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Actually—three cents, because that’s what the value of the ruble has plunged to since Vlad the Invader decided to chew off a chunk of Ukraine because his puppet Yanukovych got his strings cut by the Ukrainian people a couple weeks ago.  I’m really being generous, because the ruble isn’t worth three U.S. cents; it’s worth only 2.7 cents.

Keep the change, Vlad.

This is probably only the start of Russia’s Vlad-imposed woes.  Unless he exits from the Crimea, Russia will be out of the G-8 community of nations.  Trade deals and other friendly arrangements will evaporate.  All Putin’s carefully plotted and executed plans to bring the USSR I mean Russia back as a world power will come to dust unless he reverses course in Ukraine.  With all the Stalin-like power Putin has gathered in his hands he just couldn’t resist behaving like Uncle Joe in the face of people who remember Stalin all too well and want no part of Stalin II.  

Old Russian proverb:  Once a KGB, always a KGB.

Poll

What will Putin do regarding Ukraine?

35%6 votes
64%11 votes
0%0 votes
0%0 votes

| 17 votes | Vote | Results

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Comment Preferences

  •  Tip Jar (3+ / 0-)
    Recommended by:
    NotGeorgeWill, Mannie, JayBat

    “When it comes to this, I shall prefer emigrating to some country where they make no pretense of loving liberty—to Russia, for instance, where despotism can be taken pure and without the base alloy of hypocrisy.” —Abraham Lincoln

    by Pragmatus on Tue Mar 04, 2014 at 02:27:29 PM PST

  •  London afternoon fix (4+ / 0-)

    $0.03638 Link

  •  Russia has 500 billion in reserves (3+ / 0-)
    Recommended by:
    indubitably, Wolf10, Mannie

    They can moderate the exchange rate. The increased gas and oil prices will also boost it's reserves.

    After Putin's presser today the ruble has started to rebound as has the stock markets.

    •  Those reserves won't cushion more . . . (2+ / 0-)
      Recommended by:
      Mannie, Just Bob

      than a few months of higher interest rates and sanctions.

      •  What sanctions? The economies of Europe and (1+ / 0-)
        Recommended by:
        Lepanto

        Russia are intertwined.

        Do you know how many US firms have invested tens of billions in Russia?

        Exxon/Mobil has a $500 billion piece of the Siberian shale oil play. GM has 10% of the Russian car market. Ford has closed plants in the EU and opened up new ones in Russia. They are banking on Russia becoming Europe's largest automobile market in 2015.

        We can also talk about the $30 to $40 billion Western bank investments in Russia. Do you think they want those damaged? Interest rate hikes have a way of biting back.

        One of the downsides (upsides?) of globalization is their interconnectedness.

        •  Alas, any piece of Russian oil investment (0+ / 0-)

          isn't worth squat.

          Just ask BP, who after tussling for years gave up on a "partnership" with Russian oil.  They lost billions on a deal that was supposed to be worth billions.  Exxon/Mobil is in for nothing but headaches.  The corporate laws in Russia are as changeable as the winds.  As soon as some Russki businessman sees a fraudulent angle to any deal he is working, he contacts his friends in the Kremlin and Bingo! All of a sudden the playing field is completely different.

          The biggest kick in the rear Russia will suffer is expulsion from the G-8.  If Putin stays in Crimea it will be back to third-world status by the end of the year, Western investments or no.

          (By the way $30-$40 billion on the world investment stage is pretty small potatoes.  Look at the $19 billion Zuckerberg paid for pipsqueak WhatsApp.)

          “When it comes to this, I shall prefer emigrating to some country where they make no pretense of loving liberty—to Russia, for instance, where despotism can be taken pure and without the base alloy of hypocrisy.” —Abraham Lincoln

          by Pragmatus on Tue Mar 04, 2014 at 05:07:01 PM PST

          [ Parent ]

          •  Wrong. You should check your sources (0+ / 0-)
            Just ask BP, who after tussling for years gave up on a "partnership" with Russian oil.
            That "partnership" was with a bunch of Yeltsin's Russian oligarchs created when George Soros went to Russia to teach them about neoliberalism.

            From Socialism to Capitalism: U.S. Investment in the Russian Market Economy - George Soros (1998)

            After BP disengaged from these American backed crooks, they joined the Russian national oil company.

            BP settles its TNK dispute with Russians

            BP took a step towards deepening its alliance with Rosneft, the Russian oil company, as it ended seven years of acrimony with its partner in the TNK-BP venture that had been blocking its path.

