16 August 2015
Russia Recession Poses Financial Dilemma for Companies: Western Sanctions, Lower Oil Prices, and a Falling Rouble Test Business Resolve
The Financial Times reports on challenges and opportunities in Russia’s current economic crisis through the lens of Radius Group, a warehouse and logistics developer with a flagship South Gate Industrial Park just 20 minutes south of Moscow. The combination of the rouble devaluation, combined with Western sanctions, lower oil prices and decrease foreign investment has made it difficult to run a business in Russia and everyone must adjust. However, there are signs of new economic activity. With sanctions, many goods and services that were formerly imported are now being produced and delivered by local Russian companies, which spurs local demand. The food industry, for example, is growing. While there are risks of more economic headwinds ahead, for example, a China currency devaluation, Russian vacancy rates have started to tighten which is a positive development.
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