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Russian oligarch tied to Paul Manafort just launched an IPO on the London Stock Exchange

Oleg Deripaska likes to stay out of the limelight, but is a major player in Russia’s economy

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(Forbes) – Russian businessman Oleg Deripaska is finally getting his wish: his En+ Group will list on the London Stock Exchange. Even in a hyper-liquid market, the fact that this stock is unlikely to be oversubscribed speaks volumes. In a rare moment of camaraderie between greedy Wall Street-types and green activists, both agree that the company has serious corporate governance issues.

En+Group is one part Rusal, Russia’s largest aluminum producer, and one part En+ Power, owners of some of Russia’s biggest hydroelectric dams. The company said in October that it would use the proceeds, in part, to pay for Rusal debt. Rusal is listed on the Hong Kong Exchange and has a 5.5% dividend yield. With En+, investors are getting more cash for more dividend flow.

“I did a little in-house exercise and by my math, I get a 6.25% dividend with En+ Group, but I can do better with less risky stocks,” says Alexey Klaptsov, a fund manager for the Specialized Research and Investment Group, or SPRING, a Moscow-based hedge fund. “Sure, 6.25% is nice, but I don’t see all that much upside because it is not in the indexes. I won’t get any support from the ETFs.  I won’t participate in this IPO.”

VanEck Global, owners of the biggest Russian exchange-traded funds, also said that they would not participate in the IPO for the simple reason that neither Rusal nor En+ Group are part of the index their funds track.

Deripaska likes to remain behind the scenes. Rarely does he even speak about Rusal or En+ in the press. Perhaps his low profile is kept for a good reason. He is considered somewhat toxic by many. His name has been bantered around with the likes of Paul Manafort, President Trump’s former campaign advisor caught up in a Russia-Ukraine scandal of his own making. Manafort was recently indicted, the first shoe to drop on the special counsel investigation in Russian relations with Trump campaign officials.

Earlier last month, international environmental group Rivers Without Borders sent an letter to the LSE addressed to its chairman, Donald Brydon; the CEO of the U.K. Financial Conduct Authority, Andrew Bailey; and to En+ Group’s chairman, a British Lord brought in for good measure, Conservative Party politician George Barker, in which they warned investors about what they said was corporate disclosure shortfalls.

“We believe that the IPO process must be adjusted to incentivize significant improvements in their policies and practices on environmental and social responsibility related governance issues,” wrote Eugene Simonov, director of Rivers Without Borders International in Russia. “We believe that unless recognized, disclosed and properly managed, the environmental and social risks associated with operations of En+ Group industries may result in substantial material losses and under-performance.”

The market definitely agrees about corporate governance and name-brand risk associated with Deripaska. Although he is not sanctioned by the U.S. or Europe, the recent Manafort indictment scares some.

On Thursday, the Financial Times quoted an off record fund manager saying the valuation of En+Group is “twice what it should be. They should have a discount for Russia, a discount for the leverage, and they should absolutely have a discount for corporate governance.”

Book runners struggled to elevator pitch En+Group to me last week, only saying that it was a way to hedge against Rusal’s aluminum risks, and was a nice dividend play.  One tried to tell me about how Rusal would benefit from electric vehicles that need its super cheap aluminum. The only problem is, Rusal is already publicly traded. Why not just buy that instead?

En+ Group expects to raise a total of $1.5 billion through the sale of new and existing shares in both London and Moscow. Pricing will be known to U.S. investors on Friday morning.

Reuters reported yesterday that the order book was fully covered for all the shares being sold, but not including a so-called green-shoe option where more stock can be sold in the case of over-subscription.

En+Group likes to bill itself as a clean producer of aluminum because most of its energy is derived from its own hydroelectric dams. Activists like Simonov say that some of those rivers are important to Russia’s Lake Baikal, a UNESCO World Heritage Site in Siberia. Despite Simonov’s environmental concerns, in a hot market that is generally cool on this deal, it will be a surprise if Deripaska gets the money he is hoping for when En+Group launches on the LSE.

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Orthodox Churches begin to respond forcefully to Ukrainian situation

Two jurisdictions, including one with a difficult history with Russia, move to condemn uncanonical acts in Ukraine.

