Russian Oil Giant Plots £600m London Listing
A Russian oligarch with links to Lord Mandelson, the former Cabinet minister, is assembling plans for a London listing of the giant oil company he controls, Sky News understands.
Vladimir Evtushenkov, who runs the Moscow-based holding company Sistema, is mulling a proposal for Bashneft, one of Russia's biggest energy groups, to issue financial instruments known as global depositary receipts (GDRs) in the UK.
Bashneft is understood to be holding meetings with investment banks to discuss the move, which would aim to raise up to $1bn (£630m) in the coming months.
No final decision has been made about the GDR listing, according to insiders.
Mr Evtushenkov, who is said by Forbes magazine to be worth more than $6bn, appointed Lord Mandelson earlier this year to the board of Sistema, whose assets include a stake in MTS, Russia's largest mobile phone network.
Bashneft lags well behind the likes of Rosneft in terms of oil production but is nonetheless a significant player in one of the world's largest oil-producing markets.
A GDR listing allows foreign companies to access the liquidity of London's capital markets but does not impose the same disclosure requirements on the issuer of the securities.
Bashneft could not be reached for comment.