UPDATE: Putin says hopes for amicable settlement between Sistema, Rosneft

(Adds comments by Rosneft in last two paragraphs)

XIAMEN, China/VLADIVOSTOK, Sep 5 (PRIME) -- Russian President Vladimir Putin expects that multi-industry holding Sistema and oil major Rosneft will be able to reach an amicable agreement, he said on Tuesday.

“I met both with the management of Rosneft and the management of Sistema – with (Vladimir) Yevtushenkov and (Igor) Sechin – precisely on this issue, I listened to positions of both of them. I think it would not be correct if I publicly stated my attitude to this case now, but I expect a lot that they will manage to reach an amicable agreement and I think that it would be beneficial for both companies and the Russian economy on the whole,” Putin said.

Sistema’s shares rose 12% on the Moscow Exchange on Putin’s statement.

Rosneft, the current owner of a controlling stake in oil company Bashneft, filed the suit against Sistema and its unit Sistema-Invest in May, seeking to recover a 170.6 billion ruble loss stemming from an alleged asset stripping at Bashneft by Sistema. In late August, the Arbitration Court of the republic of Bashkortostan ordered Sistema to pay 136.3 billion rubles to Rosneft and Bashneft, partially satisfying the suit. Sistema plans to contest the court decision.

Rosneft’s press secretary Mikhail Leontyev told PRIME that the company had never received proposals to reach an amicable agreement with Sistema.

“We have not received any proposals from our opponents, never and any… In theory, the arbitration process encompasses a possibility of an amicable agreement, as this is a commercial dispute of two equal sides, this is the legal meaning of the arbitration. Ultimately, the arbitration dispute is an agreement between sides, if you like. This is an arbitrator who says: you are right, you are wrong. We have a court decision that you can read,” Leontyev said.

(57.7817 rubles – U.S. $1)

End