Seraphim Hanisch

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Two local jurisdictions within the Eastern Orthodox Church announced their refusal to accept the legitimization of two schismatic groups in Ukraine, a move authorized by the Ecumenical Patriarch, but spurred by powers in the United States and Petro Poroshenko’s secularist-oriented Ukraine.

On October 11th, 2018, the Ecumentical Patriarch, Bartholomew I of Constantinople, authorized his legates to pronounce two schismatic Orthodox “churches” in Ukraine to be restored to canonical communion with the Ecumenical Patriarchate, and by extension, across the entire Orthodox world.

This move was strongly condemned by the authorities of the Russian Orthodox Church, which has the only canonically accepted church presence in Ukraine, a situation that the Ecumenical Patriarch himself agreed with only a few years ago.

Russia moved to break communion with the Ecumenical Patriarchate, creating a split in the Orthodox Church, but a split that at first risked Russia standing alone in their statement of disapproval of the Ecumenical Patriarchate’s actions.

For a time the reaction of the other “local” Orthodox Churches was cautious, with the vast majority (excepting only the Greek Church in the USA) coming out in support of the canonical group in Ukraine, but without taking similar action to Moscow.

That appears to be changing.

On November 12 and 16, respectively, the Churches of Serbia and Poland issued strong statements. They both categorically refused to recognize the Ukrainian schismatic groups and they forbade their clergy to concelebrate with the “clergy” within these groups. The Serbs’ statement on this was as follows:

“The Assembly does not recognize the mentioned figures and their followers as Orthodox bishops and clergy and, consequently, does not accept liturgical and canonical communion with them and their supporters.”

The Polish Church made a similar announcement, but with even more force:

“The Holy Bishops’ Council forbids the priests of the Polish Orthodox Church from having liturgical and prayerful contact with the ‘clergy’ of the so-called Kiev Patriarchate and the so-called ‘Autocephalous Orthodox Church,’ which have committed much evil in the past,” the statement reads.

According to the Polish hierarchs, persons deprived of episcopal and clerical ordination cannot be leaders in establishing peace in the Ukrainian Orthodox Church.

Only the observance of the dogmatic and canonical norms of the Church and the preservation of the centuries-old tradition will protect Orthodoxy from severe ecclesiastical consequences on an international scale. The Polish Orthodox Church prays fervently for the unity of the holy Orthodox Church and for peace for the Ukrainian Orthodox Church,” the message further reads.

And while yet officially under the omophorion of Constantinople, several Greek monasteries on Mount Athos, the Orthodox monastic republic that is the spiritual center of all of Eastern Orthodoxy, inserted special petitions in their services to pray for Metropolitan Onufry and the people of the Ukrainian Orthodox Church – that is, the canonical group that is a highly autonomous, or independent, Church while yet under the Moscow Patriarchate.

This is an interesting situation because in terms of ecclesial jurisdiction, Mount Athos is actually under the Ecumenical Patriarchate. However, the monasteries there often are known for taking the hardest of hardline stances when even their own Patriarchate takes actions they feel to be wrong:

Thousands of Russian and Ukrainian Orthodox Christians go on pilgrimage to Mt. Athos, which is under the jurisdiction of Constantinople, every year. However, the Russian Church, of which the Ukrainian Church is an autonomous, self-governing part, broke communion with Constantinople on October 15, which the Ukrainian Church confirmed yesterday, due to unilateral Constantinople’s interference in ecclesiastical life in Ukraine.

We know that the majority of the abbots of the Athonite monasteries do not agree with the anti-canonical decisions of the Phanar,” Met. Anthony said.

“In several monasteries—Greek ones, by the way—they have included a special petition in the Litany of Peace in the morning and evening services: ‘For His Beatitude Metropolitan Onuphry with his suffering flock.,’” he explained, adding, “We are very grateful to the Athonites for their brotherly love and prayers.”

This is a story that it still developing, but the recent moves by Poland and Serbia may be outlining the path that other local Orthodox Churches will take.

