Russia is expanding its influence on other countries through business interests, which could provide the country with a stronger economy and subsequently, exchange traded fund (ETF).
By using energy exports, revenue from precious metals, and investments abroad, the Kremlin is enlarging Russia’s influence, writes Ariel Cohen, Ph.D. and Lajos F. Szasdi Ph.D. for The Heritage Foundation. Moscow already exercises economic and political influence over countries that are dependent on Russian resources.
Russia’s expanding businesses have made European nations too reliant on Russian oil, gas, and raw materials. Recently, Russia has prevented oil and gas supplies from reaching European markets. Moscow also strives to become a major energy and raw materials supplier to the Asia-Pacific region, which would also augment Russia’s leverage in the Pacific Rim area.
Russia owns dominant global positions on precious metals used in aerospace industries, electronics, military, and automobiles.
As Russia starts encroaching onto sectors that are highly important for western nation’s national security, Russia has shown an anti-American agenda that defies the existing global economic system.
The current global financial crisis has currently halted Russia’s aspirations for economic and political expansion. It is calculated that oil needs to reach $70 a barrel for Russia to stay out of a budget deficit, which has prompted recent talks with OPEC to coordinate efforts to reduce oil production.
- Market Vectors Russia (RSX): down 7.5% in the last week; down 25.4% in the last month
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.