On the rocky road of Russian capitalism

Published: 15 April 1999 y., Thursday
Many of America_s best known brands streamed into Russia during the early 1990s, drawn to one of the world_s largest untapped markets. But Russia_s notoriously difficult business climate combined with last year_s financial blowout has sent dozens packing, and prompted others to lay off staff and scale back expansion plans. "The worst case scenarios of what could have happened in a long, cold Russian winter have not played themselves out,' said Scott Blacklin, president of the American Chamber of Commerce in Moscow. "But if we get to the summer and there is no significant improvement, then I think we could see deeper disillusionment, which could lead to a serious bleeding of the American presence,' he added. The Americans are by far the largest foreign investors in Russia, with more than 500 U.S. firms operating here. Their activity peaked in 1996 and 1997 as Russia_s financial markets soared and the economy hinted at growth after years of depression. But since the economic crisis struck last August, about 50 members of the American Chamber of Commerce have left the country. In a survey of Chamber of Commerce members, almost two-thirds said they have suffered "significant losses' due to the crisis and more than half said they have laid off workers.
Šaltinis: Independent Media
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