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Minister Sees Credit Risks for Rosneft in Privatization

The Moscow Times

The sale of the government's stake in Rosneft carries many risks for the company, and there should be no strict deadlines for divesting the state's biggest oil asset. The sale of the government's stake in Rosneft carries many risks for the company, and there should be no strict deadlines...

The Tax Risks of Business: Prospects for 2012

By Egor Lysenko / Pepeliaev Group

... this. In particular, Prime Minister Vladimir Putin recently stressed that Russia must make its tax system more attractive to investors and competitive in comparison with the other countries of the Russia-Belarus-Kazakhstan customs union, even despite a risk of a shortfall in budget revenues. Egor Lysenko Project Coordinator for East Siberia Pepeliaev Group Law Firm The Russian government has recently been talking more about the need to optimize groups of taxes, with high-quality economic growth...

Daughter Says Tymoshenko's Life at Risk

Reuters

The daughter of jailed Ukrainian opposition leader Yulia Tymoshenko says her mother’s life is now at risk after President Viktor Yanukovych “crossed a fine line” when he rejected all early chances of compromise to free her. KIEV — The daughter of jailed Ukrainian opposition leader Yulia Tymoshenko says her mother’s life is now at...

World Bank Survey Finds Risks Rising

By Howard Amos / The Moscow Times

A World Bank survey has warned of the fragility and heightened risks facing the global economy in 2012, and highlighted the vulnerability of emerging markets, including Russia. A World Bank survey has warned of the fragility and heightened risks facing the global economy in 2012, and highlighted...

Less May Be More for Protesters

By Alexei Bayer

Pro-democracy protests in Russia are being organized by writers, journalists, artists and other cultural figures. There are few businesspeople among them who understand the concept of risk-adjusted returns. Pro-democracy protests in Russia are being organized by writers, journalists, artists and other cultural figures. There are few businesspeople among them who understand the concept of risk-adjusted returns. In any investment,...

How Companies Can Best Survive a Volatile '12

By Andrew Cranston

... and, at best, weak growth. This is not a theoretical discussion. Underneath all the noise, some significant things are already happening: Banks have been told by regulators to prepare contingency plans for the breakup of the euro zone, and some are at risk from the current instability in European capital markets. Stronger and additional rounds of austerity measures are being introduced that will have an impact on both government spending and further change consumer behavior in the countries affected...

Universal Card Held Off Another Year

By Olga Solovyova and Natascha Kearsey / Special to The Moscow Times

... of 2013 to those who apply for them. The following year they will be issued to all citizens, unless a person makes a written statement of refusal. There are concerns about the public's willingness to adopt the card. Medvedev said last year that the risk of identity theft was an issue for the universal smart card. Boris Volpe, Sitronics' vice president for marketing and development, said Sitronics' unique cryptography would protect people from the risk of identity theft. "All data used in transactions...

Heated, Open Discussions at the Gaidar Forum

By Anders Aslund

... targeting with a floating exchange rate, inflation has fallen as it should to 5 percent in January. Russia has finally adopted quite a strict monetary policy with positive real interest rates. Everyone is painfully aware of the euro crisis, but the direct risks it poses to Russia are not perceived as great. Instead, two indirect risks arouse worries: the oil price and capital flows. Finance Minister Anton Siluanov acknowledged that the federal budget for 2012 will balance only at an oil price of $117 per...

Coal Miner Asked to Buy Back 129% of Shares

Bloomberg

Coal producer Raspadskaya risks "potential cancellation or freezing" of its share buyback after investors offered more shares than are outstanding. Coal producer Raspadskaya risks "potential cancellation or freezing" of its share buyback after...

Amid Tensions, Fitch Lowers Russia's Credit Rating Outlook

Bloomberg

... outlook has worsened since Fitch last affirmed the rating" at BBB, the second-lowest investment grade, in September, Charles Seville, director of Fitch's sovereign group, said in the statement. "Recent events have highlighted the limitations and risks associated with Russia's political model." None of the three main ratings companies have upgraded Russia since the 2008-09 global financial crisis. "It's unclear how the country's leadership will respond to the unexpected wave of protests...

'Cheapness' Gap Closing as Russia Attracts Cash Inflow

Bloomberg

... week to Feb. 1, Troika Dialog reported, citing EPFR Global data. "In terms of Russia, the valuations look cheap, and we have been overweight in our exposure because of the cheapness," Lacaille said last week. "We are very aware of the risks and the fact that the cheapness stems from a number of things." Lacaille said State Street Global Advisors, which oversees $2.1 trillion as a unit of Boston-based State Street, has "several billion" dollars of client funds invested...

