Daily News

View All News

Russia – Michael Page to pull out of Moscow

05 March 2015

UK-based financial services recruitment firm PageGroup (MPI: LSE) plans to close its office in Moscow at the end of May, as the Russian economy slides into recession, reports Bloomberg.

London-based spokesperson Sophie Tudor, advised that the company’s executive board decided to close the operation “after a thorough review of its Russian business”.

Prime Minister Dmitry Medvedev said on 26 January that companies may start cutting jobs if the economic situation doesn’t improve. Buckling under collapsing oil prices and US and European sanctions amid the conflict in Ukraine, Russia’s economy may contract by as much as 3% this year, after slowing growth since 2010.

The rouble dropped 46% against the dollar last year, the second-worst performance among more than 170 currencies tracked by Bloomberg.

Ms Tudor added that all ongoing client assignments will be completed by the Moscow team, who will continue to work until the end of May. From 1 June 2015, the Central and Eastern Europe desk based in Vienna will broaden its coverage to include Russia.

The company declined to say how many people worked in the Moscow office.

Following the announcement, the company’s share price rose by 1.5% to £4.99, an increase of 2.6% compared with a year ago. Based on its current share price, the company has a market value of £1.6 billion.