The Moscow Commercial Court has appointed for 4 September the main hearing on a claim seeking to invalidate the transaction in which the Moscow-government-owned stake in the Bank of Moscow was made part of the authorized stock of the Central Fuel Company (CFC) with its subsequent sale to the VneshTorgBank (VTB). The claimant, a Mr Devyatkin, demands that the transaction and all its legal consequences be cancelled.
It was clear from the start that the legal arrangement was a sham transaction, only called to conceal the real essence of the deal. The sale of the stake in the Bank of Moscow owned by the Government of Moscow can only happen under privatization legislation, with all the restrictions that it imposes. The sale must happen on an open auction, and a company partially owned by the state cannot be a buyer. If you abide by law, you cannot sell the city-owned stake in the Bank of Moscow to the arbitrarily chosen VTB for an arbitrarily chosen price. Continue reading