Putinís gearing up for real international economic leverage

■"Russiaís Planned Energy Giant Will Be Open to Western Investors," by Gregory L. White and Chip Cummins, Wall Street Journal, 15 September 2004, p. A1.

■"Putin Backs Gazprom Bid To Buy Big Oil Company: Deal Would Consolidate Kremlin Control," by Erin E. Arvedlund, New York Times, 15 September 2004, p. W1.

This one has good news/bad news written all over it. The Kremlin gets 51% control of the resulting company, but itís going to open up the rest of the stock to foreign investors (that Journal, always highlighting the bright side!). Itís Putin trying to build his own Aramco, but itís Putin trying to build his own Aramco.

Yes, this will be one big company, but profit-wise, majority-state ownership doesnít translate well into earnings. But it will do this: it will remind the global economy that Russiaís seat at the table isnít based on rotting nukes anymore.