Moscow's last-minute cancellation of the sale of a 5.9% state holding in Lukoil, Russia's biggest oil company by reserves, spoke volumes about the country's arduous march to the capital markets.

The Russian government, at the urging of economic development minister German Gref, decided on July 31, the day of the sale, to wait for a better price despite the offer having been oversubscribed. Morgan Stanley, the sponsor and co-ordinator, had attracted bids worth more than $1bn (€1bn) for the $711m stake.