Moscow, 25 March 2010

When giant commodity trader Glencore allocated $1 billion to get a foothold in Russia's lucrative oil business, it unwittingly entered an ownership battle that may prove a test case for Western investment. Swiss-based Glencore, renowned for its connections and trading might, is now working to resolve the fate of midsized oil producer Russneft in a case that will gauge the investment climate for private money in Russia's natural resources sector.

The deal seemed simple: Glencore, which for decades had been trading Russian coal, oil and aluminium, lent over $1 billion to Russneft between 2003 and 2005 in exchange for stakes in some units of the firm, controlled by billionaire Mikhail Gutseriyev.

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