SUEK commits to withholding payments in favor of Melnichenko, Rashevsky while they remain under EU sanctions

MOSCOW. Aug 30 (Interfax) - SUEK Group's corporate bodies, including shareholder AIM Capital, have signed statements committing not to distribute any cash and economic resources to Andrey and Aleksandra Melnichenko and Vladimir Rashevsky as long as they are on the EU and Swiss sanctions list.

The relevant information is contained in financial reporting by SUEK-Finance, the issuer of the group's bonds.

SUEK JSC is 92.2% owned by Cyprus-based AIM Capital Ltd, 99.38% in the issued share capital of which is owned by Cypriot Linea (CY) Ltd. Linetrust PTC Ltd, as the trustee of discretionary Firstline Trust, owns 75.1% of Linea (CY) Ltd. The beneficiary of the trust is Aleksandra Melnichenko, the wife of a businessman Andrey Melnichenko. Aleksandra Melnichenko is not the owner of the assets held in trust; she does not control Linetrust PTC Ltd and cannot have any influence on the management of the trust. Aleksandra Melnichenko owns a minority share of 24.9% in Linea (CY) Ltd, which is frozen as required by EU sanctions. She is unable to exercise ownership or control rights with regard to this company. In addition, directors of Linea (CY) Ltd and Linetrust PTC Ltd have made written undertakings that no sanctioned entities or individuals will receive any economic benefit from participation in Linea (CY) Ltd or any distributions from the trust fund.

The report recalls that in March 2022, Andrey Melnichenko and Vladimir Rashevsky were included in the EU and Swiss sanctions lists, after which they left their positions at SUEK.

In June, Aleksandra Melnichenko was also added to similar sanctions lists.

However, on the basis of independent legal opinions, as well as the decisions of the relevant sanctions regulators, it was concluded that Aleksandra Melnichenko had no direct or indirect participation in SUEK Group that met the ownership threshold criteria for SUEK's sanctions. Based on the information listed in the report, it is concluded that SUEK is not subject to personal sanctions, according to the SUEK-Finance report.

SUEK includes 30 coal-mining enterprises; seven processing plants and installations; a terminal in the port of Vanino, Khabarovsk Territory; Murmansk Commercial Sea Port ; repair and mechanical plants in eight of Russia's regions; as well as Siberian Generating Company.

* News item amended after company submitted further information about ownership and management structure