Tuesday, September 16, 2008

The Bear in Winter

Tyler reports that Russia's troubles are not just long-term, but very immediate.
Russian oil companies are not producing more so their earnings are dependent on a rising oil price
Given how they have been treating investors, we can hardly expect foreign firms to rush to provide new technology. On the other hand, command and control should be quite good at a straighforward task such as getting more oil out of the ground.

Further:The Economist's Free Exchange blogs on the same.

Russia can still abandon its great power aspirations, gracefully shrink its borders, and become Norway but I don't think they will.

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