Anti-corruption court to rule on confiscation case involving Russian titanium oligarch

26 December 2022, 03:11 PM
VAKS is considering the case regarding the confiscation of the assets of the beneficiary VSMPO-Avisma (Photo:VSMPO-Avisma website)

VAKS is considering the case regarding the confiscation of the assets of the beneficiary VSMPO-Avisma (Photo:VSMPO-Avisma website)

Ukraine’s High Anti-Corruption Court (VAKS) is set to rule on a case regarding the confiscation of assets from Mikhail Shelkov, a Russian oligarch who owns one of the world’s largest producers of titanium, Ukrainian news outlet Interfax-Ukraine wrote on Dec. 26.

The case was initiated by a lawsuit filed by the Ministry of Justice against Shelkov, as the Ukrainian government attempts to minimize the presence of Russian actors in the Ukrainian economy.

Aside from Shelkov’s company, titanium producer VSMPO-Avisma, the lawsuit also names Ukrainian LLC Demurinsky Mining and Processing Plant, Investagro, VSMPO Titan Ukraine, Ty-Minerals LLC and its Cypriot co-owner Limpieza Limited as involved third parties – with a number of those companies being subsidiaries of, or connected to, one of Shelkov’s enterprises.

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Shelkov ranks 59th in the Russian Forbes magazine ranking of the country’s richest people, with a fortune of about $1.5 billion. He was included in the Ukrainian sanctions list as early as 2021; in October of this year, the sanctions were expanded to include Limpieza Limited.

In addition, on June 8, 2022, the district court of Kyiv, seized 100% of the corporate rights of the Demurinsky mining and processing plant, which specializes in supplying raw materials for titanium production. Ukraine’s Bureau of Economic Security (BEB) claims that during 2020-2021, this enterprise carried out illegal export of mined raw materials to Russian-occupied territory through an Austrian company, underestimating the value of the products sold.

As NV reported in the summer of 2022, VSMPO-Avisma sold its shares in Demurynsky mining and processing plant on the eve of Russia’s invasion of Ukraine. The shares are speculated to have been bought by Ukraine’s state-owned United Mining and Chemical Company.

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