By Tass
MOSCOW, July 4. /TASS/. Bailiffs have opened enforcement proceedings against president and largest shareholder of privately held gold mining firm Yuzhuralzoloto (UGK) Konstantin Strukov, according to the Federal Bailiff Service’s database of enforcement proceedings.
In the morning, the Moscow Exchange suspended trading in UGK shares at the request of the Bank of Russia.
Strukov told TASS that he has no intention of running from law enforcement.
TASS has compiled the main information about the situation.
Suspension of trading
– The Moscow Exchange suspended trading in UGK shares. The decision came after a relevant order from the Bank of Russia.
– Trading in UGK shares was suspended in all trading modes.
– Trading in other instruments on the trading platform is proceeding as usual.
– According to the Moscow Exchange data as of 10:29 a.m. Moscow time, UGK shares stopped trading at 47.68 kopecks per share (-0.13%).
– The Moscow Exchange also prohibited trading short positions on the stock market with UGK shares and bonds of series 001P-03 and 001P-04 (UGK 1P3 and UGK 1P4).
– The day before, UGK shares fell by more than 17% on the back of a lawsuit filed by the Prosecutor General’s Office, according to trading platform data.
– UGK reported that it is talking with the Bank of Russia and the Moscow Exchange regarding the protection of minority shareholders’ rights.
Enforcement proceedings
– The Main Interregional Department of the Federal Bailiff Service opened enforcement proceedings against president and largest shareholder of UGK Konstantin Strukov.
– Earlier, the Prosecutor General’s Office filed a lawsuit with the Sovetsky District Court of Chelyabinsk seeking to seize Strukov’s UGK shares and transfer them to the state.
– In the suit, the Deputy Prosecutor General asks that 100% of the shares in the LLC Management Company UGK and all shares of UGK be transferred under state control, alleging that they were obtained via corrupt practices.
– The writ of execution was issued as part of the proceedings in the Sovetsky Court. That means that the Chelyabinsk imposed interim measures to ensure the enforcement of the suit by the Prosecutor General’s Office.
Raids of UGK offices
– On July 2, employees of the regional departments of the Federal Security Service (FSB) and the Investigative Committee, as part of previously initiated criminal cases, raided the offices of PJSC Yuzhuralzoloto Group of Companies and its affiliate entities, law enforcement agencies reported.
– Law enforcement officers found violations of environmental protection, industrial safety and operation of industrial facilities on land plots located in the Plastovsky and Yetkulsky districts of the Chelyabinsk region, which led to pollution of the water protection zone and other environmental problems.
– Law enforcement agencies added that there had been previous legal proceedings against the group of companies. In particular, the company had a legal dispute with the Federal Service for Environmental, Technological, and Nuclear Supervision trying to challenge the fine that was imposed for violating safety requirements.
Reaction from UGK President
– Commenting on the incident to TASS, Strukov said that he is currently in the Chelyabinsk Region and has no plans to flee from the law.
“I am at work, working as usual. Of course [I am in the Chelyabinsk Region]. Where else would I be? I am not going to hide, I have nowhere to go,” he said.
Strukov refused to comment on the Prosecutor General’s Office’s lawsuit to seize his shares and hand them over to the government.