Ask CPST Management re: recent sanctions:
July 17, 2014
Question:
In regards to the newest round of sanctions, it appears that they will have a minimal impact. It remains something to watch, especially now that it has started to touch the energy sector. The way I read it is the sanctions do not impact the ability of any US company doing business in Russia. Also minimal impact for Capstone as you sell through a distribution channel. Curious as to what Capstone Turbine’s managements thoughts are on this matter?
Answer from Capstone Management:
The recent news on US sanctions in Russia is not expected to have any impact on Capstone or Capstone’s Russian distributor, BPC at this time. The new sanctions target two specific banks (Gazprom Bank which supports Russia's gas exports and VEB, a state owned development lender that provided much of the financing for Sochi Olympics construction), two energy companies (gas company Novotek and oil giant OAO Rosneft), Ukraine separatists and defense companies.
The US is trying to impact Russian interests without placing any undue harm on US companies. Europe agreed to expand their sanctions, and that decision is expected at the end of July and will most likely be similar to those of the US sanctions.
Capstone's management is closely monitoring the developing situation and expects no imminent changes or impact at this time related to the company's business in Russia.
