Committee for Russian Economic Freedom

Deputy Prime Minister Igor Sechin, Russia’s top energy official and one of Prime Minister Vladimir Putin’s closest political allies, offered valuable insight into the nation’s investment climate during a rare interview with the Wall Street Journal. Sechin portrayed the risks that fueled an estimated 25 percent decline in direct foreign investment last year as strengths. Remarkably, Sechin asserted that the controversies involving Yukos, Hermitage Capital Management and the troubled BP/OAO Rosneft deal prove Russia is a safe bet for investors. Hermitage CEO William Browder responded that Sechin’s assessment will further erode investor confidence.

The risk of losing one’s business in Russia today is real. But it is not the greatest risk investors face. Investors in Russia risk losing their lives.

Recently Bill Browder, CEO of Hermitage Capital Management was on CNBC with Maria Bartiromo discussing the risks and rewards of investing in Russia. In this segment he describes the reality of investing in Russia and lengths authorities there go to expropriate private property for personal gain.

Keeping Khodorkovsky in Prison Hurts Business

Bill Browder of Hermitage Capital, whose attorney Sergei Magnitsky died in Russian custody last November was interviewed by Reuters TV about doing business in Russia.

From my own perspective, for every investor that’s there – there are probably 20 that are not there for reasons of Khodorkovsky, what happened to Sergei [Magnitsky] and other things.