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. Last Updated: 07/27/2016

RTS Urging Compliance With Rules

A listing on the Russian Trading System will become more challenging next year, with companies facing removal if they fail to comply with new regulations.

"We will send out warning letters to companies suggesting they comply with new regulations," Oksana Derisheva, RTS listing department chief, said on Friday, speaking after a presentation to companies.

The changes apply to companies on the A1, A2 and B lists. One major change is that A-listed companies will need to have three independent directors, and B-listed companies at least one. The new rules already apply to newcomers and will be effective as of Jan. 1 for those companies already listed.

Aeroflot has announced an extraordinary shareholder meeting in October to re-elect its board to conform with the new regulations. A number of A1 companies polled Friday, including Unified Energy Systems, Mosenergo, Wimm-Bill-Dann, LUKoil and Yukos, all said they are in compliance.

Unified Energy Systems spokesman Andrei Trapez-nikov said that the utility's newly elected board includes four independent directors. Some of them, however, represent companies that either have stakes or do business with UES. Yelena Krasnitskaya, corporate governance analyst at Troika Dialog brokerage, said she is not convinced that independent UES board "will vote in the interests of all UES shareholders and not just in the interests of the financial groups that nominated them."

"Independent directors should not represent firms that have business with the given company, as in the case of SUEK [coal miner] and UES. It makes [the new requirement] a half measure," said Sergei Suverov, an analyst with Zenit Bank.