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Co-owner of JSFC Sistema Evtushenkov criminal case closed — lawyer

The company's shares jumped more than 5.7% in morning trading on the Moscow Exchange to reach 18.55 rubles apiece

Co-owner of JSFC Sistema Vladimir Yevtushenkov Artiom Korotaev/TASS

Co-owner of JSFC Sistema Vladimir Yevtushenkov

© Artiom Korotaev/TASS

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MOSCOW, January 14. /TASS/. Moscow Arbitration Court closed the criminal case against co-owner of JSFC Sistema Vladimir Yevtushenkov in relation to the acquiring shares of the companies included in the fuel and energy complex of Bashkortostan, the company said Thursday.

Yevtushenkov’s lawyer Vladimir Kozin confirmed the information, saying that the prosecution was terminated by the court's decision, finding Yevtushenkov acquired his assets in the company in good faith.

"The criminal case was closed due to absence of the event of a crime," Kozin told TASS.

He explained that the reason for the termination of a criminal case was the decision of the Moscow Arbitration Court "on a recourse action of JSFC Sistema to Ural-Invest", which indicates that the applicant acted in good faith and did not know that the acquired property was the property of the Russian Federation, and the defendant, in turn, had no right to dispose of the property."

"The investigator also clarified to my client the right for rehabilitation and compensation for wrongful prosecution. I cannot say whether he will apply for compensation, since the decisionis solely up to him," Kozin concluded.

Yevtushenkov was accused of involvement in decriminalization of property, obtained by criminal means — theft of shares of energy companies of Bashkortostan, together with former Head of Bashneft Ural Rakhimov and businessman Levon Ayrapetyan.

As the investigator previously stated, Rakhimov used the position of his father — President of the Republic of Bashkortostan and organized theft of controlling stakes in a number of public companies worth more than 130 bln rubles ($1.7 bln). Then Rakhimov provided financial transactions with the stolen property, namely selling a stake in JSFC Sistema and other legal entities, totaling more than $2.5 bln. Ayrapetyan was arrested after former senator from Bashkortostan Igor Izmestyev, who is serving a life sentence for a series of crimes, confessed. The former senator allegedly told about the involvement of Ayrapetyan in 2009 in the sale of Bashneft shares by Ural Rakhimov to the companies of JSFC Sistema. The criminal case against Rakhimov and Ayrapetyan continues.

The company's shares jumped more than 5.7% in morning trading on the Moscow Exchange to reach 18.55 rubles apiece following the report.

Sistema is a publicly-traded diversified holding company in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 mln customers in the sectors of telecommunications, high technology, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Sistema’s global depository receipts are listed on the London Stock Exchange. Sistema’s ordinary shares are listed on the Moscow Exchange.

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