Day 11

(1) Bank St Petersburg PJSC (2) Alexander Savelyev v (1) Vitaly Arkhangelsky (2) Julia Arkhangelskaya (3) Oslo Marine Group Ports
LLC

Day 11 — Redacted

February 17, 2016

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February 17, 2016 Day 11 — Redacted

1 Wednesday, 17 February 2016 1 MR JUSTICE HILDYARD: Yes, do tell me a little bit about
2 (10.30 am) 2 yourself.
3 [REDACTED] 3 A. Yes, I just — after reviewing, let’s say, few last days
4 4 of the hearing, and I think it would be just a good
5 5 opportunity to introduce myself, as long as it’s
6 6 a videolink connection it’s absolutely different to,
7 7 let’s say, normal world; let’s put it this way.
8 MR JUSTICE HILDYARD: Yes. Good morning, everybody. Good 8 So I just want to confirm in a few words that this
9 morning, Mr Arkhangelsky. 9 case is, indeed, the case of my life. I spent all my
10 I think in the circumstances what I will do is 10 childhood and all my best years to build up a group of
11 formally call you and ask for you to be sworn in, and 11 companies, which have been a really major part of my
12 then ask you to approve your statements. So perhaps we 12 life, and I am really happy that I have now
13 could swear Mr Arkhangelsky. 13 an opportunity to bring everybody in the court and meet
14 DR VITALY DMITRIEVICH ARKHANGELSKY (affirmed) 14 and to discuss what actually has happened.
15 MR JUSTICE HILDYARD: Do sit down. 15 So I’ve been born in 1975, in nobility family. My
16 A. Thank you. 16 grandfather got a Nobel prize in economics, and he was
17 MR JUSTICE HILDYARD: Now, if you go to {C1/1/1}, there is 17 the only one Russian who got a Nobel prize in economics
18 a witness statement there, and it goes on until — if 18 since then.
19 you go to {C1/1/64}, is that your 16th witness statement 19 My other grandfather was a professor of geology, my
20 in the proceedings? 20 father was a professor of biology, and I’ve grown up in,
21 A. Yes, that’s mine. 21 really, one of the best educated nobility family in
22 MR JUSTICE HILDYARD: Is that your signature on the page? 22 the Soviet Union at that time.
23 A. You don’t have the signature here, but I signed that, 23 So, my mother was one of the top executives in
24 for sure. 24 the medical hospital, and she was responsible for all
25 MR JUSTICE HILDYARD: You signed that, did you? Is that 25 north western Russian medical services for sailors and
1 3

1 witness statement true?

2 A. Yes, absolutely.

3 MR JUSTICE HILDYARD: Could you please go to tab 9 in

4 the same bundle, a document headed 19th witness

5 statement of yourself {C1/9/1}, and then go to {C1/9/8}.

6 A. Yes, that’s mine.

7 MR JUSTICE HILDYARD: Is that your signature?

8 A. Yes, and it’s true, and it’s done by me, and I confirm

9 everything there.

10 MR JUSTICE HILDYARD: And those two constitute your evidence

11 in these proceedings?

12 A. Yes.

13 MR JUSTICE HILDYARD: Thank you. You will be asked some

14 questions.

15 A. May I just ask you to, maybe five minutes, introduce

16 myself as long as it’s the first time I see you and the

17 court, if it is allowed?

18 MR JUSTICE HILDYARD: Yes, indeed. And I meant to ask you,

19 you are content to give your evidence throughout in

20 English, are you?

21 A. It’s okay so far. Let’s see how it would go, but so far

22 I am feeling myself confident.

23 MR JUSTICE HILDYARD: If you need particular passages

24 translated into Russian, you must say so.

25 A. Okay, thanks.

1 nursing mariners. So she spent about 40 years as the

2 head doctor of a major hospital, operating from

3 Kaliningrad to Murmansk, Arkhangelsk, St Petersburg and

4 so on.

5 So my family and my parents, grandparents, are well

6 known, and the family name, as long as it’s a rather

7 seldom family name, it has been well regarded, and still

8 well regarded.

9 So then I had — when I finished the school, when

10 I was aged 17, I had a big dilemma: should I go to

11 the economics faculty of St Petersburg State University,

12 which has been established by my grandfather, and

13 everybody was aware it was my grandfather; or should

14 I go to the naval academy, Makarov Naval Academy, where

15 has been the business of my mother for most of her life.

16 So I decided finally to go to economics.

17 So most of my study at university, I was — I should

18 put it this way — devoted on many occasions to

19 the memory of my grandfather because I’ve been running

20 a lot of different conferences, seminars and so on

21 devoted to him, as long as I was the only, let’s say,

22 left in the big family.

23 So, at the same time I have been probably the best

24 student in the university. When I was a second year

25 student at university — and in Russia we study five

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February 17, 2016 Day 11 — Redacted

1 years. When I was a second year student, I got

2 a scholarship of research counsel of Norway, which is

3 a ministry of education — of research of Norway. So in

4 my second year of university, I’ve already been elected

5 to write my PhD thesis in Norway. So it was my

6 19th anniversary and on my 20th anniversary I got the

7 same scholarship for the second time, which was also

8 unusual.

9 So while being a student of the second and third

10 year at University of St Petersburg, I’ve already been

11 given a guest professor lectureship in City University

12 of London, in University of Munster, in Insurance

13 Academy of Oslo, Stockholm, Copenhagen, Finland and so

14 on. So I have been well regarded that time, when I was

15 only 20.

16 When I was 21, I got a personal scholarship of

17 President Yeltsin. Every year he was awarding two

18 students from 50,000 of our university to go abroad, and

19 I had been studying one year in Germany.

20 So just to finalise that topic, I spent most of my

21 education abroad while studying, the same time, let’s

22 say, at two or three different levels and two or three

23 different subjects.

24 So at the same time I managed to start working, as

25 you have seen in my affidavit, and then I have been

1 major oil and gas companies, for whom I’ve been doing

2 reinsurance generally in markets in London, in Norway,

3 in other Scandinavian countries and in Bermuda.

4 So, as I have written in the witness statement, it

5 has been really one of the first Russian insurance,

6 reinsurance broking companies. And then I decided, why

7 not to go forward, while at that time it was a time of

8 restructuring of the international insurance markets of

9 9/11 and so on. So I’ve been rather deep in that

10 subject and I decided, why not to build up something

11 special, local. And later on, when the market would be

12 a better market, not depressed after 9/11, then I would

13 be able to sell this to international players, to

14 international insurance companies with whom I’ve been

15 working and whom I’ve been knowing personally.

16 So I’ve been knowing personally directors of major

17 energy syndicates at Lloyd’s and so on, so we’ve been

18 well regarded, so we’ve been knowing each other quite

19 well and I believe that in case they wanted to touch

20 Russian market, my business would be the best business

21 for them to buy, or, if not whole, at least a share.

22 Then at some stage, we understood that — I employed

23 quite a number of good, young people, so most of the

24 people in my office have been between 20 and 35, all of

25 them speaking languages, having experience,

5 7

1 promoted at the end of the 1990s to go to one of

2 the biggest insurance companies in Moscow to work there.

3 And actually, by that time I already got my PhD,

4 which is 25 — when I was 25 years old, I got my doctor

5 degree in — the subject was comparison of Norwegian and

6 English marine insurance conditions and implications for

7 the Russian market.

8 So I managed to go to Moscow, in one of the leading

9 insurance company’s office, and have been taking care of

10 their acquisition by the biggest group, Zurich.

11 So at some stage I understood that I was too young

12 and too smart to be employed, and I thought that, having

13 all this background, why not go back to St Petersburg

14 and to start my own business. Considering that most of

15 people working in Moscow were above 50 or 60, not

16 speaking any language, still trying to live in

17 the Soviet conditions and didn’t want to implement

18 anything modern and European, which was quite strange

19 for me while I spent about 10 or 15 years abroad, so

20 I decided why not come back to St Petersburg and

21 establish a company called, at that time, Scan Marine

22 Consulting.

23 I think it was a really successful venture, so in

24 a short while I managed to obtain the most important,

25 most famous Russian international clients, like all the

1 international experience, got some, at least, partial

2 international education, and I thought that I built up

3 quite a good and modern team and we could easily expand,

4 and definitely one of the areas of expansion was that

5 time I fought(?) the assets of the ex-Baltic Shipping

6 Company. You know, in St Petersburg, in

7 the Soviet Union, one of the major shipping companies

8 was the Baltic Shipping Company, trading worldwide and

9 so on, and as long as my mother has been, let’s say, one

10 of the top executives of that community, and she’s been

11 known by everybody, so all the ex-directors and captains

12 and so on, they’ve been personal friends with our family

13 and so on, so I decided — and this company had been

14 bankrupted, so it has been a number of big scandals and

15 beginning of the 1990s, so it has been divided to many,

16 many different parts and pieces, and so they called

17 it — some of them, they called it privatisation; some

18 of them called it bankruptcy, but it was a big collapse

19 of criminal things all around there.

20 So I found out that — then I was the age of less

21 than 30, and I had a good family reputation and I found

22 out that the ex-assets of Baltic Shipping Company had

23 been distributed and divided among hundreds of people

24 who had been considering each other as enemies, so one

25 had been owning a piece of land, another had been owning

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1 water at this piece of land, a third one was owning

2 electricity at this piece of land, and they were

3 considering that each of them were stealing assets from

4 each of them. So it has been quite a complicated story.

5 I found myself that I am able to come in

6 discussions, negotiations with these people, and even

7 considering that they are enemies between each other,

8 I consider that I can come and make an agreement with

9 them because they were not considering me as the

10 criminals, as they were considering each other as

11 criminals, so they could have a confidence, especially

12 because of the family connections and my mother’s great

13 reputation there.

14 I went around the market while knowing all these

15 people from my childhood, and made a preliminary

16 agreement that I buy each and every piece. So initially

17 it was an Onega Terminal, then it came to Western and

18 Vyborg Port and so on. And so then I’ve been doing

19 a lot of interviews to Russian media at that time, and

20 they said: what is the secret of your success story?

