Julian,

What will they do, can I ask you? Russian law prohibits western banks
to establish direct branches here. Citibank here is incorporated as
ZAO KB Citibank, it is purely a Russian company, with its own balance
sheet, P&L etc. What you see is just the brand name that you know, but
what's behind it is completely different from the west.

If Russia gets into a new financial crisis, Citibank in the US will
assume no obligations of ZAO KB Citibank in Russia if this Russian
bank also experiences financial difficulties. Same for Raiffeisen, it
is also another ZAO.

For me, roots of the problem lie not in the poor supervision from the
US management, they are in the poor state of the service sector in
Russia, the fact that its economy depends only on exports of oil and
gas, that there are numerous stupid regulations which make the conduct
of private business very difficult, widespread corruption,
deteriorated educational system, nepotism which makes young people
believe that working hard is useless because you will not achieve
anything, etc.

Of course there are positive sides like high oil prices, increasing
stabilisation fund, hard currency reserves, single party of power, etc
but all these benefits are not for you, Julian, not for myself, not for
many other people living in this country. Nobody will hear your voice.
Because there are so many people who will continue to use
Citibank/RZB/other banks just because they accept such service is
normal. 

All the best

Vladimir

Wednesday, February 20, 2008, 8:57:38 AM, you wrote:

> People, Don't just accept this! You all have access to the Internet!

> I just cut and pasted the last big email about citi bank and sent it to 
> the board of directors in America. ( I removed email addresses)

> You have a voice, use it!

> I 

> Julian Beirne
> Moscow

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