Court launches proceedings under Bashkortostan’s suit vs Sistema

MOSCOW, Dec 20 (PRIME) -- The Arbitration Court of the republic of Bashkortostan has launched proceedings over a 131.6 billion ruble suit filed by the republic’s land and property relations ministry against Russian multi-industry holding Sistema and its affiliate Sistema-Invest, as seen by PRIME late on Tuesday in the register of arbitration cases.

The court scheduled a preliminary hearing of the case for January 12, 2018.

In the suit, the ministry wants Sistema to redeem 98.2 billion ruble losses and Sistema-Invest to redeem 33.4 billion ruble losses. Oil companies Rosneft and Bashneft, located in Bashkortostan, are included in the suit as third parties.

On December 11, Rosneft and Bashneft filed a suit against Sistema and Sistema-Invest to the court seeking redemption of 131.6 billion rubles. The claimants said they want Sistema to repay dividends that it received from Bashneft in 2009–2014 when it was a controlling shareholder of the company.

In August, the court partially satisfied a 170.6 billion ruble suit filed by Rosneft, Bashneft and Bashkortostan to charge Sistema and Sistema-Invest for the losses allegedly caused to Bashneft in 2014 during its reorganization. Sistema was ordered to repay 136.3 billion rubles, but it challenged the decision.

On Monday, the 18th Arbitration Court of Appeals located in the city of Chelyabinsk upheld the lower court’s ruling ordering Sistema to repay 136.6 billion rubles. Sistema’s representative Sergei Kopytov said the company will contest the decision, but the company said in a later statement it will fulfill the court ruling and continue to fulfill loan and other financial liabilities.

(58.6117 rubles – U.S. $1)

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