Yukos Affair Sets-Back Reform Progress. IIF’s Equity Advisory Group Releases Report
Progress has been made over the last two years in several important areas to improve corporate governance in Russia, but weaknesses in the country’s equity culture and judicial system continue to undermine shareholders’ rights. Market capitalization, free float, and share turnover, all remain low relative to the size of the economy, stated the Institute of International Finance (IIF) in a new report today.
The IIF, the global association of financial institutions with over 330 members in more than 60 countries, said awareness of the importance of good governance has gained a wider foothold in Russia over the past two years. Mr. Cees Maas, IIF Vice Chairman and Treasurer, and Vice-Chairman and Chief Financial Officer of ING Group, who introduced the new report at a press conference here today noted, however, that the basic system of property, contractual rights and governance falls short of international standards. He pointed out that the report states that, “Recent actions by the government to reassert control
over the energy sector have underscored the weaknesses and fragility of Russia’s institutional framework. As a consequence, investor confidence has been shaken on a scale not seen since the Russian 1998 financial crisis.”
See full Press Release.
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