UK business wary of Russian footprint

23-04-2007

UK business wary of Russian footprint
UK business leaders have expressed concern over plans by Russian firms to invest heavily in British firms.

Leaders said if Russian firms acquired more assets in the UK public trust could be hit as a consequence, according to the YouGov survey commission by business group Russian Axis.

The poll found that almost half of UK business leaders (47 per cent) saw Russian investment in the UK to some degree a 'bad thing'.

A third of respondents thought Russian businesses had different cultural practices, with takeovers leading to a deterioration of corporate governance.

Only three per cent said Russian investment would help revitalise underperforming UK firms, while more than half of interviewees found Russian businessmen 'arrogant', 'lawless' and 'unreliable'.

Business leaders said the property market, IT/telecommunications industry and energy were industries most attractive to Russian businessmen.

Corus, Centrica and Vodafone were seen as most coveted by Russian businesses. Private metal producers such as Severastal, NLMK and 'Norilsk Nickel' were adjudged more welcome in the UK compared to state-controlled Gazprom, Rosneft and Sberbank.

The survey comes on the eve of Russian Economic Forum. Several senior Russian officials including representatives from Gazprom pulled out of the tenth annual conference yesterday amid political tensions between the Foreign Office and Kremlin.


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