Western companies' perceptions, experiences

Moscow's "New Frontier" stigma is diminishing, but Russia's legal and tax regimes and business practices provide few of the assurances that executives take for granted in the US and elsewhere. For example, BP PLC's initial forays into Russia could have provided the background material for an international spy thriller. In 1997, BP invested about $500 million in the Russian company OAO Sidanko.1 What followed in 1999 was an incredibly complicated series of maneuverings involving BP, Sidanko, Tyumen Oil Co., international commercial and quasi-governmental banks and lending institutions, and the British, US, and Russian governments.The focal point of all this activity was the tru...

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