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Russian sanctions like cutting children’s credit cards: Ulmart chairman

A logo for Ulmart stands on display above a fulfilment center in Saint Petersburg, Russia
Andrey Rudakov | Bloomberg | Getty Images
A logo for Ulmart stands on display above a fulfilment center in Saint Petersburg, Russia

The chairman of Russia's biggest e-commerce company has likened Russian sanctions to "cutting the credit cards of your children", saying "whatever doesn't kill you makes you stronger".

Dmitry Kostygin, who presides over Russia's 'Ikea-Amazon' hybrid, said that Europe's continued sanctions on certain industries within Russia have led the country to become more self-sufficient, with many industries experiencing growth.

Indeed, the outlook for the Russian consumer is looking "better and better" in 2017, according to Kostygin.

"Russia is becoming more focused on itself and producing more itself: agriculture is on the rise, food processing is on the rise and quite a few other manufacturing segments are up, so whatever doesn't kill you makes you stronger," Kostygin, the chairman of Ulmart, told CNBC at the World Economic Forum in Davos, Switzerland.

He added that he remains cautiously optimistic about a Trump Presidency and the potential for resetting hereto fractious relations between the two global powers.

Kostgyin also said that inflows of capital into Russia are becoming stronger and more and more companies are seeking initial public offerings (IPOs).

Ulmart, which was founded in 2008 in St. Petersburg and, in 2013, exceeded $1 billion in sales, is itself yet to go public, having postponed its IPO on several occasions.

However, Kostygin said that, with market conditions as they are, the company could expect to list in the coming year.

"We're keeping our hands on the pulse of the market and so as soon as we feel it is becoming positive – I think within two quarters – we are ready to move."

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