21 Oct 2009 15:30

RUSAL able to float in Russia, can

MOSCOW. Oct 21 (Interfax) - Oleg Deripaska's United Company RUSAL (UC RUSAL) could hold an IPO in Russia but it cannot be forced to, Vladimir Milovidov, head of the Federal Financial Markets Service (FFMS), told reporters.

The issue of the social responsibility arises with regards to the managers of companies with Russia-based assets which choose to float shares abroad, he said.

"It's an issue of social responsibility on the part of those who control these companies. It's their prerogative, their responsibility to their country. The conditions are in place for trading and placing foreign securities in Russia," Milovidov said, asked whether the markets regulator was concerned about the prospect of RUSAL floating shares on foreign exchanges only.

He said the FFMS had drafted and the State Duma had passed a law on the circulation and placement of foreign securities on the Russian market, but it was up to the issuers to decide whether to take advantage of this law.

The FFMS has held talks with RUSAL's management, he said.

"They were interested in that law, they wanted to take it up. But time passed, and they decided that Euronext and Hong Kong would suit them much better. At least nobody can criticize us for not creating the conditions," Milovidov said.

The FFMS can only impose demands of any kind on Russian companies, but the entity that will be carrying out RUSAL's IPO is domiciled on Jersey, he said.