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uplift in prices and figures in line with the broader sector. The release of the 1Q20 trading update is scheduled for 14 April, with a conference call on the same day. The company is entering a cooling period that is further pressured by the closures of sale offices, due to quarantine measures, while online infrastructure is yet to kick off fully in April. We believe the company’s plans for dividends and buybacks for up to 10% of the share capital might be deferred through 2020 until there is a clearer understanding of the near-term operating environment. Given the uncertainty surrounding operational conditions, cash allocation and strategy, we place the stock Under Review.
The government has recommended that the owners of commercial real estate lower rental payments for companies that have lost the opportunity to use them due to the social distancing measures. The deferral period could last until 1 October 2020, with settlements in 2021-22.
The Russian government has signed rulings to support housing construction during the coronavirus pandemic, Prime Minister Mikhail Mishustin said on April 6. The government will not penalize developers in from April 2 through January 1, 2021, and will not include blocks of flats in the lists of bad assets. This should allow businesses not to fear bankruptcies and maintain promising projects, while buyers would get their flats, he said.
The government prolonged some licenses and permits that should expire from March 1 until the end of 2020 for a year, including permits for construction services, production of medicines, provision of communications and security services, he said, adding that the prolongation also covers accreditations.
The government also decided to impose more limitations on inspections of small and medium-sized businesses.
The government allocated serious funds to Russia’s regions for the coronavirus measures, it is important to know whether the regions use them efficiently. The heads of regions should take proper measures to fight the coronavirus and not mistake regional powers for federal powers, he said.
102 RUSSIA Country Report May 2020 www.intellinews.com
