Eurotoaz Ltd had losses of $7.6m at the end of 2014

Irish company Eurotoaz Limited had accumulated losses of $7.6 million at the end of 2014, according to its latest set of filed accounts, and was depending on the continued support of its shareholder.

The shareholder, the accounts said, “has committed to fund the ongoing legal action to reclaim and enforce its rights as the shareholder of the Russian company JSC Togliattiazot” (Toaz).

Toaz has claimed that Russian businessman Dmitry Mazepin controls Eurotoaz.

The notes to the Eurotoaz accounts said the company was the subject of a defamation action being taken against it by Toaz, and that it was the opinion of Eurotoaz’s legal advisers that the “defence at this stage appears good. This will become clearer upon receipt of expert reports.”

Irish court records show a defamation action against Eurotoaz was lodged in 2010, and that there have been no filings in relation to the case since 2013.

The beneficial owner of Eurotoaz was Benstock Finance Ltd, of the British Virgin Islands, which had loaned the company $7.8 million, according to the 2014 accounts.

The accounts show that the company’s directors were Andrey Babichev, with an address in Voronezh, Russia, and Yuri Starikov, with an address in London. The accounts were audited by Grant Thorton in Dublin, and the company’s bankers were the Bank of Cyprus, Nicosia. The registered address was the Arthur Cox Building, Dublin.

Proceedings

The company’s filings show its shares were transferred to Benstock in March 2012 from

Gyorgy Galantai

of Budapest, Hungary.

Among the defendants in the proceedings lodged this week in Dublin is Yulia Bolotnikova, whom Toaz says is a lawyer who works for Mazepin's company, Uralchem, and who described herself as "attorney for Eurotoaz" pursuant to a power of attorney executed in March 2012 in the Irish defamation proceedings between Toaz and Eurotoaz.

Toaz also claims Ms Bolotnikova gave evidence for Uralchem in “vexatious litigation” brought against Toaz in Russia.

Mr Babichev is also a defendant. Toaz alleges that he was responsible for submitting evidence to the Russian authorities in support of “Eurotoaz’s campaign of vexatious litigation”.

Toaz has also said in its statement of claim that Benstock Finance has the same registered office and agent as another of the defendants, Belport Investments Ltd. It claimed that Belport “conspired” with Uralchem to produce a false share purchase agreement used in one of the criminal complaints brought against Toaz in Russia.