Globaltrans fears "severe effects" on business due to crisis in Ukraine
MOSCOW. Sept 2 (Interfax) - The political and economic crisis in Ukraine could have "severe effects" on Globaltrans' business, the railway operator said in its report to International Financial Reporting Standards (IFRS).
"The final resolution and the effects of political and economic crisis in Ukraine are difficult to predict but it may have further severe effects on the Ukrainian economy and the company's business," the report says.
"The recent political and economic turmoil witnessed in the region, in particular the developments in Ukraine, have had and may continue to have a negative impact on the Russian economy, including weakening of the Russian ruble, higher interest rates, reduced liquidity and making it harder to raise international funding. These events, including current and future international sanctions against selected Russian companies and individuals and the related uncertainty and volatility of the financial markets, may have a significant impact on the Group's operations and financial position, the effect of which is difficult to predict. The future economic and regulatory situation may differ from management's expectations," the company said.