Court turns FESCO shares into state income on new lawsuit against Magomedov brothers— media
The cause of the claim was involvement of Magomed Magomedov in business while being a member of the Federation Council
The Khamovnichesky District Court of Moscow satisfied the claim of Russian Prosecutor General's Office to turn into state income the largest package of ordinary non-documentary registered shares of Far Eastern Shipping Company PJSC (parent company of FESCO Transportation Group) owned by Suma Group founder Ziyavudin Magomedov and businessmen associated with him, according to Kommersant.
The court based its decision on the fact of involvement of Ziyavudin Magomedov’s brother Magomed Magomedov in business while being a member of the Federation Council. The defendants will appeal against the decision. According to Kommersant, “it is already evident that the appellate instance will back it (the decision – Ed.) and the new owner of FESCO - the Federal Property Management Agency - will put the shares up for auction".
”The company lawyers are weighing the consequences of the decision for the international activities of the company,” FESCO told IAA PortNews.
In late November 2022, the Magomedov brothers were sentenced to 19 and 18 years, respectively, in a high-security prison on charges of organizing a criminal group and embezzling state funds. The Court confiscated FESCO shares owned by Ziyavudin Magomedov in favour of the state since part of the shares had been reportedly acquired by the brothers using, among other things, criminal and other unforeseen income funds that Magomed Magomedov received as a member of the Federation Council.
Prosecutor General's Office does not comment officially but the agency’s source says the new lawsuit also relates to business activities of Magomed Magomedov while being a member of the Federation Council. According to the source, aware of the plaintiffs’ position, “the lawsuit is filed with the purpose to turn into state income the shares left in the commercial circulation after the confiscation”.
FESCO Transportation Group is one of the leading public transportation and logistics companies in Russia with operations in ports, rail, integrated logistics and shipping business. Diversified but integrated asset portfolio enables FESCO to provide door-to-door logistics solutions and control almost all steps of the intermodal transportation value chain. FESCO controls the Commercial Port of Vladivostok, rail operators Transgarant and Dalreftrans, operator of container platforms Russkaya Troyka, dry terminal facilities in Novosibirsk, Khabarovsk and Tomsk. FESCO’s fleet numbers 23 vessels deployed primarily on its own sea service lines. The Group operates over 130 thousand TEU and over 10 thousand container platforms.
Related links:
Russian Prosecutor General's Office files new lawsuit regarding FESCO shares — media >>>>
Court confiscates FESCO shares owned by Ziyavudin Magomedov >>>>
FESCO files lawsuit against Ziyavudin Magomedov for RUB 80 billion>>>>
Court refused to arrest Ziyavudin Magomedov’s shares worth RUB 80 bln as interim measure under lawsuit of Far Eastern Shipping Company >>>>
