Russian “fishing” could hurt Cyprus reputation

Financial Mirror

Will the Attorney General betray confidentiality?

Russian investors and local business service providers are growing increasingly worried that Cyprus’ eagerness to satisfy the Kremlin’s demands for lifting of confidentiality in exchange for a multi-billion euro bailout could jeopardise the island’s reputation as a leading financial services centre.

Recent developments involving Russian-interest companies in Cyprus and the authorities’ willingness to hand over confidential information about shareholders, directors and their assets to the government in Moscow suggest that the current administration’s relations with the Kremlin are much closer than anticipated. Continue reading

Bank of Moscow Former President Andrei Borodin: “Russian authorities announced a year ago they knew where I was. Why would they need to look for me?”

Svobodanews.ru

By Natalya Golitsyna

Interpol general secretariat has issued a Red Notice for Andrei Borodin, former president of the Bank of Moscow currently residing in London, which means that the wanted person is suspected of having committed an especially grave crime. In late 2010 the General Prosecutor’s Office opened a criminal case against Andrei Borodin and his former senior deputy Dmitry Akulinin suspecting fraud in the amount of more than 12 billion roubles.

Interpol’s Red Notice gives member countries of this international organization the right to take measures to detain and arrest the subject. What does Andrei Borodin himself think about the investigation? Radio Liberty correspondent in London has met with him. Continue reading

Statement by Andrei Borodin

The Moscow Commercial Court has appointed for 4 September the main hearing on a claim seeking to invalidate the transaction in which the Moscow-government-owned stake in the Bank of Moscow was made part of the authorized stock of the Central Fuel Company (CFC) with its subsequent sale to the VneshTorgBank (VTB). The claimant, a Mr Devyatkin, demands that the transaction and all its legal consequences be cancelled.

It was clear from the start that the legal arrangement was a sham transaction, only called to conceal the real essence of the deal. The sale of the stake in the Bank of Moscow owned by the Government of Moscow can only happen under privatization legislation, with all the restrictions that it imposes. The sale must happen on an open auction, and a company partially owned by the state cannot be a buyer. If you abide by law, you cannot sell the city-owned stake in the Bank of Moscow to the arbitrarily chosen VTB for an arbitrarily chosen price. Continue reading

Andrei Borodin’s original answers to Vedomosti questions

Q 1. Why do you think you have been listed among the most dangerous criminals?

A.: As I have been saying in my previous interviews, in reality, government financial assistance was provided to the VTB Group, which had taken over the Bank of Moscow, not to the Bank of Moscow itself. The Bank of Moscow was in a good financial condition and did not need financial rehabilitation. Serious buyers, independent from the state, had been interested in buying a stake in the bank. But the special operation of its takeover implied a distortion of the real state of affairs, for the VTB raiders to be able to pocket not only the fifth-largest bank, but also 295 billion of government assistance free of charge. Do you think VTB wants to recognize that publicly? And if it does not, then it needs a covering operation: the bank was allegedly embezzled and the principal villains were my colleagues and partners and I.

VTB representatives act proceeding from the assumption that somebody has to be held accountable for the government money taken; if they recognize everything and accept the assets at their just value, then they will have police interrogations in store for them. And self comes first. Continue reading

Statement by Andrei Borodin

To: A. I. Bastrykin

Chairman, Investigations Committee of the Russian Federation

From: Andrei F. Borodin

REPORT

On 26 April 2012 the Harju County Court of the City of Tallinn sentenced Indrek Põder, a high-level officer of the Estonian Security Police Department, was sentenced to a prison term for bribery. Six other individuals were also convicted under that criminal case for giving bribes and bribery intermediary services, including Oleg Smoli, an Estonian citizen.

This socially significant criminal case has received much publicity. The Estonian media, newspapers and internet media, have published reports that the current top management of the Bank of Moscow was a customer of the Estonian corrupt official from the security police. Pursuant to norms of the Code of Criminal Procedure of the Russian Federation, said information is sufficient grounds for conducting relevant checks and opening a criminal case. Continue reading

Message of General Prosecutor’s Office

General Prosecutor’s Office of the Russian Federation
15a Bolshaya Dmitrovka St.
Moscow GSP-3 125993, Russia
11 July 2012 No. 69/1-974-2012

To Mr M. S. Dolomanov
Dolomanov & Partners
4/17 Pokrovskiy Blvd. Building 1, Office 9
Moscow 101000

[Dear Mr Dolomanov:]

Your request concerning your disagreement with the decision of the Directorate for Economic Security and Countering Corruption of the Russian Interior Ministry Main Administration for Moscow to refuse the opening of a criminal case in the interests of Mr. A. F. Borodin has been considered.

It has been established that the Directorate has conducted a check of the report on possible improper use of funds in the amount of 103 billion roubles earned from the sale of shares of OAO Bank of Moscow and OAO Stolichnaya Strakhovaya Gruppa by the Government of Moscow, pursuant to Articles 144-145 of the Code of Criminal Procedure of the Russian Federation. Based on the results of the check, the Directorate issued a resolution to refuse the opening of a criminal case due to the absence of the event of crime. Continue reading