You're reading: Firtash gets chance to resume control over Hungarian gas trader Emfesz

A Hungarian appeals court upheld a ruling Tuesday that the April 2009 sale of Hungarian gas trader Emfesz Kft, established by Ukrainian businessman Dmytro Firtash, to Swiss-registered company RosGas AG for $1 was invalid.

The Court confirmed in what was a final ruling that Istvan Goczi had not had proper Power of Attorney when he "fraudulently sold the gas trading company without the knowledge of the legal owner (Cyprus-based Mabofi) to his own assistant Tamas Gazda and to Swiss-registered RosGas AG, whose owners remain unknown," says a statement from Group DF (Firtash’s private holding company).

Group DF intends to resume control over Emfesz as soon as possible, but said this could be a difficult process.

"We understand that Goczi may have already taken initial steps to try to put Emfesz into liquidation as a way of avoiding Emfesz being returned to us, the statement cites Mabofi Director David Karikas as saying.

Emfesz was Hungary’s largest independent gas trader in 2008, providing over 20% of the gas on the domestic market with turnover of 200 billion forint ($1 billion), said Robert Shetler-Jones, the CEO of Group DF (the owner of Mabofi). When it was sold the company had around $150 million in its accounts. "Today, as a result of fraud and mismanagement, the company is facing financial collapse and has lost its gas operating license and all its customers," he said.

Emfesz said in April 2009 it was changing its gas supplier from RosUkrEnergo (RUE), in which Firtash controls 50%, to "RosGas AG, which is in the sphere of interests of to Gazprom." The Russian gas major at the time denied its participation in Rosgas. Group DF in May 2009 issued a statement from its wholly owned subsidiary Mabofi saying that Emfesz shares had been "fraudulently" transferred to RosGas.

The Supreme Court of Hungary on November 17 2010 ruled that it had been illegal for the Hungarian Energy Office to approve the Emfesz sale. The Energy Office then suspended the Emfesz gas trading license.