Russia’s federal property fund announced on November 28th that the sale of 6 percent of LUKoil through American Depositary Receipts (ADRs) would be its first priority in 2001.
The government has a 15 percent stake in LUKoil, the country’s largest oil company. The sale had been planned for 2000, but the project has been postponed. The head of the federal property fund indicated that ADRs covering nearly 50 million state-held shares would be listed on the New York Stock Exchange (NYSE).
LUKoil is preparing to issue financial statements for 1999, 2000 and the first half of 2001 to Generally Accepted Accounting Principles (GAAP) within the coming two months. Listings on the NYSE require a GAAP account.
LUKoil has been stepping up its foreign presence as of late, with a full slate of investment projects planned for the end of 2000 and early 2001.
The company is making efforts to expand into the Balkans and would like to enlarge its presence in the Yugoslav market, after the European Union lifted an oil embargo against Yugoslavia in October.
The company is also considering projects in Macedonia ahead of privatization and is seeking an active role in Greek and Turkish markets. In addition, LUKoil is eyeing Croatia, Bulgaria and Romania for market opportunities