Arkhangelsky: Guz Offered Me a Deal With a Crime Boss

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.

On February 19, Arkhangelsky was cross-examined about the failed acquisition of the Vyborg Fuel Company by OMG Group. The owner of the company was well-known St. Petersburg businessman Ilya Traber, a criminal boss nicknamed Antiquar. Arkhangelsky told the court that Traber started his business career in the early '90s when he, together with Vladimir Putin, "illegally exported Russia arts". Later, Traber controlled "criminal privatization" of the St. Petersburg port, Arkhangelsky added.

According to Arkhangelsky, Traber was such an important client of Bank St. Petersburg that the bank opened a special office to service him. Vladislav Guz, who then was the Deputy Chairman of the bank's board, offered him to consider the acquisition of the Vyborg Fuel Company, Arkhangelsky said.

In late August 2008, the parties signed the purchase agreement that included "criminal terms", Arkhangelsky said. He had to provide an advance payment of $15 million (half of the company value) immediately and to pay the other $15 million within a month, otherwise he would all the rights for the Company and the money he already paid. According to Archangelsky, Guz played a role in the preparation of that agreement.

The global financial crisis prevented the deal, Arkhangelsky explained. After the Lehman Brothers collapsed, both Russian and foreign banks reduced lending. As a result, OMG was unable to raise the necessary $ 15 million, Arkhangelsky said.

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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