The Standard & Poor's (S&P) international rating agency has released a report on the level of corporate governance in Russia. A survey conducted by the agency showed that the level of corporate governance in Russia was rising but was still low. The report comprises analysis of the market, legislative, regulatory and informational infrastructures, a press release issued by the agency reads.
It is pointed out in the report that the legislative infrastructure is mainly aimed at protection of rights of investors, and it continues to improve. A number of important initiatives, intended to improve corporate governance standards, have been suggested by both individuals and public organizations. At the same time the legal environment still has some defects left, and the managerial practices of some companies entirely depend on short-term goals of their major shareholders.
"Corporate governance standards are quite different at different companies in Russia. Except for a small number of large corporations, operations and the structure of a majority of companies are generally non-transparent," Yulia Kochetygova, the director of the Corporate Governance Rating Service of S&P believes.