Russia and Germany are considering converting a large chunk of
Russia's $14 billion debt to Germany into equity stakes in
Russian companies, which would make Germany a major shareholder
in Russian industry. The deal will represent an important move in
forging a close geopolitical partnership between Germany and
Russia. This may help Russia's revival, and Germany could emerge
as the leader of a united Europe with Russia on its side. Such a
development would significantly weaken U.S. influence in Europe
while dramatically strengthening Germany and Russia and helping
them to advance to the front stage of world geopolitics.
Analysis
Germany and Russia are forging an economic deal that, if it
succeeds, may shift the balance of European power. Werner Muller,
German economic minister, and German Gref, Russian minister of
economic development and trade, met in Berlin Dec. 12 to debate
details of a plan to exchange Russian debt for German equity in
Russian companies.
The two sides have agreed in principle to swap a large share of
Russia's $14 billion debt, The Times reported Dec. 13. One option
they are considering is giving to Germany a significantly larger
share in Gazprom, Russia's gigantic gas export monopoly.
Germany's Ruhrgas now holds 4 percent.
Obtaining several billion dollars worth of stakes in Russian
enterprises would make Germany a major shareholder in Russian
industry, giving Berlin a stronger voice in Moscow. In addition,
it would further tie Berlin's interests to economic and political
stability in Russia. Russia already supplies about 35 percent of
Germany's gas needs.
*********** TO READ THE REST OF THIS ARTICLE CLICK HERE:***********
stratfor.com
___________________________________________________________________
<<<<<<<<<<<<<< SUBSCRIBE TO BECOME A MEMBER TODAY!>>>>>>>>>>>>>>>
Stratfor.com introduces new, expanded analysis for readers seeking
more insight on the entire range of global affairs. Our new site
features more intelligence on more subjects, easier navigation and
expanded coverage.
What New Members Say About Stratfor.com:
"I was happy to pay the new subscription charge for continued
access to your material given the high quality...In fact,
I've quoted you several times in a report recently published
by (my consulting firm)." D.A.
"I teach geography and international relations at the college
level. Your site is one of the most excellent resources for
students and teachers alike. My compliments on the site."
J.B.
"I subscribe to numerous publications including the
Economist, the National Interest and Foreign Affairs, and yet
not one provides cogent analysis of today's events as well as
you do." M.U.
stratfor.com
<<<<<<<<<<<<<< SUBSCRIBE TO BECOME A MEMBER TODAY!>>>>>>>>>>>>>>>
===================================================================
SIGN-UP:
Get the free, daily Global Intelligence Update:
stratfor.com
You can stop receiving the GIU by clicking on:
stratfor.com
CONTACTS AND CUSTOMER SERVICES:
STRATFOR.com
504 Lavaca, Suite 1100 Austin, TX 78701
Phone: 512-583-5000
Internet: stratfor.com
Email: info@stratfor.com
ADVERTISE
For information on advertising in the GIU or any
section of the Stratfor.com website, please email us
at advertising@stratfor.com
====================================================
(c) 2000 Stratfor, Inc. |
