The industry is counting on businesses from "friendly" countries to fill the vacant spaces.

The Chamber of Commerce and Industry of Uzbekistan is collecting applications from local companies wishing to rent premises in Russian cities. This is reported by the press service of the CCI.

Russian shopping malls have approached the chamber with an invitation to cooperate. The parties intend to jointly search for and attract tenants for vacant commercial spaces in their establishments.

As RIA Real Estate writes, the Russian Council of Shopping Centers contacted the chamber through the trade mission in Uzbekistan. The parties are "working in close cooperation on this issue," the CCI noted.

Prior to this, the industry organization reported on negotiations regarding attracting new foreign retailers to Russia. They are expected to replace foreign companies that have suspended their operations in Russia.

Following the outbreak of hostilities in Ukraine, a number of major foreign brands announced their temporary or permanent withdrawal from the Russian market. Some of them, such as IKEA, are planning to terminate lease agreements for premises.

As of June, according to various estimates, 9.6% to 13% of shopping mall space in Moscow alone became vacant. In a pessimistic scenario, 15-30% of premises could be vacant by the end of the year, primarily in large complexes.

Owners of Russian shopping malls have appealed to the Ministry of Foreign Affairs with a request to simplify entry for businessmen from "friendly" countries in Asia, Africa, and Latin America. However, many industry representatives doubt the effectiveness of these measures.

According to them, easing visa regimes will not affect the investment climate, which has significantly changed since the beginning of the year. Only a few retailers are willing to enter the Russian market and establish logistics under the current conditions.

As noted by Olga Antonova, partner at CMWP, foreign businesses need motivation to start operating in the country. This includes subsidies and tax incentives, she added.

 

Source: Spot.uz

Photo: Istock