Despite the optimism of Donald Trump’s special envoys regarding the prospects for American business in Russia after the war, experts remain skeptical.
Source: Censor.NET
According to The Wall Street Journal, Steve Witkoff and Jared Kushner consider Russia attractive due to its natural resources and the potential restoration of economic ties with the West. At the same time, analysts emphasize high political and legal risks: lack of the rule of law, the possibility of contract terms being revised, and asset confiscation.
Charles Hacker notes that Russia’s economy is not an “El Dorado” for investors, and structural problems—low growth prospects, a declining population, depletion of easily accessible oil, and dependence on energy—limit its long-term appeal. The Russian economy is estimated to be roughly the size of Italy’s, about $2.5 trillion.
Former Russian Central Bank official Oleksandra Prokopenko stated that the return of foreign companies will be limited, mostly to those that do not require large investments. Investors also point to the risks of renewed sanctions and personal threats to business, citing the case of Mikhail Khodorkovsky, former head of Baring Vostok, who was imprisoned in Russia after a corporate dispute.
WSJ emphasizes that since the start of the full-scale war, the Kremlin has tightened control over the economy and confiscated assets of both foreign and Russian investors, transferring them to businessmen loyal to the authorities.
Discussion about this post