Posted on 07/25/2008 5:44:59 PM PDT by decimon
NEW YORK (MarketWatch) -- Russian shares fell nearly 6% on Friday, as Prime Minister Vladimir Putin's call for an investigation of mining company Mechel escalated worries about political risk in the resource-rich emerging market and encouraged investors to sell local equities across sectors.
In Moscow, the benchmark RTS stock index fell 5.6% to end at 1,951 points. It is down 14.8% year-to-date.
Putin said Thursday that Mechel (MTL: Mechel should be investigated for selling raw materials abroad at half the price it charges domestically. His comments triggered a nearly 40% sell-off in Mechel's New York-listed shares. See Emerging Markets Report.
(Excerpt) Read more at marketwatch.com ...
Has Putin retained Shumer as an advisor?
Vlad the Derailer.
Russia hasn't enough cameras for Schumer.
In other words, Putin has his eye on taking over Mechel and all of the investors have seen him do this before, so they smartly took whatever cash they could and ran.
Who would be dumb enough to do business over there?!? Unless, of coarse, you’re a friend of Putin’s, in which case business is wonderful.
Powerful guy that Putin.... almost like a dictator.
He did stick to 'Old Europe,' didn't he?
Friend of Putin = FOP = fool, dupe.
I think you're on to something.
Putin extends his hedgemony of natural resources.
He is about to nationalize the company.
Putin and Chavez, perfect together.
This plus the plunge in oil means we are a day closer that Russia becomes the third world country it really is.
Just like China - one operates a business in Russia (or CHina) at the pleasure of the Government. Do not run afoul of them or their bureaucrats because property rights mean absolutely nothing.
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