21 And I said — I was telling at that time that if you

22 watched a movie, Pretty Woman, so it’s absolutely the

23 same what I have done. So I was just collecting assets

24 which were considered not to be interested, each and

25 every, and then by different M&A transactions, I was

1 A. I’ve never been doing accounting. I’ve been always in

2 insurance.

3 Q. But you would be able to understand accounts pretty

4 well, wouldn’t you?

5 A. No, I’ve never been involved in accounting.

6 Q. So you can’t read accounts?

7 A. No.

8 Q. Who reads them for you at OMG?

9 A. Sorry?

10 Q. Who read them for you at OMG?

11 A. My task at OMG at that time was that I’ve been taking

12 care about the global management, and my personal

13 educational background is finance and insurance, but

14 I’ve never been doing accounting. I employed quite

15 a number of different companies, if you notice that we

16 had different standards of accounting, Russian

17 accounting and international accounting.

18 I did understand the general terms of international

19 standards of accounting, but I’ve never been deep myself

20 in any accounting things.

21 Q. You have confirmed on oath today that your first witness

22 statement is true, haven’t you?

23 A. Yes, all my witness statements are true.

24 Q. Can his Lordship take it that you have reviewed that

25 first witness statement carefully before you confirmed

9

1 changing their status, changing documents, changing the

2 purpose of use, obtaining clients and so on.

3 MR JUSTICE HILDYARD: And so you built that up.

4 It’s extremely interesting for me to know of your

5 background and that of your family, but I am anxious

6 that we should get back to the evidence in the case.

7 A. Yes, I have finished, actually.

8 MR JUSTICE HILDYARD: So thank you for that, and I am sure

9 that in answering questions, more of the details of your

10 background and your success in bringing the companies

11 together will emerge, but unless there are other matters

12 which you wish to address now, I think we should

13 probably turn to the cross-examination.

14 A. I agree. I agree. I’ve really finished, so …

15 MR JUSTICE HILDYARD: That’s very interesting, and I am

16 grateful to you.

17 I will, I think, now yield to Mr Lord.

18 Cross-examination by MR LORD

19 MR LORD: Presumably I should say Dr Arkhangelsky, should I?

20 A. Yes, please.

21 Q. Dr Arkhangelsky, from what you have just said and from

22 your paragraph 7 of your witness statement, you have

23 a very strong background in economics; is that right?

24 A. Yes, that’s true.

25 Q. And you would be very good at accounting matters?

11

1 it as being true today?

2 A. Of course.

3 Q. And are there no aspects of that statement that you wish

4 to revise?

5 A. No.

6 Q. And the supplemental statement that you gave, which you

7 have confirmed this morning, again, the same question:

8 have you read that carefully for the purposes of today?

9 A. All my witness statements, I read them carefully and all

10 of them are correct.

11 Q. And there is nothing in them at all that you would wish

12 to revise —

13 A. No.

14 Q. — in any way?

15 A. No.

16 Q. And, presumably, the same confirmation goes in respect

17 of all your previous statements in the BVI proceedings?

18 A. Yes.

19 Q. And your affidavits in the BVI?

20 A. Yes.

21 Q. And the same for the Russian proceedings?

22 A. Yes.

23 Q. And the same for the French proceedings?

24 A. Yes.

25 Q. So there’s nothing in any of your previous statements at

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1 all which you may have been mistaken about which you

2 ought now, in truth, to —

3 A. No, I confirm that everything I have been telling is the

4 truth, and everything I’ve ever been signing is the

5 truth.

6 Q. And your statement of case — can we have bundle A1,

7 please. {A1/2/1} If you go behind divider 2,

8 Dr Arkhangelsky, you will see —

9 A. Sorry, what … I can follow here.

10 Q. {A1/2/1}, you can see something called «Re-amended

11 defence and counterclaim»; can you see that?

12 A. Yes.

13 Q. And that was your pleaded case, which you swore to be

14 true. If you could be shown, please, {A1/2/70}; do you

15 confirm that the contents of that re-amended defence and

16 counterclaim are true?

17 A. Of course, yes, yes.

18 Q. Have you reviewed that document recently?

19 A. I haven’t been reviewing it recently, but if I signed

20 that, I believe that everything is true there.

21 Q. And there’s nothing in that document that you want to

22 change today?

23 A. No, I don’t want to change any of the documents I ever

24 signed.

25 Q. I’m giving you a chance, Dr Arkhangelsky, to make any

1 terribly cold and I haven’t had the chance to read or do

2 anything.

3 Q. Have you been skiing recently?

4 A. No.

5 Q. You haven’t been skiing?

6 A. No.

7 Q. When is the last time you went skiing?

8 A. I bring my kid from time to time, because he is

9 a sportsman.

10 Q. Sorry, doctor, I will ask that again: when is the last

11 time you went skiing?

12 A. I brought my son on Saturday and Sunday this week.

13 Q. To where?

14 A. It’s just one hour driving from Nice.

15 Q. And you didn’t ski?

16 A. I’ve been with him so I had to accompany him. I haven’t

17 been really skiing myself.

18 Q. What does that mean? Did you walk on the slopes without

19 skis on, or did you —

20 A. No, I had skis on, but with my health I couldn’t do

21 that.

22 Q. When was the last time before that weekend?

23 A. The weekend before.

24 Q. So you have been most weekends since the snow came this

25 year?

13 15

1 corrections or revisions to your previous evidence that

2 you might want to make before I come to ask you about

3 the detail.

4 A. No, I don’t want to make any changes.

5 Q. Have you reviewed any documents for the purposes of

6 today?

7 A. Not really.

8 Q. Have you perhaps reviewed the information memorandum?

9 A. Nothing, no. I haven’t been really preparing for today,

10 so just, I do everything from my memory from the facts,

11 what’s happened.

12 Q. So you have not gone back through, for example, the

13 documents that you exhibit to the two witness statements

14 that you confirm?

15 A. No. If I exhibited them, I believe that they are true

16 and everything is correct there.

17 Q. So his Lordship can take it, can he, that you are very

18 familiar with the documents in this case that you have

19 exhibited to your witness statement?

20 A. Of course, yes.

21 Q. Have you had any assistance from any people for the

22 purposes of preparing for today? Has anybody helped you

23 prepare?

24 A. No, I haven’t — as I told you, I have not been

25 preparing for today. For the last two weeks I’ve been

1 A. Three or four weekends, yes, because my son is really

2 a sportsman.

3 Q. Have you had any help from anybody at Withers over the

4 last few months in preparing for this case?

5 A. No.

6 Q. Not at all?

7 A. Not at all.

8 Q. Any contact with them?

9 A. Yes, because of your RPC lawyers, I’ve been exchanging

10 e-mails because they wanted to have some documents, so

11 I sent a couple of e-mails with enquiry. I think it was

12 a corrected … something like metadata, what you call

13 it, and I got some replies from them and forwarded it to

14 you and then I think they replied yesterday to the

15 questions.

16 Q. Who at Withers have you been in contact with over the

17 last six months?

18 A. All e-mails I sent them, I sent it to three persons with

19 whom I’ve been personally aware. So it’s Chris, Deliya

20 and Stephanie.

21 Q. Chris who?

22 A. Chris …

23 Q. Coffin?

24 A. Coffin, sorry, yes. Christopher Coffin, Deliya Meylanov

25 and Stephanie … Stephanie … okay, it’s the one

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1 Stephanie there. 1 Q. Sorry, could I finish the question, please?
2 Q. And how often have you been in contact with them? 2 A. Yes please.
3 A. In January, I exchanged two or three e-mails, based on 3 Q. How could you take the position of chief accountant at
4 your enquiries. 4 a salary of 1 million roubles per month if you are not
5 Q. And what about February? This February? 5 good at accounts?
6 A. February not. 6 A. In Russia, you should — in each and every company, you
7 Q. And what about last year, last December, for example? 7 should have a director and accountant, and as long as
8 A. Not in December. 8 I was the only director and owner and manager of this
9 Q. What about Mr Ameli, have you been in contact with him 9 company, so I had to comply with the requirements of
10 over the last six months? 10 the Russian tax authorities, and so I’ve been complying
11 A. Yes, I have been speaking to him yesterday. He was 11 to services. So I’ve been responsible, let’s put it
12 inviting me for lunch in Paris in case I have time here, 12 this way. In Russia, chief accountant, or accountant,
13 but I said, sorry, not. And I was discussing yesterday 13 is personally responsible for accounts, but it doesn’t
14 arrangements for his travelling to London, because some 14 prevent me — or it doesn’t put any obligations on me
15 plans, as far as I understood, changed, and he had to 15 personally to do any accounting work, so I could easily
16 stay one more day. 16 subcontract it, and if I believe to the person who was
17 Q. Dr Arkhangelsky, I asked you about ten minutes ago 17 doing this, then I could sign it, and it’s the question
18 whether you were good at accounting; do you remember 18 of my obligation, so if I sign any accounts, then I am
19 that? 19 personally liable or responsible.
20 A. Yes, of course. 20 Q. Dr Arkhangelsky, I don’t accept that you are not good at
21 Q. And you said you weren’t? 21 reading accounts, so you understand my position.
22 A. No, I’m not a professional in accounting. 22 A. It’s up to you.
23 Q. Could we have {N11/19/103} on the screen, please. If we 23 Q. But your last answer seems to be that you took this
24 have {N11/19/104} on the Russian screen, please, as 24 position, although you are not good at reading accounts;
25 well. You must recognise this document, 25 is that right? You took the position of chief
17 19

1 Dr Arkhangelsky?

2 A. Yes, of course.

3 Q. It’s an employment agreement, isn’t it, between you and

4 the company called Rusiv?

5 A. Yes, between me and me, yes.

6 Q. Can you see paragraph 3?

7 A. Yes.

8 Q. Were you paid 1 million roubles per month for work as

9 the chief accountant for this company?

10 A. I don’t remember that.

11 Q. That wasn’t the question.

12 A. If it’s written there, then it’s probably true.

13 Q. So you don’t remember —

14 A. I’m not sure if I got this — all this money, but

15 I think I got some of them, yes, and I was expecting to

16 receive them; still expecting to receive them.

