ABH Holdings S.A contemplates legal action for the loss of its over USD 7 billion financial assets due to the failure of Cypriot and European regulators to act
ABH Holdings S.A. (“ABHH”) has lost, without adequate compensation, its key financial assets, including Alfa-Bank Russia, valued over USD 7 billion. The loss is due to the inaction of Cypriot and European regulators. Legal action is contemplated.
On 10 September 2023, ABHH announced that:
«The Directors of ABH Holdings S.A. ("ABHH") are of the opinion that it is no longer feasible to simultaneously conduct business in Russia and Europe and that we, as a European company, would benefit from reducing our exposure to the Russian assets».
The announcement was in particular related to Alfa-Bank Russia, held indirectly through a Cypriot company ABH Financial Limited ("ABHF") and Russian company AO “AB Holding”.
On 16 February 2023, ABFH entered into an agreement to sell the shares of AO “AB Holding” for a fair market price. (“The Transaction.”). This transaction would have enabled the group to divest out of Russia while receiving full market-value compensation.
The Transaction was subject to approval of the Ministry of Finance of Cyprus.
After more than fifteen months, the approval has not been received, despite ABHF’s repeated efforts.
The group also engaged with the European Commission and various EU member states to move forward with the transaction, to no avail. The relevant documents can be found below.
Thus, there is a paradoxical situation: while it is a stated policy of the EU that European companies should divest from their Russian assets, the delay in obtaining the necessary permissions prevents the divestment from occurring.
On 13 May 2024, Moscow oblast Arbitrazh court, on the application of the Russian Ministry of Finance further to a new Russian legislation, suspended the corporate rights of ABHF in respect of its Russian financial assets, including Alfa Bank. Subsequently, the ownership of shares by ABHF was terminated.
Since our indirectly held Russian assets were lost irreversibly and most probably without an adequate compensation, ABHH is considering to initiate effective legal actions under national, European, and international law, to hold the Cypriot authorities responsible for causing us, through their deliberate inaction, the irretrievable damage.
Back to Press Releases