| 8 December 2023, Friday |

Putin approves transfer of state-owned shares in shipping company to Rosatom

President Vladimir Putin signed a decree on Wednesday transferring state-owned shares of the Far Eastern Shipping firm, parent firm of transportation conglomerate Fesco, to Russia’s national nuclear power company Rosatom.

Fesco was formerly owned by Ziyavudin Magomedov, who was convicted last year on organized crime and embezzlement charges and is serving a 19-year prison sentence in one of Russia’s most high-profile prosecutions in years.

Magamedov says the charges are unfounded and is appealing his conviction. He has previously alleged that the Russian state wanted to bring Fesco – which operates ports, including a key port in Vladivostok – under Rosatom’s control.

In January this year, at the request of the Russian Prosecutor’s Office, a court transferred to the state 92.4% of Fesco’s shares which had belonged to Magomedov and his partners, Russian media reported.

Magomedov filed a lawsuit at London’s High Court on July 20 seeking nearly $14 billion over the seizure of his holdings.

The defendants in the case include Rosatom, oil pipeline operator Transneft, private equity firm TPG and UAE-based port operator DP World.

Magomedov, 55, claims his 2018 arrest on the embezzlement charges had prompted what he says is a Russian state-supported expropriation scheme, largely for the benefit of Rosatom and Transneft, according to court filings.

  • Reuters