Facts of misuse of insider information in transactions with shares of PJSC Ashinskiy metzavod established
Based on the findings of an investigation, the Bank of Russia has established facts of misuse of insider information by Mikhail Vladimirovich Papkin in transactions with ordinary shares of PJSC Ashinskiy metzavod (hereinafter, the Shares, the Company).
On 12 August 2024, the decision of the Company’s board of directors was published on the website of Interfax’s Corporate Information Disclosure Centre. The decision recommended that the general meeting of shareholders pay dividends in the amount of ₽77 per Share out of the net profit earned over the first six months of 2024 and the retained earnings of previous years. This information constituted insider information of the Company.
Since no dividends on the Shares had been paid for over 20 years, this news triggered a sharp increase in the price of the Shares, resulting in a discrete auction of the Shares conducted on 12 August 2024.
On 9 August 2024, being an insider and a member of the Company’s board of directors, M.V. Papkin attended the board of directors’ meeting, which discussed the issues of convening an extraordinary general meeting of shareholders and the amount of dividends. On the day of the meeting, he made a series of transactions to buy the Shares. Following the disclosure of insider information on 12 August 2024 on recommending dividend payments, M.V. Papkin, over the period from 13 to 19 August 2024, conducted a series of transactions to sell the acquired Shares at a price significantly exceeding the purchase price, thereby making a profit.
The investigation has thus established that M.V. Papkin used the Company’s insider information illegally. Therefore, the Bank of Russia qualifies his actions as a violation of the ban established by Clause 1 of Part 1 of Article 6 of Federal Law No.
M.V. Papkin has been held administratively liable for the misuse of insider information. The Bank of Russia has sent him a binding order to cease and desist from similar violations in the future.
Furthermore, the Bank of Russia has sent binding orders to professional securities market participants and trading organisers to suspend all transactions on M.V. Papkin’s brokerage accounts.
The Bank of Russia emphasises that an issuer’s insiders are not allowed to use insider information in transactions they conduct and urges issuers and other legal entities listed in Part 1 of Article 11 of Federal Law No.
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14.08.2025 15.00.00