In the latter half of the 1980s, the collapse of the Soviet empire created an unprecedented opportunity for Western businesses. Among those most attracted were the oil firms, who rushed to investigate Russia's vast petroleum reserves. But, as they soon discovered, investing in Russia still entailed tremendous risks--commercial, legal, and political. The case examines how three companies (Phibro, Mobil, and Conoco) have evaluated the risks of Russia and formulated a strategy for investment.
To examine how companies evaluate and hedge against extreme cases of risk.
Foreign investment; Foreign investments; Risk management
- Geographic: Russia
- Industry: Petroleum extraction
- Event Year Begin: 1991
- Event Year End: 1992