FILE - Moscow, 14 July 2006
1. Wide exterior of Rosneft building
2. Close-up of building
3. Mid shot of flags in front of building
Moscow, 19 July 2006
4. Wide interior of Moscow Interbank Currency Exchange (MICEX)
5. People at computer desks
6. Man looking at screen
7. Close up of screen
8. Set up shot Head of MICEX, Aleksey Rybnikov
9. SOUNDBITE: (Russian) Aleksey Rybnikov, Head of MICEX:
"From the exchange's point of view, we're interested in the volume. That's the goal for the exchange, the liquidity, the pool of liquidity that we're able to concentrate here. Again, given the size of the IPO (Initial Public Offering), given the free floats of this company, and given the number of investors involved in the IPO, we really expect Rosneft to become one of the blue chips on the Russian security market."
10. Wide interior Russian Association of Managers
11. Economist from the Russian Association of Managers, Alexander Dynin, sitting down
12. SOUNDBITE: (English) Alexander Dynin, economist, Russian Association of Managers:
"Well, at the moment it looks like a good investment. In the longer term, we'll see what will happen, but in the short term and medium term, it looks like an excellent investment."
13. Cutaway Dynin at computer
14. SOUNDBITE (English) Alexander Dynin, economist, Russian Association of Managers:
"The performance of oil and gas companies is highly dependent on the price situation at the global markets. If oil and gas prices remain high, then the future of oil and gas companies such as Rosneft is of course bright. Should they fall for some reason, then we'll see."
15. Wide exterior of MDM Bank (Russian bank)
16. Wide interior of MDM with people at computers
17. People working at screens
18. Close up of screen
19. Close up of screen showing information on Rosneft shares
Rosneft shares got off to a tepid start in London on Wednesday proof, analysts said, that the state-controlled oil company had slapped too high a price on Russia's biggest and most controversial public offering.
Official trading opened one day after Russian oil company OAO Yukos failed to convince a British judge that allowing the shares to trade would constitute the sale of stolen goods.
Yukos' biggest fields were bought by Rosneft at a knock-down price after they were auctioned off against its 28 (b) billion US dollar back tax bill in 2004.
Shares in Rosneft were trading at 7.54 US dollars on the London Stock Exchange, below the offer price of 7.55 US dollars.
At that price, Russia's third largest oil producer is worth 79.8 (b) billion US dollars, more than OAO Lukoil, which is the nation's biggest oil producer and is unencumbered by Yukos' threats of a lifetime of litigation.
Analysts say the only way Rosneft is worth that amount is if it can gather up the remaining assets of Yukos, whose fate hangs in the balance as creditors meet on Thursday to decide whether or not the company should be liquidated.
"At the moment it looks like a good investment. In the longer term, we'll see what will happen," said economist Alexander Dynin, the First Deputy Executive Director at the Russian Association of Managers.
The 10.4 (b) billion US dollars raised from the sale of 13 per cent of Rosneft's stock is nominally aimed paying down a loan the state took to cement control of natural gas monopoly OAO Gazprom.
But observers say the main function of the sale is to put a respectable veneer on the state's drive to regain control of the oil industry, which began with the campaign against Yukos.
And after a massive promotional campaign trumpeting the company's prospects and stability to Russian citizens, who bought about four per cent of what was on offer, analysts say the IPO cannot be allowed to fail.
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