OREANDA-NEWS  On 25 November was announced, that one of the largest Russian developers, “Group of companies “PIK” will freeze its activity in Ukraine. Month ago company announced, that it will continue to work in Ukrainian market with the focus on short term projects, but problems in native Russian market forced “PIK” to change its strategy.

As for June 30, 2008 company debt was estimated to USD1,6 billion with USD1,33 billion of long term debt.  “PIK” was expecting to receive financial aid from the Moscow authorities (company won tender of USD870M for construction of residential houses). But now Moscow authorities are preparing to cancel tender results.

Group of companies “PIK” is closing its office, stated first deputy general director of “PIK-Ukraine” Vladimik Kochetkov-Sukach. According to his words, such decision was taken by mother company previous week. “They told us that office stops its work, but it does not mean that company leave Ukrainian market: when the situation will be stabilized, may be “PIK-Ukraine” will resume its activity”, - he told and added he will be also fired.

General director of “PIK-Ukraine” Vladimir Fesenko denied words of his deputy and said that Vladimir Kochetkov-Sukach doe not have authority to make such statements. Denied this information also in the Russian headquarters of “PIK” and added that future plans for activity of Ukrainian office will be announced later.

Starting from May PIK’s capitalization has fallen from USD13.456 billion to USD1.59 billion (as for 19 November). And UBS bank in its research of Russian market lowered fair value of PIK’s value from USD35.3 to USD5.6 per share.