In the wake of the Russian invasion of Ukraine, many businesses have quit or stalled their plans in the country aggressor. NagaCorp was one of the latest companies to say that it would discontinue current plans, sit back, wait for the situation to develop and then decide what it can do about its planned integrated resort in Vladivostok in the country’s far east.
South Korean Company Confident It Can Make the Project Work
However, not all companies have completely shunned the opportunity to do business despite difficulties in Russia. Plgen Holdings Co Ltd, a South Korean company, has already said it would commit to a new integrated resort in Primorye. The company will be looking to commit at least $23.4 million for the initial phases of developments, a sizable sum of money that shows confidence that things can get better.
If Plgen Holdings Co Ltd is to go ahead with the proposed project, then the resulting property should feature 100 rooms, with the option to add more. The first phase will not complete before 2025, though, and a second phase working on the rest of the amenities and ancillary facilities will begin once the resort’s accommodation is set up.
Plgen Holdings is confident that it has the qualified experts that would be needed to navigate the project through its initial stages to the end and is a perfect candidate for the position. There have not been any mentions of the ongoing war in Ukraine that Russia waged in February and that has displaced around 10 million Ukrainian citizens already.
However, Plgen Holdings may need to rethink its strategy in light of the mounting pressure on the country by sanctions from many of the world’s biggest markets. The Primorye Gambling Zone, though, remains a promising project for many investors who are hoping that the region’s high tourism profile would translate into better financial results.
More Companies Weighing Their Moves in Russia
Primorye can benefit from Asian gamblers and has the potential to turn into a highly lucrative market. Already, there has been interest by several major companies, including Summit Ascent and NagaCorp, although both companies have exercised caution in phrasing their further plans for their properties or plans there.
The possibility exists that Russia would slide into even more severe global isolation with South Korea already joining the list of countries to sanction against the country.