Windows to Russia

RBC, 23.05.2008, Moscow 14:52:43.The National Banking Board may review the Russian banking sector’s development strategy until 2020 in the fall of 2008, President of the Association of Regional Banks of Russia, State Duma deputy Anatoly Aksakov said during the association’s general annual meeting. If the board approves the strategy, the document will be almost mandatory for the authorities, Aksakov stated. A draft strategy has already been devised, and a working group to be headed by the association’s First Deputy President Alexander Khandruyev will be created to finalize it. The document is to be prepared before the beginning of the Sochi economic forum scheduled for September 2008. It must be in line with financial markets’ development strategy and provide for closing the 22-fold gap between the incomes of the rich and the poor, reducing inequality between Russia’s regions, and maintaining the country’s economic sovereignty, Aksakov noted.

RBC, 23.05.2008, Moscow 14:09:05.According to preliminary data, Russian producer prices grew 4.5 percent in April 2008 and 26.6 percent between January and April, the Russian Federal State Statistics Service (Rosstat) reported. As stated in the federal service’s document, the price of crude oil and associated gas jumped 9 percent and the price of natural gas and gas condensate rose 6 percent, while a 4.9-percent decline in prices was seen within the non-ferrous iron ore mining segment. Prices increased in the manufacturing sector (certain refined oil products), metallurgy and the chemical industry, while the price of electricity produced domestically slid 5.5 percent, and the price of electricity supplied to industrial consumers and agricultural producers dropped 1.4 percent.

RBC, 23.05.2008, Moscow 13:42:21.At today’s annual general meeting, NOVATEK shareholders approved the payment of RUB 1.52 (approx. USD 0.06) per share as dividend for 2007, one of the shareholders told RBC. Consequently, combined with an interim dividend of RUB 0.83 (approx. USD 0.04) paid for the first half of 2007, total dividend for the 2007 fiscal year will amount to RUB 2.35 (approx. USD 0.10) per common share. As reported earlier, NOVATEK paid RUB 1.10 (approx. USD 0.05) per common share for 2006, with the total payout, including interim dividend payments, amounting to RUB 5bn (approx. USD 212m).

RBC, 23.05.2008, London 13:15:36.Severstal has reached an agreement on the acquisition of up to 61.5 percent of African Iron Ore Group Ltd. (AIOG) shares, the Russian steel producer said in a press release today. AIOG’s subsidiaries have a license for conducting a geological survey at the Putu Range iron ore deposit in Liberia. In addition, Severstal is expected to buy a 6.29-percent stake in Mano River Resources Inc., which holds a controlling stake in AIOG. The Russian company is to pay $37.5m for the stake in AIOG, while the price of the second deal is estimated at GBP 2m (USD 3.9m). Both deals will be implemented through Severstal’s Dutch subsidiary Lybica Holding B.V.

RBC, 23.05.2008, Moscow 12:23:04.According to preliminary data, real disposable cash incomes of Russians grew 11.8 percent in January-April 2008 compared to the same month a year earlier, the Federal State Statistics Service (Rosstat) said in a report today. The average monthly accrued wages climbed 28.1 percent to RUB 16,253 (approx. USD 689) in April 2008 against April 2007 and went up 28 percent in the first four months of 2008 compared to January-April 2007.

RBC, 23.05.2008, Moscow 12:03:25.Today’s session on the Russian stock market opened with a rise in most traded securities. On MICEX, the majority of stocks went up 0.5 percent on average within the first few minutes of trade. Meanwhile, Polyus Gold, Norilsk Nickel, and Gazprom Neft traded below yesterday’s close. However, the situation changed after the first 30 minutes of trade, as only Sberbank, Rosneft and Polyus Gold remained in positive territory. Most securities declined 0.5 percent on average and the RTS index was slightly down.

RBC, 23.05.2008, Moscow 11:12:00.Russia’s natural gas production rose 1.3 percent to 56.9bn cubic meters in April 2008 compared to the same month a year earlier, the Federal State Statistics Service (Rosstat) reported today. Meanwhile, gas output fell 4.4 percent in April against the previous month.

RBC, 23.05.2008, Moscow 11:01:54.Russia’s retail trade grew 13.2 percent to roughly RUB 1.058 trillion (approx. USD 44.9bn) in April 2008 compared to the same month a year earlier, the Federal State Statistics Service (Rosstat) reported today. The figure edged up 0.3 percent in April compared to March.

