Tag Archives: Investment

Sanoma sells Vedomosti to comply with Russian media law

satellite-dish-big-disa-mil

(Business New Europe – bne.eu – bne IntelliNews – April 30, 2015) Finnish publishing company Sanoma has sold its 33.3% share in the Russian business daily Vedomosti to publishing executive Demyan Kudryavtsev, in the latest shake-up to Russia’s media landscape caused by new legislation limiting foreign ownership. The stake in Delovoi Standard, the publisher of the daily, was sold to […]

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NEWSLINK Wall Street Journal: Russian Assets Regain Appeal for Investors. The country’s ruble, sovereign bonds, and stocks attract those seeking higher yields

St. Basil's Domes

Investors have taken Russia out of the penalty box. The ruble has gained 17.5% in 2015 against the U.S. dollar, after losing nearly half of its value in 2014, according to financial-data provider CQG. It has soared 46% from an intraday record low set in December. Russia’s stock index denominated in the ruble has soared 20% this year through Monday, […]

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Russia-Focused Funds Get Most Investment in 8 Months

Cash, Calculator, Pen

(Moscow Times – themoscowtimes.com – April 27, 2015) Investment funds focused on Russia saw their largest weekly influx of cash since September last week, showing that international investors are now returning to Russia after last year’s torrential capital outflows, the Kommersant newspaper reported Friday. Funds concentrating on Russia gained $182 million in investment in the week ending April 22, more […]

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NEWSLINK Forbes: Here’s How Much Russian Stock Values Have Eroded Since Sanctions

File Photo of Outdoor Electronic Sign with Russian Exchange Data

For Russia investors, timing was everything.  Those who bought on the bad news of last summer were hit with more bad news come the end of summer when the U.S. sanctioned Gazprom, Rosneft and Lukoil. Then the Russian Central Bank went into panic mode and raised interest rates to save the ruble. The market sensed that the bank was getting […]

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NEWSLINK AFP: Russia’s vast Arctic gas project aims to avoid Ukraine deep freeze

Arctic Map

Spread across the frozen whiteness of the Russian Arctic, the ambitious $27 billion Yamal gas megaproject aims to defy both the extreme temperatures and the Ukraine crisis impacting its funding. Some 2,500 kilometres (1,600 miles) northeast of Moscow, the Yamal site — a joint venture by Russia’s Novatek, France’s Total and China’s CNPC — is eventually meant be one of […]

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Russia Economy Recovering as Oil Reliance Eases, Dvorkovich Says

Arkady Dvorkovich file photo

(Bloomberg – bloomberg.com – David Tweed, Haslinda Amin – April 20, 2015) Russia’s economy showed signs of recovery in the first and second quarters amid a declining dependence on oil, Russian Deputy Prime Minister Arkady Dvorkovich said. “Oil prices are not as important to the Russian economy as before,” Dvorkovich told Bloomberg TV Monday at the World Economic Forum on […]

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Weak Russian Economic Data Blunt Putin’s Optimism

Diverse Paper Currency, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Peter Hobson – April 20, 2015) The ruble slumped 4 percent and Moscow-listed stocks fell on Friday after official data showed that Russia’s economy contracted sharply in the first quarter of this year. The data, which showed a deep decline in real wages and consumer spending, came a day after President Vladimir Putin told Russians […]

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NEWSLINK CNBC: Russia has bigger concerns than oil, ruble: Deputy PM

Arkady Dvorkovich file photo

Faced with the triple whammy of plunging oil prices, currency volatility and Western sanctions, there’s no dearth of challenges for Russia’s ailing economy, but Deputy Prime Minister Arkady Dvorkovich said what hurts most is the scarcity of financing for new investments. “The shortness of financing for new investments is where the Russian economy is being hit in the most important […]

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NEWSLINK Reuters: Russia must review participation in international funds – finance minister

Anton Siluanov file photo

Russia must review its participation in international financial organisations because the country is paying too much in fees, Finance Minister Anton Siluanov said on Wednesday. http://www.reuters.com/article/2015/04/15/russia-crisis-internationalfunds-idUSR4N0X602D20150415

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Russian Capital Flight Slows to $32.6 Billion in First Quarter

Cash, Calculator, Pen

(Moscow Times – themoscowtimes.com – April 10, 2015) Net capital outflow from Russia was $32.6 billion in the first quarter of the year, down from $72.9 billion in the previous three months, suggesting that panic over Russia’s economic crisis has receded, data published this week by the Central Bank showed. Capital flight from Russia nearly tripled in 2014 from the […]

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Ruble whipsaws top forecasters as worst currency becomes best

