Is BSC Nationalization Done Deal?

Is BSC Nationalization Done Deal?

Apparently, the Bashkir Soda Company (BSC) might be nationalized. Chances are at least, the Prosecutor General's office will insist on this. It demands that the court return the shares to Russia’s property. Radiy Khabarov, the incumbent head of the Republic of Bashkortostan, said that he supported this request, and delivered the statements as if the transition of the BSC to state control was a done deal.

According to Radiy Khabarov, in terms of further management of the company, the interests of the Republic of Bashkortostan would not be harmed and, moreover, even would be surprisingly strengthened.

“Our stock of shares is going to be significant,” says Khabarov. “Yes, it will take some time. However, the enterprise will definitely have a sustainable future.”

In addition, Khabarov comments on what it will be necessary to be focused on after the nationalization of BSC though the bear's skin has not been sold yet, and there has been no court decision. In his opinion, after changing the form of corporate governance, the enterprise should upgrade and change the environmental policy. Moreover, in accordance with the instructions that have been already made, the development prospects are to be discussed within the framework of the Industrial Hour session in a month.

Apparently, Khabirov recanted his own statement that BSC’s shares should become the property of the Republic of Bashkortostan, as he had insisted previously.

It should be recalled how the situation around BSC evolved. On August 31, the court arrested the company's securities and prohibited making any changes in the register. On October 14, the preliminary court session took place. As a result, the General Prosecutor's Office petitioned the court to transfer BSC from the category of third parties to the category of respondents in the case of return of shares to the state. Also Uralsib, a nominal shareholder, and the Reestr company were added to the list of co-defendants.

The action proceedings are scheduled for October 30. The Prosecutor General's Office made a claim that BSC’s privatization had been carried out with violations. According to its representatives, administrators of shareholder register re-registered shares to private companies illegally.

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