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Sistema shares grow by more than 24% after amicable agreement with Rosneft

Under the terms of the settlement agreement, Rosneft and Sistema, after repaying the debt, pledge to abandon further mutual claims

MOSCOW, December 25. /TASS/. Shares of Sistema on the Moscow Exchange soared by 24.6% to 14.1 rubles per share on Monday after the company reached a settlement agreement with Rosneft.

The shares of Detsky Mir and MTS controlled by Sistema also increased on the Moscow Exchange. Thus, Detsky Mir shares went up by 6.8% to 98 rubles per share, and MTS shares - by 7.7% to 292.2 rubles per share.

In August, the Arbitration Court of Bashkortostan partially satisfied Rosneft claim to Sistema, having decided to recover 136.3 bln rubles ($2.3 bln) from the corporation. However, the parties filed appeals. Rosneft insisted on full satisfaction of its claims at 170.6 bln rubles ($2.9 bln). Such losses, according to Rosneft, were due to reorganization of Bashneft assets by Sistema in 2014.

On December 18, the Arbitration Court of Appeal of Chelyabinsk left unchanged the decision of the Bashkortostan Arbitration Court. The parties also filed other claims.

Rosneft and Bashneft then reached amicable agreement with Sistema and Sistema Invest. In particular, the parties agreed that Sistema would pay Bashneft 100 bln rubles ($1.72 bln). Final settlements must be completed by March 30, 2018, after which the parties will renounce mutual claims.

Rosneft agreed on reducing the amount of claims to Sistema and Sistema-Invest from 136.3 bln rubles ($2.3 bln) to 100 bln rubles ($1.72 bln), as it received information about possible bankruptcy of Sistema in the event of recovery of the full amount, Rosneft spokesman Mikhail Leontyev told TASS.

Sistema is going to raise funds to compensate Bashneft losses with the assistance of Sberbank and the Russian Direct Investment Fund, which since November 29 has been an intermediary in the dispute between the companies.

Under the terms of the settlement agreement, Rosneft and Sistema, after repaying the debt, pledge to abandon further mutual claims.