![]()
![]() |
|
![]() |
Publications |
![]() Recent news References Chambers Europe “The team was recently visible advising on a number of pharmaceutical cases. Sources agree that the team is “moving in the right direction” and are particularly impressed by its work in the pharmaceutical sector”. |
Investment and business prospects of the Crimea03.04.2014
Andrew Onistrat, Chairman of the Supervisory Board of the Bank National Credit
1. Crimea Autonomy Business Trade industry has always been the most flexible segment capable of quick adaptation to new conditions. It will not be an exception in this case either. All retail trade will immediately become prepaid just because business has no better protection against risks than prepayment. It will result in a rapid rise in prices in supermarkets and shops. The upward trend has already started: I have recently talked to a representative of a Swiss pharmaceutical company, who confirmed that the company has already begun working with the Crimea on the 100% pre-payment basis. Investment 2. Crimea as part of Russia Another important point is loans and deposits. Borrowers will take advantage of the situation and 80% of liabilities will defaulting. It is slightly less than in case of independence, where I predict up to 99% bad debt. Further the Ukrainian banks cannot avoid their obligations to own depositors and lenders. Any Crimean resident, a former citizen of Ukraine, having deposit in the Ukrainian bank, will retain his/her passport and claim fulfillment of the relevant obligations, and the banks will have no legal grounds to refuse. Network business In any case, the Crimea with a population of 2 million people, the figure has every chance to decrease on account of refugees, can hardly be called an ideal market. In this sense, the Crimea shall not rely on the Russian business: investors will not hurry to invest in the region with the high seasonality and a declining population lacking infrastructure and logistics. We cannot speak about investments in this case. Money infusions promised by the Russian party in case of annexation of the Crimea can be called subsidies more correctly with all the consequences. The only question is whether the promises of the Russian Federation will be implemented and how long the federal budget will cover the increased appetites of the Crimea. After all, it is not about preserving the existing indices, and about the total improvement in every aspect of economy, social standards, etc. Mikhail Ilyashev, attorney at law, Managing Partner, Ilyashev & Partners Law Firm 1. Autonomous Crimea 2. Crimea as part of Russia Private property rights are very likely to remain effective. However, confusion and chaos are inevitable during transitional period. There is no procedure for transferring data from the Ukrainian to the Russian registry, and considering differences between the laws and regulations of two states it will be difficult to develop. Moreover the Ukrainian system of property rights registration is far ahead of the Russian one. Network business Investment |