The former Bank of Moscow head Andrey Borodin declared internationally wanted got a mansion for £140 million ($217 million), built in 1719. The mansion and surrounding estate are located near the village of Remenhem in Berkshire. The estate has everything for modest but comfortable life of a former banker: spa complex, home theater, stables, golf courses, helipad and boathouse, located on 80 hectares of land.
The mansion put up for sale last summer appeared the most expensive not only in the capital but throughout the U.K. The estate’s previous owners include Frederick, Prince of Wales, Greek shipping magnate John Latsis, and building tycoon Mike Spink. The deal was sealed by an offshore company in British Virgin Islands in an attempt to keep the buyer’s name a secret.
The secret of the new owner was opened by a representative of the local council of the Conservative Party John Holsal.
While Borodin is busy furnishing the new residence at £100 thousand annual maintenance costs, the buyers of the apartments in Champion- Park residential cluster can’t formalize the ownership of their “square meters” in the buildings put in operation still in late 2011. Acting as the investor- builder of the project, INTECO argues that the co-investor of the project, Territorial Directorate Ramenskaya JSC, slows the process not wishing to sign the act of partial realization of the investment.
TD Ramenskaya owned land area of 58 hectares to the west of the capital appeared at the center of the scandal around the loan of 12.7 billion rubles, given out by Bank of Moscow to JSC Premier Estate Company founded by the Cyprian offshore companies in 2009.
Territorial Directorate Ramenskaya belonged to the wife of Moscow ex-mayor Elena Baturina.
However, in 2009, she sold it to JSC Premier Estate for 12.7 billion rubles. Secured by the land assets of acquired company, Premier Estate received a loan from the Bank of Moscow led by Andrei Borodin. After Luzhkov's resignation, this transaction led to a criminal prosecution upon the former Bank of Moscow president and his deputy Dmitry Akulinin for fraud with funds from the city budget.
In 2011, Borodin undertook the acquisition of his new estate.
Around the same time, the developer built and put into operation the first stage of Champion-Park residential cluster on Michurinskiy Avenue. Some apartments were sold under a shared construction participation agreement. Now, it is impossible to register the property because TD Ramenskaya does not sign the act of realization of the investment “without explanation, unreasonably and illegally”.
Recently, the Moscow Arbitration Court registered a claim of INTECO company of Mikail Shishkhanov to TD Ramenskaya owned by Elena Baturina, the wife of former Mayor of Moscow Yury Luzhkov. According to the court materials, a third person was listed in the statement of Moscow State Register. The real estate development company explained that the lawsuit was filed in order to fulfill the investment agreement between TD Ramenskaya and INTECO as far back as in 2007.
Within the claim, Mikail Shishkhanov's company demands to protect the rights of the purchasers of the apartments in the housing estate for they can't still register their property because TD Ramenskaya avoids signing the act, the message says.
If the U.K. satisfies the request of the Russian Prosecutor General's Office to extradite Borodin, he will get a chance to occupy not so comfortable housing. He is accused of fraud with 12.7 billion rubles of Moscow budget funds. However, the newly-made owner of the mansion of three hundred year history hasn’t been the first who received safe haven in London. By old tradition, the Kingdom doesn’t hurry to repatriate them.
Andrey Borodin joined the team of Moscow’s mayor in 1994 as a financial and economic advisor. It is Yury Luzhkov who played a crucial role in this outstanding career achievement. No one before Borodin had ever received such a promotion.
Be it because of Borodin’s talent or because of the opportunities given to him ‘from above’, the Bank of Moscow did very well and during the period from 1996 to 2003 went up from the 47th to the 8th position on the list of top-equity Russian banks. The Bank of Moscow grew into a kind of financial industrial group. The bank co-founded 8 banks and Moscow insurance company, and also bought stake in a number of firms, including Mostatnafta Oil Company, Moscow inter-republican winery, Mikoyan meat processing factory and Pushkinskay Ploshad printing plant. Borodin maintained a long-term business partnership with Elena Baturina, his bank being a backbone financial agent of the Inteco.
Source: Kompaniya, 02.10.2004
Close ties to the city council enabled the Bank of Moscow to work with the funds of city budget and public services. This was a force behind the rapid development of the financial institution. As one of the experts put it, ‘the situation is obvious: if Yury Luzhkov is to step down, there is no future for the bank’.