17 Q. So you were being paid 1 million roubles per month for

18 the position of chief accountant; is that right?

19 A. Yes, that’s right.

20 Q. Do you want to reconsider your answer to me five minutes

21 ago that you were not good —

22 A. No.

23 Q. How could you take the position of chief accountant,

24 Dr Arkhangelsky —

25 A. I can explain you.

1 accountant to comply with various Russian regulations —

2 A. Absolutely.

3 Q. — although you are not — so is your evidence that you

4 were not really personally qualified to act as chief

5 accountant?

6 A. I am qualified, but —

7 Q. How are you qualified?

8 A. — any person in Russia having a high degree or

9 a university degree in economics are able to do

10 accounting, but it doesn’t mean that I personally know

11 how to do that. So my evidence is that I believe to

12 people who have been employed by me, or who have been

13 working with me, and I believed in their work, and so

14 I could sign any accounts prepared by them.

15 Q. How could you take responsibility for accounts prepared

16 by others if you weren’t able to read and understand

17 those accounts?

18 A. Because I had a full confidence to these people with

19 whom I’ve been working, and I’ve been believing in that.

20 Q. I’m going to ask you, please, Dr Arkhangelsky, some

21 questions about Western Terminal. I wonder if you could

22 turn, please, in your witness statement, the one behind

23 {C1/1/1}, to paragraph 42 on {C1/1/11}.

24 A. Sorry, one — a bit slowly. Which paragraph?

25 Q. 42.

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1 A. 42. 1 A. But the key issue there, as for Western Terminal as well
2 Q. Do you have that? 2 as for Vyborg Port, was not only to finalise the
3 A. Yes. 3 transaction, but to make all the necessary additional
4 Q. And you have confirmed this morning that all contents of 4 expenses and additional agreements which have been
5 this statement are true, so we can take it that 5 associated with this transaction, because it has been
6 paragraph 42 is true, can’t we? 6 enclosed to the documents of the court, that has been
7 A. Yes, absolutely. 7 enclosed, the purchase contract, and actually the
8 Q. Which means that you acquired Western Terminal 8 transaction was run through the Bank of St Petersburg;
9 in May 2007, didn’t you, or, rather, OMGP did? 9 all the money came through the accounts, the rouble
10 A. Yes. 10 accounts of St Petersburg Bank, so this transaction was
11 Q. And it cost — if you go over the page {C1/1/12}, the 11 also followed by the Bank of St Petersburg and their
12 last sentence of paragraph 42, it cost about 1 billion 12 currency department.
13 roubles? 13 I remember how many time and efforts were spent,
14 A. Yes. 14 because it was rather a big transaction for that bank at
15 Q. And I wonder if we could have up on the screen, please, 15 that time, and the major part in the acquisition was the
16 {AA2/12/1}, please? 16 due diligence and the risks involved. So while
17 A. Which one? 17 purchasing one or another port — I mean Western
18 Q. {AA2/12/1} which is a table of currency exchange rates, 18 Terminal or Vyborg Port — we had to fulfil quite
19 and I just want to get you to agree that you are happy 19 a complicated due diligence process, and there were some
20 with those exchanges rates over the years I am going to 20 liabilities on the accounts of these companies, so we
21 be asking you questions about. 21 had to — afterwards we had to pay some debt of that
22 Can you see this is a table which sets out exchange 22 companies, pay it to different contracts which have been
23 rates between pound sterling and rouble, US dollar and 23 associated with these transactions, like contracts with
24 rouble, and euro and rouble; can you see? 24 projecting organisations, supervision authorities and so
25 A. Maybe, it’s here prepared, so … 25 on.
21 23
1 Q. If you look at 2007, you can see that the exchange rate 1 So it has been rather a complex deal, which — not
2 of US dollar to rouble was, very roughly, 25 roubles to 2 all the points of the transaction have been included in
3 the dollar, wasn’t it? 3 the sale and purchase agreement.
4 A. Yes, maybe, yes. 4 Q. And how much were the other payments?
5 Q. You must remember that that is about right, isn’t it? 5 A. They’ve been quite substantial, so while preparing the
6 A. I don’t remember, but it is written here so I accept 6 proceedings, and while speaking to the valuation
7 that. 7 experts, my rough valuations were given that additional
8 Q. If we go back to the purchase price of Western Terminal 8 costs were about 50 per cent of purchase price.
9 of 1 billion roubles, by my calculation that comes out 9 Q. So the total would be about US $60 million?
10 at about US $40 million, doesn’t it? 10 A. Something like that, yes.
11 A. Yes. 11 Q. Where did the extra $20 million come from?
12 Q. How was that $40 million acquisition cost of Western 12 A. From the balance sheet of the group.
13 Terminal financed? 13 Q. And were those payments, the 20 million to various
14 A. As far as I remember, I got a loan from V-Bank and 14 authorities, to give you permission to buy Western
15 I paid it to the seller. 15 Terminal? Were they sort of incentives or
16 Q. So you borrowed the money from V-Bank, did you? 16 encouragements to other parties to allow you to buy
17 A. Yes. 17 Western Terminal?
18 Q. All the US $40 million? 18 A. No.
19 A. Yes. 19 Q. Who were they to? Can I make a list of them, please?
20 Q. So you didn’t put any money of your own in; it was all 20 Can you give me the names of the other parties to whom
21 borrowed funds, was it? 21 payment was made for Western Terminal, so I can make
22 A. Not exactly. If we are speaking about these 40 million, 22 a note of it?
23 so that’s the money, that was the money based on the 23 A. I don’t remember all these details but, as I said, there
24 purchase contract. 24 were some obligations on the balance sheets and so we
25 Q. Mm? 25 were buying the terminals as they were, so there were
22 24
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February 17, 2016 Day 11 — Redacted

1 some liabilities on the accounts, so there were some

2 contracts signed but not fulfilled. So you had better

3 follow the balance sheets and you had better follow the

4 company documents at that time.

5 Q. Because I thought in your first answer you had said

6 there were some other payments you had to make when you

7 bought Western Terminal. I thought that was the first

8 answer you gave today?

9 A. Sorry, I don’t understand.

10 MR LORD: I will check the transcript, Dr Arkhangelsky,

11 don’t worry. I will come back to that.

12 MR JUSTICE HILDYARD: I may have got myself confused. The

13 US $40 million or so, the 1 billion roubles, which was

14 the primary consideration, I had understood that that

15 was funded by a loan from V-Bank; is that correct?

16 A. Absolutely, yes.

17 MR JUSTICE HILDYARD: And there were additional amounts paid

18 to various people of about half that, half a billion

19 roubles?

20 A. Roughly, yes.

21 MR JUSTICE HILDYARD: Which you say were paid out of the

22 assets of the acquired entities; is that right?

23 A. Either acquired entities or from the balance sheet of

24 the group.

25 MR JUSTICE HILDYARD: Right.

1 director suddenly died in the bar. So it has been, you

2 know, quite a difficult story.

3 For me, for myself at that time, maybe I was

4 probably too naive and was not simply understanding what

5 I am doing.

6 MR JUSTICE HILDYARD: I understand that, but we may be

7 venturing beyond an answer to my question, but I think

8 you have given me an answer to my question and I will

9 ask Mr Lord to continue.

10 A. Just to finalise that, all these assets, they were

11 coming out of the privatisation in the beginning of

12 the 1990s, and we are now discussing the year 2007. So

13 it means 17 years since privatisation and things, let’s

14 say initial acquisition, because before it was the

15 property of the State and then some different, strange

16 people somehow made that they became the real owners;

17 sometimes redistribution or distribution of assets in

18 these companies were with the involvement of police,

19 military forces, imprisonment of directors or

20 shareholders and so on.

21 So it means that all the balance sheets, they never

22 been going through the due diligence process and so on.

23 So for me, it was a rather difficult case that I’ve

24 been well educated on negotiations with EBRD and other

25 big institutions. I’ve been knowing what are their

25 27
1 A. Just for your understanding, I understand that this 1 requirements for due diligence and what they would ask
2 Russian market life is really wild, so just to give you 2 me, you know, when I would be refinancing or financing
3 an understanding of how it was in Russia at that time. 3 the projects.
4 Both terminals, Vyborg Port and Western Terminal, I was 4 So I had a big dilemma: how not to spoil the
5 buying it from a well known Russian group called 5 relations with the sellers —
6 Ros-holding’, so it is a rather big group, considered to 6 MR JUSTICE HILDYARD: I understand this, Mr Arkhangelsky,
7 be a criminal group. So one of the reasons why I paid 7 but I am anxious that we should keep to the questions
8 comparatively low price is that anybody else would not 8 asked, because otherwise the already quite substantial
9 simply even sit on the table with them, because they 9 time for your cross-examination will be exceeded.
10 would be afraid that, okay, they would pay money but 10 Mr Lord will follow up from what you have said
11 they would not get assets, or some, let’s say, 11 anything he wishes to follow up, but I think I must ask
12 shareholders would be killed or some other things would 12 you simply to focus on the question, and answer it as
13 happen. 13 best you can.
14 MR JUSTICE HILDYARD: I see. So that’s the explanation for 14 MR LORD: Dr Arkhangelsky, from that last answer it sounds
15 what you considered to be the low headline price? 15 as though, previously, you think people hadn’t wanted to
16 A. So that’s the explanation, yes. 16 get involved in Western Terminal because they were
17 MR JUSTICE HILDYARD: All right. 17 slightly anxious about what they might be getting into;
18 A. That’s one point. The second point, that the assets had 18 would that be fair? That was your —
19 a very difficult previous history, like — which is 19 A. Sorry, no, I didn’t understand that.
20 quite normal in Russia, then the previous directors or 20 Q. You talked about getting involved with criminals and
21 owners suddenly disappeared or died or something like 21 a director general who died, who died in the bar, didn’t
22 this happened or so on. 22 you?
23 So that was the case there also, so something like 23 A. Yes.
24 a couple of months after I bought Vyborg, or Western 24 Q. Why were you not scared or anxious about getting
25 Terminal — I don’t remember — the previous general 25 involved in Western Terminal?
26 28
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February 17, 2016 Day 11 — Redacted

1 A. As I said, it not only relates to Western Terminal; it

2 relates to any M&A transactions in Russia.

