Court expands injunction against VimpelCom, including ban on dividends

The Moscow Arbitration Court has issued a new, expanded injunction order against VimpelCom that prevents the telecommunications company from paying dividends. The injunction is related to the Federal Anti-Monopoly Service’s claims against Telenor and Weather Investments, two of VimpelCom’s largest shareholders. The FAS alleges that Telenor bought preferred shares of VimpelCom from Weather in violation of the Russian Law on Strategic Investments.

In addidtion to the imposed ban on dividends, the following acts are prohibited by the injunction order:

– the transfer of the cash intended for dividend distribution to the accounts of OJSC VimpelCom or other companies with foreign banks;

– the external auditors elected at the OJSC VimpelCom AGM exercising the powers conferred on them;

– the board of directors of OJSC VimpelCom elected at the OJSC VimpelCom AGM exercising their powers pursuant to the charter of OJSC VimpelCom; and

– the taking of other actions and steps designated to transfer the indicated funds out of our Russian subsidiary OJSC VimpelCom.

Full content: MarketWatch

Related content: Competition Policy in Russia: Historical Sources, the Current State, and Evolutionary Perspectives (Yuri Rubin, Moscow University of Industry and Finance, Sovremennaya Konkurentsia & Denis Matvienko, Moscow University of Industry and Finance)

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