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Strategies & Market Trends : Investment in Russia and Eastern Europe -- Ignore unavailable to you. Want to Upgrade?

To: Rob Shilling who wrote (713)	9/24/1998 9:26:00 AM
From: Real Man	Respond to of 1301

Russian oil sector is a huge component of GDP, and see what the oil price is doing recently oilworld.com However, I'm not at all optimistic about the current government: There will be more bureaucrats, and ''hungry'' ones (who did not get their piece of the pie before). This means Russia will have to feed them during the crisis. Bad news for the ruble and the budget.

To: Rob Shilling who wrote (713)	9/24/1998 12:25:00 PM
From: P.T.Burnem	Read Replies (2) \| Respond to of 1301

The oil and gas companies have just enjoyed over a 50% reduction in their costs thanks to the ruble devaluation. I doubt it, since oil drilling equipment is priced dollars, and much of their revenue is in rubles. So the government's thinking is that they can raise taxes, at least short term on oil and gas companies to get more ruble taxes to help the budget. Nope. A couple of weeks ago I warned that oil excise taxes were going to be raised because, having robbed foreign bondholders, the government would be looking for new sources of $loot$. It's the kleptonomy, stupid! The oil and gas companies will probably come out way ahead anyway. Chances are, these will end up being nationalized. Either way, the stockholders' equity in these companies will be wiped out. PTB