Russia's Richest Man Prefers Hong Kong to London Listing

Russia's richest man, Oleg Deripaska, yesterday gave his strongest indication yet that he intends to float his multi billion-pound aluminum business in China rather than on the London Stock Exchange.

Deripaska - who enjoys a close friendship with Russia's president, Vladimir Putin - denied that the political row between Britain and Russia had led him to dump plans to hold a flotation in London. "There is no connection," he said.

But in an interview with foreign journalists in Moscow, Deripaska said that his United Company RusAl, the world's largest aluminum producer, was likely to be listed in Hong Kong. "It would give us a more comfortable solution," he said.

China offered a better business climate than Britain, he suggested, adding that the Chinese "train" is "driven by entrepreneurs who know what to do over the next 10 years".

Last night, Georgy Organov, spokesman for Deripaska, said no decision had been made over where his company would hold an initial public offering, and a range of options was being considered in Europe, Russia and China. He said it was a "misinterpretation" to suggest that Hong Kong was preferred over London.

Although business between Russia and Britain continues to thrive, Deripaska acknowledged that investing in the UK had been made more difficult by the diplomatic feud that has raged since the 2006 murder of Alexander Litvinenko. "It's like stepping on a rake," he joked.

London has attracted many listings from Russian companies in recent years and celebrated the 100th Russian firm to float last week.

But Deripaska conceded that listing in Hong Kong offered fewer "legal" difficulties than the more regulated London Stock Exchange. It is still not clear when RusAl's initial public offering will take place - it has been subject to repeated delays after high court claims by one of Deripaska's former partners, Michael Cherney.

Deripaska is Russia's richest tycoon, with a $28.6bn (£14bn) fortune, according to this month's edition of Forbes Russia.

Last week RusAl bought a 25% stake in Norilsk Nickel, the world's biggest producer of the metal. The purchase could lead to a merger between RusAl and Norilsk - though Metalloinvest, owned by the Uzbek-born billionaire Alisher Usmanov, is also interested in a merger.

Deripaska is chairman of Basic Element, his £11bn investment vehicle. The business is attempting to buy Russneft, Russia's seventh largest oil firm. Last summer its billionaire owner Michael Gutseriev fled Russia claiming that the Kremlin had tried to appropriate his business.