BGP Litigation associate Denis Durashkin comments for RBC television and print publication on the outlook for Rosneft's claim against JFSC Sistema

"Claims on the recovery of debt are subject to a three-year statute of limitations. Bashneft's restructuring was completed on 5 May 2014, but the claimants consider the start date to be only 8 December 2014, when the Moscow Arbitrazh Court decision ordering seizure of the shares in Bashneft in favor of the state entered into force. As of that date the lawful owner could actually become aware of the infringement of the company's rights". 

Adding to his earlier comments, Denis Durashkin said Rosneft's claim is unconventional in the context of Russian practice and raises numerous questions of a legal character, which may reflect some uncertainty on the part of Rosneft's lawyers as to the appropriate jurisdiction. Originally, the suit was filed in the Arbitrazh Court of the City of Moscow, i.e. the claimant's legal representatives saw it not as a corporate dispute that should be heard in a Bashkirian court, but as a tort action. According to Denis Durashkin, such actions are very hard to prove. Proving formal violations were committed in this case will probably be difficult: Bashneft is a public company, and all formal requirements applicable to the restructuring were most likely complied with. That said, if Rosneft's lawyers can provide convincing evidence to the court indicating that JFSC Sistema acted in bad faith in abusing its rights, thereby harming the company, such a claim could be granted. Although few and far between, there have been such precedents in Russian practice. 

The full article (in Russian) is available here: «Вернуть 107 млрд: как «Роснефть» обосновывает претензии к АФК «Система».

For more information on what awaits JFSC Sistema in the context of the case, follow the link to recording of the TV program Babich. Trend: Outlook for the shares of JFSC Sistema («Перспективы акций АФК «Система»).