Butting heads:Cheney and Putin exchange harsh words
The war of words between the EU and Russian gas monopoly Gazprom continued, with the EU calling for increased access for European companies to invest in Russian energy supplies. The company’s CEO had earlier warned that attempts by the EU to restrict Gazprom’s activities in Europe would “not lead to good results.” Meanwhile, in early May Gazprom became the world’s third-largest company by market capitalization, passing the $300 billion threshold.
The Russian IPO boom continued, with regional food retailer Magnit raising $368 million and sausage maker Cherkizovo raising $229 million—even though two of the three lead underwriters resigned in the midst of marketing the deal, claiming that valuations were too high. The size of the IPO of state-owned oil company Rosneft was halved from $20 billion, however. The company said that high oil prices had reduced its need for capital, although adverse publicity over Russian corporate governance practices probably played a significant role as well.