Wonderful example of protectionism and the the new paradigm of financial and economic warfare. Risk socialization is taking the form of reduced/increased standards of living (which in turn benefit the goverments "serving" them) as opposed to violent death on a battlefield.
Not that this kind of trade warfare did not happen before, but its interesting to note modern conflict in the developed world is almost entirely based on non-military solutions...and how quickly all players agreed to this state of affairs.
Now, historically speaking, this status quo will not last when a state realizes that violence could be an "innovative" way of solving conflict. Russia and Georgia is a perfect example of this.
Russia halts big foreign holdings in minerals
Tony Halpin in Moscow and Carl Mortished
The door to investment in Russia's vast mineral resources was almost
shut to foreigners yesterday as government regulators tightened rules
on share sales.
New limits on foreign investment in Russian companies published by the
state market regulator will restrict non-Russians to no more than 5
per cent of mineral exploration companies. The move will severely
hamper a strong flow of public offerings on foreign stock exchanges by
Russian companies, potentially dealing a blow to the London Stock
Exchange, which has been the favoured host for the main public
offerings to date.
The new regulations, which take effect in ten days, will also limit
foreign stakeholding in industries related to national security and
defence to no more than 25 per cent, while those making public
offerings in other sectors may sell a maximum of 30 per cent of their
shares shares abroad, down from 35 per cent.
The regulations give legal force to the "resource nationalism"
practised by the Kremlin to retain control over Russia's oil, gas and
mineral reserves.Chris Weafer, equity strategist for Uralsib bank in
Moscow, said: "They have locked down the sector completely."
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