The ongoing Russo-Ukrainian War began in February 2014. In the aftermath of the revolution, Russia annexed Crimea from Ukraine, leading to a significant escalation in tensions between the two nations. Additionally, Russia’s support for pro-Russian separatists resulted in a devastating conflict known as the Donbas War.
Various forms of aggression and deception have been prevalent during the first eight years of this ongoing conflict. Cyberwarfare has also been a key aspect of the conflict, with both sides engaging in a range of digital attacks and disinformation campaigns.
Despite efforts at diplomacy and mediation, the conflict has persisted, with both sides suffering significant losses and countless civilians being displaced or affected. The war has also had far-reaching consequences for regional security and global stability.
Businesses have also become casualties amid all the conflict, the economic sanctions, and the drop in tourist numbers. The casino industry in Russia is feeling the impact of the turmoil. For example, the growing concerns around sanctions have forced LET Group Holdings to hold a shareholder meeting in August, which it is understood will discuss the sale of its Tigre de Cristal resort in Russia’s Primorye Integrated Entertainment Zone (PIEZ).
When Tigre de Cristal, created by Melco Resorts and Entertainment, debuted in 2015, it was the first casino resort in the PIEZ.
The resort was expected to be the flagship of a cluster of 11 casinos planned for the area by 2023, with a 2012 feasibility study estimating that gaming revenues could reach €46 billion within a decade.
However, Tigre de Cristal has struggled since its inception.
However, the resort has faced numerous setbacks, including a pandemic-related shutdown in 2019 and a failed business deal in 2020. Now, the ongoing war in Ukraine is causing uncertainty and anxiety among shareholders, who are worried about the potential impact of sanctions on the company’s Russian assets.
In January, LET was close to selling 100% of its shares in casino operator G1 Entertainment to Dalnevostochniy Aktiv, but the deal fell through when the buyer backed out. As a result, Summit Ascent Holdings’ board members quit in protest, leaving only chairman Andrew Lo behind.
On August 15, Lo will preside over an extraordinary general meeting (EGM) to develop a new sales strategy for the resort. Shareholders are concerned about the potential risks and uncertainties associated with holding onto G1 Entertainment and are seeking to offload their Russian assets to avoid potential sanctions.
The war has also impacted other casino in the PIEZ Shambala, which debuted in 2020. Shambala and Tigre de Cristal are the only two resorts currently open. A third project is still under construction as plans by Cambodian operator NagaCorp to join the Primorye cluster were put on hold after the Ukraine invasion.
