AFK Sistema gives in without a fight – it decides against an appeal about Bashneft

AFK Sistema won’t appeal the cours decision regarding Bashneft. The corporation has decided not to appeal the decision of the commercial court of Moscow, by which the oil company was nationalized. AFK Sistema is going to file claims for compensation from seller of the Bashkir fuel and energy complex’s enterprises - the structures of Ural Rakhimov, who is wanted - but lawyers consider vague the prospects of this business. However, AFK runs risks to suffer twice because its minority shareholders may make claims against it.

The Board of Directors of AFK Systema, controlled by Vladimir Evtushenkov, "after careful consideration" has decided not to appeal the decision of the Moscow Commercial Court dated October 30th, the company reported yesterday. The court satisfied the General Prosecutor's Office’s civil claim for the return of shares of Bashneft, which belonged to AFK Sistema and Sistema-Invest (in general, 71.6%) in the property of the Russian Federation, ignored the expiry of the statute of limitation. In the end, AFK won’t appeal this. But "in the interests of the company and as a bona fide purchaser" it "immediately begins preparations for the bringing of an action for compensation from counterparties and / or their successors (Ural-Invest)", from which the Bashneft’s shares were bought (on the whole, the value of the transaction made up about $2.5 billion).