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More Russian roulette
As the oil price nudged above $70 (£35.30) a barrel at one point on concern about the outlook for US domestic petrol supplies, the opaque workings of the Russian resources sector once again had the markets guessing. Rosneft, Russia’s largest oil producer, launched a $790 million bond on the international markets, convertible into Rosneft shares.
Many in the market believed the bond, handled by Dresdner Kleinwort, had been placed on behalf of Gazprom, Russia’s tough and secretive gas monopoly, which bought a large chunk of Rosneft’s shares during its own £5.2 billion public flotation last year. Analysts argued that the conversion terms of the bond suggested Gazprom had decided Rosneft’s
growth potential was strictly limited.
This speculation was fanned by fears that Russia could be facing a painful slowdown after seven years of impressive growth.
Last July, Rosneft raised £3 billion on global depository receipts, which are traded in London, as part of its own £5 billion share float in London and Moscow.
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