Updated 10:27 a.m. Moscow Time
MOSCOW, October 2 (RIA Novosti) – The Moscow Stock Exchange has notified Russia's Central Bank on signs that stocks manipulation has occurred with AFK Sistema conglomerate trading, the exchange's head, Alexander Afanasiev, told RIA Novosti on Thursday.
"The Exchange has found signs [of AFK Sistema stocks manipulation] and has sent the information to the Central Bank. The signs are obvious," Afanasiev said.
On September 19, the Moscow Stock Exchange announced it was investigating Sistema's stock trading after the company's key shareholder Vladimir Yevtushenkov was released from house arrest. The news triggered an immediate rise in the shares of Sistema and Bashneft on the stock exchange by 13.2 and 5.2 percent, respectively.
The same day, the Russian billionaire denied media reports of his release in a phone call with RIA Novosti.
Yevtushenkov was arrested on September 16 over his suspected involvement in money-laundering. Prosecutors are investigating Sistema's acquisition of shares in Russia's Bashkortostan Republic's oil company.
First deputy head of the State Duma’s Committee for Economic Policy Mikhail Yemelyanov has said that speculators could have used the situation surrounding Yevtushenkov’s arrest to gain from the instability in Sistema's shares.
The Russian business community responded to the arrest with sharp criticism, saying the measure was excessive and harmed the business climate in the country.
