The Russian government has won court approval to seize shares in Bashneft, the country’s fifth largest oil company, after the CEO of the holding company was accused of illicitly privatizing the company’s assets.
Moscow’s Arbitration Court ruled in favor of prosecutors who said the privatization sale of Bashneft to local authorities in the early 2000s was illegal, along with the subsequent sale in 2009 to Russia’s largest publicly traded company the AFK Sistema conglomerate, controlled by tycoon Vladimir Yevtushenkov.
Billionaire Yevtushenkov’s AFK Sistema must return the shares to the state following the court’s decision on Thursday. The ruling will come into effect in a month unless Sistema appeals, in which case it will go to a higher court.
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