Jan. 18 – Russia saw 15 new private equity funds established last year, but very few newly established and existing funds succeeded in attracting institutional investors, Financial Consulting Group (FCG) says in its report “Private Equity Market in 2011.”
The non-food retail sector – clothing retail, children’s clothing and toys, household appliances, and media retail (movies, music, etc.) – was at the center of attention for private equity funds last year. Read the rest of this entry »
Jan. 16 – Russia-focused equity funds attracted US$43 million of inflows in the week to January, 11, equaling about 0.4 percent of the total amount under management, UralSib Financial Corp. said in a report, citing EPFR Global Data.
“This is the first week of positive flows in the last eight,” UralSib analyst Slava Smolyaninov said in a report. Read the rest of this entry »
Dec. 22 – MICEX and RTS, Russia’s two main stock exchanges, started trading on a unified platform with an estimated value of US$4.5 billion in new company assets this Monday.
The merger marks the end of competition between the two bourses, allowing them to focus on attracting domestic investors, many of which have been seeking to list outside the country, Ruben Aganbegyan, president of MICEX-RTS said. Read the rest of this entry »
Dec. 15 – Russia ranks in 39th out of 60 countries in the 2011 World Economic Forum’s Financial Development Index, according to a report published on Tuesday. However, many experts disagree that Moscow is becoming more of a financial hub.
The Financial Development Index, launched in 2008, is based on efficiency and size of banking and other financial services, overall business environment, financial stability, and the extent of financial disclosure and market liberalization. It grades countries on these criteria out of a maximum of 7 points and generates overall and indicator-specific rankings. Read the rest of this entry »
Dec. 2 – Russia has the world’s highest economic crime rate, according to a newly released survey by PricewaterhouseCoopers and The London Business School. The survey shows that the misappropriation of assets remains the most common economic crime (72 percent) with a US$5 million loss reported by 22 percent of the businesses who had encountered fraud.
A total of 126 representatives from Russia’s leading entities took part in the 2011 Economic Crime Survey. The study was designed to seek respondents’ views on economic crime in general and, specifically, about cyber-crime which is a growing concern in C-suites and boardrooms. Read the rest of this entry »
Nov. 24 –The new issue of Russia Briefing Magazine, titled The Russia-Belarus-Kazakhstan Customs Union, is out now.
Nearly two years have elapsed since Russia, Kazakhstan and Belarus boldly began to link their economies by forming a Customs Union planned to evolve into a more ambitious common market by 2012, with Russia as its hub.
While the three states are still a long way off from the eventual Eurasian Union heralded by Russia’s Prime Minister Vladimir Putin as a bridge between Asia and Europe, the agreement has thus far managed to ease trade among the three large former Soviet economies in a rather short period of time.
In this issue of Russia Briefing, we will assess the implications the Customs Union has on trade, looking broadly at the principles and progress of the union thus far, and clarifying key modifications to the VAT procedures for transactions involving the three member states. Read the rest of this entry »
Nov. 21 – Russia’s Cabinet has finally approved a list of educational and medical services that are no longer subject to pay profit tax. Authorities believe the move will attract investment and inspire entrepreneurs to set up new schools and hospitals, but the market is predicting only modest results.
The law on zero taxes for these kinds of entrepreneurs until January 1, 2020 was signed last year, but it could not come into effect until the list was compiled. Now the organizations providing the listed services will be exempt from the 20 percent profit tax. Read the rest of this entry »
Nov. 18 – After roughly 18 years of membership talks, Russia finally looks set to enter the World Trade Organization on favorable conditions, both Russian and international analysts say noting the minor import tariff cuts.
The final barrier keeping Russia from the global trade club fell when Russia and Georgia signed an agreement approving Russia’s WTO entry on November 9 in Geneva, after both agreed on international monitoring of the disputed crossings with the breakaway regions of South Ossetia and Abkhazia. Read the rest of this entry »
Nov. 14 – Restrictions on Russian companies that want to list equity on foreign exchanges will not be lifted until a central security depositary is fully implemented, Federal Financial Markets Service (FFSM) Head Dmitry Pankin said on Thursday.
Speaking at a Deutsche Bank forum, Pankin said the restrictions on foreign listings could only be removed after a long-anticipated central securities depositary had been fully established, Russian daily Vedomosti reported.
“After the implementation of the central depositary, we will remove the 25 percent limitations,” he said. Read the rest of this entry »
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