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Tag: Russia

  • Black Sea Tensions Threaten Asian Food Supply Chains, Embassy Warns

    Black Sea Tensions Threaten Asian Food Supply Chains, Embassy Warns

    Tensions in the Black Sea region are creating significant risks for global food security and supply chains, with direct implications for Asian markets, warned the Russian Embassy in Cambodia. The embassy issued a comment responding to an article on food security originally published by The Indian Express and reprinted by Khmer Times, stating that the “Kiev regime and its sponsors” are overlooked as main beneficiaries of supply chain disruption.

    According to the statement, Ukrainian forces have increased attacks on coastal transport, logistics infrastructure, and civilian vessels in the Sea of Azov and the Black Sea. These attacks, reportedly utilizing unmanned systems and intelligence from NATO and the EU, have targeted essential agricultural shipments such as grain and sunflower oil.

    Shipping Under Attack

    The embassy cited several incidents, including a June 5 drone attack by the Armed Forces of Ukraine (AFU) on dry cargo ships Natra and Zirkon in the Sea of Azov, which resulted in five fatalities and three injuries. In July, there were over 100 reported drone attacks by Ukrainian forces against private vessels transporting Russian agricultural products to the global market. An attack on July 18 targeted the commercial bulker MV OMORFI, which was sailing under the Marshall Islands flag and transporting grain, leading to the death of an Indian sailor.

    Further incidents included AFU attacks on the grain export terminal in Rostov-on-Don between July 25-27, followed by the seaport of Taman on July 30. Ukrainian drones also targeted the Nadezhda, a ship flagged by Cameroon and operated by a Turkish company, and the Turkish bulk carrier Yaşar on August 3. These actions, described by the embassy as militarily pointless, violate international law on civilian vessel safety and cause delays in deliveries of crucial commodities to international importers.

    Global Market Impact

    The embassy asserts that this military campaign by the Kiev regime aims to create chaos in the global food market, serving the interests of several Western countries. This strategy, combined with financial, economic, and energy restrictions, is contributing to a deficit in grain and fertilizers, pushing up global food prices. The statement emphasized that countries in the Global South and East are becoming hostage to these policies, facing increased costs.

    In response, the Russian Armed Forces are reportedly taking measures to ensure navigation safety, including precision strikes against Ukrainian facilities used to destabilize shipping and infrastructure involved in delivering Western military hardware to Ukraine. These operations will continue until security threats in the Sea of Azov and Black Sea are eliminated, and unimpeded agricultural product exports are guaranteed.

    For Asia-Pacific retailers and consumers, these ongoing disruptions translate to higher import costs and potential supply volatility for staple goods like grains and oils. The region, heavily reliant on international trade, is particularly vulnerable to such geopolitical pressures on global commodity flows. This dynamic aligns with broader concerns RetailNews Asia has tracked regarding global supply chain resilience and its impact on regional retail sectors.

  • Russia Strikes Gold: Historic Peak of $310.72 Billion Shakes Up Global Rankings

    Russia Strikes Gold: Historic Peak of $310.72 Billion Shakes Up Global Rankings

    Russia’s gold reserves have reached a record-breaking value of US$310.72 billion, a significant increase of 57% from the previous year. According to data released by the Central Bank of Russia as of November 30th, this marks the fourth consecutive month of growth.

    Gold’s Role in Russia’s International Reserves

    Gold now represents over 42% of Russia’s international reserves, a percentage that has not been seen in the past 30 years. The total reserves, which include gold and foreign exchange, have seen a 19% year-on-year increase to $734.59 billion.

    Russia’s Position in Global Gold Investing

    According to the World Gold Council, Russia stands as the fifth-largest gold investor globally in the third quarter, with 2,329 tonnes in its reserves. The only nations that are ahead of Russia in terms of gold investment are the United States, Germany, Italy, and France.

    Meanwhile, China, holding the sixth position, has 2,303 tonnes of gold. However, interestingly, the value of gold only represents 7.68% of its total reserves.

