The two faces of Russia’s capital markets

A stubborn refusal to accept friendly advice and the ability to learn quickly from the error of their ways are just two of the many contradictory traits of the Russian people. Both have been much in evidence in recent months when it comes to the country’s approach to the capital markets. February’s rights issue for Russian banking market leader Sberbank graphically illustrated the mulish obstinacy of the Muscovite authorities in the face of fierce but well-intentioned market criticism, while May’s initial public offering for VTB, the country’s number two financial institution, provided proof positive that the administration in the Kremlin is more than capable of drawing the appropriate lessons from past mistakes and of adopting a market-savvy approach.