MOSCOW, November 14 (Sputnik) – The Basmanny Court in Moscow has extended the period of house arrest of Vladimir Yevtushenkov, the head of Russian oil-telecoms-retail conglomerate AFK Sistema, suspected of illegally privatizing the Russian oil company Bashneft, a RIA Novosti correspondent reported from the courtroom Friday.
The house arrest was extended to March 16 of next year while hearings continue on the case of the illegal purchase of Bashneft by AFK Sistema. The Court found no reason to let the businessman out on bail or under personal guarantee.
On October 30, the Moscow Arbitration Court seized 71.6 percent of shares from AFK Sistema and its subsidiary firm, and handed them over to the government.
Earlier in September, it was speculated that Yevtushenkov would be released from house arrest, which has brought instability to AFK Sistema and Bashneft shares on the Moscow stock exchange.
The Russian Prosecutor General's Office moved to retake the controlling package of state-run Bashneft shares after the regional authority allegedly put the oil company up for privatization without consulting the federal government in Moscow. This resulted in Bashneft being purchased by AFK Sistema in a series of acquisition deals, with every one of them deemed unlawful by federal prosecutors.
Russia's business community has responded to the arrest with sharp criticism, saying the measure was excessive and harmed the business climate in the country.
