CL-2022-000456 - [2025] EWHC 1938 (Comm)

The Claimants’ only witness from EuroChem NW2, or at any level below EuroChem AG, was Mr Ilya Beloborodov. When he made his witness statement, and when he gave his oral evidence (on days 3 and 5 of the trial), he was the General Director of EuroChem NW2, which I understood to be equivalent to CEO. He seems to have been removed from this position within a few days of completing his evidence, before the service of written closing submissions. I was very sorry to learn this, as Mr Beloborodov was a particularly engaging witness, being transparently honest and extremely candid in his oral evidence.

Mr Beloborodov’s focus in his job was entirely on the completion and commissioning of the new Kingisepp plant. He had no real interest in company politics or strategy, beyond this task.

His witness statement revealed nothing about the reporting structure above EuroChem NW2, but his oral evidence revealed that MCC EuroChem had full control over EuroChem NW2. He reported initially to Mr Oleg Shiryaev, the former General Director of MCC EuroChem; more recently, to the current General Director of MCC EuroChem, Mr Andrey Vanyushin. He had no contact with EuroChem AG and seemed not to know any of the individuals at EuroChem AG.

He said that Mr Melnichenko was generally referred to and understood as “the beneficiary” and was “right at the top” of the EuroChem structure. He also said that, from his perspective, nothing much changed after sanctions were imposed.

He confirmed that, following the withdrawal of Tecnimont, the contractor constructing the new plant is Velesstroy. The decision to engage Velesstroy was taken by MCC EuroChem (specifically, Mr Shiryaev).

MCC EuroChem was also responsible for all financing decisions, including the decision to raise finance with sanctioned Russian banks. Mr Beloborodov said that this decision also involved “the lawyers that support EuroChem NW2” – which I took to mean (or at least include) Mr Konstantin Kryazhevskikh, who was the only lawyer Mr Beloborodov identified by name, and who is a lawyer associated with EuroChem AG’s immediate owner, AIM Capital.

Mr Beloborodov was the individual who signed the Claimants’ disclosure certificates. However, he had no knowledge of or familiarity with any of the detailed information that they contained. In this regard, he seems to have acted as suggested by Mr Kryazhevskikh.