Sistema: Russian Court Seizes Shares due to "Significant Violations" of the Law
A Russian court has seized shares in oil company Bashneft that are owned by Sistema, a conglomerate controlled by wealthy businessman Vladimir Yevtushenkov, over alleged violations in the oil firm’s sale reported Reuters.
The court granted a request by the Russian prosecutor general’s office, which said on Friday it had uncovered “significant violations” of the law in the sale of energy assets in the Ural mountains region of Bashkortostan, including Bashneft.
“Taking into consideration that the disposal of those assets was done in violation of procedures on the privatisation of state property, the prosecutor general’s office, with the aim of protecting state interests, has filed a lawsuit seeking interim measures involving the seizure of shares,” it said.
Sistema, which acquired an almost 80 percent stake in Bashneft for $2.5 billion in 2009, has been unable to deal in its Bashneft shares since July because of a related investigation.
Yevtushenkov was put under house arrest last week on suspicion of money laundering during the Bashneft deal, raising fears of a return to more state intervention in the economy and drawing comparisons with the fate of ex-tycoon Mikhail Khodorkovsky, who spent a decade in jail on fraud and tax evasion changes after falling out with President Vladimir Putin.
Sistema, contacted by telephone, declined immediate comment on the seizure of its Bashneft shares. Sistema has denied the accusations against Yevtushenkov. (Reporting by Maria Kiselyova; Editing by Timothy Heritage)
