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Russia’s richest man looks to HK rather than London

Russia’s richest man, Oleg Deripaska, on Sunday gave his strongest indication yet that he intends to float his multibillion-dollar aluminum business in China rather than on the London Stock Exchange.

Deripaska — who enjoys a close friendship with Russia’s president, Vladimir Putin — denied that the political row between Britain and Russia had led him to dump plans to hold a flotation in London.

“There is no connection,” he said.

But Deripaska said that his United Company RusAl, the world’s largest aluminum producer, was likely to be listed in Hong Kong.

“It would give us a more comfortable solution,” he said.

China offered a better business climate than Britain, he suggested, adding that the Chinese “train” is “driven by entrepreneurs who know what to do over the next 10 years.”

Although business between Russia and Britain continues to thrive, Deripaska acknowledged that investing in the UK had been made more difficult by the diplomatic feud that has raged since the 2006 murder of Alexander Litvinenko.

“It’s like stepping on a rake,” he joked.

London has attracted many listings from Russian companies in recent years and celebrated the 100th Russian firm to float last week.

But Deripaska also conceded that listing in Hong Kong offered fewer “legal” difficulties than the London Stock Exchange.

It is still not clear when RusAl’s initial public offering will take place — it has been subject to repeated delays after high court claims by one of Deripaska’s former partners.

Deripaska is Russia’s richest tycoon, with a US$28.6 billion fortune, according to this month’s edition of Forbes Russia.
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