` Russia Eyes up the ` Republic of South Africa ‘ as the `New Developing Market ‘ and Opens Gazprombank ‘

#AceFinanceNews – PRETORIA – April 25 – Gazprombank has become Russia’s first commercial bank to open its representative office in the Republic of South Africa (RSA).

South African Deputy Minister of Finance Nhlanhla Nene, said in remarks at the presentation ceremony on Thursday that after two years of negotiations, Gazprombank had chosen the RSA as its base in Africa. He wished the Bank every success and thanked it for the shown trust in the South African economy.

Oleg Vaksman, Gazprombank’s Deputy Chairma of the Management Board, told Itar-Tass that the Bank eyes many rapidly developing African economies. “We shall operate within the area of the Southern African Development Community and in the continent’s east.

We are interested in traditional sectors, such as oil and gas, energy, and infrastructure,” he said.

The emergence in Africa of Russia’s third-largest bank accords with its strategy for a direct access to developing markets. “Physical presence in a country is required for achieving that. Over here, we have strategic intentions.

We do not intend just to earn money on some project and quit. We want to have an order book,” Vaksman emphasized.

In Africa, it is possible to achieve a high profitability on credit-lending. However, political risks over here are higher than elsewhere. “One must take both these factors into consideration,” Vaksman said.

The representative office of Gaprombank expects to obtain a license in South Africa towards the end of the year.

Ndaba Ntslele, South African Co-Chairman of the RSA-Russia Business Council, welcomed the Russian bank’s coming.

“We have got sick and tired of endless memoranda of intent. It is time to move on to specific deals,” he said.

Russian Oil and News Media Sources.

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#gazprombank, #pretoria, #republic-of-south-africa-rsa, #russias, #south-africa-brics

` Standard and Poor’s Downgrades Russia’s Sovereign Credit Rating to BBB with Negative Outlook ‘

#AceFinanceNews – LONDON – April 25 – International rating agency S&P has downgraded Russia’s sovereign rating from BBB to BBB- with ‘negative’ outlook.

S&P has explained downgrading of Russia’s sovereign credit rating from BBB to BBB – with capital flight from the country in the first quarter of 2014 and reduced capabilities to attract funding on foreign financial markets due to current Ukrainian political crisis, the agency stated.

“We believe that the complex geopolitical situation between Russia and Ukraine may lead to additional substantial outflow of both foreign and local capital of the Russian economy, undermining the already weak growth prospects,” S&P said.

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#ans2014, #london, #russias, #russian, #sovereign-rating, #standard-and-poors, #ukraine

` German Government has Frozen Military Exports to Russia over Connection with situation in Ukraine ‘

#AceFinanceNews – UKRAINE – The German government has frozen military exports to Russia in connection with the situation in Ukraine, Germany’s Economy Ministry reportedly said in response to a request of the opposition Greens party.

According to German media, 69 export requests worth 5.18 million euro ($7.16 million) have been blocked.

“Because of the current political circumstances, no export licenses for defence goods for Russia are being granted.

Furthermore, Germany has launched a study into what can be done about export licenses previously granted,” the ministry replied to the Greens’ request, Reuters reported.

Die Spiegel – Reuters – RT News

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#german, #ukraine