By Hugh Pym BBC business correspondent reporting from Moscow

Tapping Western capital for mobile phones

A new wave of Russian companies is preparing to seek share flotations in New York and London.

They include fast growing telecommunications and software businesses and an agricultural giant.

If they succeed, they will confirm that Russia's corporate sector has come of age.

The London Stock Exchange has confirmed that "there are encouraging signs of interest."

There are understood to be up to fifteen Russian companies seeking a City listing.

These enterprises have grown rapidly since the fall of Communism in the early 1990s.

Recent buoyant economic growth has boosted their income from the Russian domestic market.

They are also increasing export links with Western customers and the founding shareholders want to capitalise on this with public equity offerings.

But they must overcome investor scepticism about Russia which has been aroused by the Kremlin's battles with the Yukos oil company.

Investor worries

The bosses of these businesses are emphasizing that a second phase of Russian corporate expansion is underway.

The oil and gas companies were obvious early candidates for international share flotations.

They are now being followed by telecommunications and other services, including information technology.

Russia's third largest mobile phone operator Megafon is one such business with flotation plans.

It has been a beneficiary of the breakneck expansion of the Russian mobile phone market, which doubled in 2002 and is set to do so again this year.

In the cities, the number of wireless handsets is about to overtake the number of fixed line telephones.

With Moscow and St Petersburg now well catered for, the challenge is to extend mobile phone networks across Russia's vast Central and Eastern territories.

Megafon has plans to seek an initial public offering in the middle of 2004, with up to 20% of its shares up for sale.

Both New York and London are being considered for a listing.

An international financial adviser has been appointed; a company spokesman would not reveal the name but said that "the Queen would be pleased".

Information technology

Russia's largest information technology company is also planning to tap the financial markets.

Modernising Russia's agricultural sector

IBS employs 3,000 people and has subsidiaries spanning business systems, networking and consultancy.

The group hopes to cash in on the wave of outsourcing by western financial institutions.

Software development and support is offered at what is described as "a very significant cost advantage".

The company believes it can compete with Indian contractors and offers the advantage of being closer to European markets.

A spokesman quipped: "you don't need to take malaria tablets in Moscow".

IBS says it is considering a share flotation. They will look at the fledgling Moscow Stock Exchange for a listing as well as the European and American markets.

A public offering of shares in Moscow would be the largest such exercise by a local company.

Agricultural exports

Grain production in Russia has increased six fold since the demise of the Soviet Union.

The country is now poised to become the world's biggest grain exporter.

A leading player is the Razguliay-UKRROS Group which began life as a commodities trader in 1992.

It now controls up to 10% of Russia's grain market and a fifth of the sugar industry.

Razguliay-UKRROS is planning a private share placement or a public offering within a year or so.

A Eurobond issue will also be launched later this year.

The company has had talks with the North American commodities giant Cargill.

A strategic investment partnership is being considered.

Gas masks

The quirkiest share flotation plan has been aired by an entrepreneur well know to international investors.

David Iakobachvili is one of the founders of the Wimm-Bill-Dann dairy products company which was floated in New York last year.

He also runs a business selling gas protection hoods, based on technology devised by former Russian military scientists.

The masks offer protection to people in the event of fire or chemical attack.

Mr Iakobachvili wants to bring the new company, named Phoenix, to the attention of investors in London and New York.