The Russian government feigns the belief that it is unfairly maligned in Western business circles. It has hired Goldman Sachs to boost the nation's image and help convince wary foreign investors that there's more to the country than devious Western media pretend. This will be an uphill struggle, even if one assumes that Goldman Sachs's own complex reputation can actually help.
Of course Russia's rulers know better. They have a detailed understanding and knowledge of the system, which is based on widespread corruption and the absence of any form of rule of law. But repeating the tale of Russia's undeserved reputation serves a purpose: some investors may start listening.
If it took its job seriously, Goldman would lecture the Russian government before it tries to convince money managers of the virtues of the country's investment climate. Lloyd Blankfein would request an audience with Vladimir Putin and tell him that he can't have it both ways: authoritarian statements one day on the need for the state to control the energy sector; and friendly overtures the next in the hope of attracting foreign capital and technology.
Goldman could also go to Prime Minister Dmitry Medvedev, whose position grows weaker by the day, and explain to him that proclaiming that Russia is "open to business" from Davos will only raise laughter until his actions prove that he is serious.
The irony is that Russia could have a convincing macro-economy story to sell. The central bank has been doing a good job steering the currency and keeping inflation in check, and the government itself is fiscally prudent, having recently decided to base its budgets on a conservative oil price forecast. Public debt is non-existent by Western standards. And the economy does need outside funds to help it diversify away from a dependency on oil and gas.
But direct investment is still fraught with too many dangers, and safer portfolio investments are hindered by the Russian financial market's limited liquidity. The government isn't helping by issuing contradictory statements on privatizations.
One thing that could help Russia lure investors back is regime change. But it's safe to assume that this is not within Goldman's remit.