Diverse Paper Currency, Coins, Line Graph

(Bloomberg – bloomberg.com – Ksenia Galouchko – MOSCOW, April 6, 2015) For one of the toughest jobs in financial markets, try predicting the ruble. As Russia’s currency went from the world’s worst performer to the best in the first three months of this year, it caught out even the most accurate forecasters. Oil’s drop to near a six-year low and […]

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Russia Sets Terms for Capital Amnesty to ‘Correct Past Mistakes’

Diverse Paper Currency, Coins, Line Graph

(Bloomberg – bloomberg.com – Andrey Biryukov, Anna Andrianova – March 26, 2015) Russia laid out the terms of a draft law to offer amnesty on repatriating capital, promising new incentives and legal protections to aid an economy starved of investment by sanctions over Ukraine. The bill won’t require the return of assets to Russian territory, demanding only their registration in […]

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Russia Rebounds, Despite Sanctions

Diverse Paper Currency, Coins, Line Graph

(Bloomberg – bloomberg.com – Matthew A. Winkler – March 20, 2015) Matthew Winkler, editor-in-chief emeritus of Bloomberg News, writes about markets. [Charts here bloombergview.com/articles/2015-03-20/russia-rebounds-despite-sanctions] Sanctions meant to punish Russia for snatching Crimea from Ukraine one year ago were supposed to hurt Russian business. And they did. Russian stocks, bonds and commodities had the worst performance in 2014 of those in […]

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NEWSLINK Moscow Times: Q&A: Drawing Foreign Firms to Russia [interview with Kaluga governor Anatoly Artamonov]

Diverse Paper Currency, Coins, Line Graph

The Kaluga region, an hour’s drive southwest of Moscow, has become a haven for investors. International giants in industries ranging from automotive to pharmaceutical have built plants, trained and employed thousands of locals, and turned a once-depressed region heavily dependent on federal subsidies into a donor to the national budget. …   http://www.themoscowtimes.com/business/article/qa-drawing-foreign-firms-to-russia/517581.html

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Botched Law Could Close Hundreds of Foreign Firms’ Rep Offices in Russia

Tower and Building Inside Kremlin

(Moscow Times – themoscowtimes.com – Peter Hobson – March 11, 2015) Representative and branch offices of foreign companies working in Russia are in a race against time to re-register with the authorities or lose their license to operate in the country. The re-registration was intended to streamline bureaucracy for foreign firms, but organizational failures and lack of proper warning have […]

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Has the Russian equity market turned the corner?

File Photo of Outdoor Electronic Sign with Russian Exchange Data

(Business New Europe – bne.eu – Ben Aris in Moscow – March 6, 2015) So far in 2015 Russia has been one of the best performing equity markets, up 15% year-to-date, following three straight weeks of inflows following the Minsk II ceasefire agreement signed in February. So far in 2015 Russia has been one of the best performing equity markets, […]

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Foreign Russia Investors Warn Over Nemtsov Killing

Boris Nemtsov file photo

(Moscow Times – themoscowtimes.com – Howard Amos – March 3, 2015) Businessmen and investors said Monday that the killing of opposition leader Boris Nemtsov by the walls of the Kremlin last week will further worsen Russia’s battered investment climate and create more uncertainty in a market suffering from Western sanctions and an economic recession. “We are already in a period […]

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War in Ukraine obstructing Russian economic recovery, say analysts

Map of Commonwealth of Independent States, European Portion

(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH – March 2, 2015) The war in Ukraine is impeding attempts to improve the business climate in Russia, according to the head of the Moscow State University Department of Economics, Alexander Auzan. The Russian authorities therefore have to invest in infrastructure projects in order to overcome the crisis, say analysts. […]

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Ukraine Left Behind as Russian Stock Gains Are Unmatched

Diverse Paper Currency, Coins, Line Graph

(Bloomberg – bloomberg.com – Elena Popina – February 26, 2015) Russia is emerging as the world’s best stock market after putting in the worst performance last year. For neighboring Ukraine, the second-biggest loser in 2014, there’s no sign of such a turnaround yet. Russia’s dollar-denominated RTS Index has soared 15 percent in 2015, while the Ukrainian Equities Index is last […]

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Russia Dumps $22 Billion in U.S. Bonds to Slow Economy’s Slide

Portion U.S. Treasury Department Building Facade, North Side, with Sculpture of Alexander Hamilton

(Moscow Times – themoscowtimes.com – Howard Amos – February 20, 2015) Moscow sold a total of $45 billion of U.S. treasury bonds in 2014 as relations with Western governments reached a post-Soviet nadir over the Ukraine crisis. Russia jettisoned $22 billion worth of U.S. treasury bonds in December as the Kremlin scrambled for cash to battle a plunging ruble and […]

