* Cancels earnings forecasts for this year and next
* Says may sell Russian housing development
* Cites escalating tension between Poland and Russia
* Shares fall more than 9 pct to record low (Rewrites first paragraph, adds quotes from statement, detail and background)
WARSAW, Aug 18 (Reuters) - Shares in Polish developer Platinum Properties Group (PPG) slumped to a record low on Monday after the company axed its earnings forecasts and said it might sell its housing project near Moscow, citing political tensions in the region.
In a statement released late on Thursday, ahead of Friday’s Polish Armed Force’s Day public holiday, PPG said it was withdrawing its profit forecasts for this year and next and was considering the sale of the housing project which it had been expecting to give a big boost to its results.
“Platinum Properties Group’s board (has) ... decided to cancel the forecasts of consolidated financial results ... for 2014 and 2015,” it said in a statement.
It blamed “the escalating tension between Poland and Russia in the context of the Polish government’s engagement in the situation in Ukraine.”
PPG has been working on 70-hectare housing project Svetny Dali in Lobnya, 17 km from Moscow, and previously said it expected the development to help boost its net profit to 36 million zlotys ($11.5 million) in 2014 and to 69 million in 2015.
And it forecast revenue rising to 757 million zlotys in 2015 - more than seven times its 2013 total.
But the crisis between neighbouring Ukraine and Russia, the resulting trade bans, and Poland’s political involvement in the situation have raised uncertainty over Polish business activities in Russia.
“The company received information about a change in attitude of Lobnya’s administration towards the project,” PPG said in a statement.
“The company’s board is currently considering various scenarios for the Svetny Dali investment, including disinvestment at the current stage of development.”
It gave no further details.
PPG shares were down 9.1 percent by 0934 GMT at 3.11 zlotys, a record low. The stock has tumbled to a fraction of its record 63 zlotys set in late 2009. (1 US dollar = 3.1364 Polish zloty) (Reporting by Wiktor Szary; Editing by David Holmes)