Russian oil case thrown out by BVI court

Sunday, November 23, 2003

MOSCOW, Russia: A court in the British Virgin Islands has dealt a blow to a $380 million lawsuit filed by TNK-BP minority shareholders against the oil major by ruling the case does not fall under the islands' jurisdiction.

According to a report in the Moscow Times, a court representative said the shareholders, Virgin Islands-based Astian Group Ltd. and Seychelles-based Indian Ocean Petroleum Services Ltd., should seek to defend their rights in the Russian court system instead, Vedomosti reported Thursday.

The shareholders claim that TNK Industrial, between 2000 and 2002, "deliberately and unlawfully" purchased crude oil and refined oil from two subsidiary companies at below-market prices.

Both subsidiaries, Saratovneftegaz and the Saratov Refinery, are units of Sidanco, a Russian oil company 57 percent-owned by TNK Industrial, which is now part of TNK-BP.

Representatives of the shareholders were unavailable for comment as to whether they would appeal the ruling.

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