The Four Biggest and Most Scandalous Russian Business Battles
Whether Russian oligarchs are throwing parties, getting divorced or going shopping, they go about their lives extravagantly and unrestrained. The same applies to Russian business dealings. There is never a shortage of scandals and large-scale legal clashes involving flagrant actions and billions in currency. Here are four of the most nefarious battles Russian tycoons have waged, and continue to wage.
Lisin vs. Maximov
In 2007 Nikolai Maximov sold controlling shares of his company Maxi Group to Vladimir Lisin’s company NLMK. After the deal was closed Lisin had a change of heart and accused Maximov of overstating the company’s value. Maximov accused Lisin of embezzlement, and a legal battle started. Both parties continue to make strategic corporate and legal moves, leaving the end of this epic battle nowhere in sight.
Mazepin vs. Makhlai
Dmitry Mazepin bought a sizable minority stake in Sergei Makhlai’s chemical company TogliattiAzot. The brawl started when Mazepin needed cashflow and used a ruthless black PR campaign to downgrade the worth of the company, likely with the aim of a takeover. In 2013 an activist group produced proof that Mazepin hired a PR firm to tarnish Makhlai and his company’s reputation. Although suffering losses and being wrongfully accused of criminal acts, Sergei Makhlai and TogliattiAzot continue to operate.
Berzovsky vs. Abramovich
For over a decade Boris Berzovsky pursued Roman Abramovich for US$5.5 billion. According to Berzovsky, Abramovich bought shares from him at below market value. The fight ended when it was thrown out of court in the United Kingdom. The judge was not impressed with Berezovsky’s reliability or by the claim, which was apparently agreed upon verbally.
Potanin vs. Prokhorov
Not only long-time partners, but once upon a time also friends, Mikhail Prokhorov and Vladimir Potanin started proceedings to divide their assets. This happened shortly after a wild party in France, that ended in Prokhorov being arrested on suspicion of bringing prostitutes to share in the merrymaking. The split started out amicably but went sour when it turned out that Potanin’s assets were losing value. The legal battle was eventually settled after four acrimonious years.