Prosecutors uncover violations in Bashkir soda assets privatization

MOSCOW, Aug 28 (PRIME) -- Russia’s Prosecutor General’s Office has uncovered violations of legislation during privatization of soda industry assets in the republic of Bashkortostan, the authority’s official representative Andrei Ivanov said on Friday.

President Vladimir Putin on Wednesday ordered the federal and regional governments to study the situation around Bashkir Soda Company in detail. He said that in 2013 the state share in soda assets was diluted to 38% from 62% during the merger of two companies.

“Under instructions of Russian President Vladimir Putin, the Prosecutor General’s Office checked the legality of the alienation of state shares of the soda industry enterprises in the republic of Bashkortostan. During the inspection, violations of the legislation on privatization were revealed. The transfer of rights to these property complexes was made against the will of the Russian Federation,” Ivanov said.

Bashkir Soda Company was set up in 2013 as a result of merger of Soda, where the government of Bashkortostan held 61.65%, and Kaustik, which was owned by private Bashkhim and Cyprus-based Modisanna. As of August 1, 2020, Bashkhim held 57.18% in Bashkir Soda Company, while Bashkir state investment company Regional Fund owned 38.28%. Bashkhim is fully owned by Modisanna.

The Prosecutor General’s Office has sent a claim to the Arbitration Court of Bashkortostan to reclaim the property of Bashkir Soda Company from illegal possession, Ivanov said.

“In order to protect the interests of the state, the Prosecutor General’s Office has filed a claim to the Arbitration Court of the republic of Bashkortostan to reclaim property from someone else’s illegal ownership,” Ivanov said.

The examination documents have been sent to the Investigative Committee for a possible opening of a criminal case against regional officials, he added.

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