The Department of Internal Affairs of the Belgorod Region sent an “investigative report” to the Department of Internal Affairs in the Fili-Davydkovo district to initiate a case against the billionaire Alisher Usmanov. The complaint was filed by former minority shareholders of Lebedinsky GOK (the list is available from Rucriminal.info). They believe they lost their shares in a forced buyout, which was carried out by Usmanov’s structures at prices very far below market level, as a result of fraudulent activities. The valuation was carried out by Gorislavtsev & Co. Valuation, which based its valuation on the fact that the official proceeds of the mine were less than $1 billion. However, according to the applicants, in reality the revenues were understated by at least three times. The products were sold at reduced prices to Usmanov’s offshore companies (BGMT and FMC Ltd.), who sold them at market prices for tax optimization purposes. As a result, the mine’s real proceeds amounted to at least $3 billion.
Ovcharenko, deputy head of the Department of the Economic and Criminal Police of the Ministry of Internal Affairs in the Belgorod region, also pointed out in his notice that there is prejudice on this issue.
Rucriminal.info got hold of Ovcharenko’s response from former shareholder Andrei Burkin and the association of deceived shareholders of Lebedinsky GOK, which we publish with minor edits.
“Thank you for detailing the legal term “Prejudice” (Art. 90. CPC of the RF). However, obviously, there was a mistake or someone deliberately misled you, Andrey Nikolaevich.
Prior to 2020, neither in the court case № A08-8226/2009-30, which you are referring to, nor anywhere else, we never stated any facts which were documented and submitted to you for check and investigation of the purely criminal aspect of the actions of UK citizen Alisher Burkhanovich Usmanov, …and/or his company. We have never asked you or your colleagues to make any legal assessment of the civil legal status of our relations with the company of UK citizen Usmanov A.B. …
As for your competence as a determined and professional fighter against corruption and violators of Russia’s economic security, we would like to inform you:
The actions of a criminal nature against the minority shareholders of Lebedinsky GOK in carrying out a lawful compulsory buyout of their shares were pointed out to us by the English Barrister of the Royal Council only at the end of 2019. It was the criminal aspect that he drew attention to in view of the fact that the proceedings on newly discovered circumstances and for filing a claim in the English and/or European courts is possible only with the restoration of the statute of limitations. Given the clear indications of FRAUD, i.e. fraud committed by a group of persons by prior conspiracy (Art 159 of the Criminal Code), we have forwarded the documents in our possession to you and your colleagues in Great Britain for investigation. We are currently preparing to file a complaint with the German Public Prosecutor’s Office (certified translation of the documents). Usmanov left Russia long ago and is actively engaged in patronage activities in Great Britain, Switzerland, Italy and Germany. Your English colleagues, pointing out that Fraud has no statute of limitations in any jurisdiction in the world, kindly agreed to assist us in identifying the beneficiaries and perpetrators on the facts set forth in my explanation.
Frankly speaking, we did not even count on your professional help as an experienced and determined anti-corruption officer of the Department of Economic Security and Control of the Ministry of Internal Affairs of Russia. Now we see that it was in vain!
You were handed over the basic documents, which clearly show the signs of the crimes of Article 159 and Article 199, which are strictly within your competence and responsibilities under the Law on Police of Russia. I and my colleagues, from April till November 2021, took detailed explanations of the criminal aspects of the economic activity of the citizen A.B. Usmanov. Therefore, the reference to the civil-law status of the dispute with the company of the alleged swindler and the applicability of Article 90 of the Criminal Procedural Code are irrelevant.
Taking into account your high professional level and speed of response to our appeal № 5192 of 09.04.2021 in the Committee of Inquiry of the Ministry of Internal Affairs of Russia, as well as the fact that your high wages takes its origin in those high taxes that we pay from the miners’ earnings and as a result of a forced (legal) redemption of our shares in JSC “LGOK” with the fraudulent scheme that your British and German colleagues point to, following the advice of the President of Russia, we demand
- Carry out ALL the necessary investigative actions to establish who carried out the double capitalization assessment of Lebedinsky GOK, as a result of which our shares were forcibly (legally) repurchased by GAZMETALL at a price of 8015 rubles per share, based on the first, subjective, Report on the value of LGOK’s shares prepared by Gorislavtsev & Co. Valuation” and then consolidated into a total block of Metalloinvest shares for sale on the London Stock Exchange based on the second Asset Capitalization (Value) Report prepared by Renaissance Capital (with the assistance of Deutsche Bank, Credit Swiss and Merryll Lynch in 2008).
- We request you to carry out an inspection and confirm or deny the presence of signs of Article 199 of the Criminal Code of the Russian Federation in the course of export of Russian ores and steel, based on the documents provided to you, prepared for commercial purposes by British employees of the offshore subdivisions of citizen A.B. Usmanov.
We draw your attention to the clear indications of Art. 199 (in especially large amounts) in the export of iron ore of the Russian Federation – on page 11 of the document “RECOMMENDED CASH OFFER” (recommended buyback offer) the offshore structure of control, ownership, revenue generation and profit concentration from resale of national patrimony with the name of the main beneficiary of export transactions – Alisher USMANOV is disclosed. “According to the offshore’s (FMC) official accounts, prepared according to European standards, the proceeds from the sale of Russian ore and steel in 2007 (the redemption year) amounted to 3010 million (Three billion ten million) US dollars!”
At the same time, LGOK’s official revenues, according to the Accounts Chamber, did not exceed $1 billion. USD 1 billion in 2007.
Being in no way doubt about your professionalism and level of preparation, I believe we should start with an inquiry to Renaissance Capital demanding a copy of Metalloinvest Production Asset Assessment Report 2008 (in particular Lebedinsky GOK and OEMK). For our part, we shall cooperate with the investigation as the interested parties interested in finding the persons responsible for violation of the JSC Law FZ-7 regarding the determination of the market value of the expropriated shares, which left us and our children without the income-generating shares and without due statutory compensation.
At a time when our new “CEO-owner” with a London address is spending huge sums on charity and acquiring the image of the most generous philanthropist in the West (according to the Sunday Times on 21/05/21) our families can hardly make ends meet and cannot afford either a decent education for their children or proper job or health care. Our children dream and are already planning to emigrate to the countries that have issued citizen Usmanov their national passports.
Russia’s economic security has been severely damaged: since Mr. Usmanov gained control over our enterprises, the withdrawal from Russia’s tax field has amounted to more than three billion dollars a year, while exporting national resources! Social tensions in the region are growing, and now with the growing attention to your professional actions as a responsible representative of the Russian Interior Ministry.
In order to avoid a social explosion in the region, as well as to prevent the sanction blocking of accounts and belittling of the reputation of the Russian Government and honest, respectable businessmen of the mining and metallurgical sector of the Russian Federation (who paid the minority shareholders the market value of the shares they bought out. For example, V.S. Lisin, NLMK), please act decisively and more promptly!
In case there is anything you are lacking to perform your official duties in identifying those involved in the fraudulent double valuation of our company (English documents, translations, competence, courage, etc.) please inform us promptly! We and you do not have time to bounce back.