Tatneft, a major oil company owned by the government of Tatarstan in central Russia and the only Russian company listed in both London and New York, said Monday it planned to de-list from the New York Stock Exchange and terminate its registration with the U.S. Securities and Exchange Commission to concentrate on London instead.
"De-listing from the New York Stock Exchange is a forced, conscious step. Today, the NYSE is not producing any positive effect for us. The reporting procedure is too complicated, which is also recognized by many other companies," said Rustam Minnikhanov, who is also Tatarstan's prime minister.
But he said the move did not mean that the company wanted to avoid being transparent.
Tatneft said earlier its expenses at the SEC, an investment protection body, had grown considerably in recent years.
Focusing on the London Stock Exchange would raise the liquidity of Tatneft stock, the company said, and the money to be saved by withdrawing from SEC would be used to increase dividends.
The company said it would file a de-listing application in mid-August, and would remain under SEC regulations until it lodged an application with the commission.
Tatneft's net profit in the first six months of 2005 was reported at $7.45 billion, a 1.7-fold increase on the same period in 2004. Its sales receipts for the same period increased 1.6-fold to $.84 billion.
