Russian court freezes assets of major conglomerate

MarketsAssociated Press

Sprawling Russian conglomerate Sistema says a court has frozen some of its assets to secure a pending $2 billion lawsuit from Russia's largest oil company, the state-owned Rosneft.

Rosneft, led by a close ally of President Vladimir Putin, last week sued Sistema for damages related to its ownership of oil company Bashneft that Rosneft bought last year.

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Sistema's CEO spent three months under house arrest in 2014 before money laundering charges related to its purchase of Bashneft were dropped. Russia then renationalized Bashneft, one of Russia's fastest-growing oil companies at the time, and Rosneft bought it last year.

Sistema said in a statement on Tuesday that it considers the court order freezing some of its assets to be "unlawful, baseless and knowingly dishonest."