That move is to deny recognition to the schismatics that Patriarch Bartholomew lifted the anathemas and depositions for. If this step were to be taken by all the local Churches that have expressed support for the canonical Ukrainian Church, the result would be not much different than where the schismatics were on October 10th:

Filaret Denisenko’s group and Makary’s group would indeed have communion with Constantinople, and presumably the Greek Orthodox Church in the USA, but with no one else.

This move would be a severe repudiation of the Ecumenical Patriarch’s repeated declaration that he has the sole authority to grant autocephaly to anyone anywhere in the Orthodox world (or even to take it away), which is a canonical absurdity.

Given the substantial problems that Filaret Denisenko continues to create, such as refusing to be considered only a Metropolitan (this was the Ecumenical Patriarchate’s order), and to still consider himself a patriarch, blessing a blasphemous “icon” that is really just a monument to Ukrainian ultra-nationalism and secularism (note the neo-Nazi wolfsangel and machine guns in the upper right of this photo:

And given the ideations of Patriarch Bartholomew himself, who is also recently reported to be pushing towards creating unity with the Roman Catholic Church, while acting like a pope himself by insisting that all the local Orthodox Churches will accept his decisions, it does not look like this situation is going to go away by itself.

However, by placing the problem of the schismatics squarely in Patriarch Bartholomew’s hands (since he created the problem), the pressure created by other churches refusing to concelebrate with the Ukrainian schismatics may be enough to isolate the Ecumenical Patriarchate itself, rather than fulfilling the highly likely goal that the US, Ukraine and Patriarch Bartholomew may have had initially – to isolate Russia and create a situation where Russia is made to look like the bad guy, once again.

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Whose Money Stoked Religious Strife in Ukraine – and Who Tried to Steal It?

Was $25 million in American tax dollars allocated for a payoff to stir up religious turmoil and violence in Ukraine?

Jim Jatras

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Authored by James George Jatras via Strategic Culture:


Was $25 million in American tax dollars allocated for a payoff to stir up religious turmoil and violence in Ukraine? Did Ukrainian President Petro Poroshenko (unsuccessfully) attempt to divert most of it into his own pocket?

Last month the worldwide Orthodox Christian communion was plunged into crisis by the decision of Ecumenical Patriarch Bartholomew I in Constantinople to recognize as legitimate schismatic pseudo-bishops anathematized by the canonical Ukrainian Orthodox Church, which is an autonomous part of the Russian Orthodox Church. In so doing not only has Patriarch Bartholomew besmirched the global witness of Orthodoxy’s two-millennia old Apostolic faith, he has set the stage for religious strife in Ukraine and fratricidal violence – which has already begun.

Starting in July, when few were paying attention, this analyst warned about the impending dispute and how it facilitated the anti-Christian moral agenda of certain marginal “Orthodox” voices like “Orthodoxy in Dialogue,” Fordham University’s “Orthodox Christian Studies Center,” and The Wheel. These “self-professed teachers presume to challenge the moral teachings of the faith” (in the words of Fr. John Parker) and “prowl around, wolves in sheep’s clothing, forming and shaping false ideas about the reality of our life in Christ.” Unsurprisingly such groups have embraced Constantinople’s neopapal self-aggrandizement and support for the Ukrainian schismatics.

No one – and certainly not this analyst – would accuse Patriarch Bartholomew, most Ukrainian politicians, or even the Ukrainian schismatics of sympathizing with advocacy of such anti-Orthodox values. And yet these advocates know they cannot advance their goals if the conciliar and traditional structure of Orthodoxy remains intact. Thus they welcome efforts by Constantinople to centralize power while throwing the Church into discord, especially the Russian Church, which is vilified in some Western circles precisely because it is a global beacon of traditional Christian moral witness.

This aspect points to another reason for Western governments to support Ukrainian autocephaly as a spiritual offensive against Russia and Orthodoxy. The post-Maidan leadership harp on the “European choice” the people of Ukraine supposedly made in 2014, but they soft-pedal the accompanying moral baggage the West demands, symbolized by “gay” marches organized over Christian objections in Orthodox cities like AthensBelgradeBucharestKievOdessaPodgoricaSofia, and Tbilisi. Even under the Trump administration, the US is in lockstep with our European Union friends in pressuring countries liberated from communism to adopt such nihilistic “democratic, European values.”

