While Russia has enthusiastically embraced capitalism, the track record to date suggests that the new kids on the free enterprise block are exhibiting many faults and few virtues of the free enterprise system . A case in point in the bizarre tale of who will end up in control of a Russian oil production company burdened with the tongue-twisting name of Nizhnevartovskneftegaz.

Shareholders, with 42 per cent of the equity, said this week they would boycott an upcoming extraordinary meeting called by rival shareholders and will hold their own meeting instead. The company is the main production unit of Tyumen Oil (TNK), Russia's sixth-largest oil company by output, with TNK owning 55 per cent.. TNK is, in turn, 40 per cent owned by a unit of the powerful Alfa conglomerate. Both groups held meetings earlier this month, approving diametrically opposing resolutions, with shareholders in both camps electing their own new boards of directors. Some directors have been nominated to both boards, with each camp calling the meeting of the other illegitimate. Confusing, or what?

The unhappy resonances will not be lost on Bula Resources, which had its own costly struggle with the Russian corporate psyche, its shareholders burdened with hefty losses as a result of its costly investment foray into the new Mother Russia. Bula-watchers should now move to the top of page 17 for some riveting reading.