Sensible businessmen realize they have a better chance to work in Russia
Deutsche Bank is not afraid of peculiarities of the Russian economy. The bank has acquired 40 percent of the stocks of the Russian Unфited Financial Group (UFG, founded in 1994). K2Kapital reminds, Deutsche Bank is Europe's second largest bank on the amount of assets.
The joint press-release of the bank and the company said the sides had achieved the principal agreement on the issue. The sides plan to sign the final agreement on November 6th 2003. The transaction will be completed in January of 2004, Prime-TASS reported.
The joint statement of the two companies says, they are intended to trade Russian equities, work on the Russian corporate finance market and conduct joint analytical research. Deutsche Bank and the UFG have not exposed the price of the transaction yet, K2Kapital reported.
The joint statement runs, the previous UFG management would be preserved. Deutsche Bank's spokespeople will become members of the Russian company's board of directors.
According to the forecasts of the Russian government, the national economic growth is to exceed the six-percent growth during the current year. The year 2003 will become the fifth year of the economic development - the longest period of the economic rise since the collapse of the USSR.
The transaction is taking place after foreign investors' meeting with President Putin in the Kremlin. Wall Street Journal said, Russia would not see any investments at least until the elections are over or until it becomes clear that no other politics-driven oligarch is jailed.
UFG chief executive Charles Ryan said the fact of the meeting between foreign investors and the Russian president was positive: "The president understands, to which extent we are interested in the policies of the government and state agencies," Ryan said in a statement. Charles Ryan added he was glad to know that the Russian president was aware of the situation on the market. Vladimir Putin believes one has to create the conditions at which investors will feel safe for their rights.
Experts say, it is a precise signal for investors. Someone is probably hysterical, but sensible and pragmatic businessmen have all chances to make excellent business in Russia and take advantage of competitors. That is why, it is not ruled out that German and French businessmen will press Americans in Russia soon.