When Minister for Natural Resources Yuri Trutnev announced last month that foreign-owned entities would be banned from developing key energy and mineral deposits – in some cases removing rights it had already awarded – it was yet another example of how Russia can be more a political free-for-all than a free market.
Judging by the growing level of foreign direct investment, the government’s seizure and sale of assets belonging to oil giant Yukos failed to raise too many concerns about the inherent risks of operating in Russia. But the cancellation of tenders won by ExxonMobil and ChevronTexaco has underscored the dangers facing companies that are eager to access the market.
