Discussions have been held between the Queen’s cousin — nicknamed Prince Michael of Kentski — and the Russian Trading System (RTS), one of the country’s two main stock exchanges. Sources said that to cope with its rapid expansion, the RTS wants to appoint an eight-man advisory board led by two chairmen: a senior Russian and a foreign heavyweight.
“The exchange wants the new advisory board to help devise strategy, especially with regard to the increasing interest among Russian companies in foreign listings, and London listings in particular,” the source said. “Prince Michael understands Russian business and is also a senior figure in London, so he is a good choice.”
His appointment, an honorary position not yet confirmed, would be part of a wider restructuring of RTS. It would coincide with plans to open a junior market, RTS Start, to rival London’s Alternative Investment Market.
Under Russian law, all companies seeking a foreign listing must first list at least 30% of their shares on a Russian exchange. As a result, Moscow’s current junior market, RTS Board, has been overburdened with demand. RTS Start, which will operate alongside the board, will have tougher listing requirements.
The source said: “A lot of Russian companies want to list abroad — this is a fact. But many find it hard to step up to the high transparency requirements of exchanges such as London. RTS Start will help both with Russian listings abroad and will also encourage foreign investment here.”
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It is hoped that, as chairman of the advisory board, Prince Michael will help to improve the international profile and reputation of the country’s public companies as they list.
Although London welcomed a spate of Russian floats, some caused controversy. Last month the oil group Rosneft launched a $10.4 billion issue, the biggest so far, with a huge list of investor risks. The consumer services group Sistema raised $1.6 billion in February.