h for legal redress. Russian politics are unstable, which means that a permanent cloud of uncertainty hangs over every deal. And the mafia threatens the entire economy (1993, pp. 240-241).
Most of the investors in the first wave of investors were very large companies; however, there was also a sprinkling of small entrepreneurs, some of whom were hurt very badly:
A number of joint ventures launched in the glamour of the Gorbachev years are on the rocks . . . joint ventures were the only options for pioneers, including many entrepreneurs and small companies. Most were built on high hopes, shaky laws, and naivete. By far the biggest complaint among foreigners is that once their joint venture gets running and there's a profit, the Russian side suddenly wants a controlling interest or total ownership (Galuszka, 1995, May 1, p. 55).
Yergin and Gustafson say that the obstacles which have faced
most foreign investors in Russia are so great that since 1987 "foreign companies are trying to decide whether investment in Russia will be a prudent bet on the fu
...