UPDATE: Crt of appeals sides with Bashneft in 136 bln rbl case vs Sistema
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CHELYABINSK/GORKI, Moscow Region, Dec 18 (PRIME) -- The Eighteenth Arbitration Court of Appeals located in the Russian city of Chelyabinsk upheld on Monday a lower court ruling ordering multi-industry holding Sistema to repay 136.3 billion rubles to oil company Bashneft.
The court of appeals turned down appeals by Sistema, its affiliate Sistema-Invest, Bashneft’s parent holding Rosneft and the Land and Property Ministry of the republic of Bashkortostan.
Sistema will contest the decision, representative Sergei Kopytov told PRIME. Sistema said in a statement later that it will fulfill the court ruling and will continue to fulfill loan and other financial liabilities.
“The corporation is servicing and plans to keep on servicing of its loan and financial liabilities timely and fully,” Sistema said.
In August, Bashkortostan’s Arbitration Court partially satisfied a 170.6 billion ruble suit filed by Rosneft, Bashneft and Bashkortostan, where Bashneft is located, to charge Sistema and its affiliate Sistema-Invest for the losses allegedly caused to Bashneft in 2014 during its reorganization. In 2014, Sistema was the core owner of Bashneft. Sistema was ordered to repay 136.3 billion rubles, but the court decision has not come into force yet, as both sides are contesting the decision.
Alexei Kudrin, former finance minister and chairman of the Center for Strategic Research board, said in his Twitter blog that the court decision is a bad sign for the market.
“After an appeal, the court upheld a decision to charge Sistema 136 billion rubles. The president earlier offered a peaceful settlement. This is important when one of the sides is controlled by the state. A lack of agreement is a very bad sign for the market.”
(58.8987 rubles – U.S. $1)
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