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Russia’s investment climate plummets

Diverse Paper Currency, Coins, Line Graph

(Business New Europe – bne.eu – PERSPECTIVE: bne IntelliNews – February 16, 2015) [Charts here http://www.bne.eu/content/story/perspective-russias-investment-climate-plummets] A survey into Russia’s investment climate by Moscow-based Detail Communications found that investment confidence has halved since the crisis hit. However, a third of respondents – a mix of portfolio managers and analysts from some of the most prominent investment banks, asset management firms […]

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NEWSWATCH: Morgan Stanley thinks Russia’s doomed

File Photo of Cash, Coins, Line Graph

[“Morgan Stanley thinks Russia’s doomed” – BusinessInsider.com – Elena Holodny – January 30, 2015] Business Insider reports on Morgan Stanley’s pessimistic Russian economic forecast: Morgan Stanley has a short message for Russia: you’re doomed. This past week hasn’t been easy for the Russian economy: … Thursday … EU foreign ministers decided to extend … sanctions on Russia by six months. Additionally, the Central Bank slashed […]

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S&P downgrades Russia to junk

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – bne IntelliNews – January 27, 2015) Standard & Poor’s downgraded Russia’s credit rating to junk status late on January 26, a move which precipitated the rouble’s fall by more than 6%. S&P lowered Russia’s credit rating to BB+, one step below investment grade, as renewed fighting in Ukraine raised the threat of tighter Western […]

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Ambassador John F. Tefft Speech to the American Chamber of Commerce in Russia

John Tefft file photo

(US Embassy Moscow – January 20, 2015) Thank you for that introduction, Alex. I am grateful for this opportunity to speak to members of the American Chamber of Commerce in Russia. I am sure you already know them and work closely with them, but let me start by introducing my team. First, there is Deputy Chief of Mission Lynne Tracy […]

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Double trouble – Russia 2014 vs 2008

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – COMMENT: Peter Szopo of Erste Asset Management – January 20, 2015) [Charts here http://www.bne.eu/content/story/comment-double-trouble-russia-2014-vs-2008] History, they say, does not repeat itself – it rhymes. Even if this were true, history’s rhymes are clunky at best. While Russia’s current crisis has obvious parallels with the turmoil in 2008, such as the drop in oil prices, […]

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Legislation proposes regulation of ‘undesirable’ foreign organizations

Russian State Duma Building file photo

(Russia Beyond the Headlines – rbth.ru – Yekaterina Sinelschikova, RBTH – January 16, 2015) A bill that has passed its first reading the Russian State Duma would give the government the right to fine or ban foreign organizations it deems a security threat. Russia is trying to tighten its control over foreign organizations operating in the country. According to a […]

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What a ‘Junk’ Rating Would Mean for Russia

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Howard Amos – January 15, 2015) Russian officials and experts warned Wednesday that an expected decision by Standard and Poor’s to deprive Russia of its investment-grade credit rating could cost the country up to $30 billion and drain more money from an economy that is already entering recession. Major credit rating agencies Fitch and Standard […]

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Rating Downgrade Set to Scare More Capital Out of Russia

File Photo of Cash, Coins, Line Graph

(Moscow Times – themoscowtimes.com – Peter Hobson, Alexander Panin – January 12, 2015) Rating agency Fitch on Friday downgraded Russia’s credit rating to one notch above junk status, warning that oil price falls and Western sanctions could contract the country’s economy by 4 percent this year and force the government to pour cash into Russia’s buckling banking system. Coming on […]

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Kremlin to sell off 19.5% stake in Rosneft in bid to raise funds

File Photo Rosneft and Russian Flags Next to Rosneft Banner

(Russia Beyond the Headlines – rbth.ru – Alexei Lossan, RBTH- December 9, 2014) Russian Prime Minister Dmitry Medvedev has signed an order to sell off 19.5 percent of the shares in Russia’s largest oil company, Rosneft. According to experts, this might help the government generate extra cash amid falling oil prices and Western sanctions. However, this may not be the […]

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Interfax: Kremlin chief of staff “acknowledges” corruption problem

Cropped File Photo of Two Men in Business Suits Shaking Hands and Passing Cash

(Interfax – December 8, 2014) President Vladimir Putin’s chief of staff has spoken about corruption in Russia. In his remarks, reported by Russian Interfax and TASS news agencies on 8 December, Sergey Ivanov said the Russian government “acknowledged” the problem and had been taking “consistent” steps to deal with it. He dismissed a Transparency International study which ranked Russia 136th […]

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Putin offers Russian business ‘full’ offshore capital amnesty

