The court turned the Magomedovs' shares into state revenue

The court turned the Magomedovs' shares into state revenue.

The state became a new shareholder of one of the largest shipping companies in Russia, the Far Eastern Shipping Company (FESCO), with a share of 92.4%. FESCO is the base company of the largest national container operator FESCO.

FESCO provides sea, road and rail transport services, has its own terminals and fleet, rolling stock and terminal complexes, offices in many parts of the world, this is a profitable asset. The actual owners of FESCO and FESCO were the Magomedov brothers, who were convicted at the end of 2022 for fraud and organizing a criminal community. At the same time, Magomed Magomedov is a disgraced senator.

The shares were turned into state revenue by the Moscow court of general jurisdiction on January 11 as a result of the satisfaction of the claim of the Prosecutor General's Office. Along with the Magomedovs, several other owners of FESCO were defendants in the case. At the same time, Magomed Magomedov does not appear in the list of company participants, the largest shareholder is his older brother, Ziyavudin, with a 32.5% stake confiscated by the court on December 2 as part of a criminal case.

The session of the Khamovniki Court, according to the lawyer Magomedovs, began in the early morning of January 10, but the decision was made only after midnight, already on January 11. It has not yet entered into force, and the defendants can exercise the right to appeal. However, the defense argues that the appeal is futile in this case. Although representatives of FESCO and FESCO have already announced their intention to apply to a higher court for the cancellation of the decision as an interested third party in the case.

After the entry into force of the court decision, the seized shares will be at the disposal of the Federal Property Management Agency, which is obliged to hold an auction and sell them. FESCO representatives fear that in the future the sale of shares will lead to disruption of the company's supply chains, since it is not limited to FESCO and interacts with a large number of counterparties. FESCO fears that a possible revision of contracts by the state threatens to default on obligations to foreign partners.

After the confiscation of shares from Ziyavudin Magomedov, the media wrote about the possibility of acquiring FESCO shares by Rosatom or the Delo group of companies.

As for the motivation for the conversion of shares into state revenue, the Prosecutor General's Office insisted in court on their acquisition by the Magomedovs on income obtained by corruption.

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