AFK Sistema announces technical default

AFK Sistema announces technical default

The default is related to the seizure of the company's assets under the lawsuit of Rosneft.⁠

AFK Sistema announced a technical default on liabilities amounting to 8.9 billion rubles ($152m). This is stated in the official message on the company's website.

Sistema emphasizes that the need for a technical default is due solely to the seizure of the company's assets under the lawsuit filed by Rosneft and Bashneft. The AFK also recalls that it considers the actions of the bailiffs unreasonable.

"The corporation serves and plans to continue to service its credit and financial obligations in a timely and full amount," the report said.

It is to be recalled that in mid-July, AFK Sistema had already had to resort to a technical default. Then, the reason for the default on obligations to the amount of 3.9 billion rubles ($66.6m) was the same as now, the arrest of assets under the lawsuit of Rosneft.

As the CrimeRussia previously wrote, on August 23, court of Bashkiria ruled to recover 136.3 billion rubles ($2.3bn) from the concern under the lawsuit of Rosneft. In the claims, the amount was 170.6 billion rubles, this is how they estimate the damage caused to Bashneft by the reorganization of the company in 2014, when its main shareholder was Sistema.

Since June, as an interim measure, 31.76% of MTS (Yevtushenkov's effective participation in the operator is 50.03%), as well as 100% of Medsi and 90.47% of BESK, belonging to Sistema, are seized. At the same time, Rosneft estimated the seized assets at 185 billion rubles, whereas Sistema – at 250 billion rubles ($4.2bn).

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