RBC, 23.05.2008, Moscow 10:53:14.Russia’s oil and gas condensate production inched down 0.7 percent to 39.7m tonnes in April 2008 compared to the same month a year earlier, the Federal State Statistics Service (Rosstat) reported today. Oil output shrank 3.6 percent in April compared to March.

RBC, 23.05.2008, Moscow 10:32:04.According to preliminary data, Russia’s fixed investment grew 20.3 percent to RUB 529.6bn (approx. USD 22.5bn) in January-April 2008 compared to the same months a year earlier, the Federal State Statistics Service reported today. In April alone, fixed investment went up 2.2 against March.

RBC, 23.05.2008, Moscow 09:55:07.Russian Prime Minister Vladimir Putin is expected to arrive in Minsk today. As part of his visit, Putin will take part in the meeting of the heads of government of CIS member states. Moreover, the Russian PM intends to meet one-on-one with his Ukrainian counterpart Yulia Timoshenko, who will be chairing the meeting the the commonwealth’s Prime Ministers. The chairmanship will be handed over to Belarus during this meeting.

RBC, 23.05.2008, Moscow 09:28:15.Russian President Dmitry Medvedev will today begin his official visit to the People’s Republic of China. He is visiting China at the invitation of the country’s President Hu Jintao. At the talks in Beijing, the leaders intend to discuss cooperation in the nuclear industry, fuel and energy, and investment. Particular attention will be paid to the matter of state support of banking institutions and mechanisms. Moreover, such issues will be considered as collaboration in civil aviation, migration, and environment.

RBC, 22.05.2008, Kiev 19:31:06.Whether to increase the capacity of the Caspian Pipeline Consortium or not is to be resolved by the end of May 2008, Deputy Energy and Mineral Resources Minister of Kazakhstan Lyazat Kiinov told an energy forum in Kiev today. He added that the issue had been settled in principle, and shareholder approvals were expected in the near future. He regretted that there had been no serious discussions of linking the Caspial pipeline project to the Odessa-Brody pipeline. This would require an additional leg of 150 kilometers, including across the Russian territory. For this, in turn, Russia’s agreement would be needed. Yet, this link is approved, there would be no difficulty in finding enough oil to load the Oddessa-Brody pipeline, the Deputy Minister assured. According to Kiinov, the Caspian pipeline would be able to carry some 67m tonnes of oil, of which some 37m tonnes could be bound via the Ukrainian route.

RBC, 22.05.2008, Moscow 16:32:35.The government board is to consider on Monday a reduction in the tax burden for the oil industry, a source close to the cabinet told journalists today. The bills are to be introduced to the State Duma during the spring session. The matter of the extension of a tax holiday to several Russian regions, as well as methods of calculation of oil production will also be reviewed during the session, the source said.

RBC, 22.05.2008, Tbilisi 14:58:07.International observers from the CIS, who monitored Georgia’s parliamentary election on Wednesday, have named it democratic. Although there have been some violations, they cannot affect the election results, the observers said in a statement today. They also noted that Georgia had created all necessary conditions for monitoring the election.

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MOSCOW (Moscow News) – The minimum wage per month in the capital (Moscow) is to come to 10, 900 rubles by the end of 2010. Currently the minimum wage in the city is 6,800 rubles. After September 1, it will be 7,500 rubles.

Additionally, pensions in the capital are to exceed the cost of living by the end of 2009, Igor Antonov, the chairman of the budget and finance committee of Moscow State Duma, said.
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That in American Dollars: (at exchange of 23.5 rubles per dollar)

Per Month:
6800 rubles = $290 (now)
7500 rubles = $319 (Sept.1st 2008)
10,900 rubles = $464 (2010)

Kyle & Svet

comments always welcome.

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Hello,

Now this statement could cause some fun times in the future:

The head of the State Duma committee on CIS affairs, Alexei Ostrovsky, said in April that Russia could reclaim the Crimea if Ukraine was admitted to NATO. Media reported that President Vladimir Putin issued a similar threat during a closed-door speech to NATO leaders at the Bucharest Summit earlier in April.

Now lets have tea!

Posted by Kyle Keeton
Windows to Russia…

Hello,

Yesterday I wondered what Prime Minister Putin was up to. So today while I was drinking my coffee I thought that I would see what the President of Russia Medvedev is doing!

1. Russian President Dmitry Medvedev is expected to discuss space exploration and military cooperation with his Kazakh counterpart, Nursultan Nazarbayev, during his first trip abroad as president on May 22-23. Medvedev’s visit to Kazakhstan will be followed by a two-day trip to China, during which the countries will sign a number of documents, including a joint declaration on key international issues.

