EXTRACT: Doing business in Russia is risky.. An example is the giant Sakhalin-2 oil and gas project, led by Shell, which has come under pressure from the Russian authorities since the Anglo-Dutch oil major said costs would double to $22 billion.
THE ARTICLE
LONDON, Nov 29 (Reuters) – Doing business in Russia is risky and a major reason why steel and mining company ratings in the country lag those of the government, rating agency Standard & Poor’s said on Wednesday.
“The key constraint in Russia is country risk, which is not the same as sovereign risk,” said Moscow-based Elena Anankina, a director at S&P.
“It’s the risk of doing business in the country versus the risk of sovereign default. The business environment is getting more risky despite the sovereign upgrade.”
Last year S&P raised Russia’s long-term foreign currency sovereign credit rating a step further to investment grade ‘BBB’ from ‘BBB-‘ citing improvements in government finances and the country’s debt reduction programme.
But in Russia’s steel and mining sector the highest rated company is Norilsk Nickel (GMKN.RTS: Quote, Profile, Research), the world’s largest nickel and palladium producer, with ‘BBB-‘.
Most others such as SUAL, Russia’s second largest aluminium firm, and steelmaker Evraz Group (HK1q.L: Quote, Profile, Research) are on ‘BB-‘.
Anankin said the main problem was weak institutions, uncertain rules and regulations and weak corporate governance.
“(There is) an overdependence on personalities and vested interest groups … (But) government involvement in the metals sector has been lower than in oil and gas, for now.”
An example is the giant Sakhalin-2 oil and gas project, led by Shell, which has come under pressure from the Russian authorities since the Anglo-Dutch oil major said costs would double to $22 billion.
© Reuters 2006. All Rights Reserved.
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Royal Dutch Shell conspired directly with Hitler, financed the Nazi Party, was anti-Semitic and sold out its own Dutch Jewish employees to the Nazis. Shell had a close relationship with the Nazis during and after the reign of Sir Henri Deterding, an ardent Nazi, and the founder and decades long leader of the Royal Dutch Shell Group. His burial ceremony, which had all the trappings of a state funeral, was held at his private estate in Mecklenburg, Germany. The spectacle (photographs below) included a funeral procession led by a horse drawn funeral hearse with senior Nazis officials and senior Royal Dutch Shell directors in attendance, Nazi salutes at the graveside, swastika banners on display and wreaths and personal tributes from Adolf Hitler and Reichsmarschall, Hermann Goring. Deterding was an honored associate and supporter of Hitler and a personal friend of Goring.
Deterding was the guest of Hitler during a four day summit meeting at Berchtesgaden. Sir Henri and Hitler both had ambitions on Russian oil fields. Only an honored personal guest would be rewarded with a private four day meeting at Hitler’s mountain top retreat.
IN JULY 2007, MR BILL CAMPBELL (ABOVE, A RETIRED GROUP AUDITOR OF SHELL INTERNATIONAL SENT AN EMAIL TO EVERY UK MP AND MEMBER OF THE HOUSE OF LORDS: 
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