Russia trade at LSE reaches record high

Trading in Russian securities in London has soared to new highs as Russian business makes an ever greater impact here.

The London Stock Exchange reported yesterday that in the second quarter of this year the value of trading through its system in Russian companies reached $8.63bn (£5.3bn). It is by far the biggest proportion of foreign securities, usually American Depository Receipts (ADRs), traded through the LSE's International Order Book.

The LSE offers investors based in London the ability to trade Russian ADRs, with 12 Russian companies listed. In addition, three Russian businesses have a secondary listing in London - Lukoil, Gazprom and Tatneft, which require them to meet the LSE's regulatory standards.

Trading in Russian securities broke the previous Russian record in London of $7.77bn, set in the second quarter of last year.

British public interest in Russian business has been fired up by the £150m acquisition of AIM-listed Chelsea Village by the Russian billionaire Roman Abramovich. However, London-based investors have shown increasing interest in trading Russian securities here for the past two years.

Russia has been attractive to international investors in that time because it has shown strong economic growth and a booming stock market - even while other stock markets have suffered. In the second quarter of 2003, there was particular interest in Yukos and Sibneft, which were both traded heavily in London after an announcement that they were to merge.

Ralph Land, chairman of the The Russo-British Chamber of Commerce, said that President Vladimir Putin's visit to the UK recently had helped increase interest in Russian investment opportunities. "There is a frisson in the air about Russia at the moment," Mr Land said.

The London exchange is aggressively marketing its services to Russian companies. A spokesman for the LSE said there were 20 Russian companies that want to list here, but declined to name the businesses involved. "These companies need an injection of international capital, and London is the best place for them to come," he said.