“Rosneft” considers that the grounds for disqualification of a judge in the case against AFK Sistema no

UFA, July 20. /TASS/. “Rosneft” considers that legal grounds for removal of judges of the Arbitration court of Bashkortostan Irina Nurislamova considering a lawsuit against the oil company AFK “System” is 170.6 billion. This was stated in court the representative “Rosneft”.

“Statutory grounds for removal of judges of Nurislamova not available. Ask for the removal of refuse” – he said.

According to the representative “Rosneft”, “the existence of circumstances that cast doubt on the judge’s impartiality, and his interest in the outcome of the case, must be supported by concrete facts. They can’t be based on subjective assessment by the parties of procedural actions, stipulated by the APC of the Russian Federation (code of Arbitration procedure – approx. edited by TASS), committed by the court in the course of the proceedings, or disagreement with the necessity of such actions”.

Co-plaintiffs in the case, “Bashneft” and the Ministry of Bashkiria has supported the position of “Rosneft”.

At the meeting on Thursday, “the System,” said challenge judge Nurislamova seised of the dispute with Rosneft. According to the representative of the AFC, the trial and committed in the face of the judge procedural steps “lead to significant violations of the rights and legitimate interests of AFK “Sistema” serving in the present process as a defendant”. He noted that “these violations raise doubts concerning the objectivity and impartiality of the court,” and adding that the defendants there is a whole range of grounds for a petition for disqualification of a judge.

The petition of the “System” will consider the Deputy Chairman of the Bashkir arbitration. At the moment he withdrew for adjudication.

“Rosneft” against “the System”

In early may of 2017 “Rosneft” and affiliated “Bashneft” has submitted to Arbitration court of Bashkiria the claim with the requirement to recover from Sistema and ZAO “Sistema-invest” 106,6 billion of damages caused by “Bashneft”, according to the plaintiff, as a result of reorganization in 2014. Subsequently, the amount of claims increased to 170,6 billion rubles taking into account the devaluation of the ruble.

A large part of the loss (57,2 billion roubles) is associated with a loss of 49.4% of shares of “Sistema-invest” transferred AFK “System” in exchange for its shares in Bashneft and other assets (the shares of “Bashkirenergo” and “Ufaorgsintez”). The remaining amount of the loss (36,9 billion) – debt cancellation “System-invest” before “Bashneft” and the repayment of 3.9% of shares of “Bashneft” (12.4 billion rubles), bought out minority shareholders who disagree with the terms of this transaction.

AFK “System” does not agree with these claims and considers them unfounded. According to the company, all of these lawsuit actions have been carried out in accordance with the law and best corporate governance practices in business development and growth in the value of Bashneft.

In June, the company offered “Rosneft” to settle the dispute out of court, however, in “Rosneft” considered that the specific proposals not submitted. The oil company intends to continue the trial.

From 2005 to 2014 “Bashneft” was part of the AFK “System” Vladimir Yevtushenkov, after which he was returned to state ownership. In 2016 50,1% of shares of “Bashneft” bought “Rosneft”, paying for a package of 329.7 billion. Later, after the offer to minority shareholders, “Rosneft” began to control 57.7% of the share capital of “Bashneft”.