Investors could see some long-term trade and other benefits if a U.S. move to back away from a missile shield in Eastern Europe yields improvements in relations with Russia.
But it could raise other risks.
| Like Iran threatening the spineless Euros ... |
U.S. President Barack Obama has told eastern European states he is abandoning plans to place interceptor missiles in Poland and a radar complex in the Czech Republic aimed at defending against missile launches from "rogue" states.
While Washington might hope to gain Russian co-operation on everything from nuclear weapons cuts to efforts to curb Iranian and North Korean weapons programmes, the risk remains that the move could also embolden Kremlin hardliners.
| Putin's already said he won't pressure the Iranians. Seems like "Washington's hopes" are off to a bad start ... |
A more assertive Russia would unnerve investors taken aback by war in Georgia last year, but if relations do genuinely improve potential benefits could include easier trade between Russia and the eastern EU as well as a softer ride for U.S. firms in Russia. "U.S. companies have arguably lost out to some European companies in joint ventures, and better diplomacy will likely improve the chances for investors in the strategic sectors of the Russian economy," said Carlo Gallo, senior Russia analyst at London-based consultancy Control Risks. |