Aeroflot Countering Bribery Allegations

By Roland Oliphant / The Moscow Times

... to the airline's efforts in the U.S. market as it seeks to post ADRs and improve its attractiveness to foreign investors, Markin said, and the affair could have a negative effect on the value of the company's depository receipts. "There are two risks here; there's a criminal liability if it turns out your employees have been extracting bribes; and it would open the way for civil cases as well," said Vasily Vasilyev, a lawyer at the Yukov, Khrenov & Partners law firm. But he added that the...

Protecting Commercial Secrets in Outsourcing

By Arthur Abouzov / Baker & McKenzie

... does not envisage outsourcing and regulate it properly, so the business world is using outsourcing mostly based on a common understanding of what outsourcing is within the business community. Many lawyers have already paid a lot of attention to the risks that a company may face in using outsourcing schemes, i.e. outsourcing being classed as employment, labor-safety risks, tax authorities claiming that outsourcing schemes are not economic value-added expenses and that the aim of such a scheme is...

Deloitte CIS

... skills”. Sergei Neklyudov, Audit Partner, Financial Services Leader Anastasia Osipova, Consulting Partner, CFO Services Leader, Energy & Resources Anna Kuznetsova, Consulting Partner, CFO Services, Energy & Resources Franck Marzilli, Enterprise Risk Services Partner, Financial Services Svetlana Fedorova, Tax & Legal Partner, Consumer Business, Automotive Leader  Karina Sarkisian, Enterprise Risk Services Partner, Energy & Resources Alla Saltykova, Audit Partner, Energy & Resources Gulfia Ayupova...

What You Need to Know on 2012 Tax Changes

By Maureen O'Donoghue

... we now have a new transfer-pricing regime, one which places a much greater burden on taxpayers to document and justify the pricing of controlled transactions. Most taxpayers should be taking steps to assess and mitigate the level of transfer- pricing risks arising under the new regime. Some are already seeking advance-pricing agreements. Russia's tax authorities are not accustomed to issuing any kind of binding ruling on the taxation of a taxpayer's future activities, so it will be interesting to...

Austerity Could Cause a Great Depression in EU

By Javier Solana

... the crisis, developed economies have not managed a sustainable recovery, and even the better-off countries reveal signs of weakness. Faced with the certainty of a double-dip recession, Europe's difficulties are daunting. Not only is Europe running the risk of lasting economic damage; high long-term unemployment and popular discontent threaten to weaken permanently the cohesiveness of its social fabric. And politically, there is a real danger that citizens will stop trusting institutions, both national...

Liquidity Murky, Rates Stable

By Howard Amos / The Moscow Times

... most convenient decision," First Deputy Chairman of the Central Bank Alexei Ulyukayev said at an investment forum. "We have decided to do nothing." The Central Bank said it would ensure a balance between controlling inflation and growth risks. Rates were cut in December in line with other emerging economies as global growth appeared to be threatened by the debt crisis in Europe. Inflation was at 4.1 percent as of Jan. 30, according to a statement from the Central Bank, and the aim is...

Rosatom to Send Spent Fuel to Siberia

By Roland Oliphant / The Moscow Times

... more than usual,” said Vladimir Chuprov, the head of Greenpeace Russia's energy program. Greenpeace argues that all nuclear material should be stored and dealt with where it is produced. Chuprov conceded dry storage is safer, but highlighted two risk factors — damage to the rail bed by the abnormally heavy trains and the small but real risk of accident or terrorist attack on the trains, which pass through cities including Novosibirsk. The train from Leningrad — the first in the plant's...

Why Honesty Is the Best Policy for Putin

By Konstantin Sonin

... resign!" — but implementing others would actually be to his benefit. For example, the demand that votes be counted honestly might increase his chances of losing on a second round of voting in the presidential election on March 4. But that risk is slight, and the alternative — a widespread impression that he had been elected through election fraud — would be far worse. A leader who does not enjoy the support of the majority of the people can rule by force, but this is ineffective...

Confidence in Euro Buoys Rate Forecast

Reuters

... of the year on the euro-zone credit crunch and investor concern over street protests against alleged ballot fraud in the Dec. 4 parliamentary elections. Asked whether the Central Bank would ease interest rates, Ulyukayev said that “if inflation risks become less of a concern and risks to economic growth increase, then we will.” “But for now I don’t really see this situation,” he added. The Central Bank effectively tightened policy going into the end of 2011 by limiting...

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