Source: Finans magazine, № 06 (241) 13—19.12.2004
At the end of December 2007 the Bank of Moscow announced the equity capital restructuring. President Andrey Borodin and deputy chairman of the board of directors Lev Alaluyev acquired through the umbrella companies 8.7% stake in the bank’s shares. The president’s stake (6.96%) is estimated $443.4 m, his deputy’s stake (1.74%) – $110.8 m (on February 1, 2008, at the close of trading of RTS). The CEOs own their shares through a chain of umbrella limited liability companies. The information about financing the acquisition remains confidential. The bank has no ESOP. The total bonuses of the board of directors for 3 quarters of 2008 made up $ 37 m.
Andrey Borodin and Lev Alaluev became the largest shareholders among the CEOs of state companies. This illustrates that Borodin and Alaluev are on good terms with the mayor.
Source: Finans magazine, № 06 (241) 11—17.02.2008
The Bank of Moscow announced 20 million roubles additional issue of shares until the end of the 2nd quarter of 2009. The rise in equity enables the bank to get a subordinated loan of the same amount from the Bank for development and foreign economic affairs (Vnesheconombank). On February 1, 2009, the bank equity was 77 million roubles. Andrey Borodin and deputy chairmen of the board of directors own 23.07% stake in the bank’s shares. Yesterday Borodin confirmed his plans to enlarge his stake to block holding.
Source: Commersant newspaper № 39 (4094) 05.03.2009
No one knows, whether the president of the Bank of Moscow gets on well with new mayor Sergey Sobyanin. Most probably Borodin has already made some steps that secured him from the risks. It is rumoured that he has gathered block equity holding: he probably controls 17.32% stake as the bank’s president and 26.73% as a private shareholder (together with Alaluyev). This gives 44.05% as a total.
Source: Vedomosty newspaper, № 201 (2719) 25.10.2010
On February 17, 2011, early in the morning a dozen of investigators of Russia’s Investigative Committee, backed by the armed militia special forse, raided the private residence of president of the Bank of Moscow Mr Andrey Borodin. In front of the host of luxury residence the documents were found and seized. Investigators also searched Borodin’s cabinet in the Bank of Moscow. The investigation questioned Andrey Borodin about how 12.5 billion roubles, owned by the city council, arrived to Mrs Elena Baturina’s private bank account in a Cyprus’ offshore.
The investigation believes that the scheme involved a Premier Estate JSC, founded in summer 2009. The company asked the Bank of Moscow (base bank of the city council) for a loan to purchase a land plot in the western area of Moscow, in Michurinsky Prospect. The land belonged to Ramenskaya Company, the subsidiary of the Inteco. The loan “to replenish current assets” was secured by the shares of the Premier Estate. Their total price was just 10 thousand roubles (330$). After securing the credit The Premier Estate made a payment to Inteco and the money went to an offshore account of Mrs Baturina, who managed to repay 90% of her debts.
Source: Rosbalt, 17.02.2011
On February 17, 2011, a group of minority shareholders of the Bank of Moscow went to Russia’s Commercial Court. They are appealing against the decisions of the board of directors. The appeal might concern the possibility that the representatives of VTB bank become members of the board. VTB is a lead bidder for the acquisition of the base bank of the city council. The minority shareholder is acting on behalf of the president of the Bank of Moscow Andrey Borodin, VTB thinks. The bank has already said that the appeal put ‘pressure’ on the future deal.
Source: Kommersant newspaper, № 29 (4570), 18.02.2011
At the end of February 2011 Andrey Borodin sold his stake in the Bank of Moscow to VTB.
He continues to control a number of large companies, including Investlesprom timber holding company, which had been cofounded with the capital of the Bank of Moscow and city council.
People close to Luzhkov say that the ex-mayor rightfully expects to get dividends from the Investlesprom profit. There are plans to sell the company to the new owners of the Bank of Moscow as a non-core asset. An ex-mayor’s colleague says, ‘One can understand Luzhkov’s pretension. He treated Borodin as if he were his son. He made him top CEO in the bank and helped him develop the financial institution, so that the bank became a key-player in the finance sector’.
Source: Life News, 10.03.2011