Gazprom Share Market to Be Liberalized in 2006 Russian Economy Minister

All limitations on the trade in shares of Russia?s natural gas monopoly Gazprom will be abolished in 2006, Russia?s Economy Minister German Gref said on Wednesday, Sept.28. Gref is currently in Washington, DC, taking part in yet another round of negotiations regarding Russia?s accession to the World Trade Organization.

The minister said that the liberalization issue concerned the canceling of quotas for selling Gazprom shares to non-residents and limitations on open trade in its shares. Currently, non-residents can only hold 20 percent of the company?s shares in the form of American Depositary Receipts which trade at a premium to domestically-sold shares. Moreover, Gazprom shares are only traded on the St. Petersburg stock exchange. After liberalization they will be traded on two of Moscow?s main trading floors, Russian Trading System and Moscow Interbank Currency Exchange, as well.

?We expect the relevant amendments to be adopted in 2005,? Gref said, following his talks with U.S. Trade Representative Robert Portman, but declined to elaborate on the mechanism and the timeframe of the process.

Industry and Energy Minister Viktor Khristenko also said on Tuesday, Sept. 27, that the liberalization would be finalized by the end of the year.