Moscow's Business Gamble: Hope and Reality

Some close to President Donald Trump see Russia as a goldmine for business. They think the country's vast resources and potential could bring big profits. Steve Witkoff, a special envoy, and Jared Kushner, the president's son-in-law, are leading this charge. They believe Russia's return to the global stage could be a win for U. S. investors. But not everyone is convinced. Experts warn that Russia's weak economy and unpredictable politics make it a risky place to invest. Charles Hecker, who spent years working in the region, says Russia isn't the treasure trove some imagine. He points to the country's weak economy, authoritarian rule, and lack of legal protections for businesses. Kushner has recently taken a bigger role in foreign policy. He and Witkoff have been involved in talks to end the war in Ukraine. But even if a peace deal is reached, Hecker says Russia's hostility toward the West will likely continue. He warns that Western companies shouldn't expect a warm welcome anytime soon.Others agree that Russia is still a tough sell for investors. Alexandra Prokopenko, a former Russian central bank official, says the idea of companies rushing back to Russia is just talk. Michael Calvey, a financier with decades of experience in Russia, thinks some companies might explore options, but he doubts anyone will invest heavily in the near future. Russia's economy is struggling. It's about the size of Italy's and has poor growth prospects. The population is shrinking, and oil reserves are declining. Alan Bigman, a former CFO of a Russian oil company, says doing business with Russia only makes sense if it's not aggressive toward its neighbors. But with the current tensions, that's not the case.