Telenor strongly rejects Russian arrest in VimpelCom shares
Telenor on Monday learned, through a press release said to be issued by Farimex Products, of a decision in a Siberian appeals court in Omsk purporting to arrest Telenor and Altimo's shares in VimpelCom. "If this is true, it is an outrageous decision, which we intend to overturn using all available means," said Jan Edvard Thygesen, EVP and head of Telenor's operations in Central and Eastern Europe.
Using a ruling it obtained in Khanty-Mansiysk in August this year, Farimex has apparently managed to have the Omsk court issue an arrest order, not only against Telenor's VimpelCom shares, but also against Altimo's VimpelCom shares - despite the fact that the Khanty-Mansiysk court has held that Altimo was not liable for any damages. The Khanty-Mansiysk court held Telenor solely liable for VimpelCom's alleged late entry into the Ukrainian mobile market and ordered Telenor to pay VimpelCom USD 2.8 billion in damages. This ruling has been appealed by Telenor, which considers the ruling absurd and the case to be wholly without merit. The appeal is scheduled to be heard in the Omsk court on 18th November.
"We see absolutely no reason for the Omsk court to arrest Telenor's VimpelCom shares ahead of the scheduled appeals hearing," said Jan Edvard Thygesen. "The timing of the arrest and the inclusion of Altimo's shares strongly suggests that there were other motives for this arrest, and we believe this is yet another of Alfa's collusive actions. There are already media reports that this is meant to prevent Alfa's creditors from getting access to Alfa's shares. If that is the case, it could limit other Russian companies' ability to obtain loans from international banks for many years to come. We feel confident that Russian authorities will look into the matter immediately," said Thygesen.
Contact:
Dag Melgaard, Vice President Telenor Group Communications
Tel: (+47) 901 92 000, Email: dag.melgaard@telenor.com
"We will continue to defend our investment in VimpelCom using all legal means available."
- Executive Vice-President and head of Telenor's Central and Eastern European operations,
Jan Edvard Thygesen
Background:
- Telenor is a long-term investor in Russia and Ukraine, contributing with capital, knowledge and technology to the Russian and Ukrainian telecom sector.
- Telenor holds a 33.6 per cent economic and a 29.9 per cent voting ownership share of VimpelCom in Russia.
- Alfa, owned by Mikhail Fridman, holds 44 per cent of the voting shares (37 per cent of common shares) in VimpelCom.
- Telenor owns 56.5 per cent of the shares in Kyivstar, Ukraine, whilst Alfa owns 43.5 per cent.
Related Press Releases
20 February 2009 Telenor Will Continue To Defend Its Investment in VimpelCom
29 December 2008 Khanty-Mansiysk ruling Against Telenor cancelled by Omsk Court
28 October 2008 Telenor strongly rejects Russian arrest in VimpelCom shares