TODAY: Offices of Human Rights Watch searched as NGO crackdown continues; two rights bureau chiefs called in for questioning; gay pride advocate assaulted. Miners missing; gas exports to Serbia could increase dramatically; Russia’s plans for post-NATO Afghanistan; deputies drawing the line at foreign bank account restrictions. The Moscow offices of Human Rights Watch, corruption watchdog […]
It’s one of the world’s largest untapped reserves of precious metals and natural resources. It’s also an ungoverned Wild West drawing in competing militias into prolonged bloody wars, and soon, possibly the neighboring states competing for influence. Welcome to the Democratic Republic of Congo (DRC).
TODAY: Opposition leader confined to home; 9 coalminers trapped after pit collapse; 271 arrested in St Petersburg security sweep; Lavrov criticizes ‘demonstrative’ Magnitsky Act; Putin praises Russia’s diplomats, leads global gold rush; Moscow and Astana end Cosmodrome tussle; bad news for Sukhoi Superjet; Gazprom pledges major savings for European consumers. On the approval of a […]
The list is our attempt to respond to what we see as a relatively underdeveloped marketplace of ideas when it comes to scenario planning for expropriation, unfair regulatory intervention, nationalizations, and resource nationalism events that have an impact on foreign investors in emerging markets.
Over on the FT’s Beyond Brics blog, a very interesting video interview with James Smither, associate director at risk consultancy Maplecroft, on how shifts in commodity prices can undermine a country’s resource leverage and the more nuanced ways revenue can be retained within domestic borders.
From Venezuela to South Africa to Indonesia, we have observed policies of resource nationalism that respond to ideological imperatives. In Canada and Australia similar problems arise out of suddenly aggressive tax regimes based on financial imperatives. And lastly, in challenging markets such as Central Asia as well as China, you have risks of state intervention guided by arcane clan politics and internal power dynamics.
Remember a few years ago when Russia was having fun talking about a natural-gas OPEC? It was largely derided at the time considering wildly different nature of the trade of this commodity (not the same spot market as oil), and then wholly forgotten when the shale boom crashed prices. But it would be a mistake […]
If you can’t beat ‘em, join ‘em. When it comes to resource nationalism in Africa, that appears to be the strategy of some mining companies such as the Australian-owned gold producer Perseus Mining, as they take their corporate social responsibility programme to a new level by recommending and endorsing their own tax increases to address […]
Here’s a very interesting article by the South African Institute of International Affairs that examines the many different types of resource nationalism. This is part of a growing discourse that looks to encourage and normalize expropriation, heightening risks for foreign investors. For instance, whereas Canada’s refusal to allow Malaysia’s Petronas to buy Progress Energy Resources […]
Among the mission statements of the AUCC is the goal of advocating “vigorously for the interests of U.S. business in Uzbekistan” and to place its “primary emphasis on serving the needs and interests of its members.” So what about the Oxus / Said Ashurov situation?