    On the other hand, the United States continues to maintain the most significant gold reserves globally. Its 8,133 tonnes of gold account for a whopping 80% of the country’s reserves.

    Questions & Answers

    What is the current value of Russia’s gold reserves?
    The current value of Russia’s gold reserves is a record-breaking US$310.72 billion.

    What percentage of Russia’s international reserves is made up by gold?
    Gold now represents over 42% of Russia’s international reserves.

    Where does Russia rank worldwide in terms of gold investment?
    According to the World Gold Council, Russia is the fifth-largest gold investor in the world.

  • WinMart Debuts Exciting Russia Corner Shopping Experience in Hanoi

    WinMart Debuts Exciting Russia Corner Shopping Experience in Hanoi

    On June 12, in a vibrant celebration coinciding with Russia Day, WinCommerce unveiled its latest venture—Russia Corner—at the WinMart Royal City in Hanoi. This dynamic space is the brainchild of WinCommerce, the operators behind the WinMart and WinMart+ retail chains, in collaboration with Magnit Group and an array of distributors.

    Discover the Soul of Russia

    Russia Corner introduces an impressive array of over 170 stock-keeping units (SKUs) sourced from more than 30 distinguished Russian manufacturers. Themed “Soul of Russia,” this unique setup invites shoppers to explore an eclectic mix of traditional delicacies, including smoked sausages, black bread, and exquisite Russian chocolates. Each product has been officially imported and meticulously selected, all available at enticing promotional prices.

    A Taste of Russian Culture

    The charm of this corner extends beyond mere shopping; it offers customers an immersive experience into Russian culture, featuring iconic items like blini pancakes, samovar tea, and authentic vodka. This initiative not only fulfills shopping desires but also ignites curiosity about Russian traditions, enabling Vietnamese consumers to experience a slice of Russia right in their city.

    Enhancing the Shopping Experience

    A representative from WinCommerce highlighted that Russia Corner is integral to WinMart’s broader strategy of developing experiential shopping models. Each product is a testament to strong cultural identity, reinforcing WinCommerce’s commitment to creating varied and immersive retail environments for its customers.

    Cultural Engagement and Expansion

    The launch attracted a significant crowd of local shoppers and included notable guests from the Russian Embassy in Vietnam, Russia’s Ministry of Agriculture, the Russian Trade Agency, and key retail partners. WinMart is eyeing further expansion, with plans to enhance cultural activities and interactive experiences related to Russian heritage across major supermarkets nationwide.

    In line with its long-term vision, WinCommerce aims to elevate the shopping experience, nurture emotional connections, and integrate global cultures with Vietnamese consumers. From June 12 to 20, visitors to Russia Corner can indulge in tastings of iconic Russian products, partake in mini-games, and receive delightful themed gifts. Who knew shopping could be such an adventure?

    Questions & Answers

    What products does Russia Corner feature?
    A diverse selection of over 170 SKUs, including smoked sausages, black bread, and Russian chocolates, all showcasing the cultural depth of Russia.

    How long is the promotional event at Russia Corner?
    The festivities run from June 12 to 20, offering visitors a chance to sample products and engage in themed activities.

    What is WinMart’s larger goal with this initiative?
    WinMart aims to enhance the shopping experience by fostering emotional connections and bringing global cultures closer to Vietnamese consumers.

  • Honda To Pull The Plug On Car Sales In Russia In 2022

    Honda To Pull The Plug On Car Sales In Russia In 2022

    Honda Motor Company has said that it won’t be supplying new cars to its authorized dealers in Russia in 2022 as the company is trying to restructure its operations. The Japanese automaker has confirmed that it would keep its presence in the Russian market with motorcycle and power equipment sales only. The news comes after a drastic drop of 50 percent in its sales operations last month in Russia.