3 So first of all, I’ve been probably too much

4 self-aware of my abilities for communication, and

5 secondly I thought that I have a good team of people,

6 especially lawyers and accountants, who would be able to

7 clean up and recreate documents.

8 Q. It is right, isn’t it, Dr Arkhangelsky, that you had

9 good contacts in St Petersburg, and that would be why

10 you felt able to buy the port; that’s right, isn’t it?

11 A. I should say that it is not connected, definitely. If

12 you are a big businessman, you know quite a number of

13 people, that’s for sure, and the more business you have,

14 the more power and connections you have, so that’s it.

15 But the reply to your question is that after

16 spending seven years on litigations in London and other

17 jurisdictions, I should say that I’ve been too naive and

18 too young and too stupid, maybe, at that time, just to

19 intervene in all these things with big guys.

20 Q. I want to stay with the purchase price of Western

21 Terminal. You have said now, I think, that it cost

22 US $40 million, but you claim that another

23 US $20 million had to be paid in various related costs;

24 is that right?

25 A. Yes, something like that, yes.

1 A. I have a great confidence to Mr Bromley-Martin and

2 I believe that he is a big specialist in shipping and

3 ports.

4 So, which paragraph?

5 Q. Paragraph 10?

6 A. Yes.

7 Q. Mr Bromley-Martin said that he:

8 » … understood from [you] and Keith [Parker] that

9 the Group had acquired Western in 2007 when it purchased

10 Western Terminal LLC, the company which owned the land

11 and property at the terminal, and that it has cost

12 relatively little.»

13 Can you see that?

14 A. Yes, and it is absolutely right; it is relatively little

15 compared to the real value of the asset.

16 Q. And if you go to paragraph 36, please, at {C1/3/7},

17 Mr Bromley-Martin says this:

18 «We had quite a lot of discuss with Vitaly about the

19 inclusion of timber in the IM.»

20 «IM» is the shorthand for information memorandum.

21 Then if you see the second paragraph that is split

22 from the first paragraph, it reads as follows:

23 «However, at the time Vitaly had acquired Western

24 Terminal LLC the terminal was in a poor state. It had

25 cost him very little and relative to its acquisition

29 31

1 Q. So about US $60 million altogether —

2 A. Yes.

3 Q. — to acquire Western Terminal?

4 A. Yes.

5 Q. Could you be shown Mr Bromley-Martin’s witness

6 statement, please. It is {C1/3/1}.

7 Mr Bromley-Martin has given a statement in support

8 of your claim in these proceedings, hasn’t he,

9 Dr Arkhangelsky?

10 A. I think so, yes.

11 Q. You think so?

12 A. I have not been reading this statement, but if he has

13 given a statement, so it’s very good.

14 Q. It won’t have happened by magic, will it; presumably you

15 have asked him to help, have you?

16 A. No, I’ve given all the possible names of my ex-contacts

17 to Withers, and Withers at that time contacted him and

18 had a discussion with him.

19 Q. When was the last time you spoke to Mr Bromley-Martin?

20 A. I exchanged a couple of e-mails with him yesterday and

21 the day before, in respect of his travelling to London.

22 Q. And have you discussed the case with him recently?

23 A. No. No, I am not discussing the case with anybody.

24 Q. Can you please go to paragraph 10 of Mr Bromley-Martin’s

25 witness statement, at {C1/3/3}, please?

1 price I recall it was generating quite a lot of turnover

2 from timber.»

3 Can you see that?

4 A. Yes.

5 Q. So it’s right, isn’t it, Dr Arkhangelsky, that Western

6 Terminal was in a poor state when you bought it?

7 A. I should say that if you generally look on that, when

8 you don’t have a real owner, it’s always in — every

9 asset without a real owner could be considered to be in

10 a poor state, and even minor improvements could be

11 increasing the understanding of the price of and the

12 real estate. And definitely, assets like Vyborg Port

13 and Western Terminal, when I bought them, they had not

14 been properly supervised for a couple of previous years.

15 Q. So what, if any, improvements did you carry out at

16 Western Terminal after you bought it?

17 A. We made quite a number of things.

18 Q. Like what?

19 A. Like repairing of railroads there.

20 Q. You repaired the railroad, did you?

21 A. Yes.

22 Q. When did you do that?

23 A. I don’t remember exactly. I haven’t been doing things

24 there myself personally. We had a general director,

25 Mr Vinarsky, who was taking care about that. So what

30 32
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February 17, 2016 Day 11 — Redacted

1 I’ve been personally doing, from time to time, I have

2 been inspecting the works going on. We covered the

3 surface, because when you are handling timber, you have

4 to do a lot of work on a regular basis. So we covered

5 it with solid plates. We made quite a number of

6 different renovations. We made a lot of works on the

7 berths, especially from the point of view of

8 investigation of their solidity and repairing just for

9 regular operations. So it has been quite a number of

10 works done there.

11 Q. Because, Dr Arkhangelsky, I thought that this was all

12 the work that was going to happen if you had got the

13 financing that Oxus were trying to get for you?

14 A. Works described by Oxus, these are the works, let’s say,

15 for solid reconstruction renovations and for — let’s

16 say for long term changes in the project.

17 What we’ve been doing, we’ve been doing from the

18 current resources, the current liquidity of the company,

19 we’ve been doing renovations and constructions which we

20 had to do to increase capacity of the terminal and

21 increase the turnover and increase the handling ability,

22 as well as to accommodate new equipment, because we have

23 bought quite a number of new machines, and even for that

24 machines we had to change the — we had to make a lot of

25 groundworks because the machines were heavy and they

1 recently, which hasn’t been properly translated.

2 As I’ve said, some of the engineering works, I mean

3 the works done, which have been scheduled to be done by

4 engineering institutions, because, you know, in Russia,

5 all the engineering and construction works take a much

6 longer time than in the modern European world, and

7 before you do any specialised works you have to get

8 approvals and permissions from different State

9 organisations, and to get these permissions you have to

10 get proper project works done by specialist institutes.

11 So we employed quite a number of different

12 institutes, and some of the projecting works have been

13 done by the previous owners and we were just either

14 modernising or changing or making any additions to

15 the previous works done.

16 Q. Could you please go to Mr Bromley-Martin’s witness

17 statement again at {C1/3/3}, and paragraph 17.

18 Mr Bromley-Martin says this:

19 «Having met Vitaly and Keith in February 2008 we

20 worked with them throughout the summer of 2008 to

21 produce an Information Memorandum (the ‘IM’) which was

22 distributed to banks to attract funding for the

23 project.»

24 And he exhibits the final version of the information

25 memorandum, {D52/889/1}.

33 35

1 were not able to work on that existing basis.

2 Q. Can you go, please, to your witness statement at

3 {C1/1/20}, please, and paragraph 75. You are describing

4 Western Terminal here, Dr Arkhangelsky, and there is no

5 reference in your witness statement to any of the repair

6 works that you have just described, is there?

7 A. But it was not the target to describe any repair

8 construction works. As far as I understood, in our

9 disclosure we have given quite a number of different

10 reports done by construction companies, by health and

11 safety specialists and so on. So I am personally not

12 a specialist in construction works, or I have not been

13 doing it personally on a daily basis, so I could not

14 describe that myself.

15 All the documents disclosed during this disclosure

16 process may show how much work has been done during the

17 time I owned the terminal.

18 Q. And when were these works carried out, you are talking

19 about?

20 A. All the works have been done on a daily basis from the

21 day we bought it, and until I owned. So the final

22 reachstacker, one of the most modern machine, we bought

23 in something like March 2009. So I remember we paid

24 something like half a million euros for this newly done

25 Kalmar reachstacker which we’ve been discussing

1 Can you see that paragraph, Dr Arkhangelsky?

2 A. 17, yes?

3 Q. Yes. And presumably it is true that Mr Bromley-Martin

4 did work with you and Mr Parker —

5 A. Of course, yes.

6 Q. — throughout the summer of 2008 to produce the

7 information memorandum; that’s right, isn’t it?

8 A. Yes.

9 Q. And if we go over the page, please, to {C1/3/4}, you

10 will see what Mr Bromley-Martin said in paragraph 22.

11 Can you read that, please, to yourself quickly?

12 A. 22?

13 Q. Yes, please. Thank you. (Pause)

14 A. Yes, I think it’s correct. So he had been working with

15 me, with local management, I think.

16 Q. And he says there, doesn’t he, that he sought to verify

17 every element of the information that went into the

18 information memorandum, doesn’t he?

19 A. I hope so, yes.

20 Q. And he explains the importance of that process, doesn’t

21 he?

22 A. You know, the importance of that process, we’ve been

23 well aware of that, because at the same time I’ve been

24 working with EBRD, and EBRD is considered to be the most

25 difficult party there, and we’ve been speaking to many

34 36
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February 17, 2016 Day 11 — Redacted

1 different engineering and construction companies, and

2 discussing all this on more or less a daily basis.

3 Q. And an information memorandum is a document that is sent

4 to a potential lender to try to encourage them to lend,

5 isn’t it?

6 A. Yes, I think so.

7 Q. And it would be important, wouldn’t it, for a borrower

8 to be truthful in what he said in that document?

9 A. Of course, yes, and the target of due diligence is to

10 check all this information and to get the confirmation

11 of that.

12 Q. And it would have been important, wouldn’t it, for you

13 in 2008 to ensure that the information memorandum, as

14 finalised, was an honest presentation of the OMG

15 business?

16 A. I think so.

17 Q. And have you satisfied yourself that the information

18 memorandum as finalised was an honest —

19 A. Yes, yes.

20 Q. Was an honest presentation of the business?

21 A. Of course, yes.

22 Q. And you have confirmed today to his Lordship that it was

23 an honest presentation?

24 A. Of course, yes.

25 Q. Could you be shown — could his Lordship and the witness

1 took to some 25 banks in about July 2008, is the one

2 behind divider 10, Dr Arkhangelsky, and that’s the

3 document which you exhibited in your first affidavit in

4 the BVI proceedings.