2. Russian President Dmitry Medvedev said he will hold one-on-one talks with his French counterpart Nicolas Sarkozy during the G8 summit in Japan in July.

3. Russian President Dmitry Medvedev called for reforms in Russia’s judicial system to prevent bribery and corruption, and make the courts truly independent.

4. Russia’s President Dmitry Medvedev signed an order on May 14 allowing Manchester United and Chelsea fans holding tickets for the final at Luzhniki Stadium to enter the country without visas.

5. Russian President Dmitry Medvedev visits the 54th Strategic Missile Division deployment area.

6. Russian President Dmitry Medvedev’s successful start suggests that we should expect many and substantial reforms soon, and they are badly needed. Corruption cannot continue like this if the Russian state is to stay manageable. Long-prepared reforms for education, health care and pensions are urgent. The country’s infrastructure must be extended and renewed. The government can no longer afford not to reform as it did for the past five years. There is new hope for Russia.

Looks like Medvedev is being the President of Russia……

Kyle & Svet

comments always welcome.

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Hello,

I see United Won the football game & Moscow is still here 🙂 No beer & vodka left though….
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Almost three hours after the opening whistle sounded, United goalkeeper Edwin Van der Sar dove to his right to push Nicolas Anelka’s penalty wide, and the Manchester United squad erupted into celebration.

In the stands, the United fans went wild, their 2,000-kilometer trip across Europe to Moscow having been rewarded with a victory in the Champions League final.
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Seems that all went well & everyone had a good time!

Kyle & Svet

comments always welcome.

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Hello,

I was drinking my morning cup of coffee & thinking about what Putin is doing now that he is not President anymore!

1. Prime Minister Vladimir Putin approved on Tuesday the country’s largest spending project since the Soviet collapse, a $570 billion program to overhaul and expand the country’s transportation infrastructure over the next seven years.

2. Prime Minister Vladimir Putin on Thursday announced the creation of a new executive body that he said would inject efficiency into the unwieldy government machine. The new body, called the presidium, will comprise Putin’s seven deputies and seven other ministers and meet once a week, in a routine reminiscent of Putin’s weekly Monday meetings with key ministers in the Kremlin. The entire Cabinet will convene at least once a month, Putin said.

3. Prime Minister Vladimir Putin urged his government on Tuesday to give Russia a modern fleet of ships for its flourishing energy sector and named his close ally, Deputy Prime Minister Igor Sechin, to manage the multibillion-dollar project.

Looks like he is busy being a Prime Minister….

Kyle & Svet

PS: Tomorrow we will see what President Medvedev is doing!

comments always welcome.

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Hello,

In the last few days in Russia there have been interesting tidbits of information.

1. Vodka is on the decline by 2%….. but the catch is that champagne and sparkling wines are up 16%, cognac production increased 19.6% and the output of low alcohol drinks (beer) doubled.

2. An Estonian court said Monday the trial of a 88-year-old WWII veteran and Hero of the Soviet Union on charges of genocide is due to start on May 20 in the town of Kardla in the country’s western island of Hiiumaa. Meri is a cousin of the late former Estonian president Lennart Meri.

3. The British are Coming! Roughly 7,000 police officers and interior military were attracted to ensure order in the city. The police will be wherever the fans are, Over 50,000 Britain’s fans are expected to arrive for the final match of the UEFA Champions League that Manchester United and Chelsea will play in Moscow May 21. (Today)

4. A 58-kilometer (36-mile) long pipeline to the Yury Korchagin oil and gas field, located in the Russian sector of the Caspian Sea has been completed.

5. Russia has been ranked 131 out of 140 countries & the USA ranked 97 out of 140 in the Global Peace Index, an annual study of how peaceful countries are, both domestically and internationally. (Sounds like the USA and Russia are not very peaceful)

So that is about it… Oh yes the weather for the UEFA Champions League is terrible. Rain, rain and more rain.

Kyle & Svet

comments always welcome.

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RBC, 20.05.2008, Moscow 09:58:13.The Executive Board of the international special-purpose entity (SPE) Trans-Balkan Pipeline B.V. has resolved 10 out of 12 issues regarding the implementation of the Burgas-Alexandroupolis oil pipeline project during its first ever meeting held in Amsterdam on May 15, head of the Executive Board, the company’s President Sergei Vinnichenko told RBC on Monday. Among the most important matters he named the agreement in principle of the board’s members to raise the company’s initial budget (currently set at EUR 5.8m), depending on the future need for additional funding to make a feasibility study. The existing budget is not enough to launch the project, Vinnichenko said, adding that the required figure would only be determined after talks with the potential contractor on the feasibility study, which had yet to start.

