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. Last Updated: 07/27/2016

Second Russian Oil Firm Plans Overseas Stock Program

LONDON -- Russian oil producer Chernogorneft said Tuesday it was set to become the second Russian oil company to issue American Depositary Receipts.

"We expect that the result of our ADR program will be to attract new long-term financial investors who share our vision for the company's future," said Chernogorneft spokesman Boris Volkov in a statement issued by Salomon Brothers International in London.

Chernogorneft said the U.S. Securities and Exchange Commission had confirmed its registration of an ADR program based on Chernogorneft shares.

ADRs -- certificates issued by U.S. banks to facilitate trading in foreign stocks and shares -- have already been issued by LUKoil, Russia's largest oil company. Chernogorneft is the largest exploration and production subsidiary of Sidanko, another Russian oil major.

Foreign investors currently hold 20 percent of Chernogorneft's share capitalization.

Salomon Brothers is acting as a broker and the Bank of New York as a depositary for the Chernogorneft ADR program.