Monday, April 5, 2010

Citigroup (NYSE:C): Russian Regulators Limiting Companies

Citigroup on Russian Equity Regulations

Responding to recent moves by Russian regulators to limit the ability of domestic firms to access financial markets, Russian Citigroup chairman Irackly Mtibelishvily, said it'll cause Russian companies to be less competitive as a result.

What the new ruling entails is Russian companies won't be allowed to issue over 25 percent of their equity in outside markets, and in some instances, far less than 25 percent.

This is an attempt to build up an strong domestic stock market, but more than likely will just have companies re-register offshore to bypass the new rules.

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