June 8, 2023 – On 2 July 2019, two of Mazepin’s companies, – Uralchem Holding PLC (“Holding”) and CI-Chemical Invest Limited (“CIC”) – gave formal and legally binding undertakings to the Cypriot court (the “Undertakings”) to (a) maintain gross assets in Holding and CIC in excess of US$1.75 billion and (b) on or before specified dates, periodically provide accounts and financial statements to the BKITs (the rightful shareholders in ToAz – Trafalgar Developments Ltd., Instantania Holdings Ltd., Kamara Ltd. and Bairiki Inc.).
Mazepin’s companies failed to comply with these undertakings. The BKITs discovered from media reports in December 2021 that Holding and CIC had allegedly been “redomiciled” from Cyprus to Russia. No advance notice of this was given; it was presented to the media and to the BKITs as a fait accompli. As it turned out, these “redomiciliations” were simply an illegal transfer of assets by CIC and Holding to two new entities established in Russia. The BKITs maintain that they were carried out in blatant violation of the Undertakings and of Cypriot law and were for the cynical purpose of putting assets beyond the reach of sanctions imposed by western governments and of judgments of the western courts, before the invasion of Ukraine. In this context, the BKITs regard Mazepin’s status as part of Vladimir Putin’s closest circle as significant.
The redomiciliation was a fake. Any Cypriot entity wishing to exit Cyprus for a new jurisdiction must follow clearly defined steps and processes mandated by the provisions of the Cyprus Companies Law. Both Holding and CIC have acknowledged that they took no steps whatsoever in Cyprus towards legally redomiciling from Cyprus to Russia. In fact, Holding simply could not (and cannot) legally redomicile to another jurisdiction because its corporate documents do not permit it to do so. And although CIC in theory could redomicile, it has never taken even a single one of the mandated steps to do so under the Companies Law (see the relevant section of Cyprus’ Companies Law).
On 8 June 2023, the BKITs, Plaintiffs in the Irish litigation and in Cyprus in aid of the Irish litigation, filed a contempt application against Mazepin controlled companies organized in Cyprus. Read more…
