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eik

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Alias Born 10/24/2005

eik

Re: dreaminofsailin post# 4284

Tuesday, 10/20/2009 8:15:09 PM

Tuesday, October 20, 2009 8:15:09 PM

Post# of 5803
<<why do we care if anyone in Russian or Magadan knows Krong is owned by Aurus?>>
Because to be "a branch of foreign entity" Krong needs to be properly registered with Russian authorities. There are special terms of registration, tax code, fees, etc. Chegenev can sell his company in USA, Brazil and Zimbabwe at the same time, but all these sales wouldn't have any legal power in Russia. Krong won't be able to export a gram of gold or transfer a rouble outside of Russia, where it's still an "OOO" owned by Chegenev. Read bankruptcy documents - it's pretty clear. Isn't this strange, btw, that "Aurus acquired all outstanding shares of private company Krong", former owner Chegenev didn't get a share of Aurus in exchange (according to Elena), but he, who has nothing to do with Krong or Aurus anymore, is a single person who can stop the bankruptcy procedure. The court treats this "outsider" as Krong's owner but "real" owner - Aurus is not represented in this case at all. Why is that? Because Aurus has nothing to do with Krong from Russian perspective.

I learned a lot about these "Russian branches" of US/Canadian Pinky companies, but don't have time to cover this topic in details now. :) All these games are designed for US investors. US partners usually have no intention to get any product or cash flow from Russia, so they don't care about legal status of "acquisition". Strat Petroleum, for example, even created new company in Russia with similar name "Strat Ufa", claimed it as JV with "Canadian" Strat, and... had no legal relation to it's JV "partner". BTW, Russian "partners" don't care what is posted on some foreign websites and PRs. They care just about their standing with Russian authorities. Jails in Russia are not exactly tenant-friendly. :) And, as it can be seen from Krong bankruptcy case, for Russians Krong is semi-dead business with no assets.

IMO.

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