“Luzhnikovski” seized Ferrexpo’s Kostyantin Zhevago’s 40,19% shares of Poltava GZK

“Luzhnikovski” seized Ferrexpo’s Kostyantin Zhevago’s 40,19% shares of Poltava GZK

Ferrexpo plc, a mining and ore company, announced a loss on appeal in a court dispute with former shareholders over a declaration of invalidity of the sale and purchase agreement of 40,19% shares of the largest Ukrainian asset—the Poltava Mining and Processing Plant (PGZK).

“At present the company has obtained the appellate court’s decision on the claim, stating that the share purchase agreement concluded in 2002 year is invalid and 40,19% of PGZK shares should be transferred to the applicants,” the Ferrexpo press release said on Tuesday.

The company recalled that in the first instance in May 2021 year it won, and said it would continue to defend its interests and the interests of its shareholders and study all options, including the right to appeal this decision to the Ukrainian Supreme Court.

“Based on the details of the court ruling provided by the appellate court, management believes Ferrexpo has strong arguments to defend its position,” the release specifies.

As reported, in 2002 year four nonresident companies—Gilson Investments, Calefort Developments, Emsworth Assets, and Trimcroft Service—sold 40,19% of PGZK shares to persons connected with the current majority owner of Ferrexpo, Kostyantin Zhevago, which they owned collectively. Subsequently, several additional issuances occurred, resulting in further resales and a compulsory buyout of shares from minority holders under the squeeze-out procedure, making Ferrexpo the sole owner of PGZK listed on the London Stock Exchange.

In 2005 year these four companies filed suit seeking to invalidate the sale and purchase agreement and to conduct a post-emission. Gilson sought to restore its stake in PGZK to 6,59%, Emsworth and Calefort to 12,14%, Trimcroft Services to 9,32%. The Supreme Court of Ukraine, in February 2015 year, supported the previously adopted decision of the High Court and PGZK’s position in the corporate dispute, which had lasted about 10 years, denying the claims.

However, at the end of 2020 year the aforementioned former PGZK shareholders again challenged this agreement in a Ukrainian court.

“Luzhnikovski” in Ukraine

The group of power distribution companies Khersonoblenergo, Kirovohradoblenergo, Zhitlovirabenergo, Rivneoblenergo, Chernivtsioblenergo: registered to citizens of EU countries—for example, Marina Yaroslavska, who is called Giner’s wife, and Latvian citizen Valts Vigants, a trusted person of Babakov.

This group, which Russian media call the “Luzhniki” or the OPG “Luzhniki,” owns hotel business (Premier Hotels & Resorts), holds a stake in the Dnipropetrovsk plant “Dniprospetsstal” in Zaporizhzhia, the Metropolis center and the Metropolis in Kyiv.

Hotels and the controlling stake of the plant, according to Youcontrol, are registered to Natalya Selivanova—domestic partner of Voeyvodin. Giner also controls PINbank, although earlier in February businessman Oleksandr Yaroslavsky was aiming to buy him out.

Note that in February 2021 year head of the Verkhovna Rada committee on energy Andriy Gerus reported that Voeyvodin bought parts of Giner and Babakov and became the sole shareholder of the group.

Recall that Babakov is Deputy Speaker of the Russian State Duma. He is under sanctions by Ukraine, the EU and the US. Yevgeny Giner is president of the Russian football club CSKA Moscow, which is under US sanctions. He is a partner of Russia’s state-owned industrial corporation Rostec, led by former FSB officer Sergei Chemezov, a longtime friend and ally of Putin.

Voeyvodin, according to Interpol information, has the status of so-called “thief in law,” according to a document in journalists’ possession. Interpol card lists his nickname—Misha Luzhnetskiy.

Ukrudprom.