Transneft asks the court to prohibit Magomedov from continuing the proceedings in England

Transneft (MOEX:TRNFP) appealed to the Moscow Arbitration Court with a request to prohibit the co-owner of the Summa group Ziyavutdin Magomedov from continuing the trial in the High Court of England and Wales, indicated in card index court cases. The Russian company is asking Magomedov to be awarded $2.5 billion in damages if the injunction is not respected.

Transneft filed an application with the arbitration court on January 31. An interview with the parties and a preliminary hearing are scheduled for February 27. The case is being processed by arbitration judge Vladislav Sorokin.

In 2011, Transneft and Ziyavudin Magomedov became owners of 50.1% of the shares of the Novorossiysk Commercial Sea Port (NCSP). After Magomedov’s arrest, the company expanded its stake to include the businessman’s shares.

In 2023, Ziyavutdin and Magomed Magomedov, who have been in custody since 2018, filed a lawsuit in an English court against the former managers of FESCO, its current and former shareholders, as well as Transneft and Rosatom. The Magomedov brothers accuse the defendants of conspiring to alienate their property in favor of government agencies and for themselves. The brothers estimated the value of the shares of NCSP at $5 billion and FESCO at $6 billion.

In December, the Supreme Court of England approved restrictive measures against Transneft. In particular, the court considered a ban on the defendant disposing of assets without prior notification to the plaintiff’s lawyers.

In 2022, Ziyavudin and Magomed Magomedov were sentenced to 19 and 18 years for organizing a criminal community, fraud and theft of 11 billion rubles. The assets remaining after the prosecutor’s office’s claim for $750 million, including shares in FESCO, were confiscated from the brothers. In 2023 brothers reduced sentenced to six months due to the expiration of the statute of limitations on two counts of fraud and theft.

More details in the material “FESCO and NCSP surfaced in London”.

Alexandra Goroshilova