• Abstract and Figures
• Public Full-text

WWW.BNE.EU Russian e-commerce recorded one of the world’s highest growth rates in 2020 Hungary’s most powerful oligarch says he is just a lightning rod for attacks on Orban July 2021 Turkey, China in firing line as Biden holds summit with Nato allies Russia hits herd hostility to vaccines as COVID rages THE CLIMBING OF COST CARBON Coal bandits M.Video-Eldorado Armenia's Pashinyan wins p.20 Russia's retail lion re-election in landslide p.46 p.58 ISSN 2059-2736 ISSN 2 I Contents bne July 2021 Senior editorial board Ben Aris editor-in-chief & publisher I Berlin 20 6 +49 17664016602 I [email protected] Clare Nuttall news editor I Glasgow +44 7766 513641 I [email protected] William Conroy editor Eurasia & SE Europe I Prague +420 774 849 172 I [email protected] ——— Subscriptions Stephen Vanson 12 London I +44 753 529 6546 [email protected] ——— COMPANIES & MARKETS Advertising 4 International banking groups 15 Russia to reduce its dollar holdings Elena Arbuzova look to expand in Central and in its NWF rainy day fund to zero business development director I Moscow +7 9160015510 I [email protected] Southeast Europe de-spite ——— pandemic 17 Russian e-commerce recorded one of the world’s highest growth rates Design 6 Poland's PKN Orlen bulks up in 2020 Olga Gusarova to play in the big league art director I London 18 Tinkoff offers virtual phone +44 7738783240 I [email protected] 8 Merger between Moneta secretary to all Russian mobile Money Bank and Air Bank phone users Please direct comments, letters, press releases in trouble after proxy firms and other editorial enquires to [email protected] come out against 19 Turkey’s Getir online rapid groceries business raises $555mn All rights reserved. No part of this publication 9 Russian stocks Geneva in new funding round may be reproduced, stored in or introduced to any summit rally comes to retrival system, or transmitted, in any form, or by any means electronic, mechanical, photocopying, an end after 36 weeks of 19 Albanian fintech Rubicon raises recording or other means of transmission, without straight inflows pre-seed funding round express written permission of the publisher. The opinions or recommendations are not necessar- 10 Russian government tweaks 20 Coal bandits ily those of the publisher or contributing authors, including the submissions to bne by third parties. 50% dividend payout rule for No liability can be attached to the publisher for state companies 26 Gazprom confesses to several big these comments, nor for inaccuracies, errors methane leaks this year or omissions. Investment decisions or related actions taken on the basis of views or opinions 11 European commissioner that appear herein are the responsibility of the confirms €30bn EU 27 IEA calls for $1 trillion of annual reader and the publisher, contributors and related investment plan for Western investment into clean energy in parties cannot be held liable for these actions. Balkans developing economies bne Intellinews is published by Emerging Markets Direct OU 12 Romexpo real estate project 29 Central bank says 50% of Romanian exposes divisions within bank loans bear climate change risk Print issue: Romania’s ruling coalition £4.50 /$6.75 /€5.90 . €499 / year 13 Romanian developer One United Properties to launch COVER FEATURE Follow us on IPO twitter.com/bneintellinews 30 The climbing cost of carbon 14 Citigroup winding up Sign up to FREE electronic version brokerage in Turkey of bne monthly magazine OR buy a print subscription at bne.eu/subscribe bne July 2021 Contents I 3 36 39 54 CENTRAL EUROPE EASTERN EUROPE 34 Hungary’s most powerful 46 M.Video-Eldorado Russia's oligarch says he is just retail lion a lightning rod for attacks on Orban 50 Russia’s sanctions soft underbelly: precision 36 Hungary seems all set for machine tools a record year in 2021 54 Kyrylo Shevchenko, Governor of the National Bank of Ukraine 64 SOUTHEAST EUROPE 38 Turkey, China in firing line as Biden holds summit with Nato EURASIA OPINION allies 58 Armenia's Pashinyan wins 64 More speed, less haste – 39 Albanian judge who appeared re-election in landslide finding the right balance in in designer clothes on TikTok preparation for Uzbekistan’s suspended 59 MPP's Khurelsukh wins SOE privatisation landslide victory in 40 Two jail terms amounting to Mongolia’s presidential 66 Biden meets Putin: America, 3,576 years handed down for election Russia, and the return of conspiracy to frame Turkey’s diplomacy Fenerbahce football club 61 Erdogan pays historic visit to post-war Nagorno-Karabakh 68 The challenges of targeting 42 Albanian MPs impeach Minsk and doing more harm President Ilir Meta 62 No sign election of Raisi than good as Iran’s president will 44 Illegal organ transplant derail efforts to restore 71 Russia hits herd hostility to scandal revealed at Bulgarian nuclear deal vaccines as COVID rages VIP hospital 63 Khamenei given Iran made 45 Montenegro’s ruling coalition coronavirus vaccine shot in question after justice NEW EUROPE IN NUMBERS