Hands Opening Envelope Containing Cash

(Business New Europe – bne.eu – bne IntelliNews – December 4, 2014) Russian President Vladimir Putin has announced a complete capital amnesty, allowing businesses to repatriate offshore funds without fear of the consequences. “We need to finally turn the ‘offshore page’ in the history of our economy and country,” Putin told the federal assembly in his annual address. “If someone […]

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Interfax: Russian Investigations Committee drafts measures to slow down capital flight

File Photo of Cash, Coins, Line Graph

(Interfax – November 24, 2014) Russian Investigations Committee has prepared its own proposals allowing to “considerably slow down” the capital flight from Russia, the committee’s head Aleksandr Bastrykin has said, as reported by privately-owned news agency Interfax on 24 November. “We are so wealthy and powerful that we will be able to cope with problems caused by sanctions that are […]

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Ukraine Shrugged Off as Russia ETF Swells to Record

File Photo of Cash, Coins, Line Graph

(Bloomberg – bloomberg.com – Elena Popina – November 24, 2014) As oil fell into a bear market, the ruble traded at record lows and NATO said President Vladimir Putin is stoking conflict in Ukraine, bets on the biggest exchange-traded fund tracking Russian stocks surged to a record. Demand for shares in the Market Vectors Russia ETF has held up as […]

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McDonald’s Moscow Restaurant Reopens After 3-Month Shutdown

File Photo of Russian McDbnald's Crew with U.S. Diplomat

(Bloomberg – bloomberg.com – Leslie Patton, Ilya Khrennikov – November 19, 2014) McDonald’s Corp.’s (MCD) largest restaurant in Russia reopened after local officials shuttered the location for three months, an optimistic sign for a company trying to return to business as usual in the country. The outlet, situated in Moscow’s Pushkin Square, resumed business today, said Svetlana Polyakova, a spokeswoman […]

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Russia Tightens Control Over Foreign Ownership of Print Media

World Map Showing Continents, Greens, Browns, Ice

(Moscow Times – themoscowtimes.com – Delphine d’Amora – November 17, 2014) Foreign companies will soon have to seek government permission before buying a more than 25 percent stake in newspapers or magazines in Russia, extending state control in an industry still reeling from legal changes earlier this year, business daily Vedomosti reported late last week. The new amendments, which will […]

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In Ukraine hope springs eternal

Ukraine Map and Flag

(Business New Europe – bne.eu – CONFERENCE CALL: Ben Aris in Kyiv – October 31, 2014) Two days after a crucial parliamentary election that put the seal on Ukraine’s latest political transformation, SP Advisors, a leading local investment firm, held its first investment conference and invited international investors to Kyiv to debate the Eastern European country’s future. The mood at […]

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Russia Sanctions Update series

Truck at Russian Border Crossing

Paul Backer, an American attorney based in Moscow, recently has offered the following original contributions to the JRL on the subject of sanctions and the response by business and legal counsel. Backer, pbacker@skalalaw.com, is with Skalaw Law, online at skalalaw.com. Part I: Russia sanctions: implementing client sanctions policies – Sept. 26, 2014 Part II: Russian companies’ failures to adopt effective sanctions policies […]

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Putin’s Glamour Deemed Threat to National Security

Kremlin and Saint Basil's File Photo

(Moscow Times – themoscowtimes.com – Ivan Nechepurenko – October 17, 2014) In 2009, during his stint as prime minister, President Vladimir Putin flirted with being a columnist at literary magazine Russky Pioner, famous for its ostentatious parties. A vehicle for the literary ambition of the Russian elite, its contributors have also included presidential aide Vladislav Surkov and Alfa Group chairman […]

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RIA Novosti: Putin Limits Foreign Capital’s Participation in Russian Media: Government

File Photo of Cash, Coins, Line Graph

MOSCOW, October 15 (RIA Novosti) – Russian President Vladimir Putin has signed a law reducing the possible share of foreign stockholders in the Russian media to 20 percent, says the corresponding document published on the Russian government’s official legal information web portal Wednesday. “Unless otherwise stipulated by an international treaty … a Russian legal entity with a foreign participation share […]

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Interfax: Chief of staff says businessman’s arrest damaging Russia’s investment climate

File Photo of Sergei Ivanov, adapted from defense.gov image

(Interfax – October 15, 2014) Kremlin chief of staff Sergey Ivanov has said that the house arrest of billionaire businessman Vladimir Yevtushenkov is damaging Russia’s investment climate. In an interview with popular pro-Kremlin tabloid Komsomolskaya Pravda, which was quoted by Interfax news agency, Ivanov said that “I agree, this [the arrest of Yevtushenkov] is having a bad influence of the […]

