Public appeal of FESCO’s shareholders

04 October 2020
This appeal is made on behalf and in the interests of shareholders controlling 33.9% of the capital of FESCO (parent company of FESCO Transportation Group, ‘FESCO’, ‘Group’) - holders of the largest stock of shares in the Group, as well as in the interests of minority shareholders of FESCO.

At the end of September 2020, the media circulated an appeal by Ziyavudin Magomedov, accused by the Russian Federation of committing a number of an especially serious offense, including organizing a criminal community, in which Magomedov, being the beneficiary controlling 32.5% of the capital of FESCO, claimed that the previous management of FESCO (the Board of Directors of the Group headed by Leyla Mammad Zada) illegally took over the company.

We, the shareholders of FESCO, as well as other minority shareholders, hereby want to draw the attention of the Group and the media that Magomedov is just one of the shareholders and does not have the right to state anything on behalf of the majority of us.

There was no illegal takeover of FESCO. A change of management was made due to the expiration of the term of the previous management. The election of the new Board of Directors of the Group on 30 September 2020, appointed in accordance with the current legislation, was disrupted due to the absence of a quorum as the representatives of the shareholders specifically associated with Magomedov didn’t show up. The new Board of Directors will be elected at an extraordinary general meeting of shareholders.

We fully support the President of FESCO Arkady Korosteljov, appointed on 3 September 2020, who immediately after taking office, revealed the fact of the withdrawal of the Group's funds in the amount of more than 1 billion US dollars in favor of the joint-stock group of Ziyavudin Magomedov. We fully support the claim filed by FESCO in the London Arbitration Court to recover these funds, and, moreover, the international lawyers we have hired are currently preparing to file independent shareholder claims directly against Magomedov.

We also condemn the actions of Zairbek Yusupov, the dismissed General Director of Commercial Port of Vladivostok PJSC (‘Port’, part of the FESCO Group), a relative of Magomedov and his protégé, expressed in the escalation of social tension in the Port using the dockers' trade union organization. All these actions will be given investigated by law enforcement authorities. For our part, we, as the largest shareholders of FESCO, including the Port, confirm the position of the Group and the Port management on maintaining the level of salaries and social guarantees for the employees.

We call on the workers' associations of FESCO’s enterprises, as well as the media, not to fall victim to the provocations organized and distributed by persons associated with Ziyavudin Magomedov. FESCO is a stable company, one of the flagships of the logistics market not only in Russia but in the world. The actions of the new management of the Group are aimed exclusively at improving the financial performance of FESCO while maintaining social guarantees for the employees and increasing market share and are carried out in the interests of all shareholders, creditors and partners of the Group.

Signed by the shareholders controlling 33,9% of the capital of FESCO.

On behalf and in the interests of:

DOMIDIAS, LTD

         Anastasia Euripidou, the director

NovatorInvest LLC

           Evgeny Melnikov, the director

Nautilius LLC

         Yan Bliznets, the director

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