Draft Amendment To Stop Russian IPOs Abroad

This document reproduces the article that was published in World Securities Law Report, August, 2009.

You can't pick up the newspapers these days without reading about the difficulty that Russian companies are facing in raising capital. Commercial loans are hard to get and extremely expensive; some lenders charge 20% or more. Similarly, raising capital both within Russia and internationally has become much more difficult and expensive. Now the Federal Service for the Financial Markets ("FSFM") seems intent to make it virtually impossible for Russian companies to raise capital in international markets, despite the great need for finance, and the small size and immaturity of the Russian financial markets.