1. Rosneft openly cautioned or warned potential investors that the company's government owner may in the future "engage in business practices that do not maximize shareholder value." Why then would any investor actually take the risk to purchase shares? The prospectus says that Rosneft is a defendant or respondent in four cases brought by Yukos or its share- holders that could result in damages of at least Dollars 14.7bn. Rosneft is "actively contesting" the claims and suing Yukos in Moscow for more than Dollars 17bn. It adds: "If certain shareholders of Yukos are suc- cessful in obtaining an arbitral award against the Russian Federation, those shareholders may seek to enforce that award against Rosneft which may expose Rosneft to substantial liability." Rosneft's corporate governance might also prove offputting. The prospectus says the Russian govern- ment indirectly owns 100 per cent of Rosneft and that six members of the nine-member board are officials in the government. This means Rosneft may "engage in business practices that do not maximise shareholder value" and cause it to "take actions that may not coin- cide with the interests of minority share-holders" -"Rosneft Rolls Out Litany of Risks," Financial Times, June 27, 2006, p. 1.