Identifier
Created
Classification
Origin
07LONDON1893
2007-05-18 09:14:00
CONFIDENTIAL
Embassy London
Cable title:
(C) ROSUKRENERGO: HM TREASURY TO ALERT REGULATORS
how-toVZCZCXYZ0000 PP RUEHWEB DE RUEHLO #1893 1380914 ZNY CCCCC ZZH P 180914Z MAY 07 FM AMEMBASSY LONDON TO RUEHC/SECSTATE WASHDC PRIORITY 3512 INFO RUEHKV/AMEMBASSY KYIV 0032 RUEHMO/AMEMBASSY MOSCOW 2275 RUEATRS/DEPT OF TREASURY WASHDC RHMCSUU/FBI WASHINGTON DC RUEAWJA/DEPT OF JUSTICE WASHDC RHEHNSC/NSC WASHDC
C O N F I D E N T I A L LONDON 001893
SIPDIS
SIPDIS
STATE FOR EUR/UMB AND EUR/WE
TREASURY FOR MEYER
JUSTICE FOR OTT
E.O. 12958: DECL: 05/17/2017
TAGS: EFIN KCRM PREL UP UK
SUBJECT: (C) ROSUKRENERGO: HM TREASURY TO ALERT REGULATORS
REF: STATE 66055
Classified By: John McNamara, Counselor for Labor and Social Affairs fo
r reasons 1.4(b) and (d)
C O N F I D E N T I A L LONDON 001893
SIPDIS
SIPDIS
STATE FOR EUR/UMB AND EUR/WE
TREASURY FOR MEYER
JUSTICE FOR OTT
E.O. 12958: DECL: 05/17/2017
TAGS: EFIN KCRM PREL UP UK
SUBJECT: (C) ROSUKRENERGO: HM TREASURY TO ALERT REGULATORS
REF: STATE 66055
Classified By: John McNamara, Counselor for Labor and Social Affairs fo
r reasons 1.4(b) and (d)
1. (C) Embassy delivered reftel demarche to the head of HM
Treasury's Financial Crime Team Sean Byrne and to Foreign and
Commonwealth Office desk officer Jasper Thornton. Byrne said
that issues surrounding a possible initial public offering
(IPO) for RosUkrEnergo "resonate well here," noting that the
UK has continual concerns about Russian criminal interests
using front companies to access London financial markets.
Byrne promised to share the information contained in our
background paper with appropriate crime, intelligence, and
regulatory bodies. Byrne said that HM Treasury's message
will be that the appropriate supervisors should ensure that
they satisfy themselves that the concerns raised in our paper
have been appropriately scrutinized.
2. (C) More broadly, Byrne noted that the UK's policy on the
financial services sector is to ensure that London remains a
fair and transparent place to raise capital and also to
ensure that the regulatory environment is not "capricious."
In this sense, he said that the regulators must be very
judicious in denying someone the right to raise capital in
London.
3. (SBU) Separately, an energy market analyst at UBS told us
that he too had heard rumors that RosUkrEnergo was planning
an IPO in London. But he is skeptical about the likelihood
and viability of any IPO. According to him, companies like
RosUkrEnergo exist as a vehicle to hide the real terms of its
energy trading contracts. An IPO would require it to provide
very sensitive business information to potential investors
and analysts so that they could arrive at an informed
valuation of the company. The analyst said that he found it
unlikely that RosUkrEnergo would be willing to open its books
sufficiently to successfully launch an IPO.
Visit London's Classified Website:
http://www.state.sgov.gov/p/eur/london/index. cfm
TUTTLE
SIPDIS
SIPDIS
STATE FOR EUR/UMB AND EUR/WE
TREASURY FOR MEYER
JUSTICE FOR OTT
E.O. 12958: DECL: 05/17/2017
TAGS: EFIN KCRM PREL UP UK
SUBJECT: (C) ROSUKRENERGO: HM TREASURY TO ALERT REGULATORS
REF: STATE 66055
Classified By: John McNamara, Counselor for Labor and Social Affairs fo
r reasons 1.4(b) and (d)
1. (C) Embassy delivered reftel demarche to the head of HM
Treasury's Financial Crime Team Sean Byrne and to Foreign and
Commonwealth Office desk officer Jasper Thornton. Byrne said
that issues surrounding a possible initial public offering
(IPO) for RosUkrEnergo "resonate well here," noting that the
UK has continual concerns about Russian criminal interests
using front companies to access London financial markets.
Byrne promised to share the information contained in our
background paper with appropriate crime, intelligence, and
regulatory bodies. Byrne said that HM Treasury's message
will be that the appropriate supervisors should ensure that
they satisfy themselves that the concerns raised in our paper
have been appropriately scrutinized.
2. (C) More broadly, Byrne noted that the UK's policy on the
financial services sector is to ensure that London remains a
fair and transparent place to raise capital and also to
ensure that the regulatory environment is not "capricious."
In this sense, he said that the regulators must be very
judicious in denying someone the right to raise capital in
London.
3. (SBU) Separately, an energy market analyst at UBS told us
that he too had heard rumors that RosUkrEnergo was planning
an IPO in London. But he is skeptical about the likelihood
and viability of any IPO. According to him, companies like
RosUkrEnergo exist as a vehicle to hide the real terms of its
energy trading contracts. An IPO would require it to provide
very sensitive business information to potential investors
and analysts so that they could arrive at an informed
valuation of the company. The analyst said that he found it
unlikely that RosUkrEnergo would be willing to open its books
sufficiently to successfully launch an IPO.
Visit London's Classified Website:
http://www.state.sgov.gov/p/eur/london/index. cfm
TUTTLE