Page 11 - bne_newspaper_April_19_2019

bne Invest
April 19, 2019 www.intellinews.com I Page 11
German investments in Russia reach their highest level in the last decade
Investments by German business into Russia reached their highest level in the last decade, topping €3bn, although the number of German firms operating in Russia has fallen from over 6,000 to circa 4,500 in the same period, according to the website of the Russian-German Chamber of Commerce (ECP).
German companies' investments into the Russian economy reached a record level since the 2008 financial crisis, an ECP press release reads.
The Bundesbank estimated German businesses' direct investment in Russia in 2018 at more than €1bn. "This figure amounted to €3.2bn, not €2.1bn, as
reported in the preliminary results," states the report. German businesses have been the most active investors into Russia since the fall of the Soviet Union, catalysed at first by former German chancellor Gerhard Schroeder, who was a big fan of Russia and has since remained close friends with Russian President Vladimir Putin and now works for Gazprom.
Since Angela Merkel took over as German Chan- cellor, relations have cooled somewhat – especially following Russia’s annexation of the Crimea in 2014 – but even Merkel is well aware of the importance of the Russian market to German business.
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Private equity investor buys Moldovan electricity distribution business from Naturgy
Iulian Ernst in Bucharest
The energy group Naturgy, formerly Gas Natural Fenosa, announced on April 12 that it has signed an agreement to sell its electricity distribution and supply companies in Moldova, Red Union Fenosa SA and Gas Natural Fenosa Furnizare Energie, to the international group Duet Private Equity Limited.
The price was agreed at €141mn, including the dividends the two entities will disburse out of the 2018 profit, Mold Street reported.
The two companies have over 900,000 customers, natural and legal persons. They supply and dis-
tribute electricity in 19 administrative-territorial units, including the capital of the country, Chis- inau municipality, which represent two-thirds of the country's territory.
During over 19 years of activity in Moldova, the Spanish group has invested more than $326mn in the renovation and modernisation of the electrical networks, implementing a new efficiency-oriented corporate governance model through the applica- tion of best practices and a new European style of business management, as well as new technolo- gies and information systems to improve all quality indicators.