Organisation: Rosneft

Analysis and commentary by Echo Research.

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Rosneft's Russian juggernaut appeared unstoppable last week, as it sought its first IPO on the London / Moscow Stock Exchanges; Russia's largest and the world's fifth most valuable flotation. Expectations of a 10bn dollar sum for a relatively minor 13 per cent stake in the oil gargantuan were met with high profile bids from energy giants like BP (UK), Petronas (Malaysia) and CNPC (China). Other notable investors included Russian billionaire Roman Abromavich, "Abramovich invests $300m in controversial Rosneft IPO" (Observer, 16/7).

Investor attempts to politely ignore issues of ongoing litigation, corporate governance standards, accusations of asset theft, and a tacit acknowledgement that shareholder interest may not be prioritised by state-owned Rosneft did not go unnoticed. "As a responsible fund manager, you wouldn't put widows and orphans into Rosneft," asserted the Observer (16/7). "You pays your money and you takes your chances", echoed the Sunday Herald, (16/7). Rosneft's CEO Sergei Bogdanchikov, remained unconcerned, however, buoyed by strong investment interest in "energy security" (Telegraph, 16/7). "Rosneft chief boasts 'theft' claims fail to put off the British", stated The Independent (17/7), while The Times asserted, "Russian oil chief scorns court challenge" (17/7). No doubt though; where Rosneft leads, others will follow.