Yukos export cut provokes Kremlin

[emad]

BBC News snip

Russian oil giant Yukos is stopping most of its exports to China, saying that it cannot pay the transport costs. The company, which pumps a fifth of Russia's output, is in dispute with Russian authorities over tax demands and has had its bank accounts frozen.

Analysts said Yukos' action was a ploy designed to put pressure on the Kremlin ahead of a visit to Moscow by China's Prime Minister Wen Jiabao.

The news helped push US light crude prices up 44 cents to $46.03 a barrel.

London-traded Brent crude was 26 cents higher at $42.71 a barrel.
More:
http://news.bbc.co.uk/1/hi/business/3671820.stm

[Bandit]

1. There will be no Private Business in Russia if Putin has his way

Things are headed back to totalitarian rule. Democracy had it's chance and flunked the test.

[htuttle]

2. I don't think that's actually the case

I will not be surprised if Russia re-nationalizes it's oil industry and perhaps a few others. They probably should never have been sold off to Yeltsin's cronies for a song and a bottle of Vodka anyway. Russia's oil industry was practically stolen from the Russian people (who owned it collectively -- in a manner of speaking -- before the Soviet Union fell). Same with mineral extraction, and their other resource-based industries. Russia (as a nation) desperately needs the money from its oil sales far more than the former apparatchniks/now 'capitalists' at Yukos.

I would be very surprised to see much else get re-nationalized, however. I'm quite sure that nobody in with the Russian government wants to go back to being blamed for there not being enough toilet paper at the store.

As far as totalitarianism vs Democracy in Russia -- that's anyone's guess. Putin seems to be taking pages from Bush in his reaction to the school hostage situation.