Sistema Has Assets Frozen by Court Order in Rosneft Suit

By FeaturesDow Jones Newswires

Sistema JSFC (SSA.LN) said Wednesday that a court in the Russian region of the Republic of Bashkortostan had frozen a number of its assets at the request of Rosneft Oil Co. (ROSN.MZ) and Bashneft (BANE.MZ).

The Russian conglomerate had its shares in nine companies frozen, including subsidiary companies as well as companies it held a minority stake in. This includes Sistema's 52% stake in children's retailer Detsky Mir PJSC (DSKY.MZ).

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The court restriction prohibits Sistema from receiving dividends from the frozen properties, the company said.

On Dec. 7 Rosneft, together with its subsidiary Bashneft, filed a lawsuit against Sistema JSFC (AFKS.MZ) for damages totaling 131.64 billion rubles ($2.23 billion) over dividend payments made by Bashneft--now owned by Rosneft--to Sistema, from 2009 to 2014.

Sistema then counter-sued the two companies on Dec. 8 for damages worth RUB330.45 billion, claiming that the lawsuit was a deliberate attempt to bring it to bankruptcy.

Write to Carlo Martuscelli at carlo.martuscelli@dowjones.com

(END) Dow Jones Newswires

December 13, 2017 04:29 ET (09:29 GMT)