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Fears of a Russian credit crunch greatly exaggerated, say analysts

File Photo of Cash, Coins, Line Graph

(Business New Europe – bne.eu – October 14, 2014) On paper, Russian companies have huge foreign debts, and no way of refinancing them because sanctions effectively close Western capital markets to Russian borrowers. But with much of Russian corporate foreign debt in fact hidden equity investments from offshore zones, the figures seem much worse than they are. International headlines are […]

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Russia signs raft of deals with China

China Map

(Business New Europe – bne.eu – October 14, 2014) Russia and China signed a raft of 40 agreements encompassing trade, energy, finance and technology, following a meeting between Russian prime minister Dmitry Medvedev and his Chinese counterpart, Li Keqiang, on October 14 in Moscow. The agreements demonstrate how Russia is looking for other options, after sanctions imposed on Russia in […]

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Kiev Stores Ordered to Stamp Russian Products With Special Markings

Maidan Square file photo

(Moscow Times – themoscowtimes.com – October 10, 2014) Kiev’s municipal council has ordered stores in the capital to label Russian-imported goods with additional markings to warn consumers they could be supporting the “aggressor” by buying the products, media reports said. According to the ruling approved by the city’s legislature, Russian made-goods will also have to be displayed on separate shelves […]

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Interfax: Capital outflow from Russia might be lower than $100 bilion forecast in 2014 – minister

File Photo of Cash, Coins, Line Graph

MOSCOW. Oct 9 (Interfax) – Capital outflows from Russia in 2014 could turn out to be less than the official forecast of $100 billion, Economic Development Minister Alexei Ulyukayev believes. “We haven’t changed the forecast for this year. It is still $100 billion. Our accumulated outflow, I believe, is currently $78 billion for eight months and it looks like it […]

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Will Western Sanctions Stop Russia’s Arctic Oil Expansion?

arctic-energy

(Moscow Times – themoscowtimes.com – Howard Amos – October 9, 2014) Igor Sechin, the most influential figure in Russia’s energy industry, announced last week that a new oil field discovered in the Arctic was to be christened “Pobeda” – the Russian word for victory. Speaking to reporters from a blustery drilling platform, the Kremlin heavyweight, who also heads state-owned oil […]

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The problem with Russia’s investment story is there isn’t one

File Photo of Outdoor Electronic Sign with Russian Exchange Data

(Business New Europe – bne.eu – Ben Aris – Moscow, October 2, 2014) Leading Russian investment bank VTB Capital held a slimmed-down version of their annual investment conference on October 1-2. The event, “Russia Calling! 6th Annual VTB Capital Investment Forum” at the World Trade Center Moscow didn’t look cut down from the point of view of the number of […]

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Poroshenko talks reform with foreign investors

Petro Poroschenko file photo, with additional men in background, adapted from image at state.gov

(Business New Europe – bne.eu – October 3, 2014) Ukraine’s President Petro Poroshenko reaffirmed to foreign investors that his goal is for Ukraine to ultimately join the European Union, and for this sweeping reforms are necessary. “This involves a significant number of reforms and solving problems. It’s hardly possible to conduct 62 reforms simultaneously, but we have no choice,” Poroshenko […]

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Interfax: Expansion of Russian cooperation in China not end of relations with Europe – Putin

China Map

MOSCOW. Oct 2 (Interfax) – Russia has no intention of ending its relations with its traditional partners, including Europe, and expansion of cooperation with China is a global trend, Russian President Vladimir Putin said. “Russia is also thinking about expansion of cooperation with China, and it didn’t begin thinking about it yesterday or due to some sanctions or political restrictions. […]

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Life After Putin: Russia Needs to Be Rebuilt From Scratch

File Photo of Vladimir Putin Sitting at Desk

(Moscow Times editorial – themoscowtimes.com – September 30, 2014) This story begins a series of analytical articles and editorials in The Moscow Times about Russia’s long-term strategic prospects. It is strange to recall in 2014 that back at the beginning of his rule, President Vladimir Putin was hailed as a reformer. His main agenda during his first term in the […]

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Russia sanctions, implementing client sanctions policies

Truck at Russian Border Crossing

Date: Fri, 26 Sep 2014 From: Paul Backer <contact@skalalaw.com> Subject: Russia sanctions, implementing client sanctions policies Part 1. Russia sanctions, implementing client sanctions policies. Skala Law client update. Sanctions’ impact will worsen through 2015. Failing to understand sanctions’ purpose and enforcement materially and avoidably damages listed and unlisted entities. Lack of a sanctions policy renders entities noncompetitive in tenders and […]

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