5 I wonder if you could turn, please, behind

6 divider 10, and it is {D52/889/1}.

7 My Lord, these are different drafts of

8 the information memorandum, and we think that the one

9 behind divider 10 is the final version that was sent

10 out.

11 Do you agree, Dr Arkhangelsky, that that document is

12 the final version of the information memorandum, which

13 you and Mr Bromley-Martin showed to a number of banks

14 around July 2008?

15 A. I think so. It’s better to ask Mr Bromley-Martin,

16 I don’t remember that.

17 Q. I want to show you the way in which the purchase price

18 of Western Terminal is explained. Would you agree,

19 Dr Arkhangelsky, that in the information memorandum

20 seeking to raise US $300 million to finance the

21 development of Western Terminal, the information as to

22 the purchase price paid for Western Terminal would have

23 been an important piece of information to a lender?

24 A. Yes, I think so.

25 Q. Can you go, please, to {D52/889/9}. Can you see that,

37 39

1 please have the Western Terminal bundle.

2 Dr Arkhangelsky, for convenience, we have taken the

3 various drafts of the information memorandum that you

4 disclosed in these proceedings, and we have put them

5 into a bundle so you can refer to them easily in hard

6 copy.

7 A. Okay.

8 Q. If you go to the index, you will see that —

9 A. So it will not be shown on the screen?

10 Q. I don’t know if the index can, no; the original

11 documents can, but not the index. You can see that

12 there are a number of different drafts of this

13 information memorandum. Sometimes you get a PDF and

14 a Word version of the same document, so documents 7

15 and 8 are the same, as far as we can tell —

16 A. So what should I see now?

17 Q. Just familiarise yourself with the index. I was

18 explaining that you can see that sometimes there are two

19 documents, two versions, for the same date, and we think

20 one was a Word document and one was a PDF document and

21 both of them have been disclosed. So, for example, we

22 think tabs 7 and 8, those two documents are the same,

23 and 9 and 10, those are the same.

24 The document that Mr Bromley-Martin refers to as the

25 final version of the information memorandum, which he

1 Dr Arkhangelsky?

2 A. So what particularly should I see?

3 Q. I will read out to you the middle of the page, just

4 below the lower hole punch:

5 «Western was only acquired in 2007, and therefore

6 there is little reliable financial information available

7 prior to the date of acquisition. The Western Terminal

8 was acquired for US $220 million, which was funded by

9 OMG’s internal resources ($140 million) and short term

10 debt ($80 million).»

11 Can you see that, Dr Arkhangelsky?

12 A. Yes.

13 Q. That was repeated. If you go, please, to {D52/889/15},

14 under the heading, «The Project, its Development and

15 Future Plans», this was said in the second paragraph:

16 «The freehold was acquired by OMG in 2007 for

17 $220m.»

18 Do you see that?

19 A. Yes.

20 Q. Then it was repeated again on {D52/889/37}, where there

21 is a little bit more information added in under this

22 heading. Can you see the heading at 8.5, «Capital

23 structure and potential site value», Dr Arkhangelsky?

24 A. Yes.

25 Q. I will read it out to you:

38 40
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1 «OMG acquired Western in 2007 for the sum of

2 US $220 million, which was paid for with cash by OMG.

3 Western has no external debt at present, but loans

4 totalling US $90 million taken out by OMG relate

5 entirely to the acquisition of the terminal. The site

6 has been valued both for acquisition purposes and now

7 for the fundraising. Last year it was valued at

8 US $166 million, and in June 2008, it was valued at

9 US $188 million, in its present state.»

10 Can you see that?

11 A. Yes.

12 Q. Now we have established, Dr Arkhangelsky, this morning,

13 that Western Terminal cost US $40 million, haven’t we?

14 A. Yes, I think —

15 Q. No, just listen to the question.

16 A. Yes, yes, yes, yes.

17 Q. And your evidence, which I am going to check, is that

18 a further US $20 million was spent on various related

19 liabilities. So, even if that were to be true, we are

20 talking about a figure of US $60 million, aren’t we?

21 A. Yes.

22 Q. And that would accord with Mr Bromley-Martin saying that

23 it cost you relatively little money, wouldn’t it?

24 A. Yes.

25 Q. And yet in this information memorandum, going to

1 For that particular part, it was a special

2 investment project, which has also been disclosed in

3 these proceedings, and that was a big project which was

4 started by the previous owners and agreed by the Russian

5 Agency for Shipping and Transport, and for that

6 particular part, separate funding has been paid.

7 I don’t remember all the particular details, but

8 I assume that Mr Bromley-Martin considered both parts of

9 the project as the single project, and actually in his

10 memorandum, he is writing about development on both the

11 big parts. So I think then if we read more precisely,

12 or ask him more precisely all the details of information

13 where it comes from, then I think you would have

14 a better understanding of all the figures.

15 Q. Dr Arkhangelsky, I am suggesting that you are just

16 making things up as you go along. There is no evidence

17 that you had paid more money to acquire other assets at

18 Western Terminal in 2007. What’s the evidence for that

19 in this case? What’s the evidence for it?

20 A. I don’t remember, but please see what Mr Bromley-Martin

21 is attaching.

22 Q. Can I show you the purchase contract for Western

23 Terminal? {B20/407/1}.

24 A. As I said — no, no, no. As I said, the purchase

25 contract relates just for the land which is — for which

41 43

1 25 different banks, the acquisition cost was put at

2 US $220 million, wasn’t it?

3 A. Yes.

4 Q. And that was false, wasn’t it?

5 A. No.

6 Q. Why?

7 A. First we have to — you have to ask Bromley-Martin where

8 he gets these figures from.

9 Q. I will show you where they come from.

10 A. The second, and probably the most important, that

11 Western Terminal consisted from at least two parts: one

12 part is what is existing there, and the second part was

13 so-called investment project, which has been covering

14 the territory in the water — I can show you here,

15 your Lordship. If you see the picture —

16 MR JUSTICE HILDYARD: Hold on one second. Where should

17 I go? The beginning of the information?

18 A. Just any picture you have of Western Terminal

19 {D52/889/1}.

20 MR JUSTICE HILDYARD: Yes?

21 A. So this part is what has been forming the Western

22 Terminal in the time we purchased that (indicates), and

23 this part (indicates), this is the water part, which has

24 been planned to recreate the territory and create one

25 more berth, as described in my witness statement.

1 you have documents, like two berths, the property rights

2 documents, and 8 hectares of land. Investment

3 memorandum, the document signed by the Ministry of

4 Transport in the name of Mr Dmitrienko, who was the head

5 of Federal Agency for Shipping and Transport, so that

6 was absolutely a different part of the project of

7 acquisition of Western Terminal, and we attached these

8 documents in the disclosure, and that part of Western

9 Terminal was considered to be quite an important

10 additional part of the development of terminal, and in

11 Oxus memorandum, you see that he is taking care about

12 this piece of land.

13 Q. Yes, but Dr Arkhangelsky, Mr Bromley-Martin is

14 identifying your plans to upgrade; he is not talking

15 about work that you have already done, is he? He is not

16 talking about past acquisitions; he is talking about

17 future development, isn’t he?

18 A. I can’t understand how it relates. I said that Western

19 Terminal consisted from two parts: one part which was

20 the terminal operating at that time, and that part was

21 covered in the purchase agreement you are referring to.

22 The second part — you know, in Russia, based on the

23 ports law, all the water belongs to the State. So this

24 part is considered to be water belonging to the State,

25 and we — to recreate this territory, we had to create

42 44
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1 a — it’s also called investment memorandum, which has

2 been generally done by the previous owners, and this

3 investment memorandum has been approved, as I said, by

4 the Ministry, and that was a quite important part which

5 we have been developing and which we have been

6 discussing with the previous owners and paying

7 afterwards. So we bought the first part. So, as long

8 as the previous owners had connections to the Ministry

9 of Transport and Mr Dmitrienko personally, so this part

10 has been developed in Varsas(?). I mean documentation

11 and financing of that in Varsas during a couple of years

12 afterwards.

13 Q. There is no reference at all, is there, in your witness

14 statement or Mr Bromley-Martin’s, to any of that last

15 answer?

16 A. I’m not sure if Bromley-Martin himself is aware of all

17 the practical and legal aspects of acquisition of such

18 type of land, and recreation of this land, but as you

19 may see, he describes that as a development in his

20 development plan, and I am not sure that he is aware how

21 difficult is the legal part of that acquisition.

22 Q. Would you look at the purchase contract, please, for

23 Western Terminal. It’s at {D20/407/1}, because I want

24 to be quite clear about what your evidence is,

25 Dr Arkhangelsky. {D20/407/1} is a translation of

1 and it talks about a restricted water protection zone of

2 a water body?

3 A. Yes.

4 Q. So it looks as if what was being sold under this

5 contract was some of these water rights that you are

6 talking about, Dr Arkhangelsky; is that right?

7 A. No, water rights are not sold in Russia, so you cannot

8 buy them. Here they are referring to a particular

9 number of property rights deed, and in Russia, every

10 piece of land which is neighbouring to the water having

11 a limitation of use because it is connected to

12 the water. So, what you are referring to.

13 Q. So are you saying that you have to buy a separate right

14 to —

15 A. Absolutely.

16 Q. You have to buy a separate right to use Western

17 Terminal; is that right?

18 A. No. As I said, if —

19 Q. Sorry, Dr Arkhangelsky —

20 A. If it is somehow possible to put a picture of Western

21 Terminal on the screen, just to avoid any

22 misunderstanding.

23 Q. Let’s go to a picture when you bought it, then, please

24 {D196/2931/1}. It’s behind divider 13 in your bundle.

25 There are some hard copies of the photographs.

45 47

1 the purchase contract. It looks as if a company called

2 Premina Limited, registered in Cyprus, sold all the

3 shares in Western Terminal to OMG Ports represented by

4 you; is that right?

5 A. Yes.

6 Q. And you can see, subject to the contract, if you just

7 scan down, you can see 100 per cent of the shares,

8 nominal value 10,000 roubles, land plot is set out

9 there. Can you see land plot under number 1?

