Borodin’s lawyer sees no reasons for new charges


MOSCOW. Sept 29 (Interfax) – The lawyer of Bank of Moscow’s ex-president Andrei Borodin has protested new fraud charges against client, describing them as illegal.

Earlier, Borodin was charged with fraud worth more than 12.5 billion rubles.

“There are no reasons whatsoever for these charges against Borodin,” lawyer Mikhail Dolomanov has told Interfax.

Borodin’s lawyers were not informed about the indictment, he said.

“Since the defense was not notified about the letter of indictment, the charges cannot be regarded as valid and are in fact doubtful”, Dolomanov said.

Independent evaluators confirmed the price of 58 hectares of land sold by Baturina to Premier Estate was fair


Leading independent appraiser – Finance-Appraisal-Consulting – has completed the valuation of 58 hectares of land in the west of Moscow, which “Ramenskaya” (the owner – Yelena Baturina) in May 2009, sold to Premier Estate for 12.6 billion rubles.

According to the report of Finance-Appraisal-Consulting, the value of this land at the time of the transaction in 2009, following evaluation, was set at 14.323 billion rubles. “The price of the transaction concluded in 2009 is fully consistent with the market realities of that time,” said Yuri Petrenko, General Director of Finance-Appraisal-Consulting. Continue reading

Collateral damage; Russia’s banks; Fallout from the rescue of one of the country’s biggest lenders highlights concerns about links between politics and state-controlled businesses – and about the vigour of financial oversight

By Catherine Belton and Neil Buckley, Financial Times

On a snowy Friday evening in late March, Andrei Borodin received a call as he flew out of Moscow on a private jet. Then president of Bank of Moscow, Russia’s fifth-biggest, he found himself under mounting pressure as VTB, the state-controlled lender that is Russia’s second biggest, tried to take over his bank. Just hours earlier, the government’s budget watchdog had called for his suspension while it audited what it be-lieved were “dubious” loans to entities re-lated to Bank of Moscow. Police were also investigating him separately over a property loan the bank had made.

“Someone called me and said that on Monday the Russian police will officially accuse me of abusing my authority,” says Mr Borodin. He never flew back; today he is in exile in an undisclosed location. Within months, Bank of Moscow – a quasi-sovereign lender with shareholders including Goldman Sachs and Credit Suisse – was at the centre of one of the nation’s largest corporate scandals of recent years. To fill an alleged hole in its accounts far bigger than previously suspected, the government agreed in July to extend its largest-ever bank bail-out. At Rbs395bn, then worth $14bn, it was equivalent to 1 per cent of economic output. Continue reading

Andrey Borodin: Victim or perpetrator? The former top banker is at the centre of one of Russia’s biggest financial scandals.

Florian Willershausen, Handelsblatt

London and Moscow

He is standing before the ruins of his life – and yet Andrey Borodin seems anything but resigned or downcast. … Borodin is fighting for his reputation as a successful top banker. Let’s not forget, he built up the Bank of Moscow to be the fifth largest bank in Russia within 15 years. Continue reading

Who calls the tune? How and why Sobyanin, Kudrin and Andrey Kostin together are turning the former President of Bank of Moscow Andrey Borodin to dust.


It soon will be half a year since the former president of Bank of Moscow Andrey Borodin was ousted out of the country through the use of all means of influence available to the state – ranging from the unprecedented persecution in the media to unwarranted initiation of a criminal case; while one of the leading Russian banks that he headed was taken over overnight in the most unfriendly way by the state-owned bank VTB. Why did this happen? The response of sceptics is simple: Borodin should not have run towards the high-speed train, he should not have confronted the state, even if the state is involved in raids, and you feel that you are right. Might makes right.

The story, which happened with the Bank of Moscow, is very simple. Following the resignation of Luzhkov a tasty piece of cake was left in sight, which the authorities decided to eat. Even if by violating the law. And they ate it, disregarding all the conventions. Who cares about the rights of minority shareholders? And why, for example, worry about the fact that, being by 85% a state structure, VTB simply had no legal right to participate in the privatization of Bank of Moscow, and the chosen privatization scheme through the Central Fuel Company was conducted with an obvious violation of law. What law is there to talk to about, when much in the country is still decided through a telephone call from above?

Read full article in Russian here.

The knowledge question: VTB and Bank of Moscow

Alastair Marsh, FT Tilt

VTB had full knowledge of the state of Bank of Moscow’s balance sheet before taking operational control of the bank, according to former Bank of Moscow president Andrei Borodin.

In an interview with FT Tilt, Borodin said from the beginning of March VTB had full access to the capital city lender’s loan books and data room and was given an opportunity to sell out of the Moscow bank before consolidating a majority stake. Continue reading