Skip to Content

Putin poster in NY; Pete Sessions

Offshore investments in Russia peak after sanctions

Offshore tax havens, the Bahamas and Bermuda have both provided a quarter of direct investment into the Russian economy in the past year.

Published: July 12, 2017, 11:13 am

    These countries are investing more than the UK, USA, France, Germany, Japan and China put together, with the amount of revenue from offshore jurisdictions doubling over the past two years.

    The stream of foreign investments in Russia has changed with the introduction of sanctions by the US and the EU. Until 2013, the largest flow of direct investment came from Cyprus, Ireland, Luxembourg, the UK and France.

    With the introduction of sanctions in 2014, offshore interest peaked. Over the past three years, the inflow of funds from the Bahamas and Bermuda increased from 5.4 to 8.2 billion dollars, which amounts to a quarter of all direct foreign investment in Russia.

    This trend is easily explained says ktovkurse.com: “Western countries, in previous years have invested in Russia, and now for political reasons do so through ‘offshore companies’.

    Thus the benefits derived from doing business in Russia for some investors clearly outweigh the risks. But US oil companies are threatening to take the drive against sanctions public.

    The new Russia sanctions bill passed by the US Senate last month is facing a fresh hurdle. The bill on Russia’s energy and financial-services sectors was initially stalled last month when Republican lawmaker Pete Sessions, from Texas’ 32nd Congressional District, told CNN last weekend that the bill should not be moved to the floor for a vote because some of its provisions could cause “huge problems to companies in Dallas, Texas, that I represent”.

    Sessions has raised alarms that elements of the bill would harm energy companies in Texas. Exxon Mobil Corp. and other energy companies have joined President Donald Trump in expressing concerns over sanctions on Russia, arguing that it could shut down oil and gas projects around the world that involve Russian partners.

    The pushback from energy companies such as Exxon and Chevron threatens to complicate House passage of the legislation.

    Russia has however never been a lucrative source for US exports. The European Union relies far more on Russia than does the United States, whose goods exports to Russia totaled $11 billion in 2013, or less than 0.1 percent of US gross domestic product, the Business Insider reported.

    But the US tech industry lobbied the government earlier this year to soften its restrictions on doing business with Russia’s Federal Security Service because the agency “doubles as a regulator charged with approving the import to Russia of almost all technology that contains encryption,” Reuters reported. Alexis Rodzianko, the president of the American Chamber of Commerce in Russia, told Reuters that the sanctions would have meant the Russian market was “dead for US electronics”.

    Keep ​your language polite​. Readers from many different countries visit and contribute to Free West Media and we must therefore obey the rules in​,​ for example​, ​Germany. Illegal content will be deleted.

    If you have been approved to post comments without preview from FWM, you are responsible for violation​s​ of​ any​ law. This means that FWM may be forced to cooperate with authorities in a possible crime investigation.

    If your comments are subject to preview ​by FWM, please be patient. We continually review comments but depending on the time of day it can take up to several hours before your comment is reviewed.

    We reserve the right to del​ete​ comments that are offensive, contain slander or foul language, or are irrelevant to the discussion.

    Europe

    Sweden outsourced vehicle database, leaked huge amount of sensitive data

    The Swedish vehicle database, containing all photos and addresses of car owners in the country, including persons with secret identities as well as military vehicles, has possibly been leaked.

    French intellectuals accuse government of covering up hate crime

    A group of famous French intellectuals have accused French authorities of covering up the brutal murder of a Parisian woman by her Muslim neighbour. The letter questions the Paris Prosecutor's Office for omitting hate crime charges from a draft indictment against the suspect.

    Russia’s maritime policy: Becoming world’s second strongest navy

    MoscowRussian President Vladimir Putin signed off his country's naval war strategy until 2030, in an attempt to counter the Washington’s ambitions to dominate the seas, as it poses a risk to Russian national security.

    German legal system under threat due to number of asylum cases judge warns

    German courts are on the brink of collapse, a top German judge has warned in an interview, as cases filed by asylum seekers to challenge decisions by immigration authorities, have skyrocketed.

    French journalist admits that media ‘permanently hides ethnic origin’

    ParisLast year, on Friday, January 15, the show "28 minutes" on the French channel Arte, was back in the news. On this occasion, the program touched on the delicate question of the media's treatment of the mass aggression by migrants in Cologne.

    England needs 68 000 black and ethnic teachers ‘to reflect child population’

    As schools become increasingly multicultural in England, protest against white, the presence of native-born teachers are increasingly resented with quotas in the offing.

    Hamburg police charged with ‘violence’

    HamburgIn a twist of irony, some black bloc rioters at the G20 summit in Hamburg have reported German police officers, for allegedly being violent during their campaign of left-wing lawlessness.

    Dutch commandos fear life-threatening situations due to defective materiel

    RoosendaalDutch commandos fear life-threatening situations during missions due to defective materiel.

    Far-left Dutch activist who pushes black South African down stairs denies racism

    AmsterdamA tourist from South Africa was injured in Amsterdam on Saturday after getting into an argument with her Airbnb host, at an apartment that belongs to a member of the far-left Groenlinks party. A video of the incident shows the black female being pushed down a flight of stairs after an argument, the newspaper AD reported.

    Dutch voters discover their referendum to exclude Ukraine is ignored

    The HagueDutch people who voted massively 'No' in a referendum to welcome Ukraine, discovered in June that the ratification of Ukraine's Association Agreement with the EU in the Dutch parliament was going to go ahead.

    Go to archive