August 03, 2013

Vodka, Snowden and Boycotts


Vodka, Snowden and Boycotts

Say what you will about the various gay bars in North America that are boycotting Stolichnaya vodka and (horror of horrors), pouring it into the gutter. But the fact is, as reported elsewhere, they haven't done their research.

These days, Stolichnaya vodka is about as Russian as Edward Snowden. It is made in Latvia, and 90 percent owned by a Luxembourg based company controlled by an exiled anti-Putin oligarch. But the simple fact that it is the most recognizable Russian brand outside Russia makes it an easy target. And by easy I mean wrong.

Seriously, if you want to get the attention of you know who in the Kremlin (whether because of anti-gay legislation or because it has decided to grant Snowdon asylum), why not try boycotting something that matters to said Kremlin? Like say the Olympics. 

Oh, right, that didn't work out so well last time.

OK, then, how about Lukoil, Russia's second largest oil company? The company has over 6000 filling stations outside Russia, including those it bought from Getty Oil and others in the US, some of which include the Kwik Farms branded convenience stores (note to advertising firm: Kwik Farms is about as appealing a concept as Latvian Vodka).

While Lukoil is a privately-owned, publicly-traded company (on the London Stock Exchange: LKOD), it currently is responsible for over 16 percent of Russian oil production and refining and is a $160+ billion a year company. That represents a lot of taxes flowing into Kremlin coffers.

Alright, so your driving past a Getty station to tank up at Shell is not going to change the minds of Russian legislators or their puppetmaster. But it will certainly have more of an economic impact on Russia than dumping three-quarters of liter of Stoli in the streets.

A campaign to encourage divestment from Russian-owned companies (a la the anti-apartheid divestment movements of the 1960s-1990s) might also tighten the screws. At least four companies are listed on the NYSE: Mobile TeleSystems OJSC (NYSE: MBT); Vimpel-Communications (NYSE: VIP); UC RUSAL (Euronext: RUSAL); Mechel OAO (NYSE: MTL) including Mechel Preferred Shares (NYSE: MTLPR). 

Sure, these are not state-owned firms, but they are far more Russian than Stolichnaya and their fate is of considerably more interest to the Russian state. Together, they had a market cap of around $55 billion two years ago.

Now we're getting somewhere.

Let's consider at some other easy targets:

  • Aeroflot. Now a semi-private company, it is still 51 percent owned by the Russian government. And boycotting them is easy. Just fly Delta or Finnair to Moscow next time. It will probably cost you more, but the food will be better.
  • Baltika Beer. Big Russian beer brand, right? Not so much. Almost 90 percent owned by the Carlsberg Group. Move along, nothing to see here...
  • Polyus Gold. A publicly-traded company that has the world's third largest gold stockpile, mined in Russia. You can bet they didn't get that without some Kremlin connections. Not the best choice, but they are traded on the London exchange (PGIL) and OTC in the US (PLZLY), in case anyone is paying attention.
  • Kaspersky Labs. A big supplier of anti-virus software and the company's owner and head has come out in favor of a Russian national firewall (like they have in China), which human rights orgs have decried. But this is a privately owned company and it's an anti-virus company. These are the good guys. 
  • Ural Motorcycles. You know you want one. But should you? Well, it is a Russian company, but privately owned. No government involvement. And not big enough to matter. I'd recommend getting the Gear-Up Model.  

Some not-so-easy targets are the biggest state-owned companies, like Transneft, Gazprom, Sberbank and Rosneft. 

Of course, none of this is to endorse or encourage boycotting, which has economic and social costs far beyond the "message" one might want to send. For instance, there are presumably innocent Americans working at that Lukoil gas station in New Jersey, and it is the average Russian – not the private jet flying CEO or the Kremlin favored oligarch – who will be affected most by a downturn in the fate of a Russian company's stock. 

No, the main point of this blog entry is simple. It is to kindly and rationally ask people to stop the madness: stop pouring vodka down the drain. That and to do a bit of research.

