Rosneft Delivers a Blow to Market Economy

In an opinion editorial in The Moscow Times, Sergei Guriev of the New Economic School in Moscow and Professor Aleh Tsyvinski of Yale University argue that Rosneft has delivered a blow to Russia’s market economy. Rosneft's expansion is the ultimate proof of the Russian government's embrace of state capitalism, giving it control over the economy's commanding heights. Though the Russian leadership denies that it is implementing state capitalism and affirms its commitment to privatisation and competition, the Rosneft deal is a bold statement to the contrary. Russia is set to build another Gazprom, this time in the oil industry.

Tuesday, October 30, 2012