Follow the money: US companies shrug off politics and invest in Russia

Aug 07, 2016 12:00 AM

In spite of the US government's best efforts to sanction the Russian economy, many US companies are continuing or even increasing their investment in Russia, wrote Forbes columnist Kenneth Rapoza.

In spite of the recent popularity of anti-Russian rhetoric in the US, scores of American companies are investing in the Russian market, including several newcomers, Forbes columnist Kenneth Rapoza wrote on August 3.

Rapoza listed scores of companies from a diverse range of sectors, such as Pfizer, Boeing, Ford and Starbucks, which are increasing their business activities in Russia. He contrasted their business activities with recent rhetoric from US politics and press.

 

"It's politically correct to hate on Russia these days," wrote Rapoza, and gave a tongue-in-cheek warning to the companies that maybe they "should cut and run before the righteous threaten them with boycotts or defame their name in the press."

For example, last month US multinational drug maker Pfizer announced a joint venture with Russia's NovaMedica. In 2012, Boeing agreed $27 billion worth of long-term deals with Russian titanium producer VSMPO-Avisma Corporation, Rapoza reported.

While Hillary Clinton's campaign for the US presidency has sought to link Republican candidate Donald Trump to Russia in the belief that it will help her chances, in fact it is US financial institution Morgan Stanley which is making the greatest investment in Russian real estate, Rapoza pointed out.

"Trump claims he does not have any business in Russia. But Morgan Stanley, which donated $148,660 for Hillary's 2008 run at the presidency, according to Open Secrets, might tell the Donald, 'maybe you should,'" he concluded.

In June, consulting company Knight Frank reported that over the past 10 years, overall foreign investments to Russian commercial real estate reached $15.9 billion. US companies account for 36.5 percent of the total sum.

According to Russia's Federal Statistics Service (Rosstat), the US was the ninth biggest foreign investor in Russia in 2013. Of a total $384.1 billion dollars of foreign investment, the US was responsible for $10.3 billion.

 

Last week Hillary Clinton again attempted to stir up anti-Russian sentiment in the US, this time to deflect attention from the contents of the Democratic National Committee computer hack which revealed that Democratic Party officials rigged the party's nomination in favor of Clinton.

Clinton made an unfounded claim to have proof that Russian hackers were behind the leak of the party's emails.

On Friday the Breitbart news website slammed Clinton for "trying to save herself from her latest email scandal with rhetoric that poses a dangerous threat to our democracy and even world peace."

Breitbart reported the real perpetrator, a hacker called Guccifer who had earlier hacked into Hillary's home server.

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