The Ministry of Industry and Trade challenged the rights of the Dutch group X5 to manage its Russian subsidiary. The legal proceeding will not affect the company’s daily operations, the retailer said. The department emphasized that X5 Retail Group’s shares in the authorized capital of X5 could pass into the hands of X5 itself.
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The Ministry of Industry and Trade asked the Arbitration Court to suspend the corporate rights of the Dutch X5 Retail Group NV in relation to its Russian subsidiary. This was reported by the press service of the X5 Group.
“[…] The court must make a decision on the acceptance of the application within one business day from the date of its submission. If the court accepts the application, the trial itself will last at least five days and no more than one month from the date of acceptance of the application,” the company said.
X5 Retail Group NV’s ownership of a stake in the Russian X5 group creates risks of damage to the X5 division in Russia, deputy head of the Ministry of Industry and Trade Viktor Evtukhov told TASS.
X5 Group is included in the list of economically significant organizations designated by the government. The suspension of the corporate rights of foreign companies in these organizations allows them to be deprived of the right to vote at shareholder meetings, the ability to receive dividends and to dispose of shares and interests.
X5 Group is Russia’s leading retailer in terms of turnover and manages the Perekrestok, Pyaterochka and Chizhik chains.
Author:
Kirill Bilyk
Source: RB
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