Wonder why there’s a lot at stake when it comes to President trump and his ties with Russia? Before the U.S. Congress dedicated to putting sanctions on Russia for its conflict in the Ukraine, there are still major American companies with a strong presence in Russia.
Here are 5 things citizens should know about the U.S. ties with Russia.
Export Trade is Small
The flow of export services between Russia and the United States are reported to be well under $30 billion. Comparatively, China’s trade with the U.S. is more than 20 times more than Russia.
Tiny Investments
Russia has only been said to have invested less than $5 billion in U.S. based businesses. While citizens may consider that it is a high investment, it is only 0.1% of the total foreign investment in America today.
Major U.S. Brands are Located in Russia
Consider the major American companies operating in Russia today, including Ford, ExxonMobil, and McDonald’s. There are hundreds of McDonald’s restaurants located in Russia as it is known to have a high growth market. Ford also operated four manufacturing facilities in Russia, while Exxon pumps 10% of its oil.
Russia owns U.S. Debt
Frankly, Russia owns $105 billion in U.S. government bonds. Like many nations, Russia prefers to purchase foreign government bonds and U.S. Treasuries to improve foreign currency. Since 2015, Russia has begun improving its reserves as its holding of Treasuries are constantly growing.
Russia Set to Host the 2018 World Cup
The FIFA World Cup will be held in Russia in 2018 with 14 mentioned sponsors. However, only three sponsors of the event are American companies, which includes Visa, McDonald’s, and Coca-Cola. Another sponsor of the event includes Budweiser, an American beer brand based in Belgium.
What are your thoughts on Trump’s insistent with Russia? Comment below and tell us what you think!