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On establishing facts of market manipulation for PJSC Tuchkovsky KSM ordinary shares

11 October 2016
Press release

The Bank of Russia has established facts of repeated market manipulation for PJSC Tuchkovsky KSM ordinary shares of the principal issue (hereinafter, the Stock) at MICEX SE trading from 27 February 2012 through 11 September 2013 committed by foreign legal entities BLUBBERSTAR LIMITED and SKAVADOS ENTERPRISES LIMITED. The said legal entities are interconnected and are also connected with the issuer.

The investigation conducted by the Bank of Russia revealed that within the time span stated BLUBBERSTAR LIMITED and SKAVADOS ENTERPRISES LIMITED by prior arrangement completed a series of transactions which resulted in substantial deviations in demand and supply and trading volumes of the Stock as well.

SKAVADOS ENTERPRISES LIMITED mainly sold the Stock to BLUBBERSTAR LIMITED which resold the said Stock to general public. Besides, these entities made individual transactions to acquire the Stock from other market participants by highest bids thus restoring Stock prices brought down through their mass selling by BLUBBERSTAR LIMITED.

So, activities of the said entities were aimed at selling the considerable part of the Stock they owned to general public at artificial prices they maintained.

Pursuant to Clause 2 of Part 1 of Article 5 of Federal Law No. 224-FZ, dated 27 July 2010, ‘On Countering the Misuse of Insider Information and Market Manipulation and Amending Certain Laws of the Russian Federation’ (hereinafter, the Federal Law) the said actions fall under market manipulation. Therefore BLUBBERSTAR LIMITED and SKAVADOS ENTERPRISES LIMITED violated the ban imposed by Part 2 of Article 6 of the Federal Law.

The Bank of Russia took action in relation to the entities which manipulated the stock market aimed at non-admission of similar violations in future. The Bank of Russia recommended MICEX SE to look into trade regime changes or stock delisting.


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11.10.2016 00.00.00