The relationship between Russia and America has been well documented as one often full of suspicion and animosity, perhaps as a result of political differences and competing global interests. Now, however, it has come to light that Russian-American business relationships could be better than is currently thought, which could potentially lead to changes in the ways both countries view each other and their interests.
Here are some of the possible ways the countries’ investment activities may affect how they are viewed and their future relationship.
Here is no doubt that any information on Russia’s investment in American businesses, and vice versa, is bound to cause some controversy, with many questioning why such hostile political relations exist when business relations tell a different story.
It is worth noting, however, that America’s trade with Russia stood at just $31bn in 2015, a figure which is dwarfed by other countries such as China and Canada. This suggests that, although the two countries do trade, they are achieving nowhere near their full potential when it comes to trade capacity and opportunities. Despite this, Russian investment may still seem controversial to some.
A Better Economic Relationship?
It could be the case that Russia’s investment in American businesses leads to a more productive, cordial economic relationship between the two major powers. Whilst political ties have been frosty at best in recent years, they could begin to thaw the once people realise the potential for both countries to enjoy a prosperous trading relationship.
This may depend on how they approach future relations, but if Trump and Putin can navigate past differences and open up the various opportunities which could be exploited, then there could well be cause for future investments between the two countries.
Further Business Opportunities
With greater potential for investment opportunities, business cooperation between Russia and America could well start to flourish. There are already some major American businesses operating in Russia, such as McDonald’s and Ford, so future investments in either country could prove to be lucrative.
Those buying stocks and shares and American or Russian companies may well use financial leverage to buy a greater quantity if they believe that business and trade relations will improve between the two. This could help to encourage companies to expand into either country.
Easing Political Tensions
It is worth noting that the American president is actually fairly popular in Russia. Further investments in trade between Russia and America could also serve to stimulate a new political dialogue, and perhaps lead to the ending of sanctions against Russia.
This would free up American businesses to make more deals with large Russian companies and help to boost both economies.
Nothing is Certain
All this being said, there are still plenty of obstacles facing a future prosperous relationship between Russia and America. The ongoing enquiries and media attention around supposed Russian influence in the American elections has caused a great deal of controversy and mistrust.
The two countries would also have to address competing global interests and ensure that they can convince their populations to trust in a new trade partnership. None of this is impossible, but it will take a major effort from both sides to achieve any meaningful progress.
Ultimately, Russia and America do have a great deal of potential to enjoy a prosperous relationship, but it could take some time before either country warms to the idea. As two large, powerful economies, compromises may need to be made, and past conflicts forgiven and forgotten if they are to form a productive and lasting partnership in the future.
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