10 A. Yes.

11 Q. That land plot covers the whole plot of Western

12 Terminal, doesn’t it?

13 A. As I said to you —

14 Q. Yes or no?

15 A. Based — based on this contract, this contract was

16 selling parts of Western Terminal which were registered

17 officially and had the property rights deeds by that

18 time. In the previous question, we were discussing part

19 of Western Terminal, which was a piece of water, which

20 were considered to be an independent investment

21 memorandum which has been done with the Russian Agency

22 for River and Sea Transport, headed at that time by

23 Mr Dmitrienko.

24 Q. Under «land plot» it talks about coastal protection belt

25 of a water body, with an area of 7,932 square metres,

1 A. It’s not that good a picture because it is not covering

2 this question which we are discussing.

3 Q. Can you tell his Lordship what property you bought at

4 that time, please?

5 A. Yes.

6 Q. Can you actually draw it out on that?

7 A. Yes. If you can — can you see here.

8 Q. Can you show him the hard copy, please, behind

9 divider 13.

10 A. So …

11 Q. Perhaps you could mark on it, Dr Arkhangelsky, what

12 property — what you bought when you bought Western

13 Terminal in May 2007.

14 A. Your Lordship, can you see this?

15 MR JUSTICE HILDYARD: Yes.

16 A. So this is the Western Terminal land, this one

17 (indicates).

18 MR LORD: I can’t see, Dr Arkhangelsky. Can you move the

19 screen around a bit, or — could you do it on the hard

20 copy, please, so there is a record. I would like to

21 have a record. On that file there is a picture, so if

22 you could mark, please, what you are talking about.

23 A. So, but — I’ll mark it.

24 Q. Thank you very much.

25 A. I’ll show you again. This is —

46 48
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1 Q. It’s actually marked by a — there’s actually a white

2 perimeter fence. There is almost a marker around there,

3 isn’t there?

4 A. You see, this is Western Terminal on which seller had

5 property deeds. So in this list, you mentioned — or

6 the contract mentions a piece of land, railroads,

7 whatever buildings, whatever.

8 In the development of Western Terminal, we also —

9 and right after the contract we signed here, we also

10 bought this piece, which is probably better seen on the

11 picture of Bromley-Martin. So this is a water plot here

12 which is the property of the Federal State of Russian

13 Federation.

14 MR JUSTICE HILDYARD: Did you buy that subsequently; is that

15 what you are saying?

16 A. No, no, we — you cannot buy the land which doesn’t

17 belong to you. I mean, the seller could not sell

18 things —

19 MR JUSTICE HILDYARD: Right.

20 A. — for which he has not had any property deed.

21 MR JUSTICE HILDYARD: How was it that you obtained the

22 right?

23 A. So the previous owner made, or at that time was in

24 the process of creating an investment memorandum with

25 the Russian State, investment project with the Russian

1 A. Something like that, yes.

2 MR JUSTICE HILDYARD: Because — you probably have spotted

3 this, but at {D52/889/15} … yes.

4 MR LORD: Yes. {D52/889/15}. Tab 10.

5 {D52/889/15}, in the information memorandum,

6 Dr Arkhangelsky, Mr Bromley-Martin describes the

7 potential to buy some further land, which I think is the

8 land that his Lordship asked you and you confirmed you

9 have just been talking about; can you see towards the

10 foot of the page, three paragraphs from the bottom? You

11 have just been talking about that bit of land, haven’t

12 you?

13 A. I’m sorry, I just need to read through that.

14 Sorry, which paragraph are you referring to?

15 Q. It starts:

16 «The area immediately to the north-west of

17 the current facility (between Western and berth 68),

18 roughly 4 hectares, is available as a potential

19 development of the Western terminal.»

20 Can you see?

21 A. Yes, I do.

22 Q. It’s the extra land, isn’t it?

23 A. Yes, yes.

24 Q. You didn’t buy that land as part of the acquisition of

25 Western Terminal in May 2007, did you, Dr Arkhangelsky?

49 51
1 State. So it has been — I assume it is disclosed, it 1 A. No.
2 is a huge set of documents, where the owner of Western 2 Q. So why have you just been trying to justify the
3 Terminal tells that that would be the development plans, 3 220 million figure in the information memorandum —
4 which problems he will have with the water front and so 4 A. Because we —
5 on, and how it would be developed, and this investment 5 Q. Hang on, let me finish the question — which was given
6 memorandum had to be approved by quite a number of 6 for the acquisition cost of Western Terminal by
7 ministries, federal ministries. 7 reference to some land that you may or may not have
8 By that time it has been already approved by 8 bought subsequently?
9 Mr Dmitrienko who, at that time, was the head of 9 A. As I said before, technically we could not buy the land,
10 the Russian Federal Agency for Ports and Shipping, and 10 this, whatever, 4 hectares, or how much is it. We
11 it had been a rather long list of approvals to be 11 couldn’t buy that because the seller had not had any
12 collected in all these processes. 12 property rights, and definitely this information
13 What we agreed and what we were doing after we 13 memorandum, which was designed as a rather short summary
14 bought the Western Terminal, we were continuing work 14 for investors, I think from the point of view of
15 with the previous owner on obtaining and prolongation of 15 Mr Bromley-Martin, it was not necessary to include that
16 this contract and realisation of this contract, and that 16 much volume of information.
17 has been quite a big expense. So we paid — some we 17 MR JUSTICE HILDYARD: I think the question which you are
18 paid from the balance sheet; some we paid even 18 being pressed on is why you have stated in the witness
19 personally to Mr Dmitrienko, who afterwards became, for 19 statement that it cost 40 million, and in
20 example, Governor of Murmansk Region, or something like 20 the information memorandum that it cost 220 million.
21 that. 21 A. Because —
22 So it has been quite a big project for 22 MR JUSTICE HILDYARD: I think that that’s …
23 development — 23 MR LORD: Yes, Mr Arkhangelsky, if you look on that page bat
24 MR JUSTICE HILDYARD: Was it about three and a half 24 the top, it says, «the freehold»:
25 hectares? 25 «The freehold was acquired by OMG in 2007 for
50 52
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February 17, 2016 Day 11 — Redacted

1 $220 million…»

2 Now, I have taken you to the contract where

3 1 billion roubles is paid, so what you are telling the

4 potential lenders in this document is that you paid

5 US $220 million for the freehold, for the land. Not for

6 any liabilities. For the land itself. We’ve seen that

7 that was 40 million.

8 A. Yes, it —

9 Q. So what you are being asked about is how you can explain

10 putting in a figure of US $220 million as the

11 acquisition cost to OMG of buying the Western Terminal

12 freehold in May 2007.

13 A. Yes, as I —

14 Q. Do you understand?

15 A. Yes, I understand, and just, once again, confirm that

16 for me, both parts, 4 hectares and, whatever,

17 8 hectares, considered to be an ongoing project and it

18 had to become a part of the same project at some stage.

19 Definitely it might be some misunderstanding between

20 Russian rules and international standards in this

21 memorandum, but anyway, we were aware that all this

22 misunderstanding and questions could be easily solved in

23 the due diligence process, which would be run by any

24 bank or investor.

25 Q. No, Dr Arkhangelsky, that’s not a truthful answer. The

1 There.

2 A. So question number 12, yes?

3 Q. «How much did Western cost?»

4 And this is the answer from OMG:

5 «Western Terminal was purchased for 220 million.»

6 «Was purchased». It doesn’t say: Western Terminal

7 was purchased for $40 million but we are going to spend

8 $180 million on buying another 3 hectares of land. It

9 doesn’t say that, does it, Dr Arkhangelsky?

10 A. You see, I’m not sure where the document came from, but

11 if it is written here, it is correctly, yes.

12 Q. «It was partly funded by equity capital (130 million)

13 and loans (90 million). Loans were taken by several OMG

14 companies, land and property (but not land and property

15 of WT) was used as a mortgage.

16 «The total amount of the loan would be

17 $300 million…»

18 That’s the loan you are trying to raise:

19 «… of which 220 million is for reconstruction and

20 80 million for refinancing of the existing debt.»

