The end of the Soviet Union gave rise to a sharp increase in potential foreign investment.  As the economy quickly opened its doors, the goods that had previously been aggressively controlled and limited were now at a point where they could expand rapidly.  Oil, in particular, had the potential to be a major source of foreign investment in Russia.  However, it was considered very risky.  Still, many Western firms were at the least, very interested in gaining access to such a large pot of oil.

Entry into this enormous market was considered very valuable as well as very risky.  The importance of an early position into the Russian oil market can not be understated.  In 1983, Russia supplied 12 million barrels per day to the world -- over 22% of the world's oil.  Although production of Russian oil dropped substantially after 1983, it gives an...