It is reportedly filed to turn into state income the shares left in commercial circulation after Ziyavudin Magomedov’s shares were confiscated
Russian Prosecutor General's Office has filed a new lawsuit regarding FESCO Transportation Group to the Khamovnichesky District Court of Moscow. The plaintiffs in the lawsuit are Mikhail Rabinovich and Andrey Severilov (own 26.5% and 23.8% shares of FESCO, respectively), some shareholder companies, founder of Suma Group Ziyavudin Magomedov and his brother Magomed Magomedov according to Kommersant.
In late November 2022, the Magomedov brothers were sentenced to 19 and 18 years, respectively, in a high-security prison on charges of organizing a criminal group and embezzling state funds. The Court confiscated FESCO shares owned by Ziyavudin Magomedov in favour of the state since part of the shares had been reportedly acquired by the brothers using, among other things, criminal and other unforeseen income funds that Magomed Magomedov received as a member of the Federation Council.
Prosecutor General's Office does not comment officially but the agency’s source says the new lawsuit also relates to business activities of Magomed Magomedov while being a member of the Federation Council. According to the source, aware of the plaintiffs’ position, “the lawsuit is filed with the purpose to turn into state income the shares left in the commercial circulation after the confiscation”.
A preliminary court hearing is scheduled for December 28.
When commenting on the new lawsuit, FESCO said that Far Eastern Shipping Company PJSC (parent company of FESCO Transportation Group) is not a part of the lawsuit. “We do not comment on legal proceedings not related to the company directly or involving its shareholders. FESCO continues its normal operation while fulfilling all obligations to customers and partners and providing logistics services on all existing routes in full,” said FESCO.
FESCO Transportation Group is one of the leading public transportation and logistics companies in Russia with operations in ports, rail, integrated logistics and shipping business. Diversified but integrated asset portfolio enables FESCO to provide door-to-door logistics solutions and control almost all steps of the intermodal transportation value chain. FESCO controls the Commercial Port of Vladivostok, rail operators Transgarant and Dalreftrans, operator of container platforms Russkaya Troyka, dry terminal facilities in Novosibirsk, Khabarovsk and Tomsk. FESCO’s fleet numbers 22 vessels deployed primarily on its own sea service lines. Key shareholders of FESCO with direct or indirect ownership are Andrey Severilov – 23.8% of shares, Mikhail Rabinovich – 26.5%, Ziyavudin Magomedov – 32.5%. About 17% of shares are in free circulation or held by other shareholders.
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