Russia: We Don't Need the West Anymore

vitaliy — Mon, 29 Jan 2007 10:56:23 -0500

Wax:

When the original PSA was signed both sides were willing participants. Since then, Shell invested billions of dollars into Russia under the original contract. As I said in the article:

The Russian government manipulated its environmental/legal levers to muscle an ownership stake in the project out of Shell, possibly at a significant discount.

It is not much different than after a mechanic fixed your car at pre-negotiated price for you to say – “nah, It was not really a good deal for me. Unless you to take ½ off original price, I’ll call my cousin in city council and he’ll shut you down for not wearing your name tags (or any other silly reason).”

Vitaliy

Russia: We Don't Need the West Anymore

wax — Sun, 28 Jan 2007 09:32:27 -0500

Vitaly;

I fail to understand your argument.

Shell made a very good business agreement and and the Russian government did not. Eventual the government realized they did not do so well at the conference table and brought in a new conference table.

Shell, understanding the business of business, says they like the new conference table and where do they sign.

Welcome to the world of commerce.

Your post made valid points, but at the end of the day, it’s a willing buyer and a willing seller that get things done. And I can’t think of a single major oil company not willing to be either.

Wax

Value Investing News - BP - Comments

Russia: We Don't Need the West Anymore

Russia: We Don't Need the West Anymore