Urals Energy wins $41m debt case

Russia ruling: Urals Energy wins debt case but battle likely to continue

Urals Energy has won a court case in Moscow about a $41 million debt claim, but the case is set to be followed by another legal action in Cyprus.

Moscow arbitration court dismissed the claim of UEN Cyprus to recover $41.65 million from Cyprus-registered Urals Energy, but only on jurisdictional grounds.

Urals Energy said that “given that the claim was dismissed on jurisdictional grounds, it being between two Cypriot companies, the board anticipates that it is likely that an appeal will be made and also that a new claim will be launched in Cyprus”.

The AIM-listed, Russia-focused junior has denied from the outset that it ever signed a debt repayment agreement with UEN Cyprus and says the claimed document is a forgery intended to defraud the company.

UEN Cyprus, which is owned by Vyatcheslav Rovneiko, made the claim against Urals late last year.

The debt row was among the factors that prompted an unnamed Russian oil operator to pull out of its non-binding letter of intent to buy Urals Energy.

Shareholder Fire East Corporation, which is owned by Russian oil and gas manager Oleg Makhno and holds around 18% of Urals, had also been agitating for a change of the explorer’s board at that time.

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