Sistema

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For other uses, see Sistema (disambiguation).
OJSC JFSC Sistema
Native name
АО АФК Система
TypePublic (OAO)
IndustryConglomerate
Founded1993; 28 years ago (1993)
Headquarters
Moscow
,
Russia
Key people
Products
Revenue$10.1 billion[1] (2019)
$1.33 billion[1] (2019)
$442 million[1] (2019)
Total assets$19.5 billion[1] (2019)
Total equity$1.02 billion[1] (2019)
Number of employees
70,000
Subsidiaries
Websitewww.sistema.com

AFK Sistema PAO is a large Russian conglomerate company, headed by Vladimir Yevtushenkov. In March 2020, Yevtushenkov controlled 59.2% of the shares in Sistema.[2]

Sistema has its headquarters in Moscow. The company's Global Depository Receipts (GDRs) are traded on the London Stock Exchange (ticker symbol LSE: SSA).

History[]

In 1995, Evgeny Novitsky and Vladimir Yevtushenkov founded the holding company AFK Sistema, also known as Sistema JSFC, to group together several information technology (IT) and cell phone companies including MTS.[3][4][5][6][a]

Structure[]

Sistema operates a number of consumer service businesses in the areas of:

  • IT and telecoms — Mobile TeleSystems, Moscow City Telephone Network, SkyLink
  • Microelectronics — Sitronics (formerly known as 'Science Center Concern'), NIIME, Mikron, STROM telecom.
  • Banking —
  • House-Building — Sistema-Hals
  • Retail — Detsky Mir Group
  • Media — Sistema Mass Media
  • Pharmaceuticals — Binnopharm
  • Other businesses — Intourist (Travel Services), RTI Systems (Radio and space technology), Olympic Sistema (Sport)
  • Kronstadt Group

Interests and subsidiaries[]

In February 2005, AFK Sistema owned a 49% stake in East-West United Bank (Luxembourg), which was established in September 1974 as a "daughter" bank of the Central Bank of Russia and is one of the five Russian foreign banks of the VTB network.[8][9][10][11] In 2018, Sistema held a 100% stake in East-West United Bank (EWUB) with Sergei Pchelintsev (Russian: Сергей Алексеевич Пчелинцев) as the CEO.[12][13]

Bashneft interest seizure and Rosneft lawsuit[]

In 2014, 72% of Sistema's interest in Bashneft was seized by the Russian government.[14][15]

On May 3, 2017, Sistema shares plunged about 37% following a $1.9 billion lawsuit filed by Rosneft.[16]

On 15 May 2017, the Arbitration Court of Bashkortostan registered a RUB 106.6bn claim filed by Rosneft and Bashneft against Sistema, a preliminary hearing of the case was scheduled for 6 June, Irina Nurislamova was appointed as a judge for the case.[17][18]

In December 2017, AFK Sistema reached an amicable agreement with Rosneft and agreed to pay out 100 billion roubles ($1.7 billion) to resolve the dispute.[19]

Management[]

On 27 June 2020, Etienne Schneider became an independent director of Sistema at which his close political friend Jeannot Krecké has been a director at Sistema since May 2012.[4][11]

Notes[]

  1. ^ Novitsky is alleged to be one of the treasurers of the Solntsevskaya Bratva and is very close to Semion Mogilevich.[7]

References[]

  1. ^ Jump up to: a b c d e "Consolidated Financial Statements for 2019 and Independent Auditor's Report" (PDF). Sistema. 20 April 2020. Retrieved 20 April 2020.
  2. ^ Source: http://www.sistema.com/section.html?s=143
  3. ^ "Yevgeny Grigoriyevich Novitsky". Bloomberg. Archived from the original on 3 September 2017. Retrieved 3 August 2021.
  4. ^ Jump up to: a b "Sistema Board Recommends to the AGM to elect three new Independent Directors". AFK Sistema. 31 May 2012. Archived from the original on 3 September 2017. Retrieved 3 August 2021.
  5. ^ Hoffman, David (19 December 1997). "In Moscow, Business and Politics Mix". The Washington Post. Retrieved 3 August 2021.
  6. ^ "About Sistema: Success Story (history)". Sistema website. Archived from the original on 4 August 2021. Retrieved 3 August 2021.
  7. ^ Demydenko, Myroslav (16 September 2008). "Ukraine, Vanco Energy, and the Russian mob". Eurasia Daily Monitor Volume: 5 Issue: 177. Retrieved 16 September 2021 – via Jamestown Foundation.
  8. ^ ""Дочерние" российские зарубежные банки и сеть ВТБ: доли ЦБ, ВТБ и др" [Russian Foreign "Daughter" Banks and the VTB Network: stakes held by Central Bank, VTB, others]. compromat.ru. February 2005. Retrieved 15 July 2021.
  9. ^ Бирман, Александр (Birman, Alexander) (21 February 2005). "В советских сетях: Нефтедоллары пойдут по проверенным каналам загранбанков" [In Soviet networks: Oil dollars will go through proven channels of foreign banks]. Компании Деловой Еженедельник (ko.ru). Archived from the original on 13 March 2005. Retrieved 15 July 2021.
  10. ^ "Les 45 ans d'East-West United Bank célébrés" [Celebrating 45 Years of East-West United Bank]. paperjam.lu (in French). 19 September 2019. Archived from the original on 4 August 2021. Retrieved 3 August 2021.
  11. ^ Jump up to: a b "Étienne Schneider élu administrateur chez Sistema" [Étienne Schneider elected director at Sistema]. paperJam (paperjam.lu) (in French). 3 July 2020. Archived from the original on 4 August 2021. Retrieved 3 August 2021.
  12. ^ "EWUB – история" [EWUB - history]. ewub.lu website (in Russian). Archived from the original on 27 April 2021. Retrieved 3 August 2021.
  13. ^ "Управляющие директора" [Managing directors]. ewub.lu website (in Russian). Archived from the original on 28 April 2021. Retrieved 3 August 2021.
  14. ^ Natasha Doff and Ksenia Galouchko (December 18, 2014). "Sistema Shares Soar as Putin Says Evtushenkov Charges Not Proven" (Bloomberg Business News). Bloomberg News. Retrieved December 27, 2014. Russia has seized 71.6 percent of OAO Bashneft from Sistema since ordering Evtushenkov’s arrest on Sept. 16 in a money-laundering investigation linked to the state’s sale of the oil company in the previous decade.
  15. ^ Steven Lee Myersand Jo Becker (December 26, 2014). "Even Loyalty No Guarantee Against Putin". The New York Times. Retrieved December 27, 2014. Mr. Rakhimov’s government privatized Bashneft, wilth most of its shares ending up in the hands of a company called Bashkir Capital
  16. ^ "Sistema shares plunge a third after $1.9 billion Rosneft lawsuit". Reuters. Moscow. 2017-05-03. Retrieved 2017-05-04.
  17. ^ Предварительное заседание суда по иску «Роснефти» к АФК «Система» назначено на 6 июня — Ведомости (in Russian)
  18. ^ «Система» не признала обвинения «Роснефти» (in Russian)
  19. ^ https://www.reuters.com/article/us-russia-rosneft-sistema/russias-rosneft-reaches-1-7-billion-settlement-with-sistema-idUSKBN1EG1VR

External links[]

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