    Even in India, Honda has shut down its Greater Noida plant and has shifted its entire production unit to the company’s other facility in Tapukara, Rajasthan. The carmaker has said that it has realigned its production operations “to maintain sustainability by leveraging production and supply chain efficiencies.” From this month, the manufacturing operations for vehicles and components will happen at the Tapukara plant for all domestic sales and exports. Until last month, the Greater Noida plant produced models like the Honda City sedan, CR-V SUV, and the Civic sedan. While the transition will see the production of the City move entirely to the Tapukara unit, at present, the company has also stopped the production of its flagship models, the Civic sedan and CR-V SUV.

    As far as the Russian market is concerned, Honda does not have any manufacturing unit in Russia, unlike its other Japanese counterparts like Toyota and Nissan. All Honda models are sold as CBUs in the Russian market, and the carmaker sold just 79 units last month. Its sales from January to November were down by 15 percent at 1,383 units, while over 1.3 million new cars were sold in Russia during that period.

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  • Apple has paid $12.12 million to Russia for antitrust practices, another fine is pending

    Apple has paid $12.12 million to Russia for antitrust practices, another fine is pending

    Apple’s decision to stop product sales in Russia over the war in Ukraine has not saved the company expenses, stemming from the multiple antitrust investigations that are going on. One of them has reportedly concluded with a $12.12 million fine over the Cupertino Company breaking monopoly legislation.

    This particular case goes back to 2020, when the Russian Federal Antimonopoly Service (FAS) concluded that Apple is receiving an unfair advantage through its dedicated AppStore. The case has taken years to revolve, but the competition regulator finally concluded that Apple owes Russia a massive amount of money. Naturally, Apple “respectfully disagrees” and plans to appeal this decision, even though reports from Reuters point to the fine being already paid out.

    All of this was initiated through Kaspersky Labs — a company renowned for its antivirus software — when its Safe Kids app was rejected as per AppStore internal regulations. Anton Gorelkin — a committee member on information and communications — went on record stating that the fine isn’t meant to be damaging to Apple, but to be noticeable enough to send a message to Big Tech.

    But as we all know, sometimes, when it rains — it pours. Russia’s Federal Antimonopoly Service (FAS) is gaining on Apple with another fine, this time for $17.4 million. This one is related to the AppStore’s way of processing payments and more specifically, the lack of options that developers have when it comes to choosing how they bill their customers.

    As per Reuters’ report, Russia sees Apple’s rules as abuse over its dominant position on the iOS market. Furthermore, the big, red, flashing light is related to Apple’s prohibition of developers to point users to payment solutions outside of the AppStore itself.

    This is yet another instance of Apple being pursued by legislators worldwide over the way it runs its AppStore. This isn’t something unique to Apple either, as Google was recently forced through law to open up Android to third-party stores in India. As more and more lawsuits are being won against Big Tech companies, one cant help but wonder what the future of mobile digital goods will look like.

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  • Citi Shutting Consumer and Commercial Units in Russia

    Citi Shutting Consumer and Commercial Units in Russia

    After failing to find buyers, Citi has decided to close its consumer and commercial banking businesses in Russia.

    Citi will shut down its Russian consumer and commercial banking businesses starting this quarter, it said in a statement Thursday. The closure will result in about $170 million in charges over the next 18 months and affect 2,300 out of 3,000 employees across 15 branches in the country. Deposit accounts, investments, loans and cards will also be affected.

    The decision follows failed attempts to find a buyer for either business amid an ongoing Russia-Ukraine conflict.

    We have explored multiple strategic options to sell these businesses over the past several months, said Titi Cole, Citi’s chief executive of legacy franchises. It’s clear that the wind-down path makes the most sense given the many complicating factors in the environment.

    The bank’s Russian exposure totaled $8.4 billion as of the end of the second quarter, down from $9.8 billion compared to end-2021, with around $1 billion linked to the consumer and commercial banking businesses, it said.

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  • UBS Retreats From Russia in Small Steps

    UBS Retreats From Russia in Small Steps

    Following Russia’s invasion of Ukraine, UBS reduced its exposure to the country and continues to do so.

