PPG scraps financial forecast due to Polish-Russian tension

Polish WSE-listed developer Platinum Properties Group (PPG) has withdrawn its consolidated financial results forecast for 2014 and 2015, citing “the escalating tension between Poland and Russia in the context of the Polish government's engagement in the situation in Ukraine.” The group has been working on a residential project, called Svetny Dali, located in Lobnya, 17 km outside Moscow and had previously estimated the investment would help boost its net profit to PLN 36 million in 2014 and to PLN 69 million in 2015. The firm decided to cancel its projected earnings due to the fact that “the company received information about a change in attitude of Lobnya’s administration towards the project,” PPG said in a statement. On Monday morning, the group’s share price fell to a record low of PLN 3.11, later rebounding to PLN 3.3.