Corporate governance in Russia

Results of the program
"Corporate governance in Russia — 2005"

One of the major objectives of the IPA is to improve corporate governance in Russian companies as a key constituent part of investor relations. That is why each December the Association has been evaluating results of the year in this sphere awarding the companies and managers that demonstrated the greatest progress in this field.

On December 13, 2005, the Association held the fifth Annual Roundtable "Corporate governance in Russia: results of the year" and the Annual Award Ceremony "Russian corporate governance leaders".

Among participants of the Roundtable "Corporate governance in Russia: results of the year" there were Deputy Economic Development Minister Andrey Sharonov, head of the FFMS Oleg Vyugin, head of the FAUFI V. Nazarov, Chairman of the RF State Duma Property Committee V. Pleskachevsky, Managing Partner of PricewaterhouseCoopers A. Chmel, representatives of the oil company "LUKOIL", "Mechel", AFC "Sistema", TNK-BP, "NOVATEK" and other Russian companies — issuers, as well as investors — IPA members, independent experts and journalists.

Participants of the Roundtable discussed the state of affairs and prospects of corporate governance improvement in Russia, inter alia:

Latest changes in governmental regulation of corporate governance and new initiatives;
Advanced experience of Russian companies in corporate governance, their successes and new plans;
Situation and prospects of corporate governance in state-owned companies;
Evaluation of the situation with corporate governance in Russian companies by investors and independent experts, as well as their recommendations in respect of improvement of the situation and a number of other issues.

Roundtable "Corporate governance in Russia: results of 2005"

left: A. Sharonov
right: S. Vartanyan & O. Vyugin

Round table

left: Round table
right: Lobby of the Ceremony

On the same day the Roundtable was followed by the award ceremony during which the IPA awarded the Russian companies and managers that won the fourth annual competition "Russian corporate governance leaders 2004" selected by IPA members by means of secret voting.

In the most important nomination — "Company with the best corporate governance" — in which the finalists included the oil company "LUKOIL", RAO "UES of Russia", the company "NOVATEK" and "Lebedyansky" — the main prize went to the oil company "LUKOIL".

The personal nomination "Best corporate manager", in which among the finalists there were Y. Bortsov ("Lebedyansky"), A. Chubais (RAO "UES of Russia"), V. Evtushenkov (AFC "Sistema") and V. Alekperov (oil company "LUKOIL"), was won by Anatoly Chubais.

AFC "Sistema" became winner in the nomination "Company with best investor relations", in which it competed against the oil company "LUKOIL" and "NOVATEK".

In the nomination "Company with best dividend policy", in which the finalists included oil company "LUKOIL", the Magnitogorsk Metallurgic Industrial Complex and oil company "Sibneft", the main prize went to "Sibneft".

"NOVATEK" was elected winner in the nomination "Company with best progress in corporate governance improvement" having left behind "NOVATEK" and "Megionneftegaz".

"Norilsky Nikel" won in the nomination "Company with best annual financial statements" for the second consecutive year, this time having left behind the oil company "LUKOIL".

The IPA members also selected a winner in the special nomination — "For active corporate policy in information disclosure" — established by the informational partners of the IPA "Interfax" and AK&M agencies for companies that were recognized as the best in providing operating, complete and reliable information to investors. Among finalists in the nomination there were OJSC "Vneshtorgbank", OAO "Severstal-avto" and OAO "Russian railways" with OAO "Russian Railways" becoming the winner of the prize.

Award Ceremony "Corporate governance leaders 2005"