Caveat Emptor x100

I agree with the reasoning and the conclusion of Matthew Lynn's take on the Rosneft IPO. But Holy Mamaloney if ever there should be a "Buyer Beware" sticker on something it should be on these shares. Investors may make money in Rosneft and I will be happy to be proven wrong, but if investors lose money they will thoroughly deserve it. Where to begin? The Russian state stole these assets from their previous owner, what gives prospective shareholders the idea that the Russian state won't steal from them (you don't have to perpetrate outright theft to steal from shareholders, there are a thousand small ways to screw your shareholders)? Russia is notoriously corrupt and increasingly authoritarian (although was never very open and liberal to begin with). The Russian state is placing all its bets for Russia's future on the energy sector rather than diversifying the economy. Do you think that if things don't go swimmingly and they need some extra cash they will continue to share and share alike the fruits of the nation's energy resources.

Apparently there aren't enough sound investment opportunities around that equity investors would entertain investing in this smorgasbord of noxious risks.