Microsoft to raise prices of products in Russia 15%-30% in Feb 2015, keeps transactions in rubles
MOSCOW. Dec 26 (Interfax) - Microsoft will raise prices of its products in Russia by 15%-30% in February 2015, the company said in a statement.
"As part of our current business processes and in light of the current dynamics on the market, Microsoft is adjusting prices on software, company solutions and other types of devices," the statement cited Microsoft Russia President Pavel Betsis as saying. "For private users it is expected that the minimum price hike for software is from 15%. The price hike for commercial clients depending on the licensing scheme of the product may reach 30%.
Microsoft said that the new prices will be applied within the framework of new contracts with corporate clients as well as in retail. According to the acting agreements of corporate licensing, prices will not be changed.
"During January, private users and corporate clients will be able to acquire Microsoft products at the current prices as well as renew licensing agreements," the company statement said.
Microsoft also said that it would still sell its products in Russia in rubles.
"The current volatility of the ruble's exchange rates to hard currencies is forcing producers to reconsider prices for their products on the Russian market," PwC in Russia for Treasury and Commodity Operations Alexander Prosviryakov said about the future price hike on Microsoft products. "Next year Russian companies and banks will have to pay back about $130 billion of foreign borrowings, which certainly will affect the growth of demand for foreign currency which will continue to exert pressure on the ruble's exchange rate."
"The range of the increase in the cost of Microsoft products will look more than modest, especially if one compares it to the volatility of the ruble's exchange rate," ASBIS (Microsoft's partner) CEO Siarhei Kostevitch said, "Other international companies are also raising prices, but are selling their products in conventional units."