Moscow, 5 May 2017– Sistema PJSFC (“Sistema” or “the Company”) (LSE: SSA, MOEX: AFKS), a publicly-traded diversified holding company operating primarily in Russia and the CIS, announces that it has received a legal claim filed by Rosneft and PJSOC Bashneft against the Company and its subsidiary Sistema-Invest JSC for the recovery of damages in the amount of RUB 106,629,934,819, allegedly incurred by the claimants due to the restructuring of PJSOC Bashneft.
Sistema disputes the claim and considers the demands of the claimants to be unlawful and unfounded. All corporate actions noted in the claim were carried out lawfully and in accordance with the best corporate governance practices with the objectives of growing the business and increasing the value of PJSOC Bashneft.
Since the acquisition of Bashkirian TEK, Sistema transformed it from a disjointed corporate structure with non-transparent dividend and operating policies to a fully vertically integrated oil company bringing together key business divisions with transparent structures of ownership, management and profit distribution.
During the period 2009 - 2014, while the Company was the majority shareholder of PJSOC Bashneft, the revenue of PJSOC Bashneft increased three-fold from RUB 215 billion to RUB 617 billion; the oil production increased by 46% from 12.23 million tonnes to 17.81 million tonnes; the market capitalisation increased more than six-fold from $2 billionto $12.8 billion; and the oil-company was granted a First Level (premium) listing on Moscow Exchange.
As at 5 May 2017 the court has not accepted the claim to allow it to proceed. In the event that the court will accept the claim and allow it to proceed, Sistema will provide the court with a detailed response to all the topics and arguments raised by the claimants.
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.
For further information, please visit www.sistema.com or contact:
Inclusive of all publicly traded oil refineries
Prior to the commencement of court proceedings in July 2014