Perhaps even more important to its initiators, the row over Ukraine aims to break what they see as the “soft power” of the Russian Federation, of which the Orthodox Church is the spiritual heart and soul. As explained by Valeria Z. Nollan, professor emerita of Russian Studies at Rhodes College:

‘The real goal of the quest for autocephaly [i.e., complete self-governing status independent of the Moscow Patriarchate] of the Ukrainian Orthodox Church is a de facto coup: a political coup already took place in 2014, poisoning the relations between western Ukraine and Russia, and thus another type of coup – a religious one – similarly seeks to undermine the canonical relationship between the Ukrainian Orthodox Church and Moscow.’

In furthering these twin objectives (morally, the degrading of Orthodox Christianity; politically, undermining the Russian state as Orthodoxy’s powerful traditional protector) it is increasingly clear that the United States government – and specifically the Department of State – has become a hands-on fomenter of conflict. After a short period of appropriately declaring that “any decision on autocephaly is an internal [Orthodox] church matter,” the Department within days reversed its position and issued a formal statement (in the name of Department spokesperson Heather Nauert, but clearly drafted by the European bureau) that skirted a direct call for autocephaly but gave the unmistakable impression of such backing. This is exactly how it was reported in the media, for example, “US backs Ukrainian Church bid for autocephaly.” Finally, Secretary of State Mike Pompeo weighed in personally with his own endorsement as did the US Reichskommissar for UkraineKurt Volker.

The Threat…

There soon became reason to believe that the State Department’s involvement was not limited to exhortations. As reported by this analyst in October, according to an unconfirmed report originating with the members of the Russian Orthodox Church Outside of Russia (an autonomous New York-based jurisdiction of the Moscow Patriarchate), in July of this year State Department officials (possibly including Secretary Pompeo personally) warned the Greek Orthodox Archdiocese of America (also based in New York but part of the Ecumenical Patriarchate) that the US government was aware of the misappropriation of a large amount of money, about $10 million, from estimated $37 million raised from believers for the construction of the St. Nicholas Greek Orthodox Church and National Shrine in New York. The State Department warning also reportedly noted that federal prosecutors have documentary evidence confirming the withdrawal of these funds abroad on the orders of Ecumenical Patriarch Bartholomew. It was suggested that Secretary Pompeo would “close his eyes” to this theft in exchange for movement by the Patriarchate of Constantinople in favor of Ukrainian autocephaly, which helped set Patriarch Bartholomew on his current course.

[Further details on the St. Nicholas scandal are available here, but in summary: Only one place of worship of any faith was destroyed in the September 11, 2001, attack in New York and only one building not part of the World Trade Center complex was completely destroyed. That was St. Nicholas Greek Orthodox Church, a small urban parish church established at the end of World War I and dedicated to St. Nicholas the Wonderworker, who is very popular with Greeks as the patron of sailors. In the aftermath of the 9/11 attack, and following a lengthy legal battle with the Port Authority, which opposed rebuilding the church, in 2011 the Greek Archdiocese launched an extensive campaign to raise funds for a brilliant innovative design by the renowned Spanish architect Santiago Calatrava based on traditional Byzantine forms. Wealthy donors and those of modest means alike enthusiastically contributed millions to the effort. Then – poof! In December 2017, suddenly all construction was halted for lack of funds and remains stalled to this day. Resumption would require having an estimated $2 million on hand. Despite the Archdiocese’s calling in a major accounting firm to conduct an audit, there’s been no clear answer to what happened to the money. Both the US Attorney and New York state authorities are investigating.]

This is where things get back to Ukraine. If the State Department wanted to find the right button to push to spur Patriarch Bartholomew to move on the question of autocephaly, the Greek Archdiocese in the US is it. Let’s keep in mind that in his home country, Turkey, Patriarch Bartholomew has virtually no local flock – only a few hundred mostly elderly Greeks left huddled in Istanbul’s Phanar district. (Sometimes the Patriarchate is referred to simply as “the Phanar,” much as “the Vatican” is shorthand for the Roman Catholic papacy.) Whatever funds the Patriarchate derives from other sources (the Greek government, the Roman Catholic Church, the World Council of Churches), the Phanar’s financial lifeline is the ethnic Greek community (including this analyst) in what is still quaintly called the “Diaspora” in places like America, Australia, and New Zealand. And of these, the biggest cash cow is the Greek-Americans.

