Should you buy into Rosneft?

The flotation of Russian oil giant Rosneft will be one of the most-hyped in recent corporate history. Why? Ostensibly because Russia’s vast oil reserves are the answer to the world’s impending energy crisis - but more likely because investment banks are set to make over £250m in fees from the exercise, say Bedlam Asset Management...

Assuming a successful flotation in July, most readers will unwittingly find themselves shareholders in this giant Russian company; unwitting because it is so large it will leap into a variety of indices. As a consequence it becomes a "good" investment, according to current fund management credos. Moreover, the great investment banking publicity machine is about to go into Rosneft overdrive, for the total fees from a successful flotation could exceed $250m, more than the annual GDP of small African country.

The Rosneft flotation: Remember Yukos Oil?

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