Phosagro CEO Andrey Guryev Speaks
Russian business magnates like Andrey Guryev, CEO of Phosagro, have recently received excellent news. The American bond credit rating service, Moody’s, has recently upgraded Russia’s rating from stable to positive – painting the outlook on Russian businesses and economics significantly rosier. Moody’s stated that this change in status was partially driven by Russia’s growing nstitutional strength – and the expectation that macro gains in the country will be sustained in the long term. In a recent interview, Phosagro’s Andrey Guryev and Geoff Cutmore from the World Economic Forum spoke with Steve Sedgwick from CNBC and commented on these subjects.
Russia is Looking Good
After having issued a 500 million Eurobond, Guryev reported a flow coupon rate of record proportions. This not only applies to Phosagro, but to other Russian companies as well. Over 40% of the demand was from the United States, a nominal 7% from Russia and the balance from other European countries. Translated into laymen’s terms, this means that there is a massive demand for corporate debt from Russia. This also means that business magnates like Guryev will be less likely to have concerns over funding.
Stock Pricing is Also Looking Good
The start of the year was launched on good terms in regards to stock pricing. Since stock prices already started recovering in the final quarter of 2017, 2018 started on good terms and the first quarter is thus far looking positive. According to Guryev, stocks are likely going to achieve an average increase of around 20% to 25%. Considering Phosagro has been attaining a growth rate of around 10% on average per annum, this is a remarkable increase. In 2017 production was raised by over 12% and although he is considered to be a conservative businessman, Guryev is expecting it to increase by yet another 10% in this coming year.
Possible Threats
Even though he is anticipating a more positive outlook with better returns on stock investments, Andrey Guryev still keeps a resolute eye on any elements that could potentially destabilize the recent upgrade in Russia’s credit rating. Thus far the businessman has not expressed certainty about imminent threats, despite speculation about geopolitics from America posing a threat to the Russian economy. Guryev further states that after five years on the Davos, he has never seen it in such a positive light. With the economy growing in all areas it is difficult to foresee any potential destruction of the market in the coming years.
Andrey Guryev is Positive About Russian/American Business
When asked about the statement made by the Deputy Prime Minister that American officials were hiding away from their Russian counterparts, Guryev laughed and responded that he is fortunate enough not to know many officials from America. He also mentioned that his relationship with American business people in Russia is sound, and that communication is being conducted on good terms with discussions around international business investment and growth taking place amicably. According to Guryev, whose father also holds an official position at the company, things are becoming normal in the Russian business sector.