That’s why, when Patriarch Bartholomew issued a call in 2016 for what was billed as an Orthodox “Eighth Ecumenical Council” (the first one since the year 787!), the funds largely came from America, to the tune of up to $8 million according to the same confidential source as will be noted below. Intended by some as a modernizing Orthodox “Vatican II,” the event was doomed to failure by a boycott organized by Moscow over what the latter saw as Patriarch Bartholomew’s adopting papal or even imperial prerogatives – now sadly coming to bear in Ukraine.

…and the Payoff

On top of the foregoing, it now appears that the State Department’s direct hand in this sordid business may not have consisted solely of wielding the “stick” of legal threat: there’s reason to believe there was a “carrot” too. It very recently came to the attention of this analyst, via an unsolicited, confidential source in the Greek Archdiocese in New York, that a payment of $25 million in US government money was made to Constantinople to encourage Patriarch Bartholomew to move forward on Ukraine.

The source for this confidential report was unaware of earlier media reports that the same figure – $25 million – was paid by Ukrainian President Petro Poroshenko to the Phanar as an incentive for Patriarch Bartholomew to move forward on creating an independent Ukrainian church. Moreover, Poroshenko evidently tried to shortchange the payment:

‘Peter [Petro] Poroshenko — the president of Ukraine — was obligated to return $15 million US dollars to the Patriarch of Constantinople, which he had appropriated for himself.

‘As reported by Izvestia, this occurred after the story about Bartholomew’s bribe and a “vanishing” large sum designated for the creation of a Unified Local Orthodox Church in Ukraine surfaced in the mass media.

‘As reported, on the eve of Poroshenko’s visit in Istanbul, a few wealthy people of Ukraine “chipped in” in order to hasten the process of creating a Unified Local Orthodox Church. About $25 million was collected. They were supposed to go to the award ceremony for Patriarch Bartholomew of Constantinople for the issuing of a tomos of autocephaly. [A tomos is a small book containing a formal announcement.] However, in the words of people close to the backer, during the visit on April 9, Poroshenko handed over only $10 million.

‘As a result, having learned of the deal, Bartholomew cancelled the participation of the delegation of the Phanar – the residence of the Patriarch of Constantinople, in the celebration of the 1030th anniversary of the Baptism of Russia on July 27 in Kiev.

‘”Such a decision from Bartholomew’s side was nothing other than a strong ultimatum to Poroshenko to return the stolen money. Of course, in order to not lose his face in light of the stark revelations of the creation of the tomos of autocephaly for the Ukrainian Orthodox Church, Peter Alexeevich [Poroshenko] had to just return those $15 million for the needs of Constantinople,” a trusted source explained to reporters.

‘For preliminary information, only after receiving the remaining sum, did Bartholomew finally give his consent to sending a delegation of the Phanar to Kiev … ‘

Now, it’s possible that the two identical figures of $25 million refer to two different pots of money (a cool $50 million!) but that seems unlikely. It’s more probable the reports refer to the same sum as viewed from the sending side (the State Department, the Greek Archdiocese) and the delivery side (Poroshenko, Constantinople).

Lending credibility to the confidential information from New York and pointing to the probability that it refers to the same payment that Poroshenko reportedly sought to raid for himself are the following observations:

  • When Poroshenko generously offered Patriarch Bartholomew $10 million, the latter was aware that the full amount was $25 million and demanded the $15 million Poroshenko had held back. How did the Patriarch know that, unless he was informed via New York of the full sum?
  • If the earlier-reported $25 million was really collected from “a few wealthy people of Ukraine” who “chipped in,” given the cutthroat nature of disputes among Ukrainian oligarchs would Poroshenko (an oligarch in his own right) have risked trying to shortchange the payment? Why has not even one such Ukrainian donor been identified?
  • Without going into all the details, the Phanar and the Greek Archdiocese have a long relationship with US administrations of both parties going back at least to the Truman administration, encompassing some decidedly unattractive episodes. In such a history, a mere bribe for a geopolitical shot against Moscow would hardly be a first instance or the worst.

