Russia’s helping hand for Fannie, Freddie

September 10, 2008

The head of Russia’s oil pipeline monopoly Transneft, which carries over 10 percent of the world’s oil supply to market, takes a charitable view of Russia’s oil output growth. At a time when oil prices are on the slide, and the OPEC group of oil producing nations is cutting production, he thinks energy-rich Russia must keep pumping more to help the world’s less fortunate consuming nations and their economies.

“What about our beloved Fannie Mae and Freddie Mac? We can’t do it (let production stagnate). We have to support them,” he joked.

But he added, on a more serious note:

“In the United States they keep reserves for the future and fields which are ready to produce are being mothballed and are awaiting their time. I believe the state of our finances and budget allow us to think about such a rational approach.”

5 comments

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Melissa, Russia took a large position in Fannie Mae and Freddie Mac 4 or 5 months ago. This was done at the request of people in our Government to bolster capital and provide liquidity. As a result of their helping keep Fannie Mae and Freddie Mac afloat, a virtually unrecognized and almost totally unreported event in American newsmedia, they have taken a huge loss on their investment. I think you may have missed the point of his statement regarding Fannie Mae and Freddie Mac. He was saying because of our loss we have to make up for it by producing more oil. His reference to “Our Beloved Fannie Mae and Freddie Mac” indicates their ownership and loss with tongue in cheek.

Posted by David White | Report as abusive

Russians government was not helping Fannie & Freddie. They are not helping anybody, even their own people. How stupid someone should be to invest even a quarter in these two dinosaurs! Why don’t they buy Enron stock? No wonder that their economy and the whole country are going down the drain.

Posted by Mikhail | Report as abusive

That’s some real news if they did invest in the Freddie funds. How could they keep that a secret very long? I think there is much more going on than we hear. If relations are supposedly so bad between our countries, how could they invest millions in one of our failing funds? It doesn’t quite make sense.

The reason they invested was because China asked them to.

Posted by James | Report as abusive

for any of those doubting Russia’s recent investment and too lazy to do a bit of research on the Web:
http://www.bloggingstocks.com/2008/02/21  /russia-to-invest-in-fannie-mae-freddie -mac-bonds/

Posted by Anna B. | Report as abusive