Riga Stock Exchange                                                                 07.03.2005



JSC “Ventspils nafta” trading under surveillance



Riga Stock Exchange Management Board resolved on its meeting of March 7, 2005, to assign Surveillance 

status to JSC “Ventspils Nafta” starting with March 8, 2005. The decision is based on the uncertain 

situation when on March 7, 2005 Olga Pētersone, Chairman of “Ventspils Nafta” Management Board, published 

via the RSE a statement about possible change of a regulated marketplace, however, failing to specify the 

markets for listing and the timeframe. 



The information on change of a regulated marketplace is crucial for the investor: depending on the market 

where the company seeks listing, the share price as well as the possibility for the existing investors to 

buy or sell shares may vary. The choice of the marketplace also determines the trading and settlement rules, 

including costs and the time necessary for execution of the deal, the requirements set worth 

to the market participants, the choice of the financial intermediary, the market safety etc.. 



Considering the above, the RSE Management Board has requested the following from JSC “Ventspils 

Nafta”: 

1) By March 11, 2005 – to specify the timing of the general meeting of shareholders that will review the 

issue of change of marketplace;

2) By April 11, 2005 – to disclose the Management Board recommendations as to the potential marketplaces 

for listing “Ventspils nafta”; a certification that “Ventspils nafta” has applied to another market 

organizer and is seeking the listing for its shares; and a consent from the said market organizer to 

consider “Ventspils nafta” listing application.



In case the company fails to disclose the requested information by April 11, the RSE Management Board will 

consider suspending the trading of “Ventspils nafta”. According to Item 32.5.3 of Listing and Disclosure 

Rules, in case the issuer has not taken measures to eliminate the circumstances that  is the cause for the 

suspension of trading, and  the trading has been suspended for more than six months, the RSE Management 

Board will resolve on delisting of JSC from the RSE Main list.  



The Riga Stock Exchange declines any statements by JSC  “Ventspils nafta”, claiming that the RSE is 

demonstrating unequal approach to its listed companies. 



Guntars Kokorevičs, Chairman of Management Board, Riga Stock Exchange: ”Our attitude towards the issuers has 

been equal at all times. The fact that since 1995 there has not been a single complaint on the 

RSE attitude or surveillance, is an evidence to our neutrality and equal attitude to all market 

participants. This would be unthinkable elsewhere that an issuer is dissatisfied with the stringent 

surveillance by a stock exchange: this is the way how a safe marketplace is maintained; the issuer 

itself protected from unreasonable price; and the investor confidence to the market is enhanced. Only a

company that lacks an understanding of capital markets and a listed company’s role can afford releasing 

unjustified reproaches to a regulated market organizer. Considering the fact that the state owns 38% of 

“Ventspils Nafta” shares, such announcement by the company management may have an impact also on the value of 

the state holding. And, last of all, if the management really cares about the company value, it would refrain 

from disseminating inconsiderate statements about listing on a foreign market. It is hard to imagine a worse thing 

for share price and liquidity than being listed on a foreign market without price arbitration possibility with the 

home market.”



More information:

Guntars Kokorevičs,             +371 9212142

Chairman of Management Board, Riga Stock Exchange