By Joe Vladeck
Russia's economy is stagnating, and domestic turbulence is
not helping.
The CEO of Uralkali, the world's largest potash company, is under
house arrest in Belarus, even as the company is up for sale. Stocks in Tinkoff
Credit Systems, a charge card company, modeled
after Capital One, fell by 40 percent in a single day on rumors that its business
model would be outlawed by the Russian parliament. And the Russian central bank
just shut down a large retail bank, Master Bank, which counts among its board
members a follower of Nicholas
Roerich, a mystical guru and painter influential in early 20th-century
Russia.
These and other revelations are hurting Russian
companies seeking to raise much-needed equity. Trading volumes are decreasing
as foreign investors look elsewhere, increasing the volatility -- and the risk
-- in a cycle that looks hard to break. Euromoney
has the report.
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