Why Rosneft and Sistema can't reconcile

"Sistema" asks the Prosecutor General to verify the legality of the actions of the bailiff, who has forbidden the company to receive income on the arrested shares, and Igor Sechin expects from Sistema specific proposals on the settlement agreement.
05.07.2017
Forbes
Origin source
Rosneft still has not received concrete proposals from the AFK Sistema Vladimir Yevtushenkov to settle the dispute by 170.6 billion rubles, Igor Sechin, chief executive officer of Rosneft, told journalists. "There are some tactical methods that are used in this case. They are not very original and aimed at delaying judicial procedures. There are no specific proposals, "Sechin said.

"We proceed from the fact that the court will take an appropriate decision. And if they want to reach an amicable agreement, they must make concrete proposals, and not start a cancer for a stone, "Sechin said. According to the head of Rosneft, there are some "tactical steps that they are taking to delay the meeting." "We are serious people, we do not react to provocations," he said (quoted by RBC).

In turn, Sistema's official spokesman Sergei Kopytov told Forbes that the company had appealed to the Prosecutor General's Office to check the legality of the actions of bailiff Olga Stal, who imposed a ban on receiving dividends on shares seized at the suit of Rosneft. According to the AFC, the bailiff independently introduced additional interim measures not provided for by the court.

"In fact, we are talking about outright lawlessness. This act is the quintessence of those events that accompany the suit of Rosneft from the first days. We also ask you to take control of the cancellation of its resolution and bring the guilty persons to justice, "the representative of the AFC explained.

Hoofs also said that the claims against AFK Sistema are comparable to the accusations of the company "in the cold weather this summer." In his opinion, the losses claimed by the plaintiffs are not confirmed either by the growth of Bashneft's capitalization, or by the growth of its net profit.

"That is why our proposal is to attract an independent auditor (a company of the big four) to reliably and impartially determine the existence of any losses. Such an approach could be the basis for an amicable agreement. The proposal is still valid, "he added.

AFK Sistema on June 26 reported that the court seized Sistema's 31.76% stake in MTS, 100% of Medsi's shares and 90.47% of BESK's shares as collateral for claims against Rosneft at 170.6% Billion rubles. Sistema said that the shareholders of the company and the operator of MTS, in which AFK owns 50.03%, have already lost more than 150 billion rubles due to the lawsuit filed by Rosneft. As noted in the ruling of the court, the arrested assets are estimated at 185 billion rubles. The state of the main shareholder of Sistema Vladimir Yevtushenkov F 30 from March 2017 against the background of a court dispute fell by more than $ 1.5 billion.

The Arbitration Court of Bashkiria is already considering in essence the suit of Rosneft and Bashneft for AFK Sistema, the next meeting is scheduled for July 12. Initially, the plaintiffs demanded to recover from Sistema and ZAO Sistema-Invest 106.6 billion rubles of losses caused by Bashneft as a result of its reorganization in 2014. Subsequently, the amount of claims increased to 170.6 billion rubles, taking into account the devaluation of the national currency. AFK Sistema believes that the lawsuit itself and its amount are unfounded. The representative of Sistema earlier noted that all documents relating to the reorganization of Bashneft, including the separation balance sheet, were prepared in full compliance with corporate procedures and the requirements of the current legislation. The next court session is scheduled for July 12.