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Statement by Andrei Borodin

To Mr S.M. Ignatyev
Chairman, Central Bank,
Russian FederationMr A.V. Bortnikov
Director,
Federal Security Bureau (FSB),
Russian Federation
STAMP: Accepted,
Bank of Russia
06 Sept 2012 //signed//

REPORT

It has become known from information that appeared in open sources in May 2012 that Mikhail Valeryevich Kuzovlev, President and Chairman of the Executive Board of OAO Bank of Moscow, has been a citizen of the Republic of Cyprus as of 2008.

I am bringing to your attention the fact that Mr Kuzovlev failed to disclose the information about his having foreign citizenship in the documents submitted for the position of Senior Vice President of OAO Bank of Moscow in February 2011. When he gave concurrence to his election to the Board of Directors of OAO Bank of Moscow, Mr Kuzovlev also failed to disclose the information about his Cypriot citizenship. Being well aware of the fact that work in the position of member of the Board of Directors and Senior Vice President of the bank involved knowledge of information amounting to state secret and having wittingly concealed his connexion with a foreign state, Mr Kuzovlev misled the bank’s top management in February 2011, including myself as President of OAO Bank of Moscow. As a result, when subsequently the candidacy of Mr Kuzovlev was considered for the post of member of the Executive Board of OAO Bank of Moscow by the Central Bank of the Russian Federation, the decision was made without taking into account the information about his foreign citizenship.

Unreliable information may also have been provided to the Central Bank of the Russian Federation when the decision on Mr Kuzovlev’s appointment to the position of President and Chairman of the Executive Board of OAO Bank of Moscow was made.

The Bank of Moscow provides banking services to federal and municipal authorities, power structures, controlled-access enterprises and other organizations information about whose operation must not become accessible to individuals who conceal their foreign citizenship. OAO Bank of Moscow’s structure includes Department One, whose officers’ work is regulated by Law No. 5485-1 of the Russian Federation “On state secrets” of 21 July 1993. Said law also regulates the work of other officers of OAO Bank of Moscow who have access to information amounting to a state secret of the Russian Federation, including the President and Chairman of the Executive Board of the bank.

Mr Kuzovlev, who has for a long time concealed his foreign citizenship, has held and is still holding executive positions in other government-owned organizations: he has been Deputy President and Chairman of the Executive Board of OAO Bank VTB and member of the Board of Directors of OAO RZhD and is member of the Board of Directors of OAO NK Rosneft. Clearly, by virtue of his official status Mr Kuzovlev has had and still has access to a mine of information amounting to state secret of the Russian Federation as well as to data of a strategically important government-owned corporation, OAO NK Rosneft.

Given the above, I am requesting you to:

  1. Carry out a verification to establish the fact of concealment by Mr Kuzovlev of his Cypriot citizenship when he was appointed to executive positions and/or elected to management bodies of OAO Bank of Moscow, OAO Bank VTB, OAO RZhD and OAO NK Rosneft and, if these facts are confirmed, of the presence of a criminal intent to conceal this information on the part of Mr Kuzovlev;
  2. Carry out, in connexion with concealment by Mr Kuzovlev of his foreign citizenship, a check on whether Mr Kuzovlev’s presence in the executive posts at OAO Bank of Moscow, OAO Bank VTB, OAO RZhD and OAO NK Rosneft is in line with the legislation of the Russian Federation on the protection of state secrets given his access to information amounting to state secrets of the Russian Federation by virtue of office;
  3. Take measures prescribed by law based on the results of the checks, to include liability of the individuals guilty of violations; and
  4. Notify me about the results of the checks by using the addresses of my representatives: Attorney Mikhail Sergeyevich Dolomanov, 4/17 Pokrovskiy Boulevard, Building 1, Office 9, Moscow 101000, Attorney Vladimir Nikolayevich Krasnov, 7 Bolshoy Strochenovskiy Pereulok, Moscow 115054, and Attorney Dmitriy Valeryevich Kharitonov, 2/62/35 Sadovaya-Kudrinskaya St., Kann House, Moscow 121069.

// signed //

Andrei F. Borodin

30 August 2012