How a sausage plant sizzled, then burned during Russia's crisis
Article Abstract:
Cherkizovsky Sausage Plant, which posted $380 million in sales in 1997 compared with $22 million in sales in 1992, was badly affected by the devaluation of the Russian ruble. To counter the negative effects brought by the currency devaluation, the Moscow, Russia-based company stopped the construction of a new factory, reduced production by 60%, cut the importation of all raw material to 15% to 20% and stopped producing fancy sausages. In addition, Cherkizovsky, which has returned to minimal profitability, began purchasing meat from local suppliers and asked banks to extend payment deadlines. The company is unlikely to close completely because sausages are as important to Russian people as vodka or bread.
Comment:
This co, which posts $380 mil in sales in 1997 compared with $22 mil in 1992, is badly affected by the devaluation of rubble
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
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Moscow makes threat to seize control of Gazprom over taxes, then backs off
Article Abstract:
RAO Gazprom, Russia's natural gas monopoly, has been threatened by the Russian government that its assets would be seized in a move intended to signify that tax exemption would be granted to no one. However, the government, which also threatened to force management control, backed off the threats immediately. Moscow's back-off raised question of whether the government is really launching a crackdown or is just appeasing the International Monetary Fund, with which it is in talks for a $10 billion to $15 billion stabilization package. Meanwhile, Prime Minister Sergei Kiriyenko has reached a deal for Gazprom to pay $2.4 billion in tax debts in installments of $643 million in the coming months.
Comment:
Is threatened by Russian govt that assets would be seized in move intended to signify that no one would be exempt from taxes
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
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California drug firm seeks to cure its ills in Eastern Europe
Article Abstract:
ICN Pharmaceuticals Inc., a drug maker based in Southern California, is betting its future on producing affordable, quality medicines in Russia as well as Eastern Europe. The company, owns five drug companies in Eastern Europe and another five former state plants across Russia, where it has poured in $133 million. Its future plans include investment of an additional $167 million in Russia in the next two years. To ensure it success, ICN must boost its investment and make its brand name a household name in Russia and Eastern Europe.
Comment:
Is betting its future on producing affordable, quality medicines in Russia as well as Eastern Europe
Publication Name: Wall Street Journal. Europe
Subject: Business, international
ISSN: 0921-9986
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
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