Even as Moscow’s energy companies’ ability to raise debt financing is hurt by Western sanctions, Russian energy giants Rosneft, Lukoil and Gazprom are seeking to list their securities in Asian currencies on the Hong Kong Stock Exchange.
Russian Economic Development Minister Alexei Ulyukayev, in Beijing for the APEC meetings indicated the possibility after holding talks with Hong Kong’s Commerce and Economic Development Bureau’s Secretary Gregory So.
“The largest Russian companies – Gazprom, Rosneft and Lukoil – are considering the Hong Kong Stock Exchange as a platform to list their securities in Asian currencies (yuan, Hong Kong dollar, Singapore dollar),” Russian Economic Development Minister Alexei Ulyukayev was quoted as saying by Russian news agency Ria Novosti.
These firms, among the world’s largest energy companies, are seeking to list their securities in Hong Kong dollars, granting them access to a large pool of investors from China and Hong Kong.
The Russian Economic Minister’s comments could be an indication of Moscow’s readiness to sign on to a body of global markets regulators.
Russian companies cannot list on the Hong Kong stock exchange until Russia signs and ratifies a protocol to join the International Organization of Securities Commissions (IOSCO).
The US and EU sanctions are levying a heavy toll on Russia’s $425 billion-a-year petroleum industry.
The most recent waves of sanctions particularly targeted the country’s energy and banking sectors.
Aluminum producer Rusal, incorporated in Jersey, is currently the only Russian firm to be listed on the Hong Kong Stock Exchange.
Gazprom and China National Petroleum Corporation (CNPC) signed a 30-year contract in late May for the sale of 38 billion cubic meters Russian gas to China per year. The deal is estimated to be worth $400 billion.