Good order backlog gives Skanska stability in Russia despite the crisis
Skanska has an order backlog in Russia of about SEK 2.7 billion. Notable projects that were started up recently include furniture company IKEA's first retail and store building in Russia. Skanska's operations in the Russian market account for slightly more than 1.5 percent of Skanska's total annual sales.
Good order backlog gives Skanska stability in Russia despite the crisis
Skanska has an order backlog in Russia of about SEK 2.7 billion. Notable projects that were started up recently include furniture company IKEA's first retail and store building in Russia. Skanska's operations in the Russian market account for slightly more than 1.5 percent of Skanska's total annual sales.
Due to the Russian financial crisis, work on two other Group projects in Russia has been temporarily suspended, namely the Rossiskye Credit Bank project in Moscow and the new transport and retail center in St. Petersburg, which is being conducted in cooperation with Taylor Woodrow. Efforts are in progress to resolve the future financing of these two projects, thereby enabling them to be restarted.
Skanska's projects in Russia are paid in advance and the contracts are based on western currencies. The Group's Russian operations are expected to continue to show a positive cash flow in the future.
"We stand firm on our long-term strategy for the Russian market," says Martti Rautee, Senior Vice President, Skanska Oy, in Finland. "Although we are expecting a slight downturn in the level of orders received in the short term, our good order backlog gives our Russian operations stability."
Danderyd, September 28, 1998
SKANSKA AB
Corporate Communications
For further information, contact:
Martti Rautee, Senior Vice President Skanska Oy: +358 9 6152 22 03
or Cecilia Schön, Corporate Communications, Skanska AB: +46 8 753 88 00