Title: CrisisCrunch

Spreading Cheer and Spending Cash

Published on Fri, 18 Dec 2009 16:02:20

Survey indicates that Ukrainians’ New Year’s holiday spending will increase from last year, despite crisis. by Adrian Erlinger, The PBN Company, Washington, DC It would seem logical that the past 12 months of gruesome financial conditions (13% GDP contraction and 13% inflation) would force Ukrainians to economize. But according to an annual survey of European holiday consumer read more.. Possibly related posts:Psychoanalysis or Retail Therapy: (Not) Spending in the CrisisChanging Attitu

The Customs Union Officially Exists

Published on Thu, 03 Dec 2009 12:59:12

By Amanda Lahan, The PBN Company, Washington, DC The Customs Union between Russia, Belarus and Kazakhstan has been officially established. The leaders of the three countries signed a formal agreement creating a unified customs union at a November 27 meeting of the Eurasian Economic Community (EurAsEC) in Minsk. A unified system of external tariffs will read more.. Possibly related posts:Having it Both Ways - Russia is Saying Yes to Both the WTO and the Customs UnionCustoms Union Update: Russia̵

Russian Privatizations: The Line-Up is Announced

Published on Tue, 24 Nov 2009 14:38:53

In September First Deputy Prime Minister Igor Shuvalov announced that Russia would resume privatizing assets in order to fill looming gaps in the country’s budget. On Monday November 24 the government released a list of the 14 most attractive assets it hopes to sell off in 2010. In addition to the 14 named companies, which read more.. Possibly related posts:No Water, No Float – Russian Regulator Set to Revise Listing RulesFirst Default by a Russian State-Owned Company Since ‘98: The Wax B

[Quote of the Week] “Our American partners have a very original culture when dealing with counterparties.”

Published on Fri, 06 Nov 2009 20:37:54

“The last-minute refusal to complete the Opel deal is not harmful to our interests, but it shows that our American partners have a very original culture when dealing with counterparties,” commented Prime Minister Putin on GM’s decision on Wednesday to back away from selling it stake in Opel and Vauxhall to Sberbank and Canada’s Magna. “We read more.. Possibly related posts:[Quote of the Week] “I don’t think we are more scary than German investors. Believe me, we ar

[Quote of the Week] “We have no idea how to build roads, milk cows or pour metal…We’re finance professionals.”

Published on Fri, 30 Oct 2009 12:31:53

Vladimir Tatarchuk, Co-Head of Corporate Finance at Alfa Bank, discussing the rationale for selling off unusual assets taken as collateral for loans. According to a Moscow Times article, Russian lenders are seeking to recoup losses by accepting a range of collateral - everything from farm animals to stakes in lingerie retailers - and are read more.. Possibly related posts:[Quote of the Week] “It is always better to have ten small Gazproms than one big one.”[Quote of the Week] “Wha

Is Medvedev’s “Go Russia!” Going Anywhere?

Published on Mon, 26 Oct 2009 14:30:09

By Martina Bozadzhieva, The PBN Company, Washington, DC On September 10th President Medvedev surprised both Russian and international observers with an unexpectedly honest and critical article about Russia’s strategic challenges. Medvedev decried Russia’s “primitive raw materials economy, chronic corruption,” “inefficient economy…weak democracy,” and “negative demographic trends,” causing a flurry of comment and speculation. The fact that [.. read more..

Russia: Deepening Crisis or Road to Recovery?

Published on Mon, 19 Oct 2009 09:40:23

It is difficult to get a clear picture of the outlook for the Russian economy, as Russian government officials have been coming out with varied economic projections ranging from nascent recovery to prolonged stagnation. But there is certainly no coordinated message as to how the economy will develop. On the one hand, Russian Finance Minister read more.. Possibly related posts:Do Russia’s Q2 GDP Figures Show Light at the End of the Tunnel?Policy Matters: Russian Government Alters Anti-Crisis P

Having it Both Ways - Russia is Saying Yes to Both the WTO and the Customs Union

Published on Mon, 05 Oct 2009 15:50:28

By Amanda Lahan, Account Manager, The PBN Company, Washington DC After a summer of uncertainty, Russia’s World Trade Organization (WTO) accession process seems to be back on track - but the Russian government seems also be looking to get the best of both worlds. While it is voicing support for a timely accession to the read more.. Possibly related posts:The Customs Union Officially ExistsCustoms Union Update: Russia’s Average Tariff Burden Could Fall Under New UnionTreading Softly: Kaza

[Quote of the Week] “Titanic of Kazakhstan’s banking sector…”

Published on Fri, 02 Oct 2009 20:18:37

“You as a manager of Sberbank of Russia, Mr. Gref, obviously know that any newspaper, regardless of how popular and influential it is, is incapable of shattering the financial position of such a large bank as BTA deems itself. Thus, the current management boggles in an effort to shift the responsibility to our publication. Please read more.. Possibly related posts:[Quote of the Week] “I don’t think we are more scary than German investors. Believe me, we are not that scary. Furthermore, we

