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The Moscow Times
July 11, 2002

Rating Finds Good Firms Getting Better

Companies with good corporate governance continue to reveal more about themselves, but bad companies are getting worse, Dmitry Vasilyev, head of the Institute of Corporate Governance and Law, said Wednesday.

Oil majors Yukos and Sibneft have made great strides in disclosing financial information since the institute's first rating 15 months ago, Vasilyev said at a news conference, where he revealed results of the institute's quarterly corporate governance rating.

Yukos' revelations about its ownership structure last month have not yet been factored in but should further boost its rating, he said. The company finished 24th out of 40 companies, with a score of 54.42 out of 100. Sibneft took 15th place with 57.76.

Norilsk Nickel jumped from 23rd to 11th with 59.33 points. Norilsk management has made good corporate governance and a place among leading international companies a top priority. Norilsk shareholders elected an independent director to its board of directors last month.

Leading carmaker AvtoVAZ was at the bottom of the list with 36.54 points, and oil major Surgutneftegaz was 37th with 41.06 points. Telecommunications company Vimpelcom was at the top of the rating.

Many companies committed violations at their annual shareholders meetings, Vasilyev said.

These ranged from illegalities such as restricting or providing incomplete financial information to infringements of shareholders' rights, he said.