A plan by the Russian authorities to sell a key part of the oil giant Yukos is expected to bring uncertainty to the investment climate in the country Yukos shares dropped amid fears that the price of Yukos Siberian subsidiary Yuganskneftegaz will be undervalued.
Oleg Martznenko head of Alfa Bank share sales said “Nobody actually knows what will happen to Yugansk at the moment and nobody exactly knows what is the valuation of the company and how they will proceed. On the basis of that information you would like to increase the amount of cash in your portfolios and that is what people are doing in the market.”.
Yukos dollar shares have dropped 10.33% since the Russian government announced it would be selling Yugansk to recover billions in dollars of tax arrears.
Russia’s property fund says the sale will take place before the end of November, though they might have troubled finding a buyer as many of country’s main oil companies plus a number of international firms have said they will not be taking part in the sale.