Authorities Take a “Maternal” Approach

Published on Tue, 29 Sep 2009 15:08:02

Last week Russia’s Cabinet approved the draft 2010 budget. Prime Minister Putin promised to cut spending by government departments while also stressing social provisions, including “maternity capital.” Galina Khatiashvili, Intern, The PBN Company, Moscow, examines how the scheme to boost Russia’s population is being received. When Russian parents have a second child, they are eligible read more.. Possibly related posts:Putin’s First Annual Address to the State DumaRuss

Unrelenting Optimism: Hoping for a Ukrainian Miracle

Published on Tue, 22 Sep 2009 15:56:20

By Yuliya Sobko, Head of Financial Communications and Investor Relations, The PBN Company, Kyiv From the outside things have seemed particularly grim in Ukraine of late, with a combination of pre-election politicking and energy issues dominating international headlines. But in the midst of the severe economic slump Ukrainians are strikingly optimistic – about economic recovery (we read more.. Possibly related posts:IMF Releases Third Tranche of Ukrainian LoanUkrainian Consensus in the Offing?Celeb

[Quote of the Week] “A huge number of businessmen do nothing. Their businesses don’t do anything other than sell raw materials. We need to change the business model, the business mentality.”

Published on Fri, 18 Sep 2009 22:23:05

President Dmitry Medvedev issues a rather harsh opinion on Russian business at the Valdai discussion group.. Share/Save Possibly related posts:[Quote of the Week] “You never sucked up to anybody”[Quote of the Week] A Bear Hug?[Quote of the Week]: “We can’t develop like this any further. It’s a dead end.” Possibly related posts:[Quote of the Week] “You never sucked up to anybody”[Quote of the Week] A Bear Hug?[Quote of the Week]: “We can’t develo read more..

[Great Soul Searching] Celebrating Magnanimity in the Crisis: #3 Putin Glad-Hands Worker With Wrist Watch

Published on Thu, 17 Sep 2009 15:04:25

Christmas came early this year for a worker in the Russian industrial town of Tula. Vladimir Putin was touring a factory on an official visit when the overall-clad Viktor Zagaevsky asked the Prime Minister for a small souvenir. Putin’s gift? The £5,500 Swiss watch from off his wrist. As The Guardian reports, Putin read more.. Possibly related posts:[Great Soul Searching] Celebrating Magnanimity in the Crisis: #2 Gazprom Will Not Fine Ukraine For Violating Its Gas Contract[Great Soul Search

Minimum Spend on an Almaty Wedding: $8,000… Enjoying a Crisis-Defying Celebration: Priceless

Published on Thu, 10 Sep 2009 08:42:27

The economic crisis has done little to dampen the enthusiasm of Kazakhs for lavish weddings. Yekaterina Syrtsova, Associate Account Manager, The PBN Company, Almaty, marvels at the glitz and wonders how it all adds up. If you have ever visited Almaty, chances are you have been stuck in traffic amid two or three honking wedding corteges. read more.. Possibly related posts:Psychoanalysis or Retail Therapy: (Not) Spending in the CrisisDollar Stores, Pound Shops…and Tenge MarketsWhat Crisis? Findi

[Quote of the Week] “We have removed all of the gas problems … We feel that all the crisis-like occurrences in this sphere have gone.”

Published on Thu, 03 Sep 2009 12:55:28

Ukrainian Prime Minister Yulia Timoshenko gives a rather optimistic outlook after reaching yet another agreement with Vladimir Putin to end the on-going disputes over Russian gas supplies. Share/Save Possibly related posts:[Great Soul Searching] Celebrating Magnanimity in the Crisis: #2 Gazprom Will Not Fine Ukraine For Violating Its Gas Contract[Quote of the Week] “You know very well read more.. Possibly related posts:[Great Soul Searching] Celebrating Magnanimity in the Crisis: #2 Gazprom Will

Kazakhstan Looks To Foreign Business To Shore Up Its Banks

Published on Thu, 27 Aug 2009 12:10:02

By Bruce Wilson, Senior Consultant, The PBN Company, Almaty Karim Masimov, Kazakhstan’s Prime Minister, has floated the idea of requiring foreign businesses that operate in Kazakhstan to keep a share of their funds in domestic banks. The need to help Kazakh banks is understandable, but would the proposal have a detrimental impact on the economy? Kazakhstan’s banking read more.. Possibly related posts:Treading Softly: Kazakhstan Weighs Up the Customs UnionTo Silence or Not to Silence: Blo

[Quote of the Week] “We can say that risk appetite is returning.”

