NagaCorp to Suspend Russian IR Project Indefinitely

NagaCorp said it wants to indefinitely suspend its plans to build an integrated resort in Russia’s Primorye gambling zone, as it is “surrounded by various uncertainties.”

The Hong Kong-listed operator of Cambodia’s NagaWorld said it wants to invoke a “force majeure” clause in its investment agreement in the best interests of group and its shareholders.

NagaCorp did not give further details in its statement, which comes a week after Russia’s invasion of Ukraine and the subsequent imposition of crippling sanctions on Moscow. The sanctions imposed by the U.S. and Western nations centre on isolating Russia and its banks from the international financial and payment systems, as well as personally targeting President Vladimir Putin and the country’s oligarchs.

The statement did not explicitly mention the war.

In February, NagaCorp said that work on its delayed Russian project near the city of Vladivostok was progressing, with the construction of the structure of its hotel tower block now complete. The company said work will continue this year, but it gave no update on an expected completion date.

The Naga project was one of the multiple investments scheduled for the Primorye zone, which was seen as the most promising of Russia’s designated gambling hubs due to its proximity to Northern Asia.