Soviet Godfather
Vol 4 Chapter 16: Natural gas negotiations
The three major international rating agencies have given aaa-level credit ratings, which means that the financial derivatives created by Sergey Shah will have a larger market from now on, and some stable investment institutions, such as pension management Funds, corporate annuity management funds and other investment institutions with the purpose of maintaining and increasing value are very likely to include Sergei's subprime mortgage products into their investment portfolios.
After the rating agencies gave positive results, the first batch of loan products packaged by the Sanjin Club, which entered the Japanese market first, was also publicly sold on the international market. And the Rothschild Bank, Royal Bank of Scotland, and Barclays Bank in London together took up this financial derivative of about 2 billion US dollars.
After all, it is the first time to face the market, so the quality of Mikhail’s loan products is still good. Most of them are high-quality loans with guaranteed income. Only a small proportion of junk debt is used as a foil. While the world is looking more at the Japanese economy and the Japanese real estate market, the rate of return brought about by the rise in house prices and land prices greatly exceeds the inflation, bank interest, and even the interest level of some usury. For ordinary Japanese nowadays, investing in land, real estate and the stock market is much more affordable than working hard! Looking through Japanese newspapers, there are a lot of housewives who use loan sharks to invest in the stock market to become rich, and farmers who sell land to live in luxury houses and drive luxury cars. With the help of the media, Japan’s entire society has fallen into an impetuous atmosphere. Japan’s land area is not large and there are many mountains, but it has a population of 100 million. Everyone will feel that as the population increases, the economy grows. Land and real estate will go up forever.
Sergei has now realized a problem, that is, the three gold clubs that he secretly controls can't afford Japan's huge subprime mortgage market. So he authorized his patent at 5% of the patent fee to the three most supportive British banks to jointly expand the subprime loan market.
Sergey Shah has given a public speech at the Banking Association, so he has some influence on the British side. After three large established banks in the UK joined Seriosha’s plan, some other banks began to contact Seriosha to discuss cooperation. It can be said that for this period of time, only the patent fees will allow Seriosha. Made a lot of money.
Although subprime mortgage products have a great market in the UK, there needs to be a process of understanding outside the UK. Xie Liao Sha is not in a hurry for this. In any case, he has already extended his tentacles into the Japanese financial market. The British are becoming the biggest buyers of the products launched by the Sanjinhui. They will help Xie Liao Sha to transfer those subprime loans. Products are gradually introduced to the US market.
Since Yakovlev is now in London, Sergei can't keep busy with his business. The work to be done still has to go on. After Seriosha successfully won the coal trade negotiations, the natural gas negotiations have been difficult to break through. Because the Soviet-Europe gas pipeline project to France was severely obstructed by the Americans, the project that should have been completed a few years ago took two more years. In order to eliminate the interference from the United States, Sergey Sha eagerly hopes that Britain can transfer part of the natural gas pipeline production technology to the Soviet Union. Because before that, although the pipeline manufacturer for this line project was Japan,
British and French companies, but the production plants are located in the United States. A series of interference actions by the United States not only affected the Soviet Union, but also seriously affected the interests of the United Kingdom and France as consumer countries.
Sergey Sha’s suggestion made Britain and France a little excited, but they were full of misgivings. Sergei Shah did not have any bargaining chips in his hands. He asked the comrades of the Soviet Ministry of Oil and Gas Industry to come up with the budget of the previous phase of the project, including the Japanese pipeline quotation, the cost of supporting equipment, and the cost of installation. The items are counted for the British. Use data to tell them that if the Soviet Union can realize localization of these equipment, the budget of the entire project will be reduced by about 30%.
In addition, Selesha also found some public geological exploration data from the Ministry of Petroleum and Natural Gas Industry of the Soviet Union. He clearly told the British that the potential for domestic natural gas development in the Soviet Union unearthed by the Siberian Gas Pipeline currently being built by the Soviet Union was less than one ten thousand There are still more abundant gas reservoirs waiting to be developed in Central Asia. If there is sufficient funds and technology, the Soviet Union will be more than enough to supply the natural gas consumption of the entire Europe in the future.
Sergei knows very well now that the British are more concerned about this natural gas pipeline than the Soviets. The British economy is now at the bottom of the established industrial nations. The British economy needs cheap energy to support it. The Soviet Union is now the only choice for the British. In fact, it is not only the United Kingdom, but also countries such as France, Italy and Spain. Even West Germany, which is currently in the best economic situation, is trying its best to please the Soviet Union for the sake of natural gas. The United States asks these countries to boycott the Soviet Union, but regardless of the various difficulties these countries face economically, this joint sanction is full of loopholes.
Sergei is somewhat capable in the UK. Not only does Ian McGrady, the director of the National Coal Bureau, owe him a favor, but he also knows the head of Barclays Bank, the main bank of British Steel. Sergey had communicated privately with Ian McGrady and Mr. Atkins of Barclays Bank. If British Steel can persuade Congress to agree to transfer the natural gas pipeline production technology to the Soviet Union, Sergey will The share of the pipeline originally handed over to the Japanese was handed over to the British for production. After all, Ian McGrady was in charge of the British Steel Company for two years before serving as the director of the National Coal Bureau. He had feelings for this company. The only regret of leaving the British Steel Company is that it failed to make the company truly profitable, so Sergei's conditions are very attractive to him.
Sergey Sha is lucky. The current economic situation in the UK, the unemployment situation of workers, and the social unrest caused by the strike have put Sergey Sha in favorable conditions. The Soviet-Europe natural gas pipeline project is not only beneficial to the Soviet Union's foreign trade, but can also provide tens of thousands of jobs for the United Kingdom. This is a win-win situation.
Sergei Shah finally got the result he wanted. The Ural Heavy Machinery Plant received part of the steam turbine technology transferred from Alstom, and the Kryvorog Lenin Steel Plant in Ukraine received the pipeline production technology of British Steel. Negotiations on the natural gas agreement are thus completed. (To be continued...)
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