CL-2021-000649 - [2025] EWHC 1333 (Comm)

A Criminal Complaint was made by VTB Russia on 22 January 2016. It notified the authorities of what were said to be illegal actions of the management of VMZ and Razvitie Management Company, whom it said had been taking “actions within the framework of the bankruptcy proceedings of VMZ and aimed at creating a fictitious debt of the enterprise and causing damage to the material interests of [VTB Russia]”; and “the withdrawal of the assets of the enterprises of Red October group implemented by the interested parties over a number of years also made it impossible to perform settlements not only under the loans of VTB Group banks, but also other creditors of the indicated enterprises”.

Mr Browne says that the documentation he has seen indicates that VTBC were not aware of the Criminal Complaint until after it had been made. There is no evidence before me to contradict that.

On 5 February 2016, the Ministry of Internal Affairs decided to commence criminal proceedings and bring an investigation in relation to “unidentified individuals, inter alia, the employees of RusSpetsStal CJSC”.

On 7 April 2016, the Ministry of Internal Affairs issued an indictment referred to in the PoC as the “Embezzlement Indictment.” The Embezzlement Indictment is issued against Mr Gerasimenko. It accuses him of embezzlement on the grounds that he joined an “organized group” and carried out fraudulent actions connected with the bankruptcy of VMZ. On 9 August 2016, VTB Russia instigated a civil damages claim within these criminal proceedings. These proceedings refer to the non-repayment of Loan 1 and the consequent harm to VTB Russia (on the basis that it had a 100% interest in that loan). VTBC was not a party to this.