Correspondent, New York
Megan's Feed
Jul 29, 2014

Court orders Russia to pay $50 billion for seizing Yukos assets

MOSCOW/LONDON/AMSTERDAM (Reuters) – An international arbitration court ruled on Monday that Russia must pay $50 billion for expropriating the assets of Yukos, the former oil giant whose ex-owner Mikhail Khodorkovsky fell foul of the Kremlin.

Finding that Russian authorities had subjected Yukos to politically-motivated attacks, the panel made an award to a group of former Yukos shareholders that equates to more than half the entire fund Moscow has set aside to cover budget holes.

Jul 28, 2014

Hague court orders Russia to pay $50 bln in Yukos case

MOSCOW, July 28 (Reuters) – The Hague’s arbitration court
ruled on Monday that Russia must pay a group of shareholders in
defunct oil giant Yukos around $50 billion for expropriating its
assets, a big hit for a country teetering on the brink of

The Hague court said it had awarded shareholders in the GML
group just under half of their $114 billion claim, going some
way to covering the money they lost when the Kremlin seized
Yukos, once controlled by Mikhail Khodorkovsky.

Jul 24, 2014

EU sanctions on Russian banks would hit economy, business

MOSCOW, July 24 (Reuters) – Russia’s state-controlled banks
would have to turn to the state, domestic borrowers or new
regions such as Asia if EU sanctions shut off investment,
hurting their ability to lend to local businesses and further
damaging the country’s fragile economy.

Under measures being considered by European Union
governments in response to the Ukraine crisis, European
investors would be banned from buying new debt or shares of
banks owned 50 percent or more by the state.

Jul 21, 2014

Russian markets feel heat from Ukraine crisis, extend slide

MOSCOW, July 21 (Reuters) – Russian shares slid on Monday to
a two-month low as Moscow came under fierce international
pressure over the downing of Malaysia Airlines flight MH17 and
European governments threatened to follow the United States in
widening economic sanctions.

Monday’s losses extended a near-8 percent slump last week
provoked by Washington’s imposition of sanctions on large
Russian domestic companies, including oil major Rosneft which
again fell sharply on Monday.

Jun 24, 2014

Russia’s VTB says no plan to inject funds into Bulgarian bank

MOSCOW/SOFIA, June 24 (Reuters) – Russian bank VTB
said it had no plan to inject capital into Bulgaria’s Corporate
Commercial Bank (Corpbank), making it more likely the
lender will be nationalised in July.

Customers rushed to withdraw money from Bulgaria’s
fourth-largest lender last week after media reports of suspect
deals involving the bank and its top shareholder. The country’s
central bank took control of Corpbank, froze its operations and
started rescue talks with shareholders.

Jun 24, 2014

U.S. firm Abbott to buy Russian drugmaker for up to $495 million

MOSCOW (Reuters) – U.S. healthcare firm Abbott Laboratories (ABT.N: Quote, Profile, Research, Stock Buzz) is to buy Russian drugmaker Veropharm (VRPH.MM: Quote, Profile, Research, Stock Buzz) for up to $495 million, giving it a manufacturing presence in a country where it has been operating for nearly 40 years, Abbott said on Tuesday.

The deal bucks a drought in Russian M&A activity this year due to the country’s faltering economy and the Ukraine crisis. U.S. companies have been particularly stymied from investing here with Washington advising top executives to steer clear of a major Russian investment forum in May.

Jun 4, 2014

Moscow investment bankers begin to feel the pinch

MOSCOW (Reuters) – Russian investment banking activity has been hit this year by the faltering economy and the Ukraine crisis, putting pressure on Moscow bankers to get creative in offering local firms different ways to raise capital instead of the standard fare of international share and bond issues.

Russian investment banking fee income has fallen by about a third to $166 million in the year to date compared with the same period last year, with a marked squeeze in the last few months, according to Thomson Reuters data.

May 29, 2014

Profits slide at Russia’s Sberbank as Ukraine crisis, economy bite

MOSCOW, May 29 (Reuters) – Sberbank, Russia’s
biggest bank by assets, reported an 18 percent slide in profits
on Thursday and more than doubled its provisions for bad loans,
hit by the Ukraine crisis, a falling rouble and an economy
flirting with recession.

Once feted for its fast-growing economy, Russia is now
forecast to achieve growth of just 0.5 percent this year, hurt
by Western sanctions and instability brought by the stand-off
with Kiev and wider emerging market uncertainty.

May 27, 2014

Russian bank VTB’s profit plunges as Ukraine crisis bites

MOSCOW, May 27 (Reuters) – Russia’s second-largest bank, VTB
, laid bare the economic damage being
inflicted by the Ukraine crisis, missing forecasts with a
98-percent plunge in first-quarter net profit as it set aside
more money to cover potential bad loans.

Russian banks have been increasing their provisions against
potential loan defaults for some time as economic growth slowed.

May 23, 2014

China and Qatar seek more Russia investment as U.S. interest fades

ST PETERSBURG, Russia (Reuters) – Sovereign wealth funds in China and Qatar on Friday signaled their increased commitment to Russia, boosting Moscow’s hopes of strengthening ties with Asia and the Middle East as relations with the West deteriorate.

Major sovereign wealth funds in the Middle East and Asia have invested in Russian businesses and backed its state-funded private equity fund, the Russian Direct Investment Fund (RDIF). By contrast, U.S. financial investors in the country remain few.