Sanctioned Russian Billionaire Files for Bankruptcy Against Former Associate Over Legal Costs
Sanctioned Russian billionaire Andrey Guryev has filed a bankruptcy petition in London against his former associate, Alexander Gorbachev, seeking to recover unpaid legal fees amounting to £2 million. This action follows a legal battle over a disputed stake in PhosAgro, a major Russian fertilizer producer.
Background of the Dispute
The dispute originated when Gorbachev sued Guryev, alleging that Guryev had reneged on a promise to grant him a 24.75% stake in PhosAgro. Gorbachev claimed that this agreement was based on informal conversations between the two in the mid-2000s, including discussions outside a London pub. Guryev, however, contended that Gorbachev had relinquished any interest in the company nearly two decades ago. In September 2024, London’s High Court dismissed Gorbachev’s claim, citing “unexplained and unexplainable inconsistencies” in his allegations.
Legal Costs and Bankruptcy Petition
Following the dismissal, the court ordered Gorbachev to pay Guryev’s legal costs, totaling £12 million. Gorbachev’s insurance covered £10 million of this sum, leaving a £2 million shortfall. To recover the outstanding amount, Guryev has filed a bankruptcy petition against Gorbachev, seeking to liquidate his assets to satisfy the debt.
Implications and Ongoing Legal Battles
This case underscores the complexities of enforcing legal judgments across international borders, especially when involving individuals under global financial sanctions. Guryev himself has been under sanctions by the U.S. and the U.K. since 2022, leading to his resignation as CEO of PhosAgro. The bankruptcy proceedings highlight the ongoing legal entanglements among Russian businessmen in London, many of which stem from informal agreements made during the post-Soviet era.
As the situation develops, the case may set a precedent for similar disputes in the future, particularly those involving sanctioned individuals and cross-border legal enforcement.