            BP in Russia
            BP successfully operates in Russia in collaboration with leading Russian oil and gas companies

            BP has been operating in Russia since the early 1990s. In 1997, it purchased a 10 per cent stake in Sidanco, then Russia’s 4th largest oil company. The stake was subsequently increased to 25 per cent plus one share in 2002.

            In 2003, BP merged its interests in Russia with those of TNK to create TNK-BP, a hugely successful joint venture employing around 50,000 people and operating in nearly all of Russia’s major hydrocarbon regions.

            Since its formation, TNK-BP went on to become Russia’s third biggest vertically integrated oil and gas company, generating more than $55 billion of net profit in 2003 - 2012. TNK-BP’s production rose by over 40% in nine years and proved SEC reserves grew by more than 30% from end 2003 to end 2012.
            ...
            Through its significant shareholding in Rosneft BP will maintain prominent exposure to the world’s largest (based on production volume) listed oil company and the biggest oil producing nation. Financially, BP is expected to benefit from a Government decree implementing a base level dividend at 25 per cent of net income in addition to share price appreciation. Strategically, BP and Rosneft gain from the opportunity for deeper strategic and technological cooperation as well as potential joint venture collaborations with Rosneft.
            ...
            BP’s commitment to Russia goes beyond the development of oil and gas reserves. In line with its global practice BP views corporate social responsibility an integral part of its business in Russia. BP’s overall support of the local social, cultural, educational and charity projects has been the largest among foreign companies operating in Russia.

            The biggest kick in the rear Russia will suffer is expulsion from the G-8.  If Putin stays in Crimea it will be back to third-world status by the end of the year, Western investments or no.
            Nonsense. In any event, the G-20 is much more important. The G-8 is the rich man's club. Don't you follow the protests against it in the US and other nations?
  •  Putin's greatest sin: he's not OUR SOB. nt (3+ / 0-)
    Recommended by:
    Mannie, Lepanto, Azazello

    The frog jumped/ into the old pond/ plop! (Basho)

    by Wolf10 on Tue Mar 04, 2014 at 03:45:05 PM PST

  •  Ruble Rebounds - that was quick (0+ / 0-)
    Ruble Rebounds With Russia Bonds as Putin Calms Ukraine Concerns

    The ruble rebounded, Russian stocks surged and government bond yields tumbled after President Vladimir Putin said he’s not planning on sending troops to Ukraine, easing investors’ concern the standoff will escalate.

    The Russian currency appreciated 1.1 percent to 42.2009 against Bank Rossii’s target basket of dollars and euros by 6 p.m. in Moscow, when the central bank stops its market operations. The yield on benchmark bonds due in February 2027 fell 17 basis points, or 0.17 percentage point, to 8.71 percent, even as the Finance Ministry canceled tomorrow’s debt auction, citing market conditions. The benchmark Micex Index surged the most in almost four years.
    ...
    The Finance Ministry canceled government bond auctions due to be held tomorrow, citing “unfavorable market conditions,” according to a statement on its website today. The yield on Russia’s 2027 ruble bond climbed 52 basis points to the highest since June 2012 yesterday.

    “At such yields the Finance Ministry doesn’t need the money,” Olga Sterina, an analyst at UralSib Capital in Moscow, said in e-mailed comments today. “The decision is well expected.”
    ...
    Stocks Jump

    The Micex Index gained 5.3 percent to 1,356.54 at the close of trading in Moscow, snapping five days of declines, including yesterday’s 11 percent slump. U.S.-based exchange-traded funds investing in Russian equities have lost 20 percent of their total assets this year, the biggest drop among 46 country-specific ETFs tracked by Bloomberg.

    •  You must be working for the Russkis. (0+ / 0-)

      Here, in living color, is the current Forex price of the Ruble:

      Where's the big leap you were touting?  When I posted, the ruble was worth 2.77 cents.  As of right now it's worth 2.78 cents.

      Also, the BP-TNK partnership is no more.  The material you cite above is from 2012.  You need to turn a couple pages on your calendar.

      “When it comes to this, I shall prefer emigrating to some country where they make no pretense of loving liberty—to Russia, for instance, where despotism can be taken pure and without the base alloy of hypocrisy.” —Abraham Lincoln

      by Pragmatus on Tue Mar 04, 2014 at 06:04:21 PM PST

      [ Parent ]

      •  Just quoting Bloomberg. Do you think they are (0+ / 0-)

        working for the "Russkis" (showing your cold war mentality here).

        Also, the BP-TNK partnership is no more.  The material you cite above is from 2012.  You need to turn a couple pages on your calendar.
        What are you talking about. Did you not read the links in my latest post? I didn't want to post the entire article. You have supplied no links to back up your assertions here.

        Here's more from the link I gave. Maybe if you took the time to actual investigate you would not make these assumptions.

