Russia in many ways was initially cushioned by the price of oil for the past six to seven months.... It saw itself as insulated and removed from what was going on in the world for the past 18 months. In our business, which is highly correlated with financing and highly dependent on development financing, we saw the first signs of the changes in the market at the end of [2007], when we realized that development financing would no longer be available. It was really only recently that things have started to creep up on Russia. Russia is right now still in a bit of a denial phase, going through the process of trying to understand what this really means for it.
The Russian government is also going through an understanding that this is going to be more protracted and more serious than initially perceived, [that] it has much more far-reaching impact in terms of the economy and in terms of the real liquidity in the economy. We are seeing a lot of signals today. Lending is completely frozen.
Monday, January 19, 2009
Tuesday, January 13, 2009
Pilgrim Russia Investment Fund
While corporate governance is largely an internal company issue, its quality is determined by legislation and other external forces — putting it on a wish list of reforms that foreign investors said the government should tackle as Russia is buffeted by the global financial crisis. Other priorities include court and tax reform, equal application of the law and support for small and midsized businesses. Progress in these areas, investors said, will allow Russia to emerge from the storm with a stronger economy.
"When you have a financial crisis, it is trendy to focus on the short term to overcome it," said Klaus Rohland, the World Bank's country director for Russia. "I encourage the government to pursue its long-term agenda side by side with the crisis."
Corporate governance has long been a hot-button issue, and minority shareholders have complained of unfair treatment since the 1990s. The complaints might be fewer these days, but the issue has not been laid to rest.
"When you have a financial crisis, it is trendy to focus on the short term to overcome it," said Klaus Rohland, the World Bank's country director for Russia. "I encourage the government to pursue its long-term agenda side by side with the crisis."
Corporate governance has long been a hot-button issue, and minority shareholders have complained of unfair treatment since the 1990s. The complaints might be fewer these days, but the issue has not been laid to rest.
Tuesday, January 6, 2009
Crisis brings Russian, Arab investors to Bulgarian Real Estate market
The global financial crisis will serve to attract more Russian and Middle Eastern investors to Bulgaria's real estate market, according to the Russian online edition rambler.ru.
The reason for that is that the financial crisis is forcing the investment companies in Bulgaria to freeze or delay the execution of a number of real estate projects. The lower prices are expected to attract primarily Russian and Arab clients.
The article points out the value of recreation real estate deals in Bulgaria has already declined by 10%.
In addition, the Bulgarian Land Development firm is reported to have postponed two of its projects in the Black Sea town of Kavarna and the mountain resort of Borovetz. Black Sea Property has terminated the execution of a project in the sea resort of Tsarevo, whereas Bulgarian Property Development has discontinued its investments in the mountain town of Bansko.
The director of the Green Life investment company Nikolay Penlivanov is quoted as saying that a number of speculators were abandoning the Bulgarian real estate market.
The reason for that is that the financial crisis is forcing the investment companies in Bulgaria to freeze or delay the execution of a number of real estate projects. The lower prices are expected to attract primarily Russian and Arab clients.
The article points out the value of recreation real estate deals in Bulgaria has already declined by 10%.
In addition, the Bulgarian Land Development firm is reported to have postponed two of its projects in the Black Sea town of Kavarna and the mountain resort of Borovetz. Black Sea Property has terminated the execution of a project in the sea resort of Tsarevo, whereas Bulgarian Property Development has discontinued its investments in the mountain town of Bansko.
The director of the Green Life investment company Nikolay Penlivanov is quoted as saying that a number of speculators were abandoning the Bulgarian real estate market.
Saturday, January 3, 2009
Cyprus Puts Faith in Russian Property Buyers
Once a key driver of the country's economic growth, Cyprus' booming real estate sector has begun to slide. And while local buyers and a major government construction project offer some potential support, the market's biggest hope could come from much farther away, in the form of wealthy Russians looking to buy up island property.
Though Russians make up approximately 20 percent of Cyprus's foreign property market -- a relatively small percentage compared to the 60 percent share the British occupy -- real estate agents say Russian buyers are purchasing the island's most expensive properties, and doing so at far higher prices than most of their British counterparts.
"We've sold villas worth 5 million, 6 million euros recently," said Antonis Loizou, managing partner of Antonis-Loizou, a real estate agency based in the country's capital, Nicosia. "We've never had this sort of clientele before."
"There may be a reduction of [overall property] demand, but there may be an increase at the top end of the market," he said.
Though Russians make up approximately 20 percent of Cyprus's foreign property market -- a relatively small percentage compared to the 60 percent share the British occupy -- real estate agents say Russian buyers are purchasing the island's most expensive properties, and doing so at far higher prices than most of their British counterparts.
"We've sold villas worth 5 million, 6 million euros recently," said Antonis Loizou, managing partner of Antonis-Loizou, a real estate agency based in the country's capital, Nicosia. "We've never had this sort of clientele before."
"There may be a reduction of [overall property] demand, but there may be an increase at the top end of the market," he said.
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