Investments

Bank Of America Investment U.N. economists caution Russia's criminal pursuit of Yukos' former chief, Mikhail Khodorkovsky, which is widely regarded as politically motivated, could discourage foreign investment and dampen future growth.Visit our AXcess News Forum and add your comments on this story. Try your hand at writing, the best story will be published on our news network. Take our business poll too!

The Bank of England (BoE) has warned that record credit card debit levels are putting the UK economy at risk.

Investment Opportunity Print This Page

An explosion of personal debt could have catastrophic results on the British economy, the Bank of England has warned.

Banc Of America Investment July 22, 2004 (AXcess News) Geneva - U.N. economists warn Russia's prosecution of the oil giant Yukos and its former chairman could drive away foreign investors and hurt the country's economy. The U.N. Economic Commission for Europe says it expects Russia's Gross Domestic Product, which is driven by the oil industry, to grow by a hefty seven-percent this year. But U.N. economists caution Russia's criminal pursuit of Yukos' former chief, Mikhail Khodorkovsky, which is widely regarded as politically motivated, could discourage foreign investment and dampen future growth.

It was the 'ruined economy' that General Pervez Musharraf cited as the main reason for his bloodless coup that took place in October 1999. The military stepped in, deposed Nawaz Sharif and then took control of most of Pakistan's institutions. Musharraf issued a thinly veiled warning to India not to meddle in their internal affairs, with the result that tension over nuclear capabilities between the two countries (and the continuing dispute over Kashmir) was screwed up a notch.

Banking Investment Mr. Khodorkovsky was imprisoned on charges of fraud and tax evasion, but his prosecution is seen by many as a price he is paying for his financial support of political opponents of President Vladimir Putin. Yukos is fending off the government's decision to sell its main subsidiary to settle a $3.4 billion bill for back taxes.U.N. Senior Economist, Rumen Dobrinsky says the Yukos affair has made many people apprehensive about investing in Russia. He says the effect on the investor community will depend on its legal outcome.Advertisement

The economies of both sides have been hurt by their inability to make substantial progress toward a peaceful resolution.

Investment Solution Strategic "If the investor perception will be that the Yukos affair is not resolved in accordance with the rule of law, this will obviously have a detrimental effect on the investment and business climate in Russia," he said.Charles Wyphosz, a Professor of Economics at Geneva's Graduate Institute for International Studies, agrees. He says when property rights in a country can be challenged by the government, international investors react badly. He says the Russian economy is very vulnerable to outside forces because it is dependent primarily on oil and gas.

Investment Banking Services "It is very dependent on world prices,

[ Comment, Edit or Article Submission ]