Foreign firms cautiously eye Shell bomb case
In a letter sent to a Polish paper, a previously unknown group claimed responsibility for the April bombing, which killed a police demolitions expert.
The letter threatened attacks against foreign business interests and demanded a $2 million payment from Shell. It also emerged that the group had previously contacted the Dutch conglomerate demanding $1 million.
The troubling question for many foreign companies is whether the incident signals a general shift in Poland's business environment toward the violent crime of the Russian market, or if the threats are simply a smokescreen to cover a bungled extortion attempt on a specific target.
While awaiting the outcome of the investigation, most companies are adopting a cautious, if low-key, attitude.
"We have increased security at our stations," said Krystyna Antoniewicz, a spokesperson for StatOil, the Norwegian retail gas distributor. "It's not only a Shell case."
"We haven't changed our security policy, but we treat very seriously every such event," said a McDonald's spokesman.
"We will carry on as normal," said Texaco's retail manager Gary Dunn.
But some firms were taking direct action because of the threat. One manager at a multinational firm, who did not wish to be identified, said corporate security officers were being brought into Poland to assess the outfit's operations.
Although unusual because of the threat directed against foreign interests operating here, bombings are not a new phenomena. The Warsaw Police department reported 6 explosions in 1994, but by the end of 1995 that number had increased to 39 with five fatalities. During the first quarter of this year, police report explosive devices were used in nine incidents.
But many executives downplay the possibility that a dangerous, Russian-like trend is emerging. "This would be a stupid comparison to make," commented Leslaw Paga, director of Deloitte & Touche, about Poland turning into another Russia.
Paga will be leading a company-sponsored conference in Warsaw on May 22, focusing on white collar crime and crime against businesses. "I am absolutely sure this is not the case in Poland. The problem is that people have never been faced with such a story before."
The Shell bombing occurred on April 24 when a timed explosive device detonated at one of the company's gas stations in eastern Warsaw. On Saturday, May 4, a group calling itself GN 95 took responsibility for the blast and threatened further attacks against Shell. Shell Polska officials declined to comment on the case until the investigation is completed by police.
The letter from the group, sent to the Polish daily Rzeczpospolita, contained anti-Semitic overtones, and said the group will fight foreign companies, "making us slaves of their capital."
However, several observers have suggested the letter is an attempt to cover-up a street-gang protection scheme gone wrong. Bombs are increasingly used as part of protection rackets in Warsaw.
As the investigation continues, the Dutch Embassy, like Shell is taking a wait-and-see attitude and is not yet planning to warn Dutch companies of an increased investment risk in Poland. "Of course, we are concerned when companies who have invested here feel as if their investment is not safe," added Peter Verheyen, commercial officer at the Dutch Embassy.
The Warsaw prosecutor's office refused to comment on the explosion or the extortion attempt. In a press release, prosecutors said they are doing everything they can to protect the interests of Shell employees and customers.
While some companies have increased security measures, others look cautiously at the trend here toward violent crime that is more typical in eastern markets, such as in Russia.
"We're not going to make any correlations to Russia, it's premature," said one western fuel company executive who asked not to be named. But he added, "We will treat this very seriously."
And as businesses assess the significance of the incident, along with their own protective measures, security firms are likely to see business grow in an already brisk market. (See WBJ, Feb. 23-29).
A representative of the Warsaw-based security firm Sezam said business has picked up since the bombing. Several western firms, with which Sezam had extensively negotiated, signed on the dotted line after the bombing, he said.
The letter threatened attacks against foreign business interests and demanded a $2 million payment from Shell. It also emerged that the group had previously contacted the Dutch conglomerate demanding $1 million.
The troubling question for many foreign companies is whether the incident signals a general shift in Poland's business environment toward the violent crime of the Russian market, or if the threats are simply a smokescreen to cover a bungled extortion attempt on a specific target.
While awaiting the outcome of the investigation, most companies are adopting a cautious, if low-key, attitude.
"We have increased security at our stations," said Krystyna Antoniewicz, a spokesperson for StatOil, the Norwegian retail gas distributor. "It's not only a Shell case."
"We haven't changed our security policy, but we treat very seriously every such event," said a McDonald's spokesman.
"We will carry on as normal," said Texaco's retail manager Gary Dunn.
But some firms were taking direct action because of the threat. One manager at a multinational firm, who did not wish to be identified, said corporate security officers were being brought into Poland to assess the outfit's operations.
Although unusual because of the threat directed against foreign interests operating here, bombings are not a new phenomena. The Warsaw Police department reported 6 explosions in 1994, but by the end of 1995 that number had increased to 39 with five fatalities. During the first quarter of this year, police report explosive devices were used in nine incidents.
But many executives downplay the possibility that a dangerous, Russian-like trend is emerging. "This would be a stupid comparison to make," commented Leslaw Paga, director of Deloitte & Touche, about Poland turning into another Russia.
Paga will be leading a company-sponsored conference in Warsaw on May 22, focusing on white collar crime and crime against businesses. "I am absolutely sure this is not the case in Poland. The problem is that people have never been faced with such a story before."
The Shell bombing occurred on April 24 when a timed explosive device detonated at one of the company's gas stations in eastern Warsaw. On Saturday, May 4, a group calling itself GN 95 took responsibility for the blast and threatened further attacks against Shell. Shell Polska officials declined to comment on the case until the investigation is completed by police.
The letter from the group, sent to the Polish daily Rzeczpospolita, contained anti-Semitic overtones, and said the group will fight foreign companies, "making us slaves of their capital."
However, several observers have suggested the letter is an attempt to cover-up a street-gang protection scheme gone wrong. Bombs are increasingly used as part of protection rackets in Warsaw.
As the investigation continues, the Dutch Embassy, like Shell is taking a wait-and-see attitude and is not yet planning to warn Dutch companies of an increased investment risk in Poland. "Of course, we are concerned when companies who have invested here feel as if their investment is not safe," added Peter Verheyen, commercial officer at the Dutch Embassy.
The Warsaw prosecutor's office refused to comment on the explosion or the extortion attempt. In a press release, prosecutors said they are doing everything they can to protect the interests of Shell employees and customers.
While some companies have increased security measures, others look cautiously at the trend here toward violent crime that is more typical in eastern markets, such as in Russia.
"We're not going to make any correlations to Russia, it's premature," said one western fuel company executive who asked not to be named. But he added, "We will treat this very seriously."
And as businesses assess the significance of the incident, along with their own protective measures, security firms are likely to see business grow in an already brisk market. (See WBJ, Feb. 23-29).
A representative of the Warsaw-based security firm Sezam said business has picked up since the bombing. Several western firms, with which Sezam had extensively negotiated, signed on the dotted line after the bombing, he said.