    As a result of sanctions imposed against Russia by various jurisdictions including the US, EU, UK, and Switzerland, among others, UBS said it is not conducting any new business with Russia or clients domiciled there.

    Furthermore, Switzerland’s largest bank continued to reduce its exposure to Russia by a further $100 million in the second quarter. While the sum is negligible in relation to its overall assets and business, it is nevertheless something that UBS and other banks point out in the reporting of their results.

    At the end of June, UBS had a direct country risk exposure to Russia of $300 million, down from $400 million at the end of the first quarter, and half of the $600 million exposure at the end of last year, UBS said in its second-quarter report.

    What remains is trade finance exposure in personal and corporate banking, one loan in the investment bank, cash account balances, and issuer risk on trading inventory within the investment bank. Moreover, the bank had «no material direct country risk exposures to Ukraine or Belarus as of June 3o.»

    In the first quarter of the year, both the EU and Switzerland banned deposits of over 100,000 euros on Russian individuals not legally residing in the European Economic Area (EEA) or Switzerland. UBS said this exposure has been reduced as well, with about 0.4 percent of invested assets in its global wealth management (GWM) related to such clients at the end of June, which is down from around 0.7 percent at the end of the first quarter.

    At the end of the second quarter, the GWM unit had $2.8 trillion of invested assets.

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  • India’s Imports Of Cheap Russian Crude Surge Since Ukraine Invasion

    India’s Imports Of Cheap Russian Crude Surge Since Ukraine Invasion

    India has received 34 million barrels of discounted Russian oil since Moscow invaded Ukraine on Feb. 24, according to Refinitiv Eikon data, more than trebling the value of total imports from Russia, including other products, compared with the same period of 2021. The volumes of India’s seaborne oil imports from Russia exclude CPC Blend oil, which is also exported via Russia’s Black Sea port, but mostly supplied by Kazakhstan’s subsidiaries of western countries as transit volumes.

    India’s oil imports from Russia have been rising since February, as Asia’s third largest economy and the world’s third biggest oil importer, turned to deeply discounted Russian oil, mostly Urals crude, to cut its imports bill.

    The country received more than 24 million barrels of Russian crude this month, up from 7.2 million barrels in April and about 3 million in March, and is set to receive about 28 million barrels in June, according to Refinitiv Eikon oil flows.

    Surging energy imports helped push India’s total goods imports from Russia between Feb. 24 and May 26 to $6.4 billion, compared with $1.99 billion in the same period last year, according to government figures seen by Reuters.

    India’s exports to Russia, however, fell nearly 50% to $377.07 million over that period, as its government is yet to set up a formal payment mechanism.

    As the West responded to the invasion with a barrage of sanctions, India has come under fire for its continued purchases of Russian energy. New Delhi has brushed off the criticism, saying those imports made only a fraction of the country’s overall needs and has said it will keep buying “cheap” Russian oil, arguing a sudden stop would drive up costs for its consumers.

    Russian and Indian energy companies have also been discussing term supply agreements and possible acquisitions of stakes in Russian oil and gas projects.

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  • Mastercard focuses on Southeast Asia, LatAm after India ban, Russia exit

    Mastercard focuses on Southeast Asia, LatAm after India ban, Russia exit

    Southeast Asia and Latin America are strong growth regions for Mastercard after its withdrawal from Russia in March and India’s 2021 ban on it from issuing new cards, the company’s co-president for international markets said.

    “Southeast Asia is exciting (due to) the right demographics, the adoption of technology and digitisation, and governments’ focus on financial inclusion,” Ling Hai told the Reuters Global Markets Forum, adding that countries in the region would also benefit as supply chains shift away from China.

    India’s central bank banned Mastercard after declaring it “non-compliant” with the country’s 2018 rules that required foreign card networks to store Indian payments data locally for “unfettered supervisory access”.

    “Our sense is we are getting really close to a resolution,” Hai said on the India ban, adding that the company was working “very constructively” with the Indian government and the Reserve Bank of India (RBI).

