Arkhangelsky: Gref Received Me on Traber's Request

Justice Hildyard of the High Court of England and Wales continued proceedings on suit of Bank St. Petersburg vs Russian businessman Vitaly Arkhangelsky and Arkhangelsky's counterclaim against the bank.

The last week was almost entirely dedicated to cross-examination of Arkhangelsky. He went into details of his search for funds he needed to buy the Vyborg Fuel Company from Ilya Traber, a well-known crime boss nicknamed "Antiquar".

According to Arkhangelsky, Traber arranged for him two meetings with the head of Sberbank German Gref. The businessman said that Traber and Gref have been friends since 1990s when the latter headed St-Petersburg property department. He added that that Gref, at the request of Traber, met him twice - in Moscow and Singapore.

According to Arkhangelsky, when they met in Moscow, he also discussed with Gref opportunities of financing for OMG's projects because his Group faced difficulties from the global financial crisis. Gref promised to raise the question of OMG the next day, at his scheduled meeting with Vladimir Putin.

"I think, Gref is dependent on Traber," Arkhangelsky said. In his opinion, Gref agreed to see him to make Traber a favour but he was never going to deliver his promise.

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The bank claims that Arkhangelsky, who, together with his family, left Russia in 2009 and was granted political asylum in France, did not settle with creditors and tries to recover a debt.

Archangelsky in his statement of claim says that during the global financial crisis the bank agreed to defer payment on loans for six months. As a collateral, the bank demanded Archangelsky to transfer the shares of companies that were a part of his Oslo Marine Group - West Terminal port complex and Scandinavia insurance company, the owner of a half of Onega terminal. Before the stipulated term expired, the bank demanded loan repayment and later used its political contacts including top law enforcement officers and St. Petersburg Governor Valentina Matvienko, sold the shares to a sister firm at a lower price and changed the executive of Arkhangelsky's companies. He estimates the damages at $500 million.

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The course of the trial will be covered by the press-office.

Contact: Natalia Khmelik natalya.hmelik@gmail.com