May 7 – Investors from all over the world came to the first-ever business angel week in Russia, which started in Moscow but is continuing for a week across 25 regions.
Business angels are investors who not only finance entrepreneurial projects at an early stage and readily risk their own money, but they also support the project with their business experience and contacts. Basically, business angels work in innovative sectors. Read the rest of this entry »
May 2 – Standard & Poor’s upgraded Russia’s third largest city, Novosibirsk, from “stable” to “positive,” the credit-rating agency said in a statement issued this Monday.
The ratings are constrained by what the agency regards as the city’s limited financial flexibility and predictability, as well as low economic productivity. However, these constraints are mitigated by a relatively diverse economy, moderate debt, and prudent debt management which is resulting in a favorable debt profile.
As with other Russian local and regional governments, Novosibirsk’s financial predictability and flexibility is severely limited because the federal government regulates tax rates and shares and distributes responsibilities to different layers of the government. Standard & Poor’s still regard Russia’s institutional frameworks as “developing and unbalanced” as defined by the credit-rating agency’s criteria. Read the rest of this entry »
Apr. 26 – Russia needs to decentralize power to lure a greater number of investors, former Finance Minister Alexei Kudrin said at a conference run by Russian lender VTB Capital in New York.
“The vertical of power that’s built today is flawed and the effectiveness of state governance is very low,” Kudrin said, adding that “the power to regulate currently held by federal ministries should be passed to municipal governments.”
Should the government boost social spending to fulfill promises made during Prime Minister Vladimir Putin’s successful campaign for president, taxes will “inevitably” increase, Kudrin said. Read the rest of this entry »
Apr. 19 – Russia’s factoring market almost doubled last year, according to worldwide industry statistics for 2011 released this week by Factors Chain International (FCI). The total worldwide volume for factoring grew by 22 percent in 2011 compared to 2010.
Russia’s market factoring turnover totaled 21.174 billion euros, with 20.944 billion euros from the domestic market and 230 million euro made internationally. In 2010, Russia’s total market turnover was 12.163 billion euros. Read the rest of this entry »
Apr. 11 – Users from any country, other than Russia, can make payments to the sites of Russian companies or e-shops through Russia’s online payment system Yandex.Money. Yandex is a popular Russian search engine.
The payment system has recently launched a redesigned website: money.yandex.ru. The website is the main space for transactions, such as money transfers, online payments and transfers of virtual Yandex money to users’ bank accounts. Money transfers will take up to two business days. Read the rest of this entry »
Feb. 23 – Russian entrepreneur Igor Kim has become the sole shareholder of Latvian LTB Bank, the Latvian lender has said in a press release. The Financial and Capital Market Commission of the Republic of Latvia on January 26, 2012 issued permission to Igor Kim to hold a qualifying holding in the Bank.
Relevant changes in LTB Bank’s shareholder register were made on February 9, 2012.
In November 2011, Kim sold his equity stake in MDM Bank, a top 30 lender in Russia. It was also wired that MDM Bank shareholders and management made a decision to sell 100 percent of LTB Bank to Kim. Read the rest of this entry »
Feb. 16 – OAO Sberbank closed a US$661 million deal to buy the international arm of Austria’s Volksbank International AG (VBI) on Wednesday.
The Volksbank acquisition will serve as a springboard for further expansion in Europe, RIA Novosti quoted Sberbank CEO German Gref as saying in Moscow.
Russia’s biggest lender bought VBI from Oesterreichische Volksbanken AG, which owned 51 percent of VBI, while France’s Banque Populaire Caisse d’Epargne and Germany’s DZ Bank/WGZ Bank own 24.5 percent and Groupe BPCE owns the remaining 24.5 percent. Read the rest of this entry »
Feb. 8 – The domestic debt of Russia in terms of government securities rose in 2011 at the fastest pace in 15 years, according to data published by the Finance Ministry on its web site today.
Russia’s domestic debt expanded 42.5 percent to 4.19 trillion rubles (US$139.8 billion) as of January 1, up from last year’s 40.4 percent advance to 2.94 trillion rubles, the data showed.
Prime Minister Vladimir Putin has said Russia’s debt grade is an “outrage” that lifts corporate borrowing costs and increases risks. Read the rest of this entry »
Jan. 23 – Central Bank Chairman Alexei Ulyukayev said on Thursday that the net capital outflows that plagued Russia in 2011 and weighed on the ruble are continuing in January, but the country may experience net inflows during 2012.
“We can see that outflows are continuing, because we have had to conduct sales of foreign currency this month,” Ulyukayev said at a Moscow economic conference.
Russia’s central bank has sold some US$600 million to support the ruble since the start of the year, Ulyukayev said earlier. Read the rest of this entry »
Jan. 19 – A lobby group named the National Payment Council has been established by Visa and MasterCard, together with Russian payment services provider Zolotaya Korona, on Wednesday.
The main reason for the decision of the payment systems to create a lobby is the tightening of the domestic card market regulation by implementation of “The Law on the National Payment System.”
“Visa and MasterCard both worked closely with the government and put much effort into creating the National Payment System bill that President Dmitry Medvedev signed last June,” MasterCard Russia Chief Ilya Ryaby said. Read the rest of this entry »
Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Russia and Asia. These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about our practice, and our partner firm in Moscow and St.Petersburg, please contact us at russia@dezshira.com. Download our corporate brochure or visit at us www.dezshira.com.