        BP in Russia

        On 1 June 2012, BP announced its intention to pursue a sale of its shareholding in TNK-BP.
        Almost five months later, on 22 October 2012, BP signed Heads of Terms to sell its 50 per cent share in TNK-BP to Rosneft.

        On the 22nd of November 2012 the Russian Federation approved BP’s acquisition of 5.66% of Rosneft from the Russian state. On the same day, BP signed binding Sales and Purchase Agreements with Rosneftegaz and Rosneft for the sale of BP’s 50 per cent interest in TNK-BP to Rosneft and BP’s acquisition of additional shares in Rosneft.

        The deal was completed on 21 March 2013. BP received cash (approximately $12.5 billion) and shares (18.5% of Rosneft) in consideration for its 50% stake in TNK-BP. This resulted in BP holding 19.75 per cent of Rosneft stock, when aggregated with BP’s 1.25 per cent pre-deal holding.  

        So, who is BP hobnobbing with in Russia:
        Rosneft - about

        Rosneft is the leader of Russia’s petroleum industry and the world’s largest publicly traded petroleum company. Rosneft activities include hydrocarbon exploration and production, upstream offshore projects, hydrocarbon refining, and crude oil, gas and product marketing in Russia and abroad.

        The Company is included in the list of strategic companies and organizations of Russia. The main Company shareholder (69.50%) is OJSC ROSNEFTEGAZ, a 100% state-owned company. BP owns another 19.75%, and the remaining 10.75% of shares are publicly traded. (see Shareholding Structure).

        ROSNEFTEGAZ

        Rosneftegaz is a Russian company which manages state assets in the oil and gas industry. Rosneftegaz is the owner of 75.16% shares of Rosneft, and 10.74% shares of Gazprom. 100% of Rosneftegaz is state-owned. The activities of the company are in the ownership of the state shares of Rosneft (75.16%) and Gazprom (10.74%) and 7% of the Caspian Pipeline Consortium. Most of the company's income are dividends from the shares of Rosneft and Gazprom.

        •  My advice to you: (0+ / 0-)

          Don't take payment in rubles.

          As an investor in BP from 2011-2012, I am acutely aware of what went on regarding their Russian disaster.  If you believe Russia is a safe place to put your money, be my guest.  A lot of dumb money has flowed there in the recent past, despite voluminous evidence that the entire "private" sector there is rigged..

          “When it comes to this, I shall prefer emigrating to some country where they make no pretense of loving liberty—to Russia, for instance, where despotism can be taken pure and without the base alloy of hypocrisy.” —Abraham Lincoln

          by Pragmatus on Tue Mar 04, 2014 at 06:31:33 PM PST

          [ Parent ]

          •  BP, Shell and Exxon think it is secure (0+ / 0-)
            As an investor in BP from 2011-2012, I am acutely aware of what went on regarding their Russian disaster.  
            Care to give a link?
            BP Will Switch Russian Partners Through a Deal With Rosneft

            MOSCOW — After years of feuding with its longtime Russian partners, the British oil giant BP has formally filed for divorce and announced plans to move in with someone wealthier and more powerful: the Russian state oil company Rosneft.
            ...
            Although the TNK-BP joint venture has been marred by infighting between BP and its Russian partners, its operations have been enormously profitable, earning $19 billion in dividends for BP since 2003 as the company helped improve operations through shared technology and management skills.

            Stuart Joyner, an analyst with Investec in London, said the sale of TNK-BP was “exactly in line with fair value.” The American shares of BP fell about 1 percent in trading on Monday after rising last week on word that a deal was imminent.

            On the face of it, the Rosneft deal means that BP will be cutting back its investment in Russia. But the company is hoping to use the new strategic link with the Kremlin through Rosneft to secure other business in the country. Also, BP might even come out owning more oil — on paper at least — even with the smaller investment in Russia.

            BP says 'absolutely stands' by Russian investments
            LONDON Tue Mar 4, 2014

            (Reuters) - Oil major BP stands by its investments in Russia, chief executive Bob Dudley said on Tuesday amid calls from U.S. officials to isolate Russia and reduce economic cooperation with Moscow over the Ukrainian crisis.
            ...
            The British oil major is the biggest foreign investor in the Russian oil sector through its stake of under 20 percent in the Kremlin's state oil champion Rosneft.

            Russia is responsible for over a quarter of BP's oil output worldwide and more than a third of its oil and gas reserves.

            "We have had good results, Rosneft had good results this year, and so that's just part of our big portfolio of things," said Dudley, who has a history of difficult relationships with Russian officials during his time as an oil executive in Moscow.

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