Oleg Vyugin, the head of the Federal Financial Market Service, said the regulation would come into force ten days after it was approved and registered by the Justice Ministry. He said this would most likely happen in the first half of February.
"The decision on a 35% limit will not prevent Gazprom or any other company from issuing investment securities for the market," Vyugin said.
According to Vyugin, the decision would have a predominantly psychological effect because it would prompt investment bankers to create a base for the placement of Russian securities on the domestic market, in the first place, and only then abroad.
It was earlier reported that the FFMS had approved regulations in January 2005 on the procedure for Russian companies to receive permission for the placement of securities abroad. In accordance with the document, Russian issuers can place 35% of their authorized stock or 70% of the issue on foreign markets.
Under the regulations, while or before placing shares abroad, Russian companies should offer the stock for placement on the domestic market through a stock exchange or with the involvement of a broker.
The FFMS head earlier said Russian companies had raised about $30 billion in 2005 by placing debt and equity instruments, including $10 billion on Russian markets and $20 billion abroad.
Recently, Russian Economic Development and Trade Minister German Gref said that the government planned to IPO state-owned oil major Rosneft in 2006 for $15 billion on the London Stock Exchange. He also said Russia would IPO other state-owned companies for $17-$18 billion in 2006.