21 Can you see that?

22 A. Yes.

23 Q. So if you look at that answer, Dr Arkhangelsky, if you

24 were a lender, you would think, wouldn’t you, that OMG

25 had paid $220 million to buy Western Terminal

53 55
1 source of the information came from OMG. If you go, 1 in May 2007? That’s the natural reading of that answer,
2 please, in that bundle I have given you, behind 2 isn’t it?
3 divider A, you will see some exchanges between OMG and 3 A. Maybe. But, as I said, when providing this information
4 Mr Bromley-Martin. {D48/829/1}, so it’s towards the end 4 we were operating also the second part of the land,
5 of that divider, there are little pink slips dividing 5 which is 4 hectares, and we included — as far as
6 the paper. {D48/829/1}, {D48/829/2} and {D48/829/3} are 6 I understood, we included the value of the second
7 the answers which OMG provided to Mr Bromley-Martin to 7 project, so that’s how I understand that.
8 questions Oxus posed when they were drawing up the 8 But definitely as far as I remember, we had a lot of
9 information memorandum. 9 different discussions with Bromley-Martin at that time,
10 Does your Lordship have the hard copy? It will be 10 and so I think it has been discussed many times, and
11 at the back of the … yes. 11 there is definitely some logic behind that, so I think
12 Can you see that, Dr Arkhangelsky? 12 it’s better to speak to him first.
13 A. Which point? 13 Q. Is your evidence on oath today that you gave
14 Q. Can you see the document, first? 14 Mr Bromley-Martin to understand that the actual purchase
15 A. Yes. 15 price was about US $40 million? Is that your evidence,
16 Q. If you go to {D48/829/2}, Mr Bromley-Martin asked this: 16 Dr Arkhangelsky?
17 question 12: 17 A. We paid $40 million for acquiring pieces of land and
18 «How much did Western cost?» 18 assets of the Western Terminal which had the property
19 The question wasn’t: how much might you spend in 19 rights, but we also acquired investment project for
20 the future? Because that was the whole point of this 20 these 4 hectares of land, and it had other additional
21 financing document, wasn’t it, to raise money to develop 21 value, and so I assume that here we are speaking about
22 Western Terminal? 22 these both projects.
23 A. I am sorry, where are the questions? 23 Q. And are you saying that you actually paid, you actually
24 Q. If you have the hard copy, Mr Arkhangelsky, it will be 24 paid extra money for these other rights?
25 easier to follow. If you could have the hard copy. 25 A. Of course, as I said to you before, yes.
54 56
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1 Q. And how much did they come to? 1 the programme — there was a federal programme for
2 A. I think the figures are correct, and as I said — 2 development of the port of St Petersburg. A federal
3 Q. Sorry, $180 million; is that right? Makes up the 3 budget included rather substantial amounts of money for
4 shortfall, does it? 4 dredging, recreating and so on territories to increase
5 A. No, because initially we paid 40, then we paid 20 more. 5 the draught of the aquatoria so to create preferable
6 Q. So $160 million, is that right? 6 conditions for our terminal.
7 A. Yes, and — 7 So we were considering that after the payments,
8 Q. Sorry, $160 million represents the extra payment, does 8 personal payments to such people like Dmitrienko, we
9 it, for these extra rights? 9 would get federal — I mean, not «we», but the local
10 A. I think so. I don’t have all these figures and the 10 marine administration would get federal funding to
11 currencies right now but, as I said, we have paid quite 11 finance aquatoria works. So if the federal budgets
12 substantial amounts, even personally, to officials. 12 spends money on aquatoria works and increasing the
13 Q. Up to US $160 million? 13 channel, and deleting of the small island which is in
14 A. Quite big amounts, yes. It has been done in stages 14 the aquatoria, then it would enormously increase the
15 because the project was ongoing, and as I mentioned in 15 value of the Western Terminal. And as — in fact, this
16 the open court, I paid personally to Mr Dmitrienko, who 16 money had been included in the federal programme and it
17 at that time was head of the federal agency. 17 has been in our official documents that the federal
18 Q. How much did you pay him? 18 budget is spending money on development of this area.
19 A. It has been quite a number of instalments been 19 Your Lordship, it is quite important to note that we
20 transferred to different accounts, and been connected to 20 are not able — we were not able to do — in
21 different stages. I don’t remember all the figures now. 21 the aquatoria of the port of St Petersburg, we are not
22 Q. And why were those payments made? Why were those 22 able to do ourselves anything because it’s the federal
23 payments made? 23 things and it is only federal government who can do
24 A. Why? Because he was a Russian bureaucrat who was 24 this. And that was normal that we were paying to
25 responsible for development in this territory, and 25 officials to include these substantial amounts in
57 59

1 unless he would not agree and unless he would not

2 support this project, that project would not be

3 realised.

4 Q. What was his name again?

5 A. And the —

6 Q. What was his name again, sorry?

7 A. Dmitrienko.

8 Q. How do you spell that?

9 A. D-M-I-T-R-I-E-N-K-O.

10 Q. And what was his position?

11 A. He was the head of Federal Agency of Marine and River

12 Transport.

13 Q. And you paid him about how much?

14 A. Quite a lot, and —

15 Q. About how much?

16 A. I just want to — sorry, I will tell you. This project

17 considered actually, in fact, from three major parts.

18 First, it’s the land we acquired with the property

19 deeds; the second part is the water territory, which we

20 were considering to take over; and the third, and the

21 most important part of that project, was the federal

22 support of construction in the water, because aquatoria

23 in the port was considered to be a federal land,

24 a federal water and so on, and based on the agreement

25 with Dmitry Dmitrienko, in the federal budget, in

1 the federal budget.

2 Q. Was it a bribe, Dr Arkhangelsky, in effect? It was,

3 wasn’t it?

4 A. Yes, it is. It is.

5 Q. So you had to bribe a federal official in order to be

6 able to get your Western Terminal acquired?

7 A. No. We acquired the Western Terminal —

8 Q. Mm hmm.

9 A. — but for the future development of that, as long as

10 the project had been quite big and important, we had to

11 bribe, yes.

12 Q. And without paying the bribe, you wouldn’t have been

13 able to develop Western Terminal at all, would you?

14 A. No. We are speaking about — it’s very well described

15 in the investment memorandum that even the territory and

16 the state at which it was, in 2007 or 2008, would be

17 possible to handle 500,000 containers. What we are

18 speaking about, we are speaking about much greater

19 development, because, as your Lordship probably could

20 notice, that the draught at the berth at Western

21 Terminal is 4.5 metres. So, by dredging by the federal

22 authorities, we could bring it to 14 metres, which is

23 the maximum draught of the channel of St Petersburg, and

24 that could enormously increase the capacity and the

25 profitability of the project.

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1 MR JUSTICE HILDYARD: I wonder whether at some point we

2 might have a break, Mr Lord.

3 MR LORD: Sorry, my Lord, it is the absence of a clock. We

4 might arrange to have a clock. My timekeeping is not

5 very good at the best of times.

6 MR JUSTICE HILDYARD: It is about 12.05 pm, so if that is

7 a convenient moment?

8 MR LORD: It is.

9 MR JUSTICE HILDYARD: We will have five minutes’ break.

10 MR LORD: Sorry, my Lord, it is important — obviously,

11 Dr Arkhangelsky I am sure understands …

12 MR JUSTICE HILDYARD: Yes, Dr Arkhangelsky, I should

13 explain.

14 Throughout the time that you are being

15 cross-examined and you are, in effect, in the witness

16 box, you must not talk about this case to anybody.

17 A. Absolutely.

18 MR JUSTICE HILDYARD: Talk about anything in the world, but

19 not this case.

20 A. Absolutely.

21 MR JUSTICE HILDYARD: Thank you.

22 (12.08 pm)

23 (A short break)

24 (12.20 pm)

25 MR LORD: Dr Arkhangelsky, your evidence is that the

1 has been a rather big cooperation of him. I had a lot

2 of meetings with him in his office in Moscow and we’ve

3 been discussing it many, many times, and it depends on

4 the stages different payments been done.

5 Q. And which bank account did you use to make these

6 payments out?

7 A. Oh, I don’t remember that.

8 Q. And who else within OMG knew about these bribes, apart

9 from you?

10 A. I think nobody been aware of that.

11 Q. Sorry?

12 A. Nobody.

13 Q. Nobody. Was your wife aware of it?

14 A. No.

15 Q. Would she be aware of it now? Does she know now you

16 paid these bribes?

17 A. No, only — if she reads transcript.

18 Q. And paying a bribe would be a criminal offence, wouldn’t

19 it, in Russia at that time?

20 A. Yes, I think so, yes.

21 Q. And somebody who paid bribes of that size to an official

22 couldn’t complain if there was an extradition warrant,

23 could they?

24 A. Sorry, could?

25 Q. If somebody had paid bribes to a Russian official like

61 63

1 difference between the 40 million acquisition cost and

2 the 220 million we see in the information memorandum is

3 explained in large measure by the payment of bribes to

4 Russian officials; is that right?

5 A. Just to only one person, Dmitry Dmitrienko, who was the

6 key Russian person, Russian official responsible for

7 that project. He was taking care about this project

8 personally himself.

9 Q. And how much did you pay him in total?

10 A. Generally, all the amounts in difference have been paid

11 to him and exactly to his son.

12 Q. So that would be about US $160 million?

13 A. Roughly, yes, calculating 40 plus 20, yes.

14 Q. And what’s his son’s name?

15 A. I don’t remember his son’s name.

16 Q. And how did you make those payments?

17 A. We’ve been receiving — I remember that he had

18 an e-mail, a special e-mail, starting from the name

19 «Asiltur»(?), something like that, and he was sending

20 different bank details. It was different amounts every

21 time.

22 Q. And when were these payments made?

23 A. Sorry?

24 Q. When were these payments made by you?

25 A. When? It was 2007, 2008, something like that. So it

1 that, they couldn’t complain if the Russian State

2 extradited them back to Russia to face charges?

3 A. It’s a rhetorical question.

4 Q. What’s your view on that, Mr Arkhangelsky?

5 A. Sorry?

6 Q. What’s your view? If the Russian State —

7 A. Yes.

8 Q. — learned that a businessman has paid $160 million in

9 bribes to an official —

10 A. Yes.

11 Q. — the Russian State would be entitled to take a dim

12 view of that, wouldn’t it?

13 A. Yes.

14 Q. And to seek to prosecute the briber?

15 A. Yes.

16 Q. And if the briber was living abroad, the Russian State

17 would be entitled to try to extradite that briber,

18 wouldn’t it?

19 A. Yes, the Russian State is entitled to anything.

20 MR JUSTICE HILDYARD: Mr Lord, is this appropriate? I’m

21 just wondering about this.

22 MR LORD: Maybe I should stop. I see that my Lord, yes.

23 I had better stop. Yes.

24 Dr Arkhangelsky, did you tell Mr Bromley-Martin

25 about these bribes that were paid?

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February 17, 2016 Day 11 — Redacted

1 A. No, never to anybody, because that time, Western

2 Terminal was considered to be a really important project

3 for myself, and previous sellers, they introduced me to

4 this person, Dmitry Dmitrienko, who had been well aware

5 and had — a well established person in

6 Dmitry Medvedev’s team, so he had been considered to be

7 a young and prospective politician, specialised in

8 shipping and ports, and as previous owners they

9 introduced me to him and said that I have to follow what

10 is going on and that he would help to develop projects,

11 so I had the full confidence and full understanding that

12 it is a normal way of doing this.

13 Q. I think earlier you said you made payments to

14 «officials», plural? «Officials»?

15 A. No, he is. He is the only official.

16 Q. Did you have to make these sort of payments in relation

17 to Onega Terminal?

18 A. No.

19 Q. Or Vyborg Port?

20 A. No.

21 Q. So only Western Terminal?

22 A. Only Western Terminal, but in fact, to be absolutely

23 correct, the same person is responsible for all the

24 ports and shipping, and having relations on Western

25 Terminal would mean his general support to other

1 developed in the way they have been at the stage

2 I bought them, even without any support from the

3 shipping government, but the speed of development would

4 be much slower and it would take much more efforts to

5 attract federal funds.