minister sacked over genocide denial 75 Russians consider the US to be the number one “unfriendly country” 4 I Companies & Markets bne July 2021 International banking groups look to expand in Central and Southeast Europe despite pandemic Clare Nuttall in Glasgow he latest CESEE Bank Lending Survey from the “Our latest survey shows that the policy responses to the European Investment Bank (EIB) shows that COVID-19 shock have been instrumental in limiting the most Tinternational banking groups remain committed to abrupt and negative effects for the banking sector in Central, the Central, Eastern and Southeast Europe region, with their Eastern and Southeastern Europe in 2020 and early 2021,” strategies tilted “towards expansion or stability” despite the said the EIB vice-president responsible for economic studies, coronavirus (COVID-19) pandemic. Ricardo Mourinho Félix. The survey, carried out in spring 2021, showed that around Only a few banking groups signalled a contraction, and this 60% of the banking groups intend to maintain operations in was only in terms of intra-group funding. Meanwhile, banking the region, while 30% intend to expand operations selectively. groups expect an increase in cross-border exposures. This is a more positive picture than in previous surveys. However, there are different views across countries in the More than 80% of banking groups surveyed expect their profitability in the region to be equal to or higher than their group’s total profitability over the next six months. “More than 80% of banking groups "Following the large negative COVID-19 shock, banking surveyed expect their profitability in exposures in net balances to the region started to expand over the past six months,” says the report. The survey showed that the region to be equal to or higher the number of banks declaring a reduction in their exposures than their group’s total profitability to the region was lower than those declaring an increase in exposures. over the next six months” www.bne.eu bne July 2021 Companies & Markets I 5 region, with banks singling out Bosnia and Herzegovina and Kosovo as having signs of somewhat increasing lower market potential, while in other countries they see medium to reasonable market potential. However, the report added: “Prior to the COVID-19 pandemic, exposures had been oscillating, reflecting an increased level of global uncertainty and volatility. This calls for a cautious approach when interpreting the current outcomes.” Demand for loans and credit lines rose in the six months before the survey was compiled, recovering from the sharp contraction recorded in the second and third quarter of 2020. This was the first contraction in aggregate demand in six years. Source: EIB – CESEE Bank Lending Survey. Note: All indicators in net percentages. “The increase in demand was primarily supported by working Supply/Demand: Positive figures refer to increasing (easing) demand (supply). capital needs, debt restructuring but also positive housing Access to funding: Positive values indicate increased access to funding. NPL: Negative market prospects,” according to the report. “Debt restructuring started to be a positive contributing partners is needed to boost investment activities, to help the element since March 2020, whilst its contribution was region not only recover but to further prosper and meet the close to zero in pre-pandemic years. On the other hand, challenges of the green and digital transition.” the contribution from investment continued to be negative, as already detected in spring and autumn 2020 waves of The survey showed uneven expectations across client portfolios. the survey. This is a significant turnaround, because fixed The household segment is anticipated to benefit from easing investments were among the highest positive contributors standards, while SMEs and large corporates are still expected prior to the COVID-19 pandemic.” to face tightening credit standards, the survey revealed. On the supply side, the report said that credit standards However, the report added: “Despite a tightening in supply tightened – the tightening was observed across the client conditions, approval rates have increased in the past six spectrum, but in particular for small and medium-sized months compared to the significant drop recorded from April enterprise (SME) and corporate lending. Looking forward, to September 2020. The terms and conditions of loan supply banks anticipate that aggregate supply conditions will tightened in terms of size of the loans and only slightly in gradually move towards a neutral stance but not ease in the terms of maturity.” next six months. Meanwhile, collateral requirements have tightened, especially “The financial system in Central, Eastern and Southeastern for SMEs. When it comes to the reasons for tightening Europe is showing a remarkable resilience in [the] face of one conditions, the survey reveals local market outlooks and non- of the largest economic shocks it has ever faced.

Load more

  76

Copy Link