UPDATE 3: Sistema asks court to repeal asset arrest in Rosneft case

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MOSCOW, Jun 30 (PRIME) -- Multi-industry holding Sistema has filed a claim to the Arbitration Court of the republic of Bashkortostan asking to repeal arrest of shares of its affiliates under a 170.6 billion ruble case by oil major Rosneft and its unit Bashneft, according to court documents seen by PRIME on Friday.

The court will consider the claim on July 6.

Rosneft filed its suit in May, seeking to recover a loss stemming from an alleged asset withdrawal from Bashneft in 2009–2014 by Sistema.

On Monday, the court issued an order to seize 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 case.

Sistema says Rosneft’s claims are groundless and all corporate actions with Bashneft were done in compliance with legislation. The company earlier offered an out of court settlement without monetary compensation, but Rosneft called the proposal unsubstantiated.

Sistema head Mikhail Shamolin told channel RBC-TV that the holding sees no need in selling assets due to the conflict with Rosneft. “What is the point of it? If we lose the case in all instances, we will have to pay for it. It is a technical issue how to pay, either with lending from banks or by selling assets. And while we have not yet lost the case, what is the point in selling assets?”

He said that investors have lost about 180 billion rubles due to a fall in Sistema capitalization.

The asset arrest has not influenced Sistema’s investment activities, Shamolin also said.

Sistema hopes that the situation with the asset arrest will be sorted out by the end of July, Shamolin said. “The situation is extremely unclear to us because the bailiff order directly contradicts the court ruling. We have sent corresponding claims, the dividends must be paid at the end of July, on July 20–30, I guess. We hope that by this moment, we will manage to obtain the explanations and understand what has happened in the first place.”

(59.0855 rubles – U.S. $1)

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