A London-listed property company that runs a significant Russian logistics portfolio has issued a trading update that highlights the mayhem of running a business in the country right now.

Raven Property stressed in the update that it currently did not know if it could access funds it had in Russian domiciled companies, nor whether it would be able to convert those funds to other currencies.

The value of the Russian rouble has collapsed by more than 25% against the dollar in the past month, and Russian banks have been cut out of the global financial system as a result of a series of sanction packages following the invasion of Ukraine.

“The board of Raven is deeply shocked and saddened by the situation in Ukraine and the tragic consequences unfolding there,” the company said in a trading update. [Its] shares have dropped by 54% in the past five days.

“The market and information flows are chaotic and volatile and the board has engaged its advisers to interpret the impact of the sanctions on its operations although these are changing day by day," the statement continued. "The immediate focus is on ensuring the group has liquidity in the correct currency in the appropriate jurisdiction. The ability of the company to continue to access the funds of its Russian subsidiaries and whether those funds can be converted to the correct currency at a commercial exchange rate is the greatest uncertainty at this time.”

As a listed company, Raven provides insight into what any real estate investor with a significant portfolio in Russia could be facing at this time. It owns a 20M SF portfolio of Russian logistics assets.

“We simply do not have clarity on the restrictions that may be placed on the access and movement of funds intra group at this present time," the company said. "We are working with banks and lawyers in all jurisdictions but it is still too early to get any definitive view on cash flows available to the company. We do not expect that this situation will change while there is no resolution to the events in Ukraine or how long restrictions will affect the group.”

The company said it is in compliance with its banking covenants, and that the debt it holds in roubles has interest rate caps. The Russian central bank has hiked interest rates in an attempt to prop up the value of the currency.

“The board is working to do all it can to protect the interests of all stakeholders in these unprecedented times,” the company added. “We sincerely hope for a peaceful outcome to these terrible events.”