MEGAFON RISKS BECOMING BANKRUPT DUE TO SANCTIONS AGAINST ALISHER USMANOV

The founder of the USM holding, Alisher Usmanov, whose main assets are Megafon and Metalloinvest, has been trying to challenge the personal sanctions imposed on him in the European Court since May. In a statement to the EU, he points to the possible bankruptcy of the main companies of the holding, including Udokan Copper.

Financial losses, according to Usmanov, can turn out to be "irreparable damage" and will probably affect the lives of hundreds of thousands of employees and their families. The statement states that the risks of default of the three holding companies were confirmed by the conclusions of reputable audit companies.

The document reports that Usmanov was sanctioned as a "pro-Kremlin oligarch" who has "close ties with the president of Russia." According to the drafters of the sanctions list, Usmanov could act as a financial cover for the head of the Russian Federation. It is reported that according to FinCEN, Putin's adviser Valentin Yumashev received $ 6 million from Usmanov, and Dmitry Medvedev used his luxurious residences.

According to the text of the appeal, the mobile operator MegaFon may go bankrupt if it makes a delay in the payment of a bank loan. According to Usmanov, it will affect other credit obligations of the company, which will lead to a cross-default.

Metallinvest may find itself in a similar situation. In this case, several investment projects are at stake at once, which, in case of a negative development of events, are in danger of being stopped. The main factor may be the breakdown of relations with Deutsche Bank and counterparties that supplied high-tech equipment.

The Udokan Copper company risks losing consulting services and equipment for the same reason. The lack of necessary components may mean that production will be carried out with serious delays, and the company will not be able to pay the loans on time. The possible damage is €2.17 billion, which inevitably leads to bankruptcy.

The document says that Usmanov gave up full control over the holding in 2014. Currently, he owns only a 49% stake in the parent structure of USM. And although the decision on personal sanctions says that they are limited in time (apply until September 15, 2022) and can be reversible, companies can go bankrupt much earlier. The Council of Europe considered the oligarch's statement about the threat of "irreparable harm" unproven.