Ruminations on Russia

Or in my case the other way around abandoning SWMBO and SWMBO2 in London on the Sunday after the Friday when Imperial Energy (IEC.L) was (mostly) reprieved from Mitvol's predations and TNK-BP was given two weeks to a. wait until the G8 summit is out of the way and/or b. for Alfa and Access to lower their price expectations for the TNK part of TNK-BP.  Meanwhile Rusal announces that it is has been given Kremlin clearance to list on the main board of the LSE.  To be fair that's not what it said but that's the truth.  The spin meisters who placed the story in the Sunday Times would have you believe, oh gullible reader, that by listing its shares, as opposed to GDR's Rusal would be subject to greater corporate governance and disclosure rules.  That is what is known as steaming heap of bullshit.

In case you doubt my skepticism, I urge you to read, by way of analogy, the story of Sports Direct which is still majority owned by its founder Mike Ashley.  Post-IPO Mr. Ashley still owns 57% of the business and is running it as he did when it was private - except of course he took GBP920 million out of the business and its currently trading 33% below its floatation price - oh and its Chairman just resigned.

If you can explain to me how Rusal will be exempt from the rule which says that majority shareholders can run the business anyway they like, especially as the Chairman will be its largest shareholder - I'm listening.  No seriously.  I have no objections to investors investing to make money but lets lose the bullshit - Rusal will be run for the benefit of its owners.  The other shareholders will own an option on capital appreciation - and absolutely nothing more.

And whilst I am it, more bullshit; Rusal is not raiding London investors, the Russian government is raiding TNK-BP and has raided Shell and any attempt to suggest that there is a link between the two is intellectually bankrupt.  The LSE is a market where you can play if investors want to play with you.  Rusal is the largest (?) aluminium producer in the world - investors want to play.  Russia is a (very, very long list) where national energy policy is the fig-leaf masking personal enrichment.  If investors want to rent a piece of Rusal, udachi, renting a piece of Russian natural resources is not really possible whilst the pre-election rapine pillage continues.  I contend that VVP has lost control of his cohorts and now is a very good time to keep your head beneath the parapet in case what's yours ends up in someone else's pocket.

Technorati Tags: Corruption, Rusal, Russia