In a note to investors Friday, Roland Nash, head of research at Renaissance Capital, said the TNK-BP and Mechel events, combined with the falling oil price, had “finished” Russian equities’ “reputation as a safe haven.”
Posts on ‘July 27th, 2008’
With its chief executive scuttling off to a secret location, dozens of foreign employees flooding out of the country and the threat of impending court battles, TNK-BP’s messy shareholder dispute has helped push Russia’s indexes into a downward spin.
We were forced out by Nigeria for protesting injustice orchestrated by its government and Shell. These injustices have not been corrected or redressed to date. There are as well scores of Niger Deltans, and other Nigerians in the West looking for a brighter future, whereas we are rich in oil and gas back at home.
Fast forward almost five years, and the two sides are at war, one which is both highly public and personal.
The Russian shareholders at war with BP claim to have seized majority control of the core board of joint venture TNK-BP.
“The last train carrying the optimists out of Russian equities has just left the station,” was one reaction. “The place looks rotten to the core,” was another.