Tuesday, November 6, 2007
Negotiations are taking place between German carrier Lufthansa and the Kremlin regarding moving the airline’s cargo hub from Khazakstan to a Siberian city. It seems the government is holding the threat of denying the use of Russian airspace for the airline unless the move is made, probably nothing will happen within two years due to the airport not being equipped to handle the traffic yet. I am never afraid to criticize things the government does that hurts industry or the economy, being someone that loves free market competition. I am not a slave to my ideology regarding economic theory, and you should not be a slave to your investment theories, to the point of being blinded to pragmatism. In this case I believe Russia is acting in its own best interest, it has nothing to lose and everything to gain by investment in an economically destitute part of Siberia, an investment that could be a catalyst for other things. When France invests in nuclear power plants, or Germany in solar, they don’t think of the negative consequences for Russia and Russian companies, in a more blunt example, this is what is happening here.
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2 comments:
Russians are gooood in conditioning..
Interesting post the best.
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