Divining the News (DTN)

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Millionaire’s Crisis Plan: Return to Bartering

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27 January 2009By Nadia Popova / Staff WriterTo help pull the world out of economic crisis, German Sterligov, one of Russia’s first multimillionaires, has swapped his valenki for polished office boots.

After spending four years in a wooden hut in a forest outside Moscow, Sterligov has leased out almost an entire floor atop a skyscraper in the Moskva-City business district to launch a global barter system.

Sterligov, who doesn’t watch television and rarely uses the Internet because of his Orthodox religious principles, plans to start facilitating the barter of debt and goods with his company, the Anti-Crisis Settlement and Accounting Center, by early March.

While the global economic crisis didn’t sweep into Russia until September, Sterligov said he sensed that trouble was looming in August and got to work.

“I decided that barter trade would be the right choice for the world in times of liquidity problems and payment delays,” he said in a recent interview.

So from August to November, computer programmers hired by Sterligov created an interactive database allowing the barter of debt and goods worldwide.

Sterligov illustrated a possible barter deal with a real-life example: Magnitogorsk Iron & Steel Works’ estimated debt of 1 billion rubles ($30.4 million) to Mechel for coal supplies.

“Mechel could put information about MMK’s nonpayment in our system and then add which products it needs itself,” Sterligov said.

Vladimir Filonov / MT

Sterligov, who left the business world for a wooden hut in a forest outside Moscow in 2004, describing his plans to thwart the crisis with a barter system.


Tipofthehat: Pakalert.wordpress.com

Written by morris

January 30, 2009 at 7:27 pm

Posted in economy

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