FAS APPEALED TO THE COURT TO DECLARE THE TRANSACTION FOR THE ACQUISITION OF SHARES OF ARG-DIAMONDS BY OTKRYTIE HOLDING JSC INVALID

During the bailout of Financial Corporation Otkrytie PJSC Bank, the Central Bank of the Russian Federation identified a suspicious transaction for the acquisition of 100% shares in AGD-Diamonds JSC (Arkhangelsk region) from Lukoil PJSC by the Otkrytie Holding JSC in 2017 through its 100% subsidiary Otkrytie Industrial Investments LLC. The transaction amount exceeded the value of the enterprise more than 2 times.

When analyzing these circumstances, the FAS Russia revealed a violation of the Federal law of 29.04.2008 No. 57-FZ "On the Procedure for Foreign Investment in Economic Entities of Strategic Importance for the Country's Defense and State Security".

The applicant did not provide information on foreign citizenship of a number of beneficiaries of the Otkrytie Holding JSC when the transaction was considering by the Government Commission for monitoring foreign investment in the Russian Federation, which caused control of the Russian strategic company by foreign investors.

In this regard, the FAS Russia filed a claim to the Court of the Arkhangelsk region to declare the transaction invalid and apply the consequences of its invalidity.