Prosecutor’s Office wants Russia’s Bashneft returned to govt

MOSCOW, Sep 26 (PRIME) -- The General Prosecutor’s Office has filed a suit to the Moscow Arbitration Court to return oil company Bashneft owned by multi-industry holding AFK Sistema to the government, the office’s official representative Marina Gridneva told PRIME Friday.

During an investigation the prosecutors have found law violations during privatization of oil and gas companies of the Bashkortostan Republic in the 90s, which now comprise Bashneft, she said, adding that the court has backed the suit and arrested the company shares owned by Sistema and its affiliate Sistema-Invest.

“Considering the fact that disposal of the mentioned property was made with violations of the state property privatization procedure and against the will of Russia, the General Prosecutor’s office has filed a suit to withdraw the property from illegal ownership and impose restrictive measures on Bashneft’s shares,” Gridneva said.

On Thursday, a Moscow court rejected a request to release Sistema’s major shareholder Vladimir Yevtushenkov from house arrest, under which he was put on September 16 on accusations that he was involved in embezzlement during Bashneft privatization.

According to earlier reports by the Investigative Committee, Sistema paid U.S. $500 million less than agreed with the government of the Bashkortostan republic, during privatization of assets which now are parts of Bashneft.

As of May 14, Sistema owns 63.16% in Bashneft, 10.67% are owned by Sistema-Invest, 6.11% of shares are on the company’s balance and the rest are free-float.

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