RBC, 20.05.2008, Moscow 09:23:49.Russian Prime Minister Vladimir Putin will hold a meeting on the development of Russia’s transportation system in 2010-2015 in Sochi today, the government’s press office reported. The PM is also expected to visit the “Transport in Russia Ч 2008” international exhibition.

RBC, 19.05.2008, Moscow 19:44:51.The Board of Directors of Mobile TeleSystems (MTS), Russia’s mobile services provider, recommended that the company’s shareholders approve nearly RUB 29.581bn (approx. USD 1.24bn) as the total dividend payment for 2007, which is 1.5 times more than in 2006, the company’s official documents show. Hence, the dividend per share is recommended at RUB 14.84 (approx. USD 0.622). MTS’s President Leonid Melamed stated earlier that he expected the dividend payment to top USD 1bn, in line with the dividend policy that the company adopted in 2007.

RBC, 19.05.2008, Moscow 19:19:19.At their meeting today, Gazprom’s Chairman Alexei Miller, and Armenia’s President Serzh Sargsyan and Prime Minister Tigran Sargsian agreed to sign a mid-term gas supply contract. Until January 2009, Armenia will be buying Russian gas at $110 per 1,000 cubic meters. By 2011, the countries expect Armenia (as well as Russia’s domestic consumers) to pay European-level prices, Gazprom’s press office reported.

RBC, 19.05.2008, Moscow 15:28:45.Korolev Rocket and Space Corporation Energia’s Board of Directors has recommended that its shareholders approve a dividend of RUB 30 (approx. USD 1.26) per common share for 2007, the corporation stated today. The total payout will amount to roughly RUB 33.712m (approx. USD 1.414m), while net profit reached some RUB 130.071m (approx. USD 5.46m) in 2007.

RBC, 19.05.2008, Moscow 14:47:57.Two and a half hours before the close of today’s special dollar trading session for tomorrow deals, the high on deals remained unchanged at 23.80 RUB/USD, while the low on deals fell RUB 0.04 to 23.69 RUB/USD. Meanwhile, the weighted average exchange rate stood at 23.71 RUB/USD, RUB 0.01 lower than the official rate set by the Bank of Russia for May 20. The current developments on MICEX can be attributed to the dollar’s decline against the euro on international exchanges. The latter is now trading at some USD 1.5590, up from roughly USD 1.5570 in the morning.

RBC, 19.05.2008, Moscow 13:44:17.A council for the fight against corruption will be established in Russia, and will be chaired by the country’s leader, the President’s Chief-of-Staff Sergei Naryshkin reported following an anti-corruption meeting with the President today. Naryshkin was also quoted by the Mayak radio station as saying that it had been decided to form an interdepartmental group for the fight against corruption, to be headed by himself. According to the Chief-of-Staff, Dmitry Medvedev had charged the participants of the meeting to prepare a national plan for countering corruption. In turn, Russia’s General Prosecutor Yury Chaika added that the plan would be approved by a presidential decree.

RBC, 19.05.2008, Moscow 12:26:36.Sukhoi Civil Aircraft Company (SCAC) carried out the first flight of the Sukhoi SuperJet-100 (SSJ-100) Russian regional jet in Komsomolsk-on-Amur today, the company’s press office told RBC. The plane was in the air for one hour and five minutes, reached the altitude of roughly 1,200 meters, and landed safely. The flight was preceded by a variety of trials, as all systems were tested on the ground.

RBC, 19.05.2008, Moscow 09:58:38.Russia has won first place in the ice hockey World Championship, beating Canada 5-4 in the final match. This is Russia’s first “gold” since 1993, when the current Russian chief coach Vyacheslav Bykov played for the Russian team. This was also the first ever game, in which Russia played versus Canada in the World Championship finals.

RBC, 19.05.2008, Moscow 09:24:42.A Russian delegation will resume multilateral consultations in Geneva on Russia’s accession to the World Trade Organization (WTO), which will last until the end of the month. It is expected that the delegation will be led by head of the Russian Economy Ministry’s trade negotiations department Maxim Medvedkov. As part of the preparation of the final document, Russia will discuss with its key trade partners such systemic issues as customs and technical regulation, protection of intellectual property rights, and state support of agricultural producers. The major issue that has yet to be agreed upon with the US and the Cairns Group (an interest group of agricultural exporting countries) is the size of agricultural subsidies.

