Russian Corporate Raiding reaches Irish Courts
The Irish High Court is the setting for a high profile court case that is drawing the world’s attention. TogliattiAzot, the world’s leading ammonia producer, is seeking damages of $2 billion from Eurotoaz Ltd, a company registered in Dublin. Eurotoaz Ltd is at the center of allegations of corporate raiding with a group of men including Dmitry Mazepin as the defendants. The court has expedited summonses for the defendants to appear in the Irish High Court.
A group of shareholders is taking the case to Mazepin and Eurotoaz Ltd, who are accused of illegal raiding practices including filing vexatious litigations using false evidence and assertions that they are owed dividends on shares illegally held in Toaz.
What are the Motives?
Mr. Mazapin is the majority owner of Uralchem, also a leading producer of ammonia and a competitor to Toaz. He is also a former member of Vladimir Putin’s United Russia Party where he served as a member of the Kirov regional Duma. Uralchem is already a 9.9 percent minority shareholder in Toaz and it is alleged that Mazapin’s intentions are to take over Toaz, giving Uralchem control of over 20 percent of the worldwide production of ammonia. The Russian government considers Toaz to be of “strategic economic importance” and the move would have a significant impact of Russia and the world market for ammonia, a key ingredient used in mineral fertiliser.
History of Case
The Chairman of Toaz, Sergei Makhlai, has alleged that Mr. Mazepin threatened to raid the company if he wasn’t granted a majority stake in Toaz. In papers submitted to the court, Toaz shareholders also state that Mazepin threatened Makhlai on three separate occasions with a corporate raid if his wishes were not met.
Corporate raiding is known in Russia as raiderstvo and it is a well known illegal practice that has been used to acquire numerous high value assets in the Russian Federation.[/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]