EVALUATION OF RISKS RELATED TO RUSSIAN POWER GRID COMPANIES BY FOREIGN INVESTORS

The article focuses on the impact of the current crisis on evaluation of risks related to Russian power grid companies by foreign investors as well as on prospects of raising foreign capital. The current situation resulted in a considerable deterioration of investment climate in Russia as well as in...

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Autor principal:	D. L. Valkova
Formato:	article
Lenguaje:	EN RU
Publicado:	MGIMO University Press 2016
Materias:	power industry power grids investments foreign capital crisis funding International relations JZ2-6530
Acceso en línea:	https://doaj.org/article/955a89ccec644d73a457b29a31b4e442
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spelling	oai:doaj.org-article:955a89ccec644d73a457b29a31b4e4422021-11-23T14:51:02ZEVALUATION OF RISKS RELATED TO RUSSIAN POWER GRID COMPANIES BY FOREIGN INVESTORS2071-81602541-909910.24833/2071-8160-2016-5-50-158-166https://doaj.org/article/955a89ccec644d73a457b29a31b4e4422016-10-01T00:00:00Zhttps://www.vestnik.mgimo.ru/jour/article/view/631https://doaj.org/toc/2071-8160https://doaj.org/toc/2541-9099The article focuses on the impact of the current crisis on evaluation of risks related to Russian power grid companies by foreign investors as well as on prospects of raising foreign capital. The current situation resulted in a considerable deterioration of investment climate in Russia as well as in aggravation of industry-specific problems. Inflation growth, devaluation of the national currency, GDP decrease, drop in electricity consumption and the crisis in the banking sector negatively impact the investment profile of the country. This leads to increased risk premium for foreign capital investments in any type of Russian assets. At the same time industry-specific problems augmented as well. Those are primarily lack of transparency in regulation, which is subject to constant changes, growth in overdue receivables, limited access to modern technologies. All of the above had a considerable impact on the perception of Russian risks by international investors. A comprehensive approach is needed to improve the investment climate in the country and this would be largely defined by the general macroeconomic development of the Russian Federation and relations with other states. Consistent strategy and integrated actions of the Government and respective Ministries are of particular importance. As for the industry-specific factors, transparent and well-balanced long-term tariff system is the key condition for sustainable improvement of the situation in the sector, according to the major industry participants and leading experts. Thus, the article highlights changes in investor perception of the Russian power grid sector as well as relative impact on the industry development prospects. This analysis is the basis for further elaboration of recommendations regarding easing off of the crisis impact on the power grid companies as well as for assessment of prospects of meeting strategic industry development objectives.D. L. ValkovaMGIMO University Pressarticlepower industrypower gridsinvestmentsforeign capitalcrisisfundingInternational relationsJZ2-6530ENRUVestnik MGIMO-Universiteta, Vol 0, Iss 5(50), Pp 158-166 (2016)
institution	DOAJ
collection	DOAJ
language	EN RU
topic	power industry power grids investments foreign capital crisis funding International relations JZ2-6530
spellingShingle	power industry power grids investments foreign capital crisis funding International relations JZ2-6530 D. L. Valkova EVALUATION OF RISKS RELATED TO RUSSIAN POWER GRID COMPANIES BY FOREIGN INVESTORS
description	The article focuses on the impact of the current crisis on evaluation of risks related to Russian power grid companies by foreign investors as well as on prospects of raising foreign capital. The current situation resulted in a considerable deterioration of investment climate in Russia as well as in aggravation of industry-specific problems. Inflation growth, devaluation of the national currency, GDP decrease, drop in electricity consumption and the crisis in the banking sector negatively impact the investment profile of the country. This leads to increased risk premium for foreign capital investments in any type of Russian assets. At the same time industry-specific problems augmented as well. Those are primarily lack of transparency in regulation, which is subject to constant changes, growth in overdue receivables, limited access to modern technologies. All of the above had a considerable impact on the perception of Russian risks by international investors. A comprehensive approach is needed to improve the investment climate in the country and this would be largely defined by the general macroeconomic development of the Russian Federation and relations with other states. Consistent strategy and integrated actions of the Government and respective Ministries are of particular importance. As for the industry-specific factors, transparent and well-balanced long-term tariff system is the key condition for sustainable improvement of the situation in the sector, according to the major industry participants and leading experts. Thus, the article highlights changes in investor perception of the Russian power grid sector as well as relative impact on the industry development prospects. This analysis is the basis for further elaboration of recommendations regarding easing off of the crisis impact on the power grid companies as well as for assessment of prospects of meeting strategic industry development objectives.
format	article
author	D. L. Valkova
author_facet	D. L. Valkova
author_sort	D. L. Valkova
title	EVALUATION OF RISKS RELATED TO RUSSIAN POWER GRID COMPANIES BY FOREIGN INVESTORS
title_short	EVALUATION OF RISKS RELATED TO RUSSIAN POWER GRID COMPANIES BY FOREIGN INVESTORS
title_full	EVALUATION OF RISKS RELATED TO RUSSIAN POWER GRID COMPANIES BY FOREIGN INVESTORS
title_fullStr	EVALUATION OF RISKS RELATED TO RUSSIAN POWER GRID COMPANIES BY FOREIGN INVESTORS
title_full_unstemmed	EVALUATION OF RISKS RELATED TO RUSSIAN POWER GRID COMPANIES BY FOREIGN INVESTORS
title_sort	evaluation of risks related to russian power grid companies by foreign investors
publisher	MGIMO University Press
publishDate	2016
url	https://doaj.org/article/955a89ccec644d73a457b29a31b4e442
work_keys_str_mv	AT dlvalkova evaluationofrisksrelatedtorussianpowergridcompaniesbyforeigninvestors
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EVALUATION OF RISKS RELATED TO RUSSIAN POWER GRID COMPANIES BY FOREIGN INVESTORS

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