Russian-style London or UK-style Russians… This is a powerful and promising combination that's emerged at the ninth annual Russian Economic Forum in London. Possible investors are keen to have a hand in the oil and gas business but are somewhat afraid of the risks.

Russian presence at the session was enormous, featuring Anatoly Chubais, head of RAO UES, Oleg Vyugin, head of the Federal Service for Financial Markets, Rosneft president Sergey Bogdanchikov and Russian Railway Roads president Vladimir Yakunin. Much-expected Boris Berezovsky missed the chance to socialize with his compatriots.

Russia-IC representative also attended the elite get-together reporting on the events and key decisions made. The mood, as he said, is much more optimistic than expected. Foreigners are crazy about Russian oil and gas resources and impressed by the rich Russians who are trying to sell them.

The positive investment climate was the message of Charles Ryan's report, CCO and CEO, Deutsche Bank Group in Russia. He was quite emotional in describing the current economic condition as a breakthrough.

The focus of the elite conference was on the forthcoming listing of Rosneft, the state-owned oil company. It will be a litmus test for Russia to prove it has become a more transparent place to do business.

The floatation is expected to gross some $20bn, a huge addition to the $5bn already raised by other six Russian companies that listed on the London Stock Exchange last year. The figures and intention itself indicate that London has turned into a magnet for Russian entrepreneurs.

"It's one of the best things that could be happening to the Russian market. There are certain minimum standards in London and New York that you have to comply with when doing an IPO, which creates a big incentive to behave," says Bill Browder, the chief executive of Hermitage Capital Management, Russia's largest foreign portfolio investor.

Of course, there are more cautious remarks. Richard Singleton, the director of corporate governance at F&C Asset Management says: "It's important to be aware of the differences that exist and to consider whether they are matters of concern." According to the Daily Telegraph, he argues that such considerations are crucial for the self-protection of the individual investor and points out that too many instances of things going wrong would bring the London market into disrepute.

On the other hand, people like Peter Hambro, the chairman of Peter Hambro Mining, says the key to doing business in Russia is getting the right partner and making sure Russians are intimately involved in any venture, reports the Daily Telegraph. The message of UK companies operating in Russia can be encapsulated in two phrases: "Russia is industrialised country but is still developing. Risks are high, but returns are enormous, too."

There have also been some uncertainties of the UK government's policy on Gazprom's bid for Centrica, supplies British homes with gas through its subsidiary. Earlier, Alan Johnson, the trade and industry secretary, apparently spoke of blocking the bid but at the forum he said that the United Kingdom welcomed companies that would work in the UK's liberal and competitive market and would stick to rules.

The bottom-line is that Russia can be described as an inviting place but investors have to be prepared to rough it at first until they firmly get on their feet there forging safe and reliable contacts and becoming law-savvy.

Alexander Shein