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14 I Companies & Markets bne May 2017
Ukraine has imposed one-year sanctions on five Russian- owned banks operating in the country, including the Kremlin- controlled subsidiaries of Sberbank, VTB and VEB. The sanc- tions prohibit financial transactions with the parent bank such as the transfer of funds to the parent, dividend and interest payments, repayment of loans or deposits from correspondent accounts, repayment of subordinated debt, profit distribution and allocation of capital.
The National Bank of Ukraine (NBU) claims sanctions are aimed at preventing capital outflows from the country, but the move against Russian lenders is clearly motivated by politics and the simmering conflict with Russia-backed separatists in East Ukraine.
Earlier this year, NBU officials explicitly advised Russian lend- ers in Ukraine to either sell up their businesses or gradually wind down their assets or liabilities.
But Russian lenders’ exposure to Ukraine and their loan books have been diminishing since Crimea was annexed in 2014 and violence flared in the East. Therefore, their financial position won’t be adversely affected by withdrawing from the country.
Russia's Renaissance Capital estimates that Sberbank and VTB’s combined exposure to the Ukrainian risk is about
RUB36bn-43bn ($631mn-$754mn). “Hence we are not overly concerned by the new round of sanctions,” says RenCap ana- lyst Armen Gasparyan.
Sberbank said its subsidiary accounts for just 0.1% of the bank’s overall assets, while it had already made provisions for about 75% of the value of Ukrainian loans.
“Given the insignificant share of Ukrainian assets on the Russian banks’ balance sheets and the amount of impairment reserves that have already been built, they will not have a material impact on their financial statement,” the Central Bank of Russia (CBR) said in a statement.
The broader impact will be felt over the medium and longer term by the Ukrainian financial sector. According to Moody’s Investors Service, the five Russian lenders affected by sanc- tions represent about 9% of the Ukrainian market. Sberbank is Ukraine’s sixth largest lender, while VTB is in the top 20 with UAH20bn ($750mn) in assets as of January 1.
Ultimately, the exodus of Russian banks and Russian capital from Ukraine is bad for business. The country is mired in corruption and is still trying to recover from a deep recession and Western institutions – scarred by previous crises – are not rushing back to replace Russian lenders.
Czech manufacturers look increasingly to 3D printing but barriers remain
Nicholas Watson in Prague
The Czech Republic is looking to become a centre for additive manufacturing in the Central and Eastern European region, with a survey released in April show- ing a majority of large Czech manufacturers have started using 3D printing technology or are planning to introduce it within the next five years. However, adoption still lags well behind Germany and experts warn there are numerous obstacles to overcome before it becomes more widespread in the region.
Additive manufacturing (AM) is distinct from traditional subtractive technologies such as injection moulding, metal forming and machining. The process makes objects from 3D model data, joining layer upon layer of plastic, synthetic resin,
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metal, ceramic, plaster and even in the future human tissue – crucially, without producing any waste. It is being hailed in some quarters as signalling the beginning of a fourth indus- trial revolution.
3D printers have actually been around for decades, but were huge, costly and slow machines used mostly by the automotive and aerospace industries to build prototypes, so until now they have had only a limited impact on people’s lives. However, with the rapid advances in digital scanners and software, 3D printers are now accessible tools that can design and create products that once required a factory, dozens of parts and lots of people to assemble. Prices for basic 3D desktop printers