Russian police say AFK Sistema bought Bashneft illegally

MOSCOW, Aug 28 (PRIME) -- The Russian Investigative Committee thinks multi-industry holding AFK Sistema paid U.S. $500 million less than agreed with its owner, the government of the Republic of Bashkortostan, it said at court hearing late Wednesday.

The committee started a criminal case against violations during Bashneft’s privatization which it uncovered during investigations linked with a criminal case against former Bashkortostan Republic President Murtaza Rakhimov’s son Ural.

According to the investigators, in 2009 the Moscow Arbitration Court imposed injunction on Bashneft shares, and on the same day the remedies were lifted, AFK Sistema purchased them for $2 billion, while the contract price was set at $2.5 billion. Currently the shares are under arrest until the investigation ends.

Bashneft CEO Alexander Korsik said the company continues operation as usual after its shares had been arrested, and its dividend payouts also will not be affected.

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