London
16 °C
Manchester
Glasgow
Dublin
Belfast
Washington
23 °C
Denver
22 °C
Atlanta
27 °C
Dallas
Houston Texas
New Orleans
29 °C
El Paso
35 °C
Phoenix
Los Angeles
25 °C
27 °C
13 °C
Compensation with Russia's foreign assets!
In a completely mindless and arrogantly imbecilic manner, political circles in Russia are bringing into play the expropriation of Western companies, which, however, would be the economic end of Russia, because obviously the loudmouthed "politicians" of the narcissistic dictator Vladimir Putin have not thought carefully about what idiotic nonsense they are demanding in demagogic style!
Why these sharp words? Quite simply, according to its own information, the Russian Central Bank has reserves with a total value equivalent to a good 630 billion dollars (as of mid-February): US dollars, euros, Chinese yuan, government bonds, gold. However, most of this treasure is stored with Western central banks and commercial banks. According to the latest statistics, the Moscow Central Bank holds securities with a volume of a good 311 billion dollars abroad.
In addition, there are about 152 billion dollars in cash or deposits at other central banks or at banks outside Russia - all this money is blocked by the Western sanctions and would be used as compensation in the case of expropriations of Western companies in Russia - "expropriations" would then be paid for with this money - it's as simple as that!
When the Kremlin and the State Duma pass as a new "package of measures to support the economy" and threaten to expropriate and sell Western companies to Russian oligarchs.
According to the state agency TASS, the foreign owner will be given five days to avert foreign administration if he resumes operations or sells his shares, provided he keeps his company and employees. If this does not happen, the court will appoint a provisional administration for three months. This can affect everyone from VW to Mercedes and MAN to small producers who have stopped working in Russia!
After that, the shares of the new organisation are auctioned off and the old organisation is dissolved. The buyer of the new organisation undertakes to take over at least two thirds of the workforce and to continue the operation of the old organisation for at least one year.
So, when the head of the Department of Economic Cooperation in the Ministry of Foreign Affairs, Dmitry Biritchevsky, threatens baselessly, Russia should keep a very close eye on the fact that the blocked funds, estimated at around 350 billion US dollars, abroad, would be lost forever and Western companies would receive this money as compensation, which would clearly amount to a costly sale and, economically speaking, could mean the end of the Russian state!
Meanwhile, the rating agency Fitch has pushed its rating for Russia's creditworthiness even deeper into the so-called "junk" range for high-risk investments. The US agency downgraded Russia's credit rating from "B" to "C". Fitch assessed the risk of Russia defaulting on its sovereign debt as "imminent" - clearly put, Russia is facing sovereign bankruptcy! (E.Lehmann--BTZ)
