UPDATE: Russian court arrests Sistema’s assets under Rosneft case

(Adds details in headline, lede, paragraph 2–3)

MOSCOW, Dec 13 (PRIME) -- The Arbitration Court of the republic of Bashkortostan arrested stakes of multi-industry holding Sistema in Detsky Mir, Step, MTS and several other companies under a 131.6 billion ruble claim by Rosneft and Bashneft, according to Sistema’s statement late Tuesday.

The list of arrested assets comprises a 52.09% interest in children goods retailer Detsky Mir, a 90.5% stake in agricultural holding Step, a 71.87% stake in MTS-Bank, a 100% stake in Sistema Telecom Assets, a 98.78% in Lider Invest, 16.18% in paper mill Segezha, 45.96% in Sistema Hotel Management, 88.78% in Kronstadt Group and 27% in United Bridge Building Company.

Rights of Sistema and its affiliate Sistema-Invest on dividends from the arrested units have been restricted.

Oil company Bashneft said that it did not rule out a possibility of raising the loss compensation claims in the 131.6 billion ruble case. “The amount of the stated losses is defined as of the date of their infliction and can be raised in the future after additional calculations and estimates.”

Earlier on Tuesday, the Moscow Arbitration Court registered a 330.4 billion ruble suit by Sistema against Bashneft and Rosneft. The Arbitration Court of the republic of Bashkortostan scheduled a preliminary hearing of the 131.6 billion ruble counter-claim for January 12.

In August, the republic’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. The court decision has not entered in force as both sides are contesting it.

In June, the republic’s Arbitration Court issued an order to seize what it assessed as 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 with Rosneft and its unit Bashneft.

Sistema said that it failed to receive 9.9 billion rubles of dividends from its key asset, mobile operator MTS, due to the ban imposed by a bailiff.

Sistema said in the statement that Rosneft and Bashneft’s actions are aimed at driving the holding to bankruptcy: “In a firm opinion of the corporation, the activities of the claimants in the framework of the case have a goal of unjust enrichment and are aimed at destruction of the corporate value of Sistema, driving to bankruptcy the corporation which is one of Russia’s leading non-state business structures and job providers, where more than 130,000 employees work.”

(58.8370 rubles – U.S. $1)

End