Russia’s Sistema says sees Rosneft, Bashneft suit illegal

MOSCOW, May 10 (PRIME) -- Russian multi-industry holding Sistema has received a 106.6 billion ruble suit filed by oil company Rosneft and its affiliate Bashneft against it, but considers the claims illegal, the company said in a statement late on May 5.

The suit was filed on May 3 seeking to recover the sum from Sistema and its unit Sistema-Invest. Rosneft’s press secretary Mikhail Leontyev said that the company believes that Sistema’s actions in 2009–2014, when it owned a controlling stake in Bashneft, were aimed at asset stripping and led to a reduction of assets.

“Sistema does not agree with the suit and considers claims of the claimants illegal and ungrounded. All corporate actions mentioned by the suit were conducted in accordance with the law and best practices of corporate management aimed at development of business and growth of Bashneft’s asset value,” Sistema said.

Sistema says it transformed Bashneft from a company with a chaotic subsidiary structure and non-transparent operating and dividend policy into a full-scale vertically integrated oil company. Bashneft’s revenue tripled to 637 billion rubles, oil production rose 46% to 17.81 million tonnes, and capitalization jumped more than six times to U.S. $12.8 billion during the time of its ownership, Sistema said.

The company will provide full response to all theses and arguments of the claimants if the court launches proceedings. It is interested in complete transparency of the case, and will regularly inform media and investors on further actions in the dispute, the company said.

Mobile operator MTS, in which Sistema owns 50.03%, said in a separate statement that the suit against the parent company has not affected its operating activity.

(58.5382 rubles – U.S. $1)

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