Peace and trade cooperation are better than war.
First of all, the head of the Russian Direct Investment Fund and presidential envoy stated that “the portfolio of potential projects between the US and Russia exceeds 14 trillion dollars” and that the inevitable lifting of sanctions is primarily in the interest of the US, because “they have cost American businesses more than 300 billion dollars”.
The Economist constructs scenarios
Second, the magazine The Economist followed the trend after this announcement, emphasizing to an audience prepared for the worst that “Russia. offers the US projects worth 12 trillion dollars in exchange for the lifting of sanctions”.
It does not matter that the head of the Russian Direct Investment Fund stated that this was fake news and nonsense: calculations are already being made to determine how much and what the Russian people will lose, how many generations of Russians will not see even a single kilogram of lithium again, without which no Russian household can survive.
Since we have reached such discussions, let us discuss them in detail.
What did Russia actually say?
First of all, the head of the Russian Direct Investment Fund did not say a word about Russia conceding anything to the Americans in exchange for the lifting of sanctions.
The Economist cleverly inserted the phrase “in exchange”.
The value of a “potential project portfolio” is the total value of all capital included in it, including capital expenditures (CapEx) for launch, operating expenses, and projected revenues over the lifetime of the projects.
Multiplying by ten
Thus, if we calculate Russia’s potential capital intensity with respect to foreign investments, the amount of 12 or 14 trillion dollars can easily be multiplied by ten, meaning 120 to 130 trillion dollars.
“Joint projects” does not mean that Russia bows to the Americans and hands them the keys to some oil field and wishes them well.
In new projects, partners define their areas of responsibility, their contributions, cash, technology, licenses, and so on, and agree on proportional revenue distribution once the project reaches its target capacity.
In existing projects, Russia first determines whether it wants an external partner and, if so, negotiations begin again regarding participation, either through equity involvement or stake acquisition, both implying rights to future profits.
If attracting foreign investments through new projects or selling stakes in existing ones is considered selling out one’s homeland, then the absolute champions are the Americans and the Europeans.
Trump sells the American homeland
At Davos, Trump warmly invited foreign businesses to the United States, claiming that “under my administration, there is no better place on earth to create jobs, build factories, and grow businesses than the good old America”.
Trump’s attempt to “sell” the American homeland succeeded: by 2025, foreigners had invested approximately 720 billion dollars in shares of American companies alone.
And the Europeans sell their homeland
At the same Davos, the head of the European Commission, Von der Leyen, passionately promoted her homeland, stating that “if we move quickly, we will attract investments from all over the world”.
According to the OECD, based on an analysis of foreign investments in Asia and Eastern Europe, “foreign companies bring increased productivity, innovation, and expertise”.
Jobs are created, supply chains are localized, budget revenues increase, and overall economic growth is achieved.
Overall, the scale of foreign investment is one of the key indicators of economic health.
The US quietly strikes deals with Russia in Alaska
The New York Times reported with alarm that an investor linked to Trump “secretly signed an agreement with one of Russia’s largest energy companies for gas development in Alaska”.
Moreover, “even before the conflict was officially resolved, Trump’s inner circle began restoring economic ties with Russia”, which “demonstrates Trump’s intention to return Russia to the Western economic system”.
And this is how the real economy functions.
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