The founder of the Maxi Group steelmaker has appealed to Russian President Dmitry Medvedev to intervene in a conflict with the company’s current owner - leading steel producer Novolipetsk Steel (NLMK), documents obtained by RIA Novosti suggest.
Nikolai Maximov sent a letter to Medvedev and a statement to the Prosecutor General’s Office saying he was under increased pressure from investigators in the Sverdlovsk Region in the Urals as part of criminal proceedings launched against him over the alleged embezzlement of 5.9 billion roubles ($190 million) from the Maxi Group.
Maximov said in the statement to the Prosecutor General’s Office that the case against him had been fabricated with the aim of forcing him to give up his attempt to force Novolipetsk Steel to pay for the Maxi Group shares they purchased from him.
In mid-July, Maximov filed an appeal to a Yekaterinburg court against a previous courts decision on seizing his accounts and securities at Moscow banks over the criminal proceedings launched against him. In his appeal he argued that his accounts had been frozen due to the conflict with NLMK.
In 2007, Maximov, the sole owner of Maxi Group at the time, had to sell 50 percent plus one share to Novolipetsk Steel to prevent the bankruptcy of the debt-laden mini steel-mill. Also in 2007, NLMK issued a loan to Maxi Group secured by the shares of Maxi Group and its subsidiaries.
Maxi Group failed to honour its obligations, following which the pledged property was auctioned off in 2009, as a result of which NLMK gained direct control of Maxi Group’s subsidiaries. Maximov claimed that the shares were sold at reduced prices at the auction. However, an arbitration tribunal rejected his claims.
NLMK is one of Russia's largest steelmakers. Its main beneficiary is Vladimir Lisin (84.6 percent), 2.5 percent is owned by management, and 12.89 percent in free float, including 8.45 percent as GDRs on the London Stock Exchange.
MOSCOW, JUly 26 (RIA Novosti)