    Hai said Mastercard was ready to comply with India’s local data-storage rules. “The goal is to be 100% compliant. Anything we need to localise in India, we are taking tangible steps to get there.”

    Mastercard says India is a key growth market and has invested $2 billion in the country since 2014 to build technology centres and support innovation in digital payments.

    Mastercard suspended operations in Russia – a market that accounted for roughly 4% its net revenue in 2021 – in March, over its invasion of Ukraine.

    In Russia, if an opportunity arose to improve rules and regulations in areas such as financial inclusion, sustainability and data privacy, Mastercard will “work towards changing them together with other stakeholders in the ecosystem, including the government themselves”, Hai said.

    Hai also said that Europe was an exciting market for the company due to its post-COVID economic recovery and the scope of innovation that the continent offers.

    Besides geography, the payment network company is also focusing on high-growth parts of the business, such as business-to-business payments flows, telecommunications and retail.

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  • The enormous cost of McDonald’s Russian exit

    The enormous cost of McDonald’s Russian exit

    McDonald’s became the symbol of glasnost in action 30 years ago when it opened its first restaurant in Moscow. But after temporarily shutting down more than 800 restaurants following the invasion of Ukraine, McDonald’s has decided to leave Russia altogether.

    The burger chain will sell its Russia business, saying the “humanitarian crisis caused by the war in Ukraine, and the precipitating unpredictable operating environment, have led McDonald’s to conclude that continued ownership of the business in Russia is no longer tenable, nor is it consistent with McDonald’s values.”
    In March, shortly after the war began, McDonald’s followed other Western companies and temporarily shut down its restaurants in Russia.
    Once the sale is finalized, the Russian restaurants will be “de-Arched,” meaning the locations will no longer be allowed to use the McDonald’s name, logo or menu. McDonald’s said its employees will still be paid until the transaction closes and that “employees have future employment with any potential buyer.”
    CEO Chris Kempczinski said he’s proud of the more than 60,000 workers employed in Russia and said the decision was “extremely difficult.”
    “However, we have a commitment to our global community and must remain steadfast in our values. And our commitment to our values means that we can no longer keep the Arches shining there,” he said.
    The decision brings to a remarkable end McDonald’s three-decade relationship with Russia. McDonald’s opened the doors of its first restaurant in Moscow on January 31, 1990. More than 30,000 were served and the Pushkin Square location had to stay open hours later than planned because of the crowds.
    Its arrival in Moscow was about more than just Big Macs and fries, noted Darra Goldstein, a Russia expert at Williams College. It was the most prominent example of Soviet Union President Mikhail Gorbechev’s attempt to open up his crumbling country to the outside world.
    “There was a really visible crack in the Iron Curtain,” she previously said. “It was very symbolic about the changes that were taking place.” About two years later, the Soviet Union would collapse.
    McDonald’s exit “represents a new isolationism in Russia, which must now look inward for investment and consumer brand development,” said Neil Saunders, managing director of GlobalData said in a note Monday. He added that other Western brands take “principled stance on the concepts of freedom and democracy” and revisit their businesses in Russia.
    McDonald’s will take a significant write-off from exiting Russia — between $1.2 billion to $1.4 billion. Shares were barely changed in early trading.
    “The fact that McDonald’s owns most of its restaurants in Russia means there is an asset rich business to sell,” said Saunders. “However, given the circumstances of the sale, the financial challenges faced by potential Russian buyers, and the fact that McDonald’s will not license its brand name or identity, it is unlikely the sale price will be anywhere near the pre-invasion book value of the business.”
    In its most recent earnings report, McDonald’s said closing its restaurants in Russia had cost it $127 million last quarter. Nearly $27 million came from staff costs, payments for leases and supplies. The other $100 million was from food and other items it will have to dump.
    McDonald’s had 847 restaurants in Russia at the close of last year, according to an investor document. Together with another 108 in Ukraine, they accounted for 9% of the company’s revenue in 2021.
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  • Renault Group Signs Agreement To Sell Russia Operations, Avtovaz Stake

    Renault Group Signs Agreement To Sell Russia Operations, Avtovaz Stake

    Renault has announced that it has signed an agreement to sell its entire 100 percent stake in Renault Russia along with its controlling stake in Russian firm Avtovaz. The company said that Renault Russia would be turned over to Moscow City entity while its entire stake in Avtovaz would be turned over to NAMI (Russia’s Central Research and Development Automobile and Engine Institute).

