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Russian Corruption Hurting Stock Prices, Micex’s Chief Says

By Emma O’Brien

Dec. 16 (Bloomberg) -- Corruption is a “problem” for Russia that’s hurting stock prices, Micex Stock Exchange President Ruben Aganbegyan said.

“Certainly corruption is a factor in how investors think about us,” Aganbegyan said in an interview in Moscow yesterday. “It’s certainly in the price for sure of Russian assets.”

The world’s largest energy exporter is the most corrupt member of the Group of 20 nations, Transparency International said in its annual survey released in October.

While President Dmitry Medvedev has called fighting graft a priority since coming to power in 2008, recorded cases of bribery increased to 5,708 in the first half of the year from 5,633 in the same period of 2009, Prosecutor General Yuri Chaika said Oct. 13.

-- Editor: Brad Cook.

To contact the reporter on this story: Emma O’Brien in Moscow at eobrien6@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Last Updated: December 16, 2010 03:34 EST

New York, London Exchanges Seek Moscow Tie-Up, Micex Chief Says

Dec. 16 (Bloomberg) -- New York and London stock exchanges are pursuing partnerships with Moscow’s Micex that may lead to partial ownership of the Russian bourse, Micex Stock Exchange President Ruben Aganbegyan said.

“Quite a lot of people would like to cooperate with us,” Aganbegyan said in an interview in Moscow yesterday. “Deutsche Boerse is a good partner, but then there’s a few others who would love to basically work with us, like NYSE, Nasdaq, LSE.”

Frankfurt-based Deutsche Boerse AG, Europe’s largest exchange by market value, is in talks with Micex and its Moscow rival RTS on creating an alliance that may see equity swapped as part of the deal, two people involved in the talks said Dec. 3.

President Dmitry Medvedev is seeking to transform Moscow into an international financial center as part of a drive to diversify the economy away from natural resources. Uniting the Micex and RTS and allying with foreign bourses will help lure investment to the state privatization program, First Deputy Prime Minister Igor Shuvalov said in an October interview. The government expects to raise 1 trillion rubles ($32.5 billion) selling shares in state companies over the next three years.

Aganbegyan, who left Renaissance Capital, the Moscow-based investment bank half-owned by billionaire Mikhail Prokhorov, to head Russia’s largest bourse in June, said his goal is to attract foreign investment as the exchange seeks to slow the flow of overseas listings by Russian companies.

Rusal, Mail.ru

United Co. Rusal, billionaire Oleg Deripaska’s aluminum producer, raised $2.2 billion in Hong Kong in January in the biggest Russian IPO this year. Mail.ru Group Ltd., a Russian investor in Facebook Inc., raised more than $1 billion last month on the London Stock Exchange, Europe’s oldest independent bourse. NYSE Euronext runs the New York Stock Exchange as well as markets in Paris, Lisbon, Amsterdam and Brussels, while NASDAQ OMX Group Inc. owns the Nasdaq Stock Market in New York.

Jon Edwards, an LSE spokesman, couldn’t be reached for comment when Bloomberg called before regular business hours today and voice messages left at the NYSE and Nasdaq weren’t returned immediately.

While Micex and Deutsche Boerse have no concrete plan to swap equity stakes, “any idea should be considered,” Aganbegyan said. Micex itself “is not in any negotiations to sell any shares,” he said.

Russia’s central bank is the largest Micex shareholder, with 30 percent. State-owned banks VTB Group, OAO Sberbank and VEB also hold stakes. RTS is owned by Russian and international investment banks including UBS AG, Deutsche Bank AG and Credit Suisse Group AG, according to the bourse’s website.

Micex is seeking a “friendly takeover” of RTS, central bank First Deputy Chairman Alexei Ulyukayev said Nov. 18.

Aganbegyan said the Micex and RTS tie-up will happen “as soon as possible” after RTS shareholders give “clarity” about their plans.

To contact the reporter on this story: Emma O’Brien in Moscow at eobrien6@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Last Updated: December 16, 2010 03:23 EST

Polyus Gold, Rosneft, Sberbank: Russian Equity Market Preview

By Denis Maternovsky

Dec. 16 (Bloomberg) -- The following companies may be active in Russian trading. Stock symbols are in parentheses and share prices are from the previous close of trading in Moscow.

The 30-stock Micex Index added 0.2 percent to 1,670.26. The dollar-denominated RTS Index rose 0.7 percent to 1,757.71, its highest closing level since August 2008.

OAO Polyus Gold (PLZL RX): Gold fell the most in a week, declining 1 percent to $1,390.50 on the Comex in New York, on speculation that the dollar will extend a rally, eroding demand for the precious metal as an alternative asset. Shares of Russia’s biggest gold producer fell 0.7 percent to 1,843.94 rubles.

OAO Rosneft (ROSN RX): Crude oil rose, with the January futures contract adding 0.4 percent to $88.60 a barrel after the close of trading in Moscow, following a U.S. government report showing supplies plunged the most since 2002 as imports fell and refineries bolstered fuel output. Share of Russia’s biggest oil company fell 1.1 percent to 218.79 rubles. OAO Lukoil, the country’s second-biggest crude producer, rose 0.5 percent to 1,754.08 rubles.

OAO Sberbank (SBER03 RX) may be interested in bidding for Oesterreichische Volksbanken AG’s eastern Europe unit, Der Standard newspaper reported, citing unidentified bankers familiar with the planned sale. Russia’s biggest lender gained 0.3 percent to 107.67 rubles.

To contact the reporter on this story: Denis Maternovsky in Moscow at dmaternovsky@bloomberg.net

To contact the editor responsible for this story: Gavin Serkin at gserkin@bloomberg.net

Last Updated: December 15, 2010 16:00 EST