By James Marson
MOSCOW--Russia's third-largest oil producer, OAO Surgutneftegaz
(SNGS.RS) has revealed the disappearance of treasury shares worth
around $15 billion in its first international-standard financial
results in over a decade.
The results, published Tuesday, in line with a new law aimed at
making Russia's businesses more transparent, showed Surgutneftegaz
had 650,000 treasury shares. In the company's last report to
international standards 11 years ago, the company owned 17.6
billion treasury shares, around 40% of the company.
Analysts said the disappearance of the shares raises questions
about commitments to higher standards of corporate governance.
It "will have grave consequences for the investor perception of
Russia's investment climate," said Alexander Burgansky of Otkritie
Capital.
The company couldn't be reached for comment Wednesday.
Surgutneftegaz stock rose around 3% immediately after the
results were published, revealing it had cash and deposits worth
around $30 billion. It later dropped back amid concerns about
transparency, analysts said.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires