d be hearing more about China and Saudi Arabia. But we don’t. It’s the same Oceania has always been at war with Eurasia/Eastasia crap.
But don’t worry Professor, given the ballooning U.S. debt now surpassing $15 trillion, soon it will be our turn for foreigners to get dirt cheap oil concessions and other natural resources due to our government being in desperate straits. Of course you smugly don’t think that can happen here thanks to all the proud Jacksonians. Most of the proud Jacksonians not all, will be easily manipulated into supporting more wars of choice from Iran to Africa to who knows elsewhere. They will be kept occupied while the banksters consolidate their corporatist control and impose highway checkpoints so your wives and daughters can get groped not just at airports.
They laugh at people who merely ‘criticize’ the Fed rather than forcefully advocating its shutdown. a’s buddies were particularly amused by a certain governor who’s all hat and no cattle in that respect. They FEAR alternate, competing currencies — African gold dinars, gold and silver, commodity backed currencies, and even local coupon scripts such as ‘Berkshires’. As John D. Rockefeller said, “Competition is a sin” and that is the motto of their dark little hearts. Their loathing of Russia is as a competing oligarchic center, not for the reasons you sincerely say you loathe the Kremlins. But they will manipulate people like you and little minions like Phobie to kingdom come.
It can’t happen here? It’s already started happening here.
Comment by Mr. X — November 11, 2011 @ 1:30 pm
http://globalguerrillas.typepad.com/globalguerrillas/2011/11/links-november-11-2011-1.html
Stasi USA:
http://globalguerrillas.typepad.com/globalguerrillas/2011/11/drones-and-us-internal-security.html
What if the budding H/Ks are for us?
http://globalguerrillas.typepad.com/globalguerrillas/2011/10/nassim-taleb-on-the-global-banking-cartel.html
‘Capitalisms’ central planners — the 190 corporations that run the world
http://globalguerrillas.typepad.com/globalguerrillas/2011/10/journal-us-military-gangs.html
Amerikansky spetsnaz coming home without work — but valuable combat skills
“The proud American will go down into his slavery with out a fight, beating his chest and proclaiming to the world, how free he really is. The world will only snicker.”
— Stanislav Mishin
Comment by Mr. X — November 11, 2011 @ 1:44 pm
the point was the companies can’t bitch and moan if they don’t get 100% of the upside if they got in at $10 a barrel and suddenly the price is $90.
Firsty, they weren’t getting 100% of the upside, if they were it would not be a PSA. Secondly, yes they can: an agreement means just that.
Comment by Tim Newman — November 12, 2011 @ 1:44 am
“But don’t worry Professor, given the ballooning U.S. debt now surpassing $15 trillion, soon it will be our turn for foreigners to get dirt cheap oil concessions and other natural resources due to our government being in desperate straits. Of course you smugly don’t think that can happen here thanks to all the proud Jacksonians. Most of the proud Jacksonians not all, will be easily manipulated into supporting more wars of choice from Iran to Africa to who knows elsewhere. They will be kept occupied while the banksters consolidate their corporatist control and impose highway checkpoints so your wives and daughters can get groped not just at airports. ”
Mr. X, how DARE you expose Our plan, which the good Professor advances just about every time he posts or speaks, though he feebly protests to maintain his cover.
Comment by a — November 12, 2011 @ 8:22 am
> yes they can: an agreement means just that.
Newsflash: under Russian jurisdiction, it means whatever pleases the tsar at any particular moment.
Comment by Ivan — November 12, 2011 @ 8:39 am
Sorry for that X bad timing but let me tell you a story.
Starting in late 1989 early 1990 there were four Americans working for a mid sized US oil company that started working with Sakhalinmorneftegaz on what became Sakhalin 2. At the time the political situation in Russia was changing by the hour and the mafia was becoming stronger. Texaco was unsuccessful progressing their Russian project and Exxon had been turned down on a proposal in Western Siberia. The oil price was low and development costs on Sakhalin were astronomical because of sea ice. No offshore development project had ever been done in the type of sea ice conditions encountered offshore Sakhalin and there was much apprehension about multi billion dollar investments in Russia.
One of the Americans became the usual go between. The Russians trusted him and he had a reality based pragmatic approach free of ideological bias. In any event this individual and a Russian prepared the winning tender submittal in 1991 for the Sakhalin 2 project. The Russians had drilled in this area but the well rates were not outstanding. This American was also responsible for all engineering and geologic work and a new method was developed to analyze seismic data that indicated good prospectivity in other nearby adjoining areas. Wells were drilled in 1992 that confirmed anticipated prospectivity. Considering the low oil price and huge development costs it was still not possible to economically justify development. There were many many people in the US oil company that wanted to abandon the project. It was a constant battle.
This same American was the primary individual that got approval of the economic and technical portions of the Production Sharing Contract knowing that even with this PSC it would be difficult to proceed with development because the numbers just weren’t there. This individual with two other Americans began talking to Gulf Canada about purchase of a mothballed arctic drilling rig that could be converted to a drilling and production rig suitable for Sakhalin conditions. This was done and the rig installed on the oil field portion of the project area and the rates obtained were miraculously close to the forecasts. There were years of seven days per week twelve hours per day of work and stress.
At this point Exxon in total copycat mode bought another rig from Gulf Canada and started development of the Sakhalin 1 project that they obtained along with Mobil. This project had been dormant for years. Shell decided they should operate Sakhalin 2 and made the new management of the US company a good offer for their interest in the project. Then somewhat later Putin decided that everyone associated with the early project was a traitor. This is the most ridiculous thing I have ever heard. It is such a clear case of leeches after the fact deciding something incredibly difficult was easy.
And so the Americans that had put blood and sweat into this project were given corporate poison or killed outright in the corporate manner at the US company and eventually all the Russians were purged after Putin decided it was so easy. There were quite a few early deaths among the small group that started this both Russians and Americans. The years of stress helped no ones health. But something significant was accomplished and many many jobs were created on Sakhalin and in Russia.
Comment by pahoben — November 12, 2011 @ 11:36 am
The above should be from pahoben-not paul
Comment by pahoben — November 12, 2011 @ 12:16 pm
@Thanks for that Pahoben. Interesting and informative.
I fixed that. Thanks for the heads up.
pahoben, superb comment. Really good stuff. One or two of the Marathon Oil boys were still there when I left in 2010, but I think they’ve all gone now. And ironically, J. Ray McDermott is now trying to get back onto the island a decade or so after they sold their stake in Sakhalin 2.
Comment by Tim Newman — November 12, 2011 @ 1:47 pm
One story about McDermott. They employed a consultant that has passed but whio had previously been a VP for a major in Indonesia. Someone called to his previous employer and asked if he had any ice experience. The answer was that the only ice experience he had was at the gin and tonic club in Jakarta.
If you ever run across Kent who worked for McDermott long ago he is a true figure in the history of Sak 2.
Thanks Tim for the kind comment.
Comment by pahoben — November 12, 2011 @ 4:52 pm
Kent was one of the two guys that sat in the first meeting with Gulf Canada about purchase of Molikpaq.
Comment by pahoben — November 12, 2011 @ 5:27 pm