Ukrainian court seizes Sistema assets for state

MOSCOW. Sept 2 (Interfax) - Ukraine's High Anti-Corruption Court has ruled in favour of the Justice Ministry in its lawsuit to confiscate assets affiliated with Russian businessman Vladimir Yevtushenkov, the Ukrainian Anti-Corruption Center said on social media.

A statement on the court's website said that the panel of judges decided to "seize for the state assets of a Russian citizen on whom sanctions have been imposed by order of the president of Ukraine." The statement did not name the individual or the assets being seized.

The Anti-Corruption Center said that the assets in question are 17 pieces of real estate totaling about 100,000 square meters, as well as stakes in several Ukrainian companies, including 42.09% of Elektrozavod-VIT LLC (Zaporizhzhia), 59.2% of ITM Ukraine LLC (Kyiv), 59.2% of Smart Digital Solutions LLC (Kyiv), 42.09% of ZTZ Service Scientific and Engineering Center LLC (Zaporizhzhia), and 34.21% of JSC VIT transformer design and engineering institute (Zaporizhzhia).

The Justice Ministry filed the lawsuit to seize assets affiliated with Yevtushenkov at the end of August. Legal entities whose stakes were seized, as well as Elektrozavod Holding Company were named as third parties in the case.

Elektrozavod, which operates under the ERSO brand, is owned by Megapolis-Invest LLC, a joint venture between Yevtushenkov's Sistema PJSFC with 75.86% and Sberbank with 24.14%.

Yevtushenkov now owns 49.2% of Sistema. He reduced his stake to less than a controlling interest in the spring after being hit by UK personal sanctions, transferring 10% of Sistema to his son and the investment company's senior managing partner Felix Yevtushenkov.

The parties in the lawsuit have five days to appeal the court ruling in the Appeals Chamber of the High Anti-Corruption Court, with the possibility of extension by another 10 days.

Sistema spokesman Sergei Kopytov told Interfax that the company is not a party in this legal case.

"We are carefully watching the development of events and exploring options to protect the interests of the corporation and its many shareholders, including international ones," Kopytov said.