By Douglas Keene

As you know, the true value of an asset is its liquid value, especially when we are talking about Russian assets. To determine the true value would require an inspection, which is certainly not likely to happen, so I would consider all assets with some caution, especially if considered for collateral.

There are no customers for these assets in Russia today (or few if any) and none in the west. There may be some market in China, but they will offer 10 cents on the dollar. The value of this equipment is its ability to produce product in the plant and this has some intrinsic value, but again, whether these assets are being used or capable of being used, is subject to an experts opinion after an on-site audit. It all depends on what the plant's product is, and it appears to me that many Rusisan companies haven't yet reached a clear idea of just what their products will be. They discount the value of certain prodcuts as a market item, yet I frequently see nothing else in their basket that has much value in the export market. This is where their expertise resides, and no one needs another "jet plane factory making washing machines".

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