Risk of investing in Russia, the Norwegian Telenor case

Reuters points at the risk to investors in Russia posed by its corrupt courts and intimidating politics that does not provide the basic predictable politico-legal framework for foreign investors. Faced with falling oil prices, disturbing demographics, public health and economic stagnation etc, is Kreml giving priority to its loyal oligarchy or to the long term interests of Russia?! Russia doesn't have the technology and capacity alone to develop its energy resources and is dependent on foreigners. Kremlin cannot have it both ways.

"SECURITY OF INVESTMENT IN RUSSIA (Reuters)
Foreign investors in Russia are closely watching Norwegian telecom Telenor's TEL.OL) battle to block a forced sale of its stake in Russia's second-biggest mobile phone operator Vimpelcom VIIP.N, a case that has rekindled investor concerns over the treatment of foreign firms in Russia.
A Siberian court ordered Telenor to pay a $1.7 billion award to Vimpelcom after Farimex, a tiny Vimpelcom shareholder, accused the Norwegian firm of holding backVimpelcom's expansion in Ukraine.Telenor lost a lawsuit last month to block a forced sale of its stake in the firm, but promised to appeal the decision. It regards the court battle as part of a protracted dispute with Alfa, a powerful conglomerate run by Russian billionaire Mikhail Fridman, although Alfa has denied any link with Farimax. [ID:nLS730399]
It is the first major dispute involving a foreign company since last year's row over oil giant BP's (BP.L) Russian subsidiary TNK-BP, in which Fridman's conglomerate ultimately wrested control.The TNK-BP dispute coincided with a verbal attack on New York-listed coalminer Mechel by Prime Minister Vladimir Putin, which helped prompt a sell-off of Russian shares that was closely followed by a wider market nose-dive after the Georgia war and demise of Lehman Brothers. [...]"

One sensitive spot in this affair for Norway is how it affects the thinking about its relationship to Russia. The Norwegian state is majority shareholder in Telenor. Foreign investments is one of the key strategies for growth and influence for a small and cash rich country; In case of Russia, this seems like a precarious strategy.