Like this post? Get a weekly email digest + member-only deals

Some of Our Books

Fish: A History of One Migration

Fish: A History of One Migration

This mesmerizing novel from one of Russia’s most important modern authors traces the life journey of a selfless Russian everywoman. In the wake of the Soviet breakup, inexorable forces drag Vera across the breadth of the Russian empire. Facing a relentless onslaught of human and social trials, she swims against the current of life, countering adversity and pain with compassion and hope, in many ways personifying Mother Russia’s torment and resilience amid the Soviet disintegration.
Faith & Humor: Notes from Muscovy

Faith & Humor: Notes from Muscovy

A book that dares to explore the humanity of priests and pilgrims, saints and sinners, Faith & Humor has been both a runaway bestseller in Russia and the focus of heated controversy – as often happens when a thoughtful writer takes on sacred cows. The stories, aphorisms, anecdotes, dialogues and adventures in this volume comprise an encyclopedia of modern Russian Orthodoxy, and thereby of Russian life.
Marooned in Moscow

Marooned in Moscow

This gripping autobiography plays out against the backdrop of Russia's bloody Civil War, and was one of the first Western eyewitness accounts of life in post-revolutionary Russia. Marooned in Moscow provides a fascinating account of one woman's entry into war-torn Russia in early 1920, first-person impressions of many in the top Soviet leadership, and accounts of the author's increasingly dangerous work as a journalist and spy, to say nothing of her work on behalf of prisoners, her two arrests, and her eventual ten-month-long imprisonment, including in the infamous Lubyanka prison. It is a veritable encyclopedia of life in Russia in the early 1920s.
Moscow and Muscovites

Moscow and Muscovites

Vladimir Gilyarovsky's classic portrait of the Russian capital is one of Russians’ most beloved books. Yet it has never before been translated into English. Until now! It is a spectactular verbal pastiche: conversation, from gutter gibberish to the drawing room; oratory, from illiterates to aristocrats; prose, from boilerplate to Tolstoy; poetry, from earthy humor to Pushkin. 
A Taste of Chekhov

A Taste of Chekhov

This compact volume is an introduction to the works of Chekhov the master storyteller, via nine stories spanning the last twenty years of his life.
Woe From Wit (bilingual)

Woe From Wit (bilingual)

One of the most famous works of Russian literature, the four-act comedy in verse Woe from Wit skewers staid, nineteenth century Russian society, and it positively teems with “winged phrases” that are essential colloquialisms for students of Russian and Russian culture.
Dostoyevsky Bilingual

Dostoyevsky Bilingual

Bilingual series of short, lesser known, but highly significant works that show the traditional view of Dostoyevsky as a dour, intense, philosophical writer to be unnecessarily one-sided. 
93 Untranslatable Russian Words

93 Untranslatable Russian Words

Every language has concepts, ideas, words and idioms that are nearly impossible to translate into another language. This book looks at nearly 100 such Russian words and offers paths to their understanding and translation by way of examples from literature and everyday life. Difficult to translate words and concepts are introduced with dictionary definitions, then elucidated with citations from literature, speech and prose, helping the student of Russian comprehend the word/concept in context.
Turgenev Bilingual

Turgenev Bilingual

A sampling of Ivan Turgenev's masterful short stories, plays, novellas and novels. Bilingual, with English and accented Russian texts running side by side on adjoining pages.
Life Stories: Original Fiction By Russian Authors

Life Stories: Original Fiction By Russian Authors

The Life Stories collection is a nice introduction to contemporary Russian fiction: many of the 19 authors featured here have won major Russian literary prizes and/or become bestsellers. These are life-affirming stories of love, family, hope, rebirth, mystery and imagination, masterfully translated by some of the best Russian-English translators working today. The selections reassert the power of Russian literature to affect readers of all cultures in profound and lasting ways. Best of all, 100% of the profits from the sale of this book are going to benefit Russian hospice—not-for-profit care for fellow human beings who are nearing the end of their own life stories.

About Us

Russian Life is a publication of a 30-year-young, award-winning publishing house that creates a bimonthly magazine, books, maps, and other products for Russophiles the world over.

Latest Posts

Our Contacts

Russian Life
73 Main Street, Suite 402
Montpelier VT 05602

802-223-4955