ARMENIA: court rejects ROSGOSSTRAKH in the claim for returning RGS-Armenia

The Arbitration Court of the Moscow Region rejected ROSGOSSTRAKH's request to cancel the transaction of the sale of 100% shares of the subsidiary insurer RGS-Armenia to the Cypriot Company Cimarex Management Limited, as reported by TASS Russian News Agency.

According to ROSGOSSTRAKH, "the transaction was made in the interests of the former owner of ROSGOSSTRAKH, Danil HACHATUROV, and the shareholders of Cimarex Management Limited, indicated in the Cypriot commercial register, own the company nominally".

ROSGOSSTRAKH sold 100% of RGS-Armenia to Cimarex Management Limited in May 2017, for RUB 480 million, while the company's net assets were estimated at RUB 1.8 billion by ROSGOSSTRAKH. The insurer also tried to recover RUB 1.3 billion of losses from the former general director, which, as ROSGOSSTRAKH believes, were the result of the sale of RGS-Armenia at a reduced price, but the Arbitration Court of the Moscow Region rejected this claim too.

The owner and management of ROSGOSSTRAKH changed in August 2017, and a number of lawsuits challenging the transactions had been filed before the management change. In 2017, the loss of ROSGOSSTRAKH was a record in the entire history of the Russian insurance market, exceeding RUB 55 billion. The total amount of financial assistance, that the Bank of Russia provided ROSGOSSTRAKH with, was RUB 106 billion.

*EUR 1 = RUB 68.8668 (as of 31.12.2017)

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