The resolution of a dispute between the Komineft oil company and shareholders over a supplementary stock issue has left both shareholders and Russia's top securities official dissatisfied, although an agreement has been signed laying the matter to rest.


"No comprehensive solution was found that would protect shareholders' rights," said Dmitry Vasilyev, deputy chairman of the Federal Commission on Securities and Capital Markets.


He added that he was "not quite satisfied with the results" of a panel set up to draft a mutually acceptable solution. "The issue itself was not liquidated."


A joint statement between shareholders and Komineft said the row was resolved when Komineft management apologized to the investors, although no financial compensation was awarded, Reuters reported.


Although the securities commission and the company had promised the supplementary issue would be cancelled, Komi Republic's Finance Ministry found no grounds to annul it, Vitaly Pinchuk, Komineft's first deputy general director in charge of financial affairs with Komineft, said in an interview from company headquarters in Ukhta.


Investment houses such as CS First Boston, Brunswick Securities and Troika-Dialog -- who saw their stakes diluted by last May's unauthorized 10 billion-ruble flotation, which went only to earlier shareholders -- were unhappy with the outcome, which officials said found fault with Komineft but laid the bulk of the blame on Russia's imperfect legislation.


Komineft and committee lawyers "managed to make amendments that actually made the document amount to naught," said Alexei Dolgikh, head of trading operations department with Troika-Dialog brokerage, whose company signed a joint statement with Komineft about the matter Oct. 1. He added that the document "just confirmed that no one has any claims against Komineft."


"[The conflict] had been dragging on for so long that everyone lost hope, all the shareholders got tired," Dolgikh said.


Komineft's Pinchuk said the joint announcement between the oil enterprise and shareholders had laid blame for the issue on Russia's imperfect legislation, although it also said Komineft "should have shown heightened circumspection" in informing shareholders about the new issue.


The statement said Komineft apologizes and "will take extra measures in increasing the openness of the company," Pinchuk quoted the document as saying.


At least one of the Western shareholders has so far refused to sign the joint statement.


The investor was waiting for more information on the number of shares issued, said a representative who asked not to be identified.


Troika-Dialog's Dolgikh voiced careful optimism about the prospects of work with Komineft.


"I think that they will do no wrong for at least a year, since they were punished so severely," Dolgikh said, adding that the case had spoiled Komineft's reputation.


Vasilyev said a comprehensive law on joint-stock companies was needed to resolve issues raised by the Komineft share dilution.