Moscow and its surrounding areas have been significantly impacted by the latter. Unfortunately, the weather forecast shows no signs of relief in terms of rain or cooler temperatures until closer to September. Although wild fires are nature’s way of renewing the earth and soil it is extremely sad to see this type of devastation in such a densely populated area.
As far as our portfolio companies are concerned, there might be some short term effects on companies in the agricultural and consumer goods sectors as a fall in crop yields is expected; however, this will most likely be partly offset by higher soft commodity prices. For example, wheat and corn prices are up by 50% and 20% respectively during the last month. East Capital has a few holdings within the agricultural and consumer goods sector. Agro might experience some short term impact on profitability as well as consumer goods due to higher input prices.
Jacob Grapengiesser, Partner East Capital




