wealthwire.com / by Brianna Panzica / Tuesday, February 5th, 2013
Russia is appearing desperate. Though “desperate” might not cut it.
Russia is in dire need of improving its image to attract investors. The nation has had difficulty communicating its needs and decisions with potential institutional investors, and its plan to turn things around has some people scratching their heads.
The Economy Ministry and Russian Direct Investment Fund have signed an agreement with Goldman Sachs Group Inc. (NYSE: G) in which the bank will work to improve the nation’s image for investors.
On paper, the agreement looks pretty good. Goldman Sachs had already worked with Russia in advising OAO Sberbank on equity sales. And it’s a large institution with decades of experience.
But many would say Goldman Sachs has an image problem of its own. The company is surrounded by an aura of corporate greed and big bank dominance.
And its presence in Russia hasn’t held up well. The bank opened its first Moscow office in 1994, but soon after a global retrenchment forced it to scale back, Bloomberg reports.