Russian financial crisis
Last month, the Russian government invited Russian commercial banks to hold in trust large blocks of shares in leading oil and natural resource companies in return for loans to the government. No-one in Russia expects the government to repay these loans when they fall due this September.
"... According to Srinivasan, Muis' staff have targeted Russia "where doubts have been raised" about dealings between government officials and consulting firms"
Emerging market governments may be keen to attract foreign equity investment, but, as foreign investors in Russia are learning, the lack of legal protection threatens to stop such investment in its tracks.
A SUPPLEMENT TO EUROMONEY/September 1997