23rd Jul 2014 14:51
LONDON (Alliance News) - Urals Energy PLC Wednesday said a Moscow arbitration court has dismissed, on jurisdictional grounds, a claim by UEN Cyprus Ltd to recover USD41.7 million from Urals.
The oil company operating in Russia said it is happy with the preliminary decision but noted that it has not yet received the final judgement from the court.
The company added that because the claim was dismissed on jurisdictional grounds, it anticipates that an appeal will be made, and a new claim will be launched in Cyprus, where both of the companies are domiciled.
The claim is related to an alleged debt agreement that UEN Cyprus claims Urals entered into in December 2010, which would have made it liable to the large payment.
UEN Cyprus is owned by Vyatcheslav Rovneiko, a former director of Urals Energy who was forced to pay the company USD3.7 million in 2012 after arbitration proceedings to recover a separate loan agreement.
On Wednesday, Urals reiterated that it does not believe the debt repayment agreement to be genuine and does not accept that it should be bound by its terms.
The company added that it will continue to pursue all appropriate actions to defend itself, including possible legal action in all applicable jurisdictions.
Urals Energy shares were up 7.2% to 4.56 pence Wednesday afternoon, have risen to an intraday high of 5.04p, putting them in the top ten AIM All-Share risers.
By Tom McIvor; [email protected]; @TomMcIvor1
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