UPDATE 3: Sistema, Rosneft argue in court over appraisal of Bashneft losses

(Adds details in paragraph 8)

UFA, Aug 10 (PRIME) -- Multi-industry holding Sistema is ready to settle its conflict with oil major Rosneft out of court if an independent appraiser finds negative consequences from reorganization of oil company Bashneft, a Sistema representative said at a court hearing on Thursday, but a representative of Rosneft called the measure pointless.

Sistema’s representative said: “We are standing for an open, public process. If an independent expert with a special knowledge detects negative consequences from reorganization (of Bashneft), we are ready to bear responsibility. If an independent expert, any, regardless if chosen by us, maybe chosen by the court, we are ready for a dialogue, we are ready in this case for a peaceful settlement of the situation.”

Sistema did not admit guilty on a full scope of the case.

Rosneft’s representative said: “We think that there is no point (in ordering an expert appraisal).” He added that negative consequences and losses are evident without an expert appraisal and constitute the sum of its suit.

Sistema filed a motion asking for a technical examination of a notarial record of Bashneft executives’ correspondence. The company’s representative said that Sistema sees the record of correspondence, presented by Rosneft as a proof, as a fake.

Later on Thursday, the Arbitration Court of the republic of Bashkortostan turned down Sistema’s earlier motions to suspend the hearing of the case, to change the court of litigation and bring in auditor Natalya Golovkina from Deloitte, who audited Bashneft in 2014.

The court also refused to order a technical examination of the notarial record of Bashneft executives’ correspondence.

Sistema’s representative made a motion asking the court to order Rosneft to present copies of Bashneft’s foreign currency contracts on oil products sales as a proof. “An assumption that Bashneft sells products in U.S. dollars was the ground to recover a so-called exchange rate difference,” the person said.

Rosneft filed its 170.6 billion ruble suit in May, seeking to recover a loss stemming from an alleged asset stripping at its current affiliate Bashneft in 2009–2014 by Sistema.

In June, the Arbitration Court of Bashkortostan ordered seizure of 185 billion rubles worth of assets of Sistema, including a 31.76% stake in mobile operator MTS, 100% in healthcare company Medsi, and 90.5% in Bashkir Power Grid Company, under the Rosneft case.

(59.9611 rubles – U.S. $1)

End