Project number:


Business sector:

Information and Communication Technologies

Notice type:


Environmental category:


Approval date:

12 Jul 2005



PSD disclosed:

02 Jun 2005

Project Description

The EBRD will provide up to USD 23 million in equity and debt to the Gallery Group, one of the leading advertising media operators in Russia. The loan will provide acquisition and capex funding and facilitate the expansion of the Group’s geographic coverage and product range, while improving its capital structure.

Transition Impact

The proposed project will further develop an essential and efficient outdoor advertising infrastructure in Russia, while supporting consolidation of a fragmented industry. In particular, the proposed project will support an operator that provides services in the Russian regions, thereby supporting the development of regional commerce. It will also have a high demonstration effect by supporting an entrepreneurial domestic company without a foreign sponsor and would provide an even playing field for competitors in the sector. By providing debt and equity financing to the Group, which was previously relying mostly on its internally generated cash to meet its financing needs, the EBRD will send a signal of the Bank’s confidence in the Group and Russia’s advertising market.

The Client

Gallery Group (“Gallery” or the “Group”), founded in 1994, currently operates the second largest outdoor advertising network in the Russian regions (Russian Federation excluding Moscow and St. Petersburg, based on net revenues and number of outdoor advertising sites) and covers 200 cities, with proprietary installations in 26 cities. The Group is indirectly owned by three individuals: Anatoly Mostovoy, founder and CEO, Vladislav Zakharovsky, General Director and Yuri Mostovoy.

EBRD Finance

The Bank’s proposed financing will consist of up to USD 5 million in the Group’s holding company, and up to USD 18 million in debt for the Bank’s own account to Gallery-Service LLC, a key operating company in the Gallery Group.

Project Cost

The total project will consist of up to USD 5 million in equity and up to USD 18 million in debt, which along with internally generated cash will fund approximately USD 32.2 million of acquisitions and capital expenditure.

Environmental Impact

This Project was screened C/1.

There are unlikely to be any significant environmental issues associated with this project. Main issues associated with outdoor advertisement business are visual effects and compliance with statutory and other outdoor advertising requirements. Environmental due diligence conducted has shown that apart from standard land use planning requirements, permits and the planning and installation of advertising units, there are no environmental issues associated with this business.

The Group also confirmed that its operations are in full compliance with the Advertising Committee and relevant municipal bodies' specifications and standards associated with the Russian outdoor advertising industry. The Group is required to continue to comply with Russian and EU environmental, health and safety standards and requirements and local and national public consultation requirements as well as to submit the Bank an annual environmental report.

Technical Cooperation


Company Contact

Mr. Anatoly Mostovoy, CEO
Gallery Group
Prospect 60th Year of October Number 9, Building 2
117312 Moscow, Russia




Business opportunities

For business opportunities or procurement, contact the client company.

For state-sector projects, visit EBRD Procurement: Tel: +44 20 7338 6794

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168

Public Information Policy (PIP)

The PIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations. Please visit the Public Information Policy page below to find out how to request a Public Sector Board Report.
Text of the PIP

Share this page: