A top British appeals court has quashed an order by a Caribbean court for Turkey’s Cukurova Holding to deposit $1.4 billion in an escrow account pending the outcome of its dispute with its Russian partner in Turkcell, a senior official at the Russian company Altimo told Reuters.
The ruling gives some relief for Turkish tycoon Mehmet Karamehmet, who owns Cukurova, in his ongoing struggle to keep control of Turkey’s largest mobile phone operator.
Britain’s Privy Council, the highest court of appeal for many Commonwealth countries, cancelled the order made by a court in the British Virgin Islands for Cukurova to make the deposit by March 5.
Altimo, the telecoms arm of Russia’s Alfa group had harboured hopes of being awarded Cukurova’s 13.8 percent stake in Turkcell if the funds were not deposited in time. Cukurova had put the shares up as collateral for a loan taken from Altimo in 2007, and the dispute between centres on whether that loan is in default.