Russian court rules against Cypriot parent company in step towards forced redomiciling
A Russian court on Thursday suspended the corporate rights of Rusagro’s Cypriot parent company in its main Russian subsidiary, paving the way for the farming conglomerate to effectively redomicile from Cyprus to Russia.
Many Russian companies are registered in Cyprus or the Netherlands. As Western nations discuss seizing Russian assets abroad, Moscow is keen to reduce possible foreign interference or leverage, particularly over economically important entities.
The Moscow region’s arbitration court on Thursday ruled in favor of a claim brought by Russia’s agriculture ministry, court filings showed.
Rusagro, one of Russia’s largest agricultural firms, did not immediately respond to a request for comment.
In August, the company said that should the court rule in the agriculture ministry’s favour, the Cypriot parent, Ros Agro Plc, would lose the ability to vote at shareholder meetings, dispose of shares of Rusagro Group and qualify for dividend payments.
Ros Agro Plc said in August that it would take all necessary actions to protect shareholders’ rights.
The case is one of a few brought the Russian government since a list of “economically significant organizations” was approved by Prime Minister Mikhail Mishustin in March. Similar moves were made with regard to leading retailer X5 and private lender Alfa Bank’s insurance arm.
“Forced is the most unfriendly form of redomiciling, which separates and deprives of corporate rights all external holders who have not had time to transfer GDRs from the external perimeter to local brokerage accounts,” Aigenis Investment Company, a Belarus-owned firm, has said in a report. [Reuters]
