Russian court approves settlement of Rosneft, Sistema dispute

Russian court approves settlement of Rosneft, Sistema dispute

Reuters  | Dec 26, 2017 17:02

Russian court approves settlement of Rosneft, Sistema dispute

MOSCOW (Reuters) - A Russian court approved a settlement between the Sistema (MM:AFKS) conglomerate and Russia's largest oil producer Rosneft (MM:ROSNN) on Tuesday, ending their dispute over the Bashneft oil company, RIA news agency said.

The legal nod was the last step needed to seal the deal and draw a line under a confrontation that rattled investors.

Under the pact announced by the companies on Friday, Sistema agreed to pay Bashneft (MM:BANE) 100 billion roubles (£1.29 billion) by March 30, 2018.

Sistema, which groups the assets of Russian businessman Vladimir Yevtushenkov, was also allowed to access assets frozen during the dispute. The group said on Tuesday bailiffs had lifted restrictions on its access to dividends from its 31.76-percent-stake in MTS (MM:MTSS), Russia's largest mobile operator.

Blocks on other assets would be released gradually as Sistema made the payment in three instalments, Interfax news agency said.

The payments of 20 billion, 40 billion and 40 billion roubles were due on Dec. 29, Feb. 28, and March 30, Interfax news agency cited the judge as saying.

The dispute centred on mid-sized oil company Bashneft and pitted powerful Rosneft chief executive Igor Sechin, a close ally of President Vladimir Putin, against Yevtushenkov, a billionaire who some media reports suggest is close to Prime Minister Dmitry Medvedev.

The Russian government seized Sistema's stake in Bashneft in 2014, saying its privatisation had been illegal. Rosneft later bought a controlling stake in Bashneft and in May filed its first lawsuit, alleging Sistema had removed assets from the company - something Sistema denies.

In a second claim, Rosneft had also sought the return of dividends paid out by Bashneft between 2009 and 2014, when Sistema was its controlling shareholder.

The legal claims made against Sistema by Russia's top oil producer totalled $4.5 billion, prompting Sistema to retaliate against Rosneft by filing a $5.6 billion lawsuit.

© Reuters. FILE PHOTO - A worker speaks on the radio at an oil gathering facility owned by Bashneft company near Shushnur

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (India) English (Canada) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the App

More markets insights, more alerts, more ways to customize assets watchlists only on the App is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.