Shares under sanctions: court confiscates Russian businessman’s stake in Kryukiv Railway Car Building Works
19 January 19:56
On January 14, the High Anti-Corruption Court ruled to transfer 25% of the shares of the Kryukiv Railway Car Building Works, Ukraine’s largest manufacturer of freight cars, to the state. The stake belonged to Russian businessman Stanislav Gamzalov and was confiscated as part of sanctions. This was reported by the press service of the High Anti-Corruption Court, according to "Komersant Ukrainian".
What the court decided
The panel of judges of the High Anti-Corruption Court upheld the claim of the Ministry of Justice and applied the sanction provided for by the Law “On Sanctions” to Gamzalov. This concerns 28,669,889 shares of the company with a nominal value of over UAH 21.5 million, which is a quarter of the plant’s authorized capital.
The court noted that the Russian businessman could have exercised actions identical to the exercise of the right of disposal with regard to these shares. The decision will become final after the expiration of the appeal period, if no appeal is filed.
Who is Gamzalov and why were sanctions imposed on him?
The Ministry of Justice emphasized that Stanislav Gamzalov is a Russian entrepreneur associated with a number of companies in the Russian Federation that provide material and technical support to the aggressor state. According to the ministry, the structures under his control supplied goods to enterprises of the Russian military-industrial complex.
These circumstances were the basis for filing a lawsuit to confiscate assets as part of the sanctions procedure.
What is known about this share of the plant
In 2012, 25% of the shares of the Kryukiv Railway Car Building Works were acquired by the Austrian company OW Capital Management, which the investigation considers to be controlled by a Russian businessman. In May 2022, these shares were seized as part of criminal proceedings, and in July of the same year, the court transferred them to the Asset Recovery and Management Agency (ARMA).
The investigation concerned the possible transfer of almost UAH 193 million to Russia through a system of loss-making contracts.
The investigation’s version
According to the investigation, the Kryukiv Railway Car Building Works purchased components for rolling stock at inflated prices from Russian companies linked to the Russian Federation’s armed aggression against Ukraine. These transactions were one of the arguments for seizing the Russian shareholder’s assets.
