The ex-co-owner of Otkritie Bank, wanted by Russia (*aggressor country), helped the head of VTB with the maintenance of two yachts and the sale of a house in Colorado, bypassing sanctions

USA accused former co-owner of Otkritie Bank in helping the head of VTB circumvent sanctions Andrey Kostin. Ex-banker Vadim Belyaev, against whom several criminal cases were also brought in Russia (*aggressor country), was arrested in the United States. Charges have also been brought against Kostin.

A representative of the Ministry of Justice said that Andrei Kostin is accused of money laundering and violating sanctions that the United States imposed on him back in 2018. Then the head of VTB saidthat will “survive” the lack of opportunity to visit the States.

The text of the indictment against Kostin states that in 2010, through a company registered in Colorado, he bought a house in the Aspen ski resort. As the investigation notes, the next year the businessman sent letters to neighbors to introduce himself and thereby confirm that he was the owner of the residence. In 2012, Kostin purchased several pieces of art to decorate this home. They were valued at a million dollars. From 2010 to 2017, the head of VTB regularly visited Aspen during the New Year holidays. At the same time, Vadim Belyaev periodically visited his house, writes the US Department of Justice.

Already after imposing sanctions Kostin, as well as Belyaev and his assistant, American Gannon Bond, agreed to sell the house in Aspen and transfer approximately $12 million received from the sale to the banker.

Also in the case are two yachts: Sea Rhapsody for 65 million and Sea & Us for 70 million dollars. The prosecution claims that the connection between the yachts and Kostin was confirmed by crew members. From 2018 to 2022, 100 payments were made for their maintenance. At the same time, Belyaev and Bond did not have a license from the Office of Foreign Assets Control of the US Treasury to conduct business with the sanctioned Kostin. Attorney, partner of BGP Litigation Sergey Glandin comments:

— I won’t say that this case is very large in terms of amounts, because there are already quite a few such sanctions cases, I don’t want to name all these names. One of the episodes is charged here: the sale of a house for approximately $12 million without obtaining a special license. Here I would like to note that the very essence of financial and economic sanctions lies in the impossibility for American business entities (and Mr. Belyaev completely falls under this definition) without a special license to enter into and continue any legal relations with persons subject to sanctions. This was exactly the episode – selling a house. And other episodes when, without obtaining a special license, payments were made in US dollar currency for the maintenance and maintenance of two superyachts, which, through a chain of companies, belong, again, to a person subject to sanctions. American law enforcement officers are keeping an eye on all those on the sanctions list, because, you understand, these are big businessmen, they cannot immediately, one-by-one, abandon all financial and economic relations in the US dollar currency. And this is exactly what the sanctions require. But if we read the indictment, at the very bottom it says that the prosecutor’s office made a motion to confiscate all these amounts to the state, including for the sold house, and they also want to confiscate a number of paintings to the treasury of the United States of America. That is, everything that these persons received as part of payment for their assistance, for their services and the entire contract price for the purchase of a house.

– How do you think they could be connected?

– I can only guess. These are the two largest bankers. They, most likely, have known each other for a long time on some professional platforms, since one has headed a state bank for almost 20 years, and the second created one of the largest private banks in Russia (*aggressor country). I think they could have known each other in person.

Vadim Belyaev founded the Otkritie financial group back in the 2000s. In 2017, its largest asset, Otkritie Bank, fell under the reorganization of the Central Bank. That same year Belyaev left Russia (*aggressor country) and changed his last name to Wolfson. Since then, cases have been opened against him in both Russia (*aggressor country) and the United States.

So, in 2019, after the completion of the reorganization of Otkritie, The Central Bank filed a lawsuit against the bank’s top managers, accusing them of embezzling funds. Court arrested their property is worth almost 300 billion rubles. This also affected Belyaev; he was put on the federal wanted list. In 2020, Otkritie itself and Trust Bank, which was previously controlled by it, filed a lawsuit against the former banker. They claimed that Belyaev organized “fraudulent schemes to withdraw assets from the group.”

Banks have already filed several lawsuits in Moscow and New York, and the former banker regularly challenges the possibility of holding meetings: either the plaintiffs have no evidence that he lives in the state where the lawsuit was filed, or the witnesses are in Russia (*aggressor country) and cannot come (and among the witnesses defense calls personally Nabiullina). And so far he has managed to avoid litigation.

Now he faces a much more serious punishment, says London lawyer Vladimir Gladyshev:

— Bypassing sanctions by any persons, primarily those living in the United States, is perceived by Americans as a crime that is much worse in modern times than murder or robbery. For the United States, this is an ideological and political issue. If their sanctions system collapses, then US foreign policy will, in general, be at a dead end. Therefore, maximum severity will be applied to them, the case will be indicative.

— Are there any fears that they will make a deal with the investigation?

— As a rule, in my opinion, there are statistics – about 80% of charges in the United States end in a plea bargain, so this is not a fear, this is a real prospect. I don’t think they have any information at all. Most likely, we are talking about the fact that some operations, if any, took place through them. Secondly, Belyaev, because of the story with Otkritie Bank, is, as I understand it, on the Russian lists; there have been claims against him from the banking community and from law enforcement agencies. I don’t think they have anything interesting for Western intelligence agencies at all. I have been involved in international relations all my life, and there are not many confidential stories or secrets. For Kostin, there is a danger that a criminal case will be immediately brought against him in the United States, this is the first thing. Secondly, this is extradition at the request of the United States from any country that has an agreement with the United States on the extradition of suspects and criminals, and even from a number of countries with which there is no such agreement. And, as a matter of fact, as I understand it, Mr. Kostin has been on all the sanctions lists that exist, so he cannot travel anywhere anyway, and while he is in Russia (*aggressor country), of course, nothing threatens him.

In addition to the Belyaev-Wolfson case, the court in the USA removed the secrecy stamp from another case about circumventing sanctions. Entrepreneur Vladislav Osipov is considered involved in the “ownership and operation” scheme yacht Tangowhich formally belongs Viktor Vekselberg. On Thursday, February 22, the US State Department announced a reward for information about his location.

Also, for two years now the case has been going on superyacht Amadea worth 300 million dollars. According to US authorities, it belongs to a sanctioned businessman Suleiman Kerimov. Previously, New York prosecutors said that he violated sanctions by paying more than a million dollars for the maintenance of the superyacht through the American financial system, so the ship is subject to confiscation. While the trial continues, Amadea’s maintenance costs will be borne by the US government.