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Tuesday, November 21, 2017

Bashneft files claim against Sistema

Rosneft and PJSOC Bashneft have filed legal claims alleging that Sistema-Invest PJSFC should pay nearly $1.9 billion in damages that were incurred during the restructuring of PJSOC Bashneft. 

Sistema PJSFC is a publicly traded company with diversified holdings that operates mainly in Russia and the CIS.

Sistema has publicly denounced the legal claim, calling it “unlawful and unfounded,” in a statement released by the company. According to Sistema, during 2009-2014, when the company was the majority shareholder of PJSOC Bashneft, its revenue tripled and oil production increased by 46 percent.

The court has not yet accepted the claim or allowed it to proceed through the legal system, and as such Sistema has not yet been required to file a response. 

“Sistema is committed to maximum transparency in consideration of all issues concerning the claim and will regularly update the media and investors regarding further steps in relation to this dispute,” the company said in a public statement distributed to the media and shareholders.

Sistema PJSFC serves nearly 150 million customers in a variety of sectors including telecommunications, retail, pharmaceuticals, tourism, banking, real estate and was founded in 1993. The company reported revenues of $12.21 billion in 2016.