Far Eastern Shipping Company to appeal against court’s decision to turn FESCO shares into state income
FESCO lawyers are studying consequences of the decision for international activities of the Group
In connection with the decision of the Khamovnichesky District Court of Moscow 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, FESCO Transportation Group comments that Far Eastern Shipping Company is not a defendant in this lawsuit. However, being a third party, it is going to appeal against the decision.
“At the same time the Group shall not comment on issues related to shareholders and equity share capital. Currently lawyers of FESCO are studying consequences of decision taken by the court for international activities of the Group,” reads FESCO’s statement.
The Khamovnichesky District Court of Moscow has satisfied the claim of Russian Prosecutor General's Office to turn into state income the largest package of registered non-documentary shares of Far Eastern Shipping Company PJSC owned by Suma Group founder Ziyavudin Magomedov and businessmen associated with him.
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".
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.
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:
Court turns FESCO shares into state income on new lawsuit against Magomedov brothers— media >>>>
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 >>>>
