Motorola Takes on
Dr. Bill Belew
Issue III - June 22, 2006
Introduction by Mr. Stolyarov:
Russia's corrupt bureaucracy and rapidly expanding government are
quickly becoming impediments to legitimate business there, writes Dr.
Belew. A prime example of this trend is the Russian government's recent
confiscation of $2 million dollars' worth of goods from Motorola. We at
TRBJ hope that Motorola continues to staunchly resist the Russian
regime's attempts to steal the rest of its property.
Russia is growing, and so are the shadows that are cast over the
business proceedings there.
The bureaucracy is still extremely burdensome and growing. And laws
are a matter of
convenience and seemingly circumvented at will -- or at least when you
have the right connections.
Corruption and middlemen are a matter of course, and bribes are
expected and given.
Confiscation of private goods -- i.e., Motorola's ongoing fiasco --
and resale for profit is
Legitimate dealings are called smuggling. And smuggling is called
Russian law allows confiscated material in criminal investigations to
be sold or destroyed before the case is completed.
Motorola had $2 million worth of phones destroyed but still has
117,000 or $15 million
worth of additional phones that it is going to fight for.
Motorola ought not hold its breath.
The seizure and disposal of commercial goods without appeal is
common, and RussGPS owner says that judges cost about 3 kopecks.
Russia will host the upcoming G8 meeting. At the meeting, Russian
government officials hope to convince the world that Russia --
especially her oil -- is worth investing in.
Fat chance of that happening. No? But then again, somebody with money
to burn will surely take the risk.
What do you think?
Dr. Bill Belew is a former Intelligence
Officer for a Destroyer Squadron. He lived 20 years in Japan, where he
started a language school for Japanese
Dr. Belew teaches classes for a vocational school and online for a
See Dr. Belew's blog,
for news and discussions about business and current events in Russia and
for Dr. Belew's reports on business in China,
on business in Japan, and
TheBizofKnowledge on business education.
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