A Russian environmental non-governmental organisation, Rivers Without Boundaries, and other Russian NGOs including Greenpeace Russia, will today present a petition to the Hong Kong stock exchange to block the coming initial public offering of EuroSibEnergo (ESE).
ESE is a Russian electricity producer owned by tycoon Oleg Deripaska, who also owns aluminium company Rusal which listed in Hong Kong 14 months ago.
'We hope the exchange will look into the immense risks we have listed and block ESE's offering. We are prepared for a long campaign internationally and in Russia. If Hong Kong exchange officials do not heed us, we will continue working with investors to expose the harmful consequences of dealing with such irresponsible companies,' said Eugene Simonov, co-ordinator of Rivers Without Boundaries.
The NGO is concerned about ESE's plan to use the Russian rivers Amur, Lena and Yenisey for electricity exports to China, Simonov said.
'We advise IPO managers that investing in ESE is too environmentally, socially and politically risky, and these hydropower projects must be dropped. We would like investors not to invest in ESE until it changes its environmental and social policies and provides transparent plans which guarantee public involvement.'
On February 28, ESE started pre-marketing its Hong Kong listing, which aims to raise at least US$1 billion, Dow Jones reported, citing unnamed sources.