Published on Fri, 21 Aug 2009 22:15:22

On August 20, First Deputy Chairman of the Central Bank of Russia Alexei Ulyukayev offered an upbeat outlook for the ruble against foreign currencies. “Exiting the crisis means lower demand for safer assets and increased demand for riskier, more profitable ones,” he added. Ulyukayev noted that he supported indications that the dollar will weaken against read more.. Possibly related posts:[Quote of the Week] “Most of Russia’s economy is so inefficient that it doesn’t run the cha

Continuing to Break New Ground … A Solid Foundation For Kazakh Retail?

Published on Tue, 18 Aug 2009 09:53:19

By Yekaterina Syrtsova, Associate Account Manager, The PBN Company, Almaty Kazakh and western retail companies are pushing ahead with expansion plans despite the crisis. Earlier this month Metro Cash & Carry, the German retailer, laid the foundation stone for its first supermarket in Astana and announced plans to build 10-15 stores in Kazakhstan. Arzan, a big local read more.. Possibly related posts:Dollar Stores, Pound Shops…and Tenge MarketsKazakhstan Looks To Foreign Business To Shore U

[Quote of the Week]: “We can’t develop like this any further. It’s a dead end.”

Published on Fri, 14 Aug 2009 20:51:14

In one of the Kremlin’s most strongly worded statements since the beginning of the crisis, President Dmitry Medvedev warned of a “dead end” unless the economy reduces its dependence on raw material exports. Speaking to a meeting of United Russia leaders in Sochi he stated, “Russia needs to move forward, but there hasn’t been this read more.. Possibly related posts:[Quote of the Week] “It is always better to have ten small Gazproms than one big one.”[Quote of the

Do Russia’s Q2 GDP Figures Show Light at the End of the Tunnel?

Published on Thu, 13 Aug 2009 15:01:48

When is a fall of 10.9% in GDP year-on-year good news? Perhaps when it represents a growth of 7.5% on the previous quarter. The Russian economy has had a rough year, but information released on August 11 by Russia’s state statistics agency indicates that things may be levelling off. According to the second quarter data, Russia’s GDP read more.. Possibly related posts:Russia: Deepening Crisis or Road to Recovery?More GDP News: Ukraine’s Q1 Figures, and They Aren’t PrettyRussia

[Quote of the Week] “This is the sort of thing that could be a problem diplomatically. But because it is Berlusconi it just made the two leaders smile”

Published on Fri, 07 Aug 2009 22:10:46

…A senior Turkish government source explaining why Russian Prime Minister Putin and Turkish Prime Minister Erdoğan were unruffled by President Berlusconi’s surprise appearance in Ankara. While Putin and Erdogan signed agreements confirming Turkey’s approval for the South Stream gas pipeline, the Italian President arrived, claiming the accords as his personal success. Share/Save Possibly related posts:[Quote of the read more.. Possibly related posts:[Quote of the Week] “Europe&#

Time to Move on and Make ‘Former’ an Ex

Published on Thu, 06 Aug 2009 15:23:54

by Jonti Small, Senior Account Manager, The PBN Company “A year after Russia fought a war with its former-Soviet neighbor Georgia…” begins the Wall Street Journal’s report on the fractious relations between the two countries. Why does this description sound off-key? Putting aside questions regarding who fought with whom, it is the short phase ‘former-Soviet neighbor’ read more.. Possibly related posts:From Rich List to Indebted ListCustoms Union Update: Russia’s Average Tariff Bur

[Quote of the Week] A Bear Hug?

Published on Fri, 31 Jul 2009 20:17:11

“The Russian bear needs to be attractive to be respected by the rest of the world and it cannot become stronger without good foreign relations,” said President Medvedev in an interview with NTV television. He added that the caricatured image of Russia as a bear was one close to his heart. During the interview, President Medvedev read more.. Possibly related posts:[Quote of the Week] “You never sucked up to anybody”[Quote of the Week]: “We can’t develop like this any f

IMF Releases Third Tranche of Ukrainian Loan

Published on Wed, 29 Jul 2009 12:33:28

On July 29 the IMF announced the disbursement of the third tranche - worth $3.3 billion - of its standby loan to Ukraine. This brings the total funds released to $10 billion out of the $16.4 billion promised in November 2008. The negotiations were more straightforward this time than they were in May, when the second read more.. Possibly related posts:Celebrating Another Victory: IMF Approves Second Loan Tranche for UkraineUkrainian Consensus in the Offing?Unrelenting Optimism: Hoping for a Ukrainian

Kyiv Got Message It Needed to Hear

Published on Mon, 27 Jul 2009 10:41:40

By Myron Wasylyk, Senior Vice President & Managing Director, The PBN Company, Kyiv US Vice President Joe Biden’s visit to Ukraine this week accomplished three very important objectives not only for the US-Ukrainian bilateral relationship, but also for communicating Washington’s security policy views to Central and East Europeans. First, Biden affirmed for official Kyiv the continuity of read more.. Possibly related posts:Unrelenting Optimism: Hoping for a Ukrainian MiracleUkraine Goe