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. Last Updated: 07/27/2016

Doubt Cast on Rosneft IPO

Russia's plan to raise up to $20 billion by floating part of Rosneft may face delays due to its complexity, investor Boris Jordan said in an interview.

"Rosneft has serious reasons to delay. They will have to do the accounts of a gigantic oil monster that has just got some new assets which, understandably, have yet to be audited," said Jordan, a U.S. citizen who has been a top Russian deal-maker since the fall of the Soviet Union.

Economic Development and Trade Minister German Gref said on Monday that the government was sticking by its plan for an IPO in the third quarter, while Rosneft president Sergei Bogdanchikov has said it will happen in July.

Jordan, who heads the Sputnik investment fund and has bought stakes of up to $50 million each in recent Russian IPOs, was skeptical that it could be done so quickly. "If they manage to do it this year, they will have done a really good job. I would be amazed if it happened," he said.

Rosneft's main attraction for investors is daily production of 1.56 million barrels of oil and its claim to have reserves to rival ExxonMobil -- 23.5 billion barrels. But most of Rosneft's value comes from its most controversial asset, the Yugansk oil production firm that formerly belonged to Yukos.

"I think this one is an extremely complex deal because there are a lot of new assets like Yugansk," said Jordan.

"Now they have to consolidate them all and prepare accounts to an international standard. That is very hard to do quickly."