* Assets were frozen as part of $330 mln lawsuit by VTB
* Court discharged the freezing order on Malofeev's assets
* Homes of Malofeev, Rostelecom CEO raided by Russian police
MOSCOW, Feb 6 Britain's Supreme Court has lifted
an order freezing shares in Russian telecoms operator Rostelecom
held by Konstantin Malofeev, part of a $330 million
lawsuit filed by Russian bank VTB, the court and
Malofeev's fund said.
The stake had been seized over a case brought by state-owned
VTB against Malofeev and his fund Marshall Capital (MarCap)
seeking to recover a loan it provided to finance a 2007 deal in
which, the bank claimed, MarCap was involved as both buyer and
The court rejected an appeal by VTB's investment banking
unit, VTB Capital, against earlier orders, and discharged the
freezing order on Malofeev's assets, it said on Wednesday.
"The worldwide freezing order against Mr Malofeev is
discharged, because VTB has not been granted permission to serve
proceedings on him," the court said on its website.
The ruling came two days after Malofeev's Moscow office was
raided by police. In November, the police also raided his house
as well as the home of Rostelecom chief executive Alexander
Provotorov - MarCap's former head.
VTB was not immediately available for comment.
A source close to VTB said the bank would continue defending
its interests in other jurisdictions.
"The Supreme Court ruling does not prove Konstantin
Malofeev's case, it only defines the lack of Britain's
jurisdiction. No line has been drawn under this matter," said
the source, who spoke on condition of anonymity.
The VTB loan had been used to finance the acquisition of
dairy plants by Russian company Russagroprom from British Virgin
Islands-incorporated Nutritek in which MarCap and Malofeev were
shareholders. Russagroprom defaulted on the loan and VTB brought
proceedings against Nutritek, MarCap and Malofeev.