Page 102 - RusRPTFeb19

developers have obtained numerous construction permits so as to ensure a smooth transition process and, in our view, some 50% of the land banks across our listed universe are pre-approved.Switching to escrows is a challenging task for the sector if all projects are covered. We anticipated a 3-5 year transition period and the gradual adoption of new rules. We note that industry leaders have already established schemes under new regulations with banks and are testing the approach. However, a rapid switch requires, first and foremost, a reliance on project financing and the significantly larger involvement of banks.
Record numbers of elite housing sales recorded in Russia in 2018. The elite housing market grew strongly in 2018 with a record number of transactions, according to report by consulting company Knight Frank, release on January 25. Last year there were more than 1,000 transactions in the elite and premium segments worth a total of RUB77bn ($1.2bn). The previous record was recorded a year earlier, when developers sold 788 objects for about RUB66bn. The chairman of the board of directors of Kalinka Group, Ekaterina Rumyantseva, cites similar figures: in the Central District of Moscow, about 950 transactions have been concluded with elite real estate worth RUB70bn, as cited by Vedomosti. Over the past year, both the number of transactions and the price have increased in elite segment projects, says a representative of Capital Group In total for 2018, developers of elite and premium real estate sold 121,000sqm - 23% more than a year earlier, according to a Knight Frank report; expensive apartments and apartments were sold in 21 complexes - the highest figure in the last 10 years.
9.1.6 Agriculture sector news
2018 grain harvest falls 16.7% to 112.8mn tonnes.
Euronext wheat hit an eight-week high on December 12 as rising prices in Russia fuelled hopes that west European wheat will pick up more export sales in second half of the season. Wheat markets were also supported by firm soybean futures in Chicago as traders reported than Chinese importers had resumed major purchases of U.S. soybeans following a recent trade truce between Washington and Beijing. Benchmark March milling wheat on the Paris-based Euronext exchange settled up 1.75 euros, or 0.9 percent, at 206.25 euros ($234.36) a tonne. It earlier reached 206.75 euros, its highest since Oct. 17, after breaching chart resistance around 205 euros. Although Russian wheat again dominated the latest tender by Egypt, the world’s largest wheat importer, higher prices encouraged the view that Russia is facing tightening supply and will be less competitive on export markets in the second part of the July-June marketing season.
9.1.7 TMT sector news
Data Insight expects the Russian domestic e-commerce market (tangible goods only) to grow 19% YoY to RUB 1,150bn in 2018, according to Vedomosti, with cross-border purchases in Russia up 29% YoY to RUB 348bn. Such market dynamics might be the result of the 18% YoY and 34% YoY increases in the number of orders in Russian and foreign online shops, respectively, and the slight decline in the average ticket on the market (by 2% YoY and 4% YoY, respectively). Data Insight’s forecasts imply a gradual slowdown in the growth of the Russian domestic e-commerce market (after the
102 RUSSIA Country Report February 2019 www.intellinews.com