RUSSIA

* Russian President Dmitry Medvedev has signed a decree on measures to counter corruption, the Kremlin said on Monday

* Russian President Dmitry Medvedev has appointed Arkady Dvorkovich sherpa in the Group of Eight industrialized nations, and also reappointed four officials as heads of presidential administration departments, the Kremlin said on Monday

* Russian Prime Minister Vladimir Putin issued instructions on Monday to assess and check foreign trade contracts in the agricultural sphere for their compliance with the country’s interests

* Russia’s new Voronezh-type radar site in the southern town of Armavir will be put on combat duty in February 2009, the commander of the Russian Space Forces said

* Russia’s Maria Sharapova once again heads the rating list of the Women Tennis Association after the former World No. 1, Justine Henin of Belgium, announced she was quitting tennis last week

* Dmitry Medvedev has appointed Sergei Ushakov as a presidential adviser, the Kremlin press service said on Monday

* Irina Khakamada, a well-known Russian opposition figure, told RIA Novosti on Monday that she had quit politics

* The first charter planes carrying Manchester United and Chelsea supporters have arrived in Moscow as the Russian capital gears up to host the first all- English final in the history of Europe’s most prestigious club competition

* Russian President Dmitry Medvedev will head an anti-corruption council to be set up in Russia in the near future, Kremlin chief of staff Sergei Naryshkin said after a presidential conference

* Agricultural experts have detected bird flu antibodies in migratory birds in southern Siberia, Russia’s agricultural watchdog said in a statement Monday

* A Tajik national in possession of over 5 kg (11 lbs) of heroin has been detained near Moscow’s Kazansky railway station, a police source said

* Russia’s new Superjet 100 medium-haul passenger airliner made its first test flight on Monday, a spokesman for manufacturer Sukhoi Civil Aircraft said

* A new round of bilateral and multilateral talks on Russia’s bid to join the World Trade Organization (WTO) will begin in Geneva on Monday, Russia’s chief delegate to the talks said

* Eighteen people including 15 Russians were injured when a tourist bus crashed in Ukraine’s Crimean peninsula, a spokesman for the local emergencies service said on Monday

WORLD

* During a meeting with the UN envoy to Afghanistan on Monday Iran’s president said that foreign intervention in Afghanistan would not solve the problems in the country

* The government of Kosovo has adopted a law on public holidays in the “world’s newest state”, Serbia’s Tanyug news agency reported

* An Estonian court said the trial of a 88-year-old WWII veteran and Hero of the Soviet Union on charges of genocide is due to start on May 20 in the town of Kardla in the country’s western island of Hiiumaa

* The cost of damage from Myanmar’s Cyclone Nargis, which hit the Southeast Asian country over two weeks ago, has been assessed at over $10 billion, national media said on Monday, citing Myanmar Foreign Minister Nyan Win

* Kazakhstan has banned the export of petroleum products in a bid to stem price growth on the domestic market, Prime Minister Karim Masimov said on Monday

* The European Bank for Reconstruction and Development will donate 135 million euros to support international efforts to clean up the territory of the Chernobyl nuclear power plant, the bank said on Monday

* Russia’s national ice hockey team beat Canada 5-4 in overtime in the final of the 2008 IIHF World Championship in Canada to become world champions for the first time in 15 years

* The Ukrainian government plans to involve the international community in an investigation into a mineral license scandal concerning a U.S. oil company, Prime Minister Yulia Tymoshenko said

* Another two Russian aircraft will deliver humanitarian aid to southwest China, which was devastated by an earthquake May 12, the Russian Emergencies Ministry said

* Georgia and its breakaway republic of Abkhazia have drawn up a plan to resolve their long-running conflict, a Russian business daily reported

* Eight people have been killed and nine injured in two terrorist attacks in Afghanistan, the country’s interior and defense ministries announced on Monday

* Some 200 relief workers have been buried in landslides over the past three days in China’s quake-hit province of Sichuan, the Xinhua news agency reported on Monday

* A group of Syrian military officials arrived in Moscow on Monday to discuss prospects for bilateral military and technical cooperation, a Russian Air Force spokesman said

BUSINESS

* Novatek said on Monday its net profit calculated to International Financial Reporting Standards (IFRS) grew 80%, year on year, in January-March 2008 to 7.5 billion rubles ($315 million)

