Spat between UK and Russia could impact on business

A powerful Russian business group has warned that UK firms could lose out on
big contracts and face more intense tax and regulatory scrutiny in Moscow
because of the current diplomatic row.

Alexander Shokhin, president of the Union of Industrialists and Entrepreneurs
said that Russian firms planning to float in London could also review their
plans, while others listed in London may switch to other stock exchanges if the
dispute escalates, The Times reported.

Shokhin’s comments has caused alarm, since the UIE – the equivalent of
Britain’s CBI – represents some of the largest companies, as well as billionaire
entrepreneurs Oleg Deripaska, Viktor Vekselberg, Alexei Mordashov, and Vladimir

Six companies were listed on the LSE this year alone, with a collective
listing worth of $12.2bn.

There are 42 other Russian companies on the LSE and Alternative Investment
Market, due to be joined later this year by mining giant Rusal in what would
probably be London’s biggest IPO of 2007.

Andy Scott, CBI director of international and UK operations was surprised by
the comments. He said there seemed to be mixed messages coming out of Moscow
about the impact on business.

‘It is important that we carry on business as usual, and separate business
from politics,’ he said.

Further reading:

Companies May Pull Out of LSE

could lose out, warn Russians

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