As one of this analyst’s Greek-American connections puts it: “It’s easy to comprehend the Patriarchate bowing to the pressure of State Dept. blackmail… not overly savory, but understandable. However, it’s another thing altogether if Kiev truly “purchased” their autocephalous status from an all too willing Patriarchate … which would relegate the Patriarch to ‘salesman’ status and leave the faithful wondering what else might be offered to the highest bidder the next time it became convenient to hold a Patriarchal ‘fire sale’ at the Phanar?!”

To add insult to injury, you’d think Constantinople at least could pay back some of the $7-8 million wasted on the Crete 2016 debacle to restart the St. Nicholas project in New York. Evidently the Phanar has better things to spend it on, like the demonstrative environmentalism of “the Green Patriarch” and, together with Pope Francis, welcoming Muslim migrants to Europe through Greece. Of course maybe there’s no need to worry, as the Ukraine “sale” was consistent with Constantinople’s papal ambitions, an uncanonical claim to “universal” status, and misuse of incarnational language and adoption of a breathtakingly arrogant tone that would cause even the most ultramontane proponent of the Rome’s supremacy to blush.

Finally, it seems that, for the time being at least, Constantinople doesn’t intend to create an independent Ukrainian church but rather an autonomous church under its own authority. It’s unclear whether or not Poroshenko or the State Department, in such event, would believe they had gotten their money’s worth. Perhaps they would. After all, the issue here is less what is appropriate for Ukraine than what strikes at Russia and injures the worldwide Christian witness of the Orthodox Church. To that end, it doesn’t matter whether the new illegal body is Constantinopolitan or Kievan, just so long as it isn’t a “Moskal church” linked to Russia.

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U.S. May Impose Sanctions Against Turkey Over S-400 “Threat” To F-35

The United States continues to consider the S-400 air defense system a threat to its F-35 fifth generation stealth fighter platform.

The Duran

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Authored by Al Masdar News:


Turkish officials have repeatedly insisted that Ankara’s purchase of the advanced Russian air defense system poses no threat whatsoever to the NATO alliance. Last month, the Turkish defense ministry announced that delivery of S-400s to Turkey would begin in October 2019.

The United States continues to consider the S-400 air defense system a threat to its F-35 fifth generation stealth fighter platform, and may impose sanctions against Ankara, Turkey’s Anadolu news agency has reported, citing a high-ranking source in Washington.

“I can’t say for certain whether sanctions will be imposed on Ankara over the S-400 contract, but the possibility is there. The US administration is not optimistic about this issue,” the source said.

While admitting that Turkey was a sovereign state and therefore had the right to make decisions on whom it buys its weapons from, the source stressed that from the perspective of these weapons’ integration with NATO systems, the S-400 was “problematic.”

The source also characterized the deployment of S-400s in areas where US F-35 fifth-generation stealth fighters are set to fly as “a threat,” without elaborating.

Emphasizing that negotiations between Washington and Ankara on the issue were “continuing,” the source said that there were also “positive tendencies” in negotiations between the two countries on the procurement of the Patriot system, Washington’s closest analogue to the S-400 in terms of capabilities.

Designed to stop enemy aircraft, cruise and ballistic missiles at ranges of up to 400 km and altitudes of up to 30 km, the S-400 is currently the most advanced mobile air defense system in Russia’s arsenal. Russia and India signed a ruble-denominated contract on the delivery of five regiments of S-400s worth $5 billion late last month.

Last week, the Saudi Ambassador to Russia said that talks on the sale of the system to his country were ongoing. In addition to Russia, S-400s are presently operated by Belarus and China, with Beijing expecting another delivery of S-400s by 2020.

Washington has already slapped China with sanctions over its purchase of S-400s and Su-35 combat aircraft in September. India, however, has voiced confidence that it would not be hit with similar restrictions, which the US Treasury has pursued under the 2017 Counter America’s Adversaries Through Sanctions Act (CAATSA).

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