    “The closing of these transactions is not subject to any conditions, and all required approvals have been obtained,” the company said in a statement.

    “Today, we have taken a difficult but necessary decision; and we are making a responsible choice towards our 45,000 employees in Russia, while preserving the Group’s performance and our ability to return to the country in the future, in a different context. I am confident in the Renault Group’s ability to further accelerate its transformation and exceed its mid-term targets,” said Luca de Meo, CEO Renault Group.

    While Renault has given away its entire stake in its Russian operations, the company has retained the option to buy back its 67.69 percent stake in Avtovaz. The company says that the buyback is exercisable at certain times over the next 6 years.

    Renault said that in line with its decision from March 23, the company would record a non-cash adjustment charge amounting to the accounting value of its entire Russian operation including assets, equipment, and goodwill in its financial results for the first half of 2022. The company’s Russian operations would then be deconsolidated in the Group’s consolidated financial statements for the period ending June 30.

    The entirety of Renault’s Russian operations was valued at 2,195 million euros as on December 31, 2021.

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  • Rice exports to Russia jump in Q1

    Rice exports to Russia jump in Q1

    Vietnam’s rice exports surged 2.6 times year-on-year to over US$553,000 in Q1, according to Vietnam Customs.

    The grain was one of Vietnam’s few exports to Russia that increased in the first quarter as the Russia-Ukraine crisis impacted other suppliers. It was one of only eight export items that saw increases out of 23.

    Overall exports to Russia fell by 29.1 percent to $543.8 million.

    The others to achieve positive growth included rubber, up 60.2 percent to $7.2 million, machinery, equipment, coffee, and iron and steel, which were 4-40 percent higher.

    But many Vietnamese exporters see the writing on the wall which is the crisis and Western sanctions starting to disrupt trade.

    They need to closely monitor and follow news from Russian banks on new regulations and payment channels as the country has been removed from the SWIFT international financial system.

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  • The Russian Bank That Escaped Sanctions So Far

    The Russian Bank That Escaped Sanctions So Far

    Tinkoff Bank has so far avoided being sanctioned as its founder and Putin critic Oleg Tinkov stayed in an orbit neither too close nor far from the Kremlin.

    The Russian bank Tinkoff has avoided being directly caught in sanctions that hit rival banks such as Sberbank and Gazprombank related to Russia’s invasion of Ukraine.

    Founded by Oleg Tinkov 16 years ago, Tinkoff Bank is one of Russia’s largest banks that is not state-run and, in addition to avoiding sanctions, has remained on the all-important Swift global messaging system.

    As a result, the bank has benefitted as people flocked to open accounts at the bank, while others transferred funds from Sberbank and VTB, which together account for nearly half of the banking market.

    Tinkov bristles at being labeled an oligarch, and the son of a coal miner and seamstress prefers being viewed as a self-made businessman who didn’t need a cozy relationship to win big contracts. He is also an outspoken critic of the War in Ukraine.

    In a series of posts on Instagram, he said I don’t see ANY beneficiary of the crazy war! Innocent people and soldiers are dying» he said in one. In another, he wrote How will the army be good, if everything else in the country is shit and mired in nepotism and servility?. That is a pretty clear indication he is attempting to distance himself from Russian President Vladimir Putin.

    While the bank he founded has managed to escape sanctions, Tinkov himself has not. Last month he was put on the sanctions list in the U.K., which means having had his assets frozen, barred from doing business with companies and citizens there, and is prohibited from entering the country.

