UPDATE: Russian court of appeals upholds arrest of Sistema’s assets

(Rewrites)

CHELYABINSK, Aug 7 (PRIME) -- The Eighteenth Arbitration Court of Appeals upheld arrest of assets of Russian multi-industry holding Sistema under a 170.6 billion ruble lawsuit by oil major Rosneft on Monday.

Judge Alexander Rumyantsev said, “The appeals by Sistema and Sistema-Invest (affiliate) shall be rejected, the ruling by the Arbitration Court of Bashkortostan shall remain unchanged.”

Representatives of Sistema said the company will contest the decision within a month.

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

In June, the Arbitration Court of the republic of Bashkortostan ordered 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 Rosneft case.

(60.3281 rubles – U.S. $1)

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