Arkhangelsky Revealed Name of Official Whom He Paid $160m

Photo: murmansk.kp.ru

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.

Since last week, the court has worked in Paris, as Arkhangelsky who is cross-examined cannot leave France, the country that granted him political asylum.

On February 17, the bank's lawyer asked Arkhangelsky why in in 2007 he showed that the West terminal had been purchased for $60 million and in 2008 the cost increased to $220 million. Arkhangelsky explained that the terminal was bought "in a poor state" and its development required a number of permits, as water space including the port waters is under Russian government control. To obtain the necessary permits Arkhangelsky's OMG Group had to pay "significant amounts" of money to officials.

Arkhangelsky said the main beneficiary was Dmitry Dmitrienko who then headed the Federal Agency of Marine and River Transport was later appointed the the governor of Murmansk Region. The businessman was introduced to the official by the previous owners of the West Terminal. According to Arkhangelsky, Dmitrienko was the person who decided whether the development of the terminal would be included in the federal program.

Arkhangelsky further explained that money was transferred to Dmitrienko's son who routinely sent to the OMG e-mails with bank account details. The businessman added that each time it was different accounts and different amounts.

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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