Russian tycoon Magomedov launches $14 bln lawsuit in UK over port holdings

Novorossiysk Commercial Sea Port PAO

27/09/2023 11:16

LONDON, Sept 26 (Reuters) - Russian tycoon Ziyavudin
Magomedov, jailed at home in Russia, has launched a London
lawsuit seeking nearly $14 billion over his holdings in valuable
port operators, which he says were seized as part of a
state-backed conspiracy.
    The businessman filed the lawsuit at London's High Court on
July 20 against several defendants, including Russian state
nuclear energy company Rosatom, oil pipeline operator Transneft,
private equity firm TPG and UAE-based port operator DP World.
    Magomedov, 55, claims his 2018 arrest on embezzlement
charges prompted a Russian state-supported expropriation scheme,
largely for the benefit of Rosatom and Transneft, according to
court filings.
    He alleges the Russian state wanted to bring transportation
group Fesco  FESH.MM  – which operates ports, including a key
port in Vladivostok – under Rosatom's control.
    He is suing TPG, DP World, Rosatom and others over the
alleged conspiracy to acquire his interest in Fesco, which he
values at $8.8 billion.
    A TPG spokesperson said Magomedov's claims are "entirely
without merit".
    "We intend to defend ourselves vigorously against such
allegations," they added.
    DP World, Transneft and Rosatom did not immediately respond
to requests for comment.
    Magomedov also alleges Transneft conspired to take his and
his brother Magomed Magomedov's interest in Novorossiysk
Commercial Sea Port (NCSP).
    The Magomedovs acquired their interest in NCSP through a
joint venture with Transneft and were negotiating to sell their
shares for around $1.3 billion, according to court filings.
    However, Magomedov alleges Transneft representatives told
him after his arrest that Transneft president Nikolay Tokarev
would speak to Russian President Vladimir Putin and procure his
release if he sold the shares for $750 million.
    Magomedov was once one of Russia's richest men, with assets
in construction and logistics through his sprawling Summa Group.
His net worth in the year before his arrest was estimated by
Forbes magazine at $1.4 billion.
    But he was convicted last year on organised crime and
embezzlement charges, following one of the highest-profile
prosecutions of a Russian tycoon in years.
    Magomedov was sentenced to 19 years in a high-security
prison. He says the charges are unfounded and is appealing
against his conviction.

 (Reporting by Sam Tobin
Additional reporting by Reuters in Moscow
Editing by Peter Graff)
 ((Sam.Tobin@thomsonreuters.com;))