2005-2008
Russian businessman Viktor Vekselberg obtains a minority stake in Russian chemical giant ToggliattiAzot (ToAZ) and, in true raider fashion, instigates criminal investigations into ToAZ Chairman Vladimir Makhlai and board member Alexander Makarov. The charges are tax evasion, fraud and money laundering resulting from the alleged underselling of ammonia to its foreign distributor Nitrochem. Despite the fact that Makhlai and Makarov are forced to flee the country to avoid prosecution, Vekselberg’s attempt to take control over ToAZ ultimately fails after several Russian courts reject the charges as unfounded. Vekselberg sells his minority stake to Kremlin-connected Belarussian businessman Dmitry Mazepin.
2008-2011
Mazepin revives the raid on ToAZ by recycling the charge of underselling ammonia and convincing tax authorities to launch an investigation. Evidence disproving the charges is ignored or suppressed. But like Vekselberg, Mazepin has trouble convincing the authorities. Several Russian courts deny Mazepin’s lawsuits.
2011-2012
Seemingly undeterred, Mazepin raises the stakes and manufactures a false Share Purchase Agreement (SPA) with BVI shell company Belport Investments to initiate civil and criminal proceedings against ToAZ for alleged failure to make a list of shareholders available to UCCU, to which it claimed to be entitled. Although these proceedings are later thrown out, Mazepin uses the proceedings to convince local authorities in Toglyatti to raid the offices of ToAZ, its bankers, attorneys and distributor to illegally gather documents and initiate yet another series of criminal proceedings.
2012-2013
Mazepin meets new Chairman Serge Makhlai on a number of occassions and threatens him that if he doesn’t help Mazepin obtain a majority interest in ToAZ, the company will be raided and identifies the provisions of Russian Criminal Code under which claims will be brought. Makhlai refuses to yield, so Mazepin makes good on his threat. He convinces the Russian authorities to start criminal investigations into former ToAZ CEO Vladimir Makhlai, current CEO Sergei Makhlai, and representatives from its distributor, pursuant to Article 159(4) of the Russian Criminal Code. The claim: ToAZ undersold ammonia to its distributor who then sold it at full price and the executives pocketed the difference. The goal: obtain a judgment against the ToAZ majority shareholders that Mazepin can use to seize their shares. Never mind that this investigation was based on the same discredited evidence from before. But this time, Mazepin is able to make it stick: the raiders manage to get the Russian Courts to freeze the shares and most other assets belonging to the ToAZ majority shareholders (see also the Criminal Case in the Raider Scheme).
2014-2015
Putting on the squeeze, Mazepin then gets the Russian authorities to issue various requests for judicial assistance to the authorities in offshore jurisdictions based on the same discredited claim of underselling ammonia that formed the basis for the Russian investigations. Fortunately, a High Court Judge in the BVI pushes back and in setting aside the warrant, has regard for evidence in relation to the connection with the improper nature of the raid in Russia and the fact that Mr Mazepin and UCCU were behind that unlawful campaign.
2016-2019
In 2016, the majority shareholders (jointly represented as the BKIT Companies) launch a counter attack against the raiders to try and stop the constant wave of illegal investigations and vexatious litigations which Mazepin has launched against them in his effort to gain control over ToAZ. The illegal raid of ToaZ finally reaches the West through the Irish Court Proceedings.
2019-2021
In 2019, in a hybrid criminal/civil trial that ignores all proper norms of evidence and fairness, a Russian Judge finds certain individuals guilty of operating as an organized group to steal product from ToAZ disguised as purchases through their worldwide distributor, Nitrochem, and gives civil judgments against all defendants, including the BKIT companies, for approximately $1.4 billion in damages with UCCU as the procedural recoverer to act on ToAZ’s behalf in enforcement proceedings.
2021-2022
On November 27, 2021 proxies for Dmitry Mazepin replace the ToAZ Board of Directors with their own representatives during an illegally orchestrated Extraordinary General Meeting (EGM) , effectively seizing full control over the company from its rightful owners.
Following the raid, Dmitry Mazepin placed the company in an ownership structure he controls through the Russian company Khimaktivinvest. Khimaktivinvest acquired 70.7% of ToAZ as a result of “winning” two auctions for its shares. Another 9.75% previously owned by Uralchem directly was also transferred to Khimaktivinvest. In total, Khimaktivinvest then owned 80.51% of ToAZ’s shares, with Dmitry Mazepin directly owning another 0.23%. Khimaktivinvest was joined as a defendant in the Irish case in 2022.
2023
On June 8, 2023 the BKITs filed a contempt application in the District Court of Limassol, claiming a serious breach of the undertaking given to the Cypriot Court, in aid of the Irish litigation. See below for detailed information on the contempt filing and the claimed violations of the undertaking by the Defendants.
The BKITs believe that Mazepin and his associates have been attempting to hide assets and put them beyond the reach of western authorities. Among other things, Mazepin and his associates moved assets from Cyprus to Russia, at a time when they knew that contempt proceedings before the Irish Court would be brought by the BKITs and in advance of the invasion of Ukraine, following which Mazepin was sanctioned as a member of the “closest circle of Vladimir Putin”. This asset transfer was achieved through what the BKITs believe was a fake redomiciliation of Cypriot companies to Russia.