Business and economic confidence flagging in Russia

Jun 11th 2014 | Europe

4 JUNE 2014, MOSCOW – The majority of senior treasury and finance professionals in Russia are less confident about their country's economic prospects for the next 12 months, compared to the past year. More than half said they were also less confident about both their own business prospects and the global economy as a whole.

These results emerged from a live audience voting session - "Treasury Verdict" - which polled senior Russian treasury and finance professionals attending EuroFinance's 9th annual conference on Treasury, Risk and Cash Management in Russia, held in Moscow.

While 71% said they are less confident about Russia's economic prospects for the next 12 months compared with the past year, 52% also reported less confidence regarding their own business prospects and also for the global economy.

An expert panel analysed these results on stage and linked the low level of economic and business confidence in Russia to ongoing tension in Ukraine, which is creating nervousness in the money markets, as well as the uncertain global situation particularly with regards to the EU and the US.

The poll also found that more than half (53%) expect the rouble to depreciate against the US dollar in the next 12 months, with 45% of these predicting a depreciation of 5-15%.

"This dramatic fall in business confidence among treasury and finance professionals, and their worries about the Russian economy is a matter of concern amid the current political and economic backdrop," says Katharine Morton, Editorial Director at EuroFinance.