* Severstal, Russia’s top steelmaker, said on Monday it had signed an agreement to buy 100% of U.S.-based WCI Steel’s shares for $140 million

* Russia’s crude exports declined 3.3% year-on-year in the first quarter to 61.1 million metric tons (448 million barrels), the country’s top statistics body said on Monday

* Russia’s largest steel producer Severstal is set to issue $1.5 billion in Eurobonds and could invest the funds in buying U.S. steelmaker Esmark, business daily Vedomosti reported

* The European Union said it had cleared the joint venture between SolVin, owned by the Solvay Group, BASF, and the Russian energy giant Gazprom’s Sibur

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Hello,

I was drinking my morning cup of coffee later than usual today, I had to undergo some tests for my cardiologist and I have more tests to come in the next few weeks. As I was drinking my coffee I thought about how fantastic the health care is here in Moscow.

I have an insurance plan that costs me $500 per year. (Yes, per year : not per month!) It is not a plan from America, but a Russian health plan.

I have a cardiologist, a regular doctor (therapist), a dentist, a doctor for pain, a doctor for arthritis & in fact, a doctor for any issue that I need. These doctors are all women, no men. In Russia the medical field is dominated by women.

In America one trip to the cardiologist was $500. I had 6 heart attacks before I came to Russia & it was a concern of mine, about health care. Everything that I read was about how terrible the health care is in Russia.

I am here to tell you that if I had the cardiologist in America that I do now (in Russia), I may have not suffered 5 more heart attacks. I feel that if I had a cardiologist that cared about me, instead of did I have insurance (I did) & how fast can we get you out of the hospital! I would have been better off.
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My first heart attack was while driving to work. I drove myself to a hospital and was released in two hours after a cardiologist said: “It is all in his head!” Two weeks later I drove myself to another hospital, to find that I had a blockage of my LAD or *widow maker of 98 percent!

*(A widow maker is a nickname used to describe a highly stenotic left main coronary artery or proximal left anterior descending coronary artery of the heart. This term is used because if the artery gets completely occluded it will cause a massive heart attack that will likely lead to death.)

To make a long story short, I had a stent put in the second time and the following 4 trips to the hospital, I ended up with 5 more stents being put in for a total of 6 stents.**

**(In medicine, a stent is a tube that is inserted into a natural conduit of the body to prevent or counteract a disease-induced localized flow constriction.)

Out of 6 trips to the hospital I drove myself 5 times & rode the ambulance once. The insurance that I had, refused to pay for the ambulance ride? ($3867)

The total bills of all my heart fun times came to over $1,000,000.
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The health care in Russia has been fantastic, Now I have a group of doctors that take all the time that is needed and they run any test that is needed. They never make you feel like you are a burden all for $500 a year……

Kyle & Svet

comments always welcome.

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Hello,

Just found a tidbit of information about renting office space in Moscow….
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Rent in Moscow business centers had skyrocketed. According to consultants Cushman & Wakefield & Stiles & Riabokobylko, the average cost for 1 sq. m. of class-A office space, not counting VAT, services and other charges, rose within the Garden Ring rose from $1000 in March to $1200 in April, up 75 percent in one year, and 20 percent in one month, that is 14 times more than the official inflation rate for that month of 1.2 percent. C&W&S&R say that Moscow has passed Paris in the rating of expensive office rentals, and may exceed London by 2010.
In the first quarter of this year, total office space in Moscow reached 7.31 million sq. m., almost 60 percent of which is in the Central District. Rent is rising is other parts of the city as well. Rent in Moscow City rose 40 percent in a year to $1340 per sq. m. in April. There is also high demand for office space in the northern bedroom neighborhoods, although rent there has increased only 1 percent in a year, to $600 per sq. m. In London, Europe’s most expensive capital, prices in the Western part of the city, the section favored by large corporations, are rising by 2-5 percent annually.

The situation in Moscow is due to reduced new construction in the center of the city. While it was planned to build 155,000 sq .m. of new office space in the first quarter of this year, much less than that was built. Furthermore, city officials have banned the building of new office space in the center. Until 2009, only projects begun before the moratorium will be completed. Olga Yasko of Colliers International said that 377,000 sq. m. of new office space were made available in 2007. This year, 429,000 sq. m. are planned, and next year 524,000 sq. m. will be made ready. The financial crisis has forced up the cost of credit for developers from 10-11 percent to 18 percent annually, which is also reflected in the prices.
www.kommersant.com
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Leaves me out of the office renting game.

Kyle & Svet

comments always welcome.

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