Activity in Russia has been particularly high, principally focused around the oil and gas sector. However, in recent months a number of Russian companies in the telecom, steel, mining and cosmetics sectors have come to market. Russian telecom company Mobile TeleSystems was the largest DR transaction last year. According to Cole-Fontayn, up to 80% of Russian companies’ market capitalization is in DR programs, with emerging market and country funds owning in excess of 850 million receipts, worth $42 billion. There is also increasing DR activity in Hungary, Poland, the Czech Republic, Romania, Bulgaria and the Ukraine. “DRs provide an opportunity to get into these markets quite early in an infrastructure-efficient way,” Cole-Fontayn explains. He says DRs can also mitigate risks associated with early-stage investment in emerging markets. Criteria companies must meet in order to list DRs on international exchanges can also lead to improvements in domestic corporate governance.