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. Last Updated: 07/27/2016

Rosneft Sues Brokerage Over Report

Rosneft has set a precedent by filing a lawsuit against Olma in which the state-owned oil company says that a disparaging report by the brokerage cost it $1 million.

Rosneft filed the suit with the Moscow Arbitration Court earlier this month.

Olma published a report on its web site March 3 attributing Rosneft's falling market capitalization to "the low corporate culture of the company's managers."

The report said Rosneft management hoped to reduce the company's capitalization, put off its privatization and buy up its subsidiaries.

Rosneft spokesman Alexander Stepanenko on Monday said the report was "scientific claptrap" and that Rosneft's reputation had been dealt "an unwarranted blow."

In the report, Olma valued Rosneft at $1.253 billion as of Jan. 1.

Rosneft, however, said it was worth $3.664 billion as of Feb. 20, citing an assessment by Dresdner Kleinwort Benson, now known as Dresdner Kleinwort Wasserstein.

The shares in Rosneft's subsidiaries plummeted after the report, causing the company damages of $1 million, according to the suit. Shares in Rosneft are not listed.

Oleg Panshin, head of Olma's analytical department and one of the authors of the report, said that "in a week's time, Olma will have no problem with this lawsuit." He declined to comment further. Other Olma employees refused to comment.