OREANDA-NEWS. EEII recorded a loss of CHF 0,88 Mio. (HY 2016: loss of CHF 0,95 Mio.) for the first half of 2017. During the reporting period, the fair value of all investments decreased by 11,9 % or CHF 0,664 Mio. The intrinsic value (NAV) contracted by 16,3 % from CHF 3,49 to CHF 2,92 per share during the first six months of 2017.

The most relevant financial markets for EEII being Russia and Ukraine moved in opposite directions during the observed period. Whereas the Russian equity market performed rather poorly versus global indices (-13,1 % in USD) the Ukrainian stock market showed inherent strength with a positive performance of + 33 % measured in local currency. Encouraging signals from the Ukrainian economy, a phase of stable exchange rates and timid reforms, compensated for the persistent political stalemate in the Donbass region. Despite this slightly improved framework, onerous facts dominated, with corresponding negative impacts for EEII's investment portfolio. The intrinsic value per share (NAV) retreated by 16,3 % in the first half year of 2017 from CHF 3,49 to CHF 2,92 per share. In absolute terms, EEII showed a book loss of CHF 0,88 Mio. (H1 2016: A loss of CHF 0,95 Mio.)

The major cause for disappointment was the negative equity performance of Gazprom. The loss per share of approx. 26 % or CHF 0,9 Mio. could not be entirely compensated by the positive performance of the other holdings and EEII's operating cost reduction, (-24 % vs. the previous year).