In this issue:
- Role of Currency/Exchange Rate when Doing Business in a Foreign Market
- Effects on Imports and Customs
- Effects on Financial Statement & Tax Calculation
- Effects on Financing a Company
- The Devaluation of 2014 and its Impact on Business in Belarus
- The Impact of the Devaluation on the Kazakhstani Business
- Inflation, Currency Devaluation and the Response of the National Bank of Ukraine
Hardly a day goes by at the moment without some sort of negative news about Russia. Russia Briefing certainly hope this is not the case by the time this issue of the magazine you are currently holding is published, however we fear that the bad news has not yet come to an end. In the meantime, it seems that this negative trend is having a spillover effect on Belarus, Kazakhstan, and Ukraine.
Therefore, in this issue of Russia Briefing we will still be focusing on Russia, however we will also take a look at the other three countries mentioned. In all four countries we have seen a significant devaluation of the local currency. In Ukraine this was spread over the entire year, in Kazakhstan it occurred during the beginning of 2014 (with rumor of further devaluation of the Tenge in Q1, 2015) and the Russian ruble crashed at the end of the 2014.
Experience from previous years and crises shows that there is often another surprise during year-end closing, when the full effects of the changes in exchange rate are seen in terms of a firm’s equity. This creates the risk of statutory equity regulations not being met. The current issue therefore focuses on the effects of the ruble devaluation, as well as what can be done to either avoid issues with local regulations or how to solve them should they arise.
Since this issue of Russia Briefing Magazine attempts to clarify the recent currency devaluation taking place in Russia and its effects on business. Russia Briefing first looks at the role of currency and exchange rate for businesses operating in a foreign market. It then looks at the effect currency devaluation has on imports and customs; financial statements and tax calculations; and, on financing a company. Finally, this issue looks at the impact the currency devaluation is having on Belarus, Kazakhstan, and Ukraine.
SCHNEIDER GROUP (RUSSIA CONSULTING) staff in Russia compiled the content of this magazine.