Loath-to-depart of western investors: Another major investor makes a decision to abandon the Russian market. After a wave of large state financial institutions leaving, an outflow of smaller private investors has begun. The Overseas Private Investment Corporation (OPIC), which is the U.S. government’s development finance institution, specialized on investments in private equity funds. Currently, OPIC announced its intention to cease activities in Russia. The U.S. institution made a decision not to work with the Russian assets any longer. We will not invest in Russia. In July, OPIC management suspended consideration of any investments in the Russian projects as well as administration of guarantees for money injections in them. Thus, we decided not to divest assets which have already been invested. We will observe existing arrangements but that is all,” the representative of OPIC Charlie Stadtlander said. Commenting on this fact, Russian experts claim that the company “simply could not adapt for working under our conditions.” For the time its work, the investor has financed more than 125 major projects and invested about $3 billion. A few weeks earlier, a similar decision was made by the European Bank for Reconstruction and Development with a total volume of investments in Russia of €24 billion, about 790 projects. Despite a widespread leaving of major players, the Russian economists see no particular reason for panic. In general, these losses are not global for the Russian economy. However, these investors’ leaving is very essential for some spheres which are not attractive to private investors. For example, the European Bank for Reconstruction and Development planned to participate in financing of projects related to modernization of the Russian public utilities infrastructure. The fact that it will not be done next year enhances the likelihood of tariff rates’ raising,” the chief economist of Renaissance Capital in Russia and the CIS countries Oleg Kuzmin says.The material has been provided by portal MT5 - mt5
Posted on: Thu, 23 Oct 2014 07:32:09 +0000
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