The more open attitude toward foreign investment in the Soviet Union provides some interesting opportunities, and where there are opportunities, you’ll find Canadian mining companies. One of Canada’s most astute operators, Teck, has already sent vice-presidents of exploration, mining and marketing to the USSR and have been talking with the Soviets about joint ventures on specific properties.
At the end of 1988 there were 965 joint ventures registered in the USSR (most in the service industry), 20 of them involving Canadian firms. Just before Prime Minister Brian Mulroney’s visit to Moscow in late November, there were 1,100 joint ventures, 24 of them with Canadian firms. It is clearly a method of doing business that is gaining momentum. One reason is that the rules have changed. Foreign joint venture partners, once limited to a 49% interest, can now hold up to 50% and be operator of the joint venture. Soviet entrepreneurs still need approval from a legal association, but they no longer need approval from the ministry level in Moscow.
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