    The bank, however, said this would not affect it since he no longer holds a majority or controlling interest, having reduced his stake to 35 percent. Moreover, the bank said he no longer works there and is now being run by Oliver Hughes and Pavel Fedorov.

    Tinkov has also tangled with western governments, notably the U.S. where he was accused of under-reporting assets to the Internal Revenue Service (IRS) to the tune of $1 billion after Tinkoff Bank went public.

    Just before the IPO, Tinkov renounced his U.S. citizenship, which is something the IRS views as a big no-no. For people giving up their citizenship having a net worth over of $2 million, an exit tax based on all assets including homes, deferred compensation, and pensions at the time of expatriation is likely to be applied. The case was later settled for just over $500 million, allowing him to avoid extradition to the U.S.

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  • As western retail brands exit, Russia looks east for replacements

    As western retail brands exit, Russia looks east for replacements

    Russia is looking to China, India, Iran and Turkey to plug the gap created by an exodus of western retail companies, an industry body said on Friday, as Moscow grapples to find ways to combat its growing isolation in the face of sanctions.

    The Russian Council of Shopping Centres (RCSC), an organisation representing developers, shopping centre owners and retail chain operators, said it was negotiating with its corresponding representatives in the four countries about finding alternatives to western brands.

    “A list of foreign companies that have temporarily ceased operations in Russia was sent to them so that appropriate equivalents can be found,” a statement on the RCSC website read.

    “Over time this will help supplement or completely replace goods of the defunct brands with ones of a similar quality and design.”

    Dozens of big brands have temporarily shuttered operations or exited the country since Russia sent tens of thousands of troops into Ukraine on Feb. 24 in what it calls a special operation.

    Sanctions have hampered supply chains and fuelled panic buying among some Russians, with medicine and sugar shortages reported, and accelerating inflation is set to send prices higher.

    During an RCSC meeting of more than 100 market participants, the challenges facing Russian retailers were discussed.

    RCSC cited Igor Maltinsky, director of development at Melon Fashion Group, as saying that the main challenge facing domestic retail firms was the uncontrollable growth of production costs, due to huge increases in procurement and logistics costs, as well as many other related factors.

    Melon owns four, mainly women’s, fashion brands – Zarina, Befree, Love Republic and Sela and had 846 stores across Russia and CIS at the end of 2021. It had been planning to hold an initial public offering (IPO) this year.

    On Thursday, Swedish real estate firm Eastnine, a minority shareholder in Melon, said the planned IPO had been postponed. It said western sanctions had negatively affected the company, making valuing it very difficult.

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  • Travel firm temporarily stops Russia tourist services

    Travel firm temporarily stops Russia tourist services

    The largest Vietnamese travel agency for Russian tourists has temporarily suspended its services for the market as a fallout of Western sanctions imposed on Russia.Anex Vietnam Travel and Trading announced the suspension after taking more than 300 Russian tourists home Thursday.

    Bui Quoc Dai, Deputy Director of Anex Vietnam, said they made the decision after Russian authorities advised the country’s airlines to halt all international flights (except from and to Belarus) following Western sanctions.

    “We will stop conducting tours for customers from Russia at least until March 28, when Russian authorities are scheduled to announce further changes,” Dai said.

    Earlier this month, the Russian federal agency for aviation transport FAVT told Russian airlines “which have planes registered abroad under leasing contracts with foreign partners” to halt most international flights between March 6-8. It cited the “high level of risk for planes to be detained abroad” as a reason for the recommendation.

    Dai noted that the number of Russian tourists had fallen sharply since the end of February after Russia launched its “special military operation” in Ukraine. He said his firm has racked up losses despite receiving nearly 6,000 Russian visitors since last December, as they were unable to fill charter flights.

    Vietnam tour operators specializing in Russian and Eastern European markets have also warned that the devaluation of the Russian ruble would affect the inbound market.

    In 2019, Vietnam received a record 646,000 tourists from Russia, making it the sixth-largest tourism market after mainland China, South Korea, Japan, Taiwan, and the U.S.

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