By Adam Clark

 

Russian conglomerate Sistema JSFC (AFKS.MZ) said Monday that it has arranged a 40 billion-ruble ($709.4 million) credit facility in order to meet its settlement agreement with Rosneft Oil Co. (ROSN.MZ) and Bashneft (BANE.MZ).

Sistema said it has arranged the 180-day facility with the Russian Direct Investment Fund, with an option for early repayment.

In December, Rosneft said it and Bashneft had agreed a RUB100 billion out-of-court settlement with Sistema. The companies have been involved in a number of legal disputes relating to Sistema's stewardship of Bashneft from 2009, when it acquired the company, until it was returned to state ownership by a court decision in 2014.

Rosneft is Bashneft's current majority shareholder.

Rosneft alleged that Sistema stripped Bashneft of its assets, leaving it unable to operate.

Sistema disputed this account, and said that it was restructuring Bashneft and preparing it for an initial public offering.

Shares in Sistema were up 1.6% at RUB12.40 at 1628 GMT.

 

Write to Adam Clark at adam.clark@dowjones.com

 

(END) Dow Jones Newswires

February 19, 2018 11:56 ET (16:56 GMT)

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