Russia’s economy and related exchange traded fund (ETF) could benefit from closer ties to America and the international community at large.
According to Under Secretary for Political Affairs, William J. Burns, the United States and Russia matter to each other and there is a need for a renewed bilateral relationship. In Burns’ remarks, he touched upon subjects that he thought needed addressing, including:
- Finish a legally binding treaty on the reduction and limitation of strategic offensive arms
- Reduce the threat of nuclear weapon proliferation to unscrupulous regimes or terrorist groups, and safeguard the peaceful use of nuclear technology
- Help resolve conflicts in areas such as Pakistan, Afghanistan and the Middle East, and protect the sovereignty of independent states
- Ease the international financial crisis, expand Russian-American economic ties and include Russia into global economic institutions
- Commit to a way to help lessen or stop the further degradation of the environment
In Russia, a new bill, which will create a $120,000 cap on annual executive compensation for all state companies and private companies that received government aid, was sent to the State Duma, reports Courtney Weaver for Telegraph. It just goes to show, the United States isn’t the only country tackling these issues.
The passing of the bill would help stem social unrest that could result because of the large disparity between the salary of an executive and a regular employee. It is estimated that a tax on earnings above $120,000 would affect 5% of corporate and state staff, which would make up 20% of all wages.
- Market Vectors Russia ETF (RSX): up 40% year-to-date
Max Chen contributed to this article.
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.