6 I can just give you one example. For example, this

7 dredging of the Western Terminal has been in the plans,

8 port plans, for the last, whatever, 10 or 15 years, but

9 it’s always been — every year it’s been postponed and

10 postponed and postponed, so it has been in

11 the programme.

12 But for me to secure faster growth and growth much

13 faster in case I get the funds from the international

14 banks, and I wanted to have a faster growth, so for me

15 it was important that the government secure funds for

16 this and that year, and not be dependent on government

17 behaviour, let’s put it this way. Because you

18 understand that it is an absolutely different volume of

19 works to be done if it’s a 14 metres’ draught, or if

20 it’s the same draught as it has been, 4.5 metres.

21 Theoretically, we could do our terminal to be able

22 to accept vessels for 14 draught, but technically, it is

23 impossible because it has to be, you know — if it is

24 dredged on the water side, then it is done on our side,

25 and I wanted to secure it, and by that time it was

65 67

1 projects also.

2 Q. So by making these payments, you were securing the

3 support of officials to all three of your port

4 businesses?

5 A. Absolutely.

6 Q. And if you hadn’t made those payments, you would have

7 expected that this official would not let you exploit

8 these three ports, would he?

9 A. Not exactly. Simply by having personal relations to

10 the key person in the Russian Government responsible for

11 the development of the ports, I was aware that all my

12 projects would be realised much faster, easier, and the

13 federal money would be spent on federal property, to

14 support further and faster development of my terminals.

15 Q. And does that explain what you describe as a low

16 purchase price for Western Terminal? In other words,

17 you can’t develop Western Terminal unless you have the

18 support of officials, and those officials may need to be

19 bribed? Is that why the price is low, Dr Arkhangelsky?

20 A. No. No. No. No.

21 No, the price, as I told you earlier, connected to

22 the fact that it was a rather difficult due diligence

23 process and the reputation of the sellers, so that’s the

24 explanation.

25 As I explain once again, the projects could be

1 explained and offered to me in the way that it’s quite

2 normal in Russian Federation.

3 MR JUSTICE HILDYARD: Mr Lord, I am a little bit bothered

4 about this. I am sure that it is slowness on my part,

5 but I feel that if Mr Arkhangelsky had counsel, some of

6 these questions might have been interrupted on the

7 footing that, whilst it is a legitimate enquiry to try

8 and establish how the purchase price or the cost got up

9 to 220 million, the description, or any criminal

10 consequences, or any extradition consequences ought not,

11 if you are right in asserting to me that you are not

12 part of any Russian Federation endeavour, to be any part

13 of your concern.

14 MR LORD: My Lord, no, that’s right.

15 MR JUSTICE HILDYARD: I think that your questions with

16 respect to the characterisation of the payments as

17 bribes and the question as to the consequences in terms

18 of extradition, were not questions you should have

19 asked, and I think they should be struck.

20 MR LORD: Very well, my Lord.

21 MR JUSTICE HILDYARD: So they will be struck from the

22 record, and I would like you to move on in terms of

23 trying to establish with this witness how it was that

24 40 million became 220 million.

25 MR LORD: Well, my Lord, that is what I am trying to get to

66 68
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1 the bottom of. 1 So I will determine, if someone could mark the
2 MR JUSTICE HILDYARD: I think it went beyond that, and it is 2 transcript, what is and what is not to be in, but my
3 probably my slowness in not interrupting earlier. 3 present feeling is that there were parts which really
4 MR LORD: And it may go to causation as well. Certain 4 went quite far beyond what is your legitimate enquiry.
5 payments have to be made on a certain basis — 5 I would ask you to be very careful in this because
6 MR JUSTICE HILDYARD: I think Mr Arkhangelsky, in order to 6 I do not know where things are going sometimes, and
7 explain how it was that it went from 40 million to 7 I have to try and focus on the facts, rather than on
8 220 million, has had to explain that various payments 8 other matters.
9 were made in order to facilitate government cooperation 9 MR LORD: Dr Arkhangelsky, can you look at {D48/829/2},
10 in the extension of the Western Terminal to areas 10 please. This was the answer that OMG gave on the
11 previously within the sea, and in order to dredge that 11 purchase price of Western Terminal.
12 from 4 metres to 14 metres. But I would prefer us not 12 I understood you to say that nobody, other than you,
13 to have on the record any more than that the payments 13 knew about these payments to the official; is that
14 were made without characterisation, and certainly 14 right?
15 without any reference to the consequences in terms of 15 A. Yes.
16 any Russian criminal process or extradition in 16 Q. And you said you weren’t sure who compiled these answers
17 particular. That’s what I would have thought. If you 17 on behalf of OMG?
18 wish to argue against it, that’s fine. 18 A. Yes.
19 MR LORD: No, my Lord, but I — 19 Q. Do you remember saying that this morning?
20 A. Your Lordship, may I just remind one small thing — 20 A. Yes.
21 MR LORD: I want to reserve my position on causation, 21 Q. How can you explain, then, the entry to a purchase price
22 because — 22 of 220 million in the light of those two answers?
23 MR JUSTICE HILDYARD: You may return to it, but for the 23 Somebody — either you completed this document, and
24 moment I simply want to, if I can put it this way, 24 therefore you knew how you got from 40 to 220, or
25 sanitise the transcript, because it would be, I think, 25 somebody else must have known how you get from 40 to
69 71
1 no part of your brief, as I have understood your 1 220?
2 position as to your client’s endeavours, to seek to 2 A. Of course I had a quite reliable financial director,
3 assist any extradition process. 3 Mr Berezin, whom we used as a witness in some of
4 MR LORD: No, that’s true, my Lord. That’s right. That’s 4 the processes, so he has been absolutely aware of
5 right. 5 the amounts because he was the person who was taking
6 A. Your Lordship, may I just remind a small thing, that in 6 care about all of the financial operations. So he had
7 French extradition proceedings, advocate of the Bank, he 7 the keys to all the bank accounts, so he was absolutely
8 was tried to represent Russian Federation, but he was 8 aware of amounts.
9 thrown away by the judge. 9 He was not aware, maybe, of the basis of that, but
10 MR JUSTICE HILDYARD: You can explain that in due course, 10 I was absolutely confident to him, and it was not like
11 and I should like to hear that in light of this. 11 I was coming to the office asking: can you give me a box
12 My interest, and it is my slowness, for which 12 of $100 million cash and then I will bring it some day
13 I apologise, is that I do not think that questions as to 13 or so. All our accounting was quite — was absolutely
14 the legal characterisation or their effect are 14 open, and he was taking care about all the accounts and
15 appropriate, and I think that we had best move on from 15 he was taking care about all the reporting and all the
16 those. 16 contracts, with Mr Dmitrienko being — had an official
17 MR LORD: My Lord, I accept that, but questions as to 17 contract, so consultancy or something like that. So
18 the honesty of the payment, I do reserve my right to ask 18 everything was quite clear.
19 those questions. 19 Q. So he knew about these payments?
20 MR JUSTICE HILDYARD: Yes, what I think we shall do is, if 20 A. No, he knew about payments, but he was not aware of whom
21 insofar as you need to rely on the legal quality of 21 it goes to, and how it operates and what for.
22 those payments, or the animus with which they were paid, 22 Q. And where did the money for these payments come from?
23 you must address it in a less — afterwards and in 23 A. From the balance sheet of the company.
24 a break, rather than as part of the record, and I would 24 Q. Of what, OMG?
25 like to hear what you say off the record first, please. 25 A. Of all the group, because we had a general accounting
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1 office and he was taking care about that. He was 1 A. Yes.
2 a financial director and he was distributing and 2 Q. And it’s —
3 redistributing assets inside the group. 3 A. Yes, I assume that — and what we’ve seen already in
4 Q. And is it not the case that the reason the purchase 4 the open court, that the Bank fabricated quite a number
5 price was put at this level was in order to justify 5 of documents, which has been confirmed by your clients.
6 a request for lending of 300 million? 6 Q. Can you be shown your defence, please, in bundle
7 A. No. 7 {A1/2/1}. You allege forgery at {A1/2/8} in
8 Q. I’m going to come back to this, my Lord. I wasn’t 8 paragraphs 24 and 25. Can you re-read those paragraphs,
9 expecting those answers this morning, but I will come 9 please?
10 back to it. I will leave it, I think, for now, if 10 A. Yes. (Pause)
11 I may. 11 Q. And you allege some 28 documents have been forged in
12 I am going to ask you, please, now, about your 12 the schedule, don’t you?
13 forgery case, Mr Arkhangelsky. You agree that 13 A. Yes.
14 an allegation of forgery is a very serious allegation of 14 Q. Can you go to paragraph 31, please, {A1/2/9}.
15 dishonesty? 15 «Forensic expert evidence confirms, or shall
16 A. Of course. 16 confirm, that such of the disputed documents as are
17 Q. And that it should not be made without a proper basis? 17 available for forensic handwriting examination do not
18 A. All my allegations against forgeries of your clients are 18 bear genuine signatures of the Defendants.»
19 having a real basis. 19 Do you see that?
20 Q. And do you agree that such an allegation should be 20 A. Yes.
21 withdrawn as soon as you have reason to think that it 21 Q. So in this defence you anticipated that there would be
22 shouldn’t be made? 22 expert handwriting evidence that would support your case
23 A. No. 23 on forgery?
24 Q. Can I establish, please, what your current position is 24 A. Yes.
25 on forgery. Do you still allege that the 25 Q. The expert evidence in this case, at best, is

73

1 Bank of St Petersburg forged or fabricated the

2 guarantees?

3 A. Of course.

4 Q. All the guarantees that you list in the schedule to your

5 defence?

6 A. Yes, I think so, most of them.

7 Q. Most or all?

8 A. I think most of them.

9 Q. So there are some that you accept they did not forge?

10 A. I accept that by mistake, I could sign one or two

11 documents by mistake.

12 Q. Which documents are you talking about?

13 A. I don’t remember.

14 Q. What about the personal loan? Do you still allege that

15 the Bank have fabricated the personal loan?

16 A. I think so.

17 Q. And do you still allege that the Bank have fabricated

18 the Scan guarantees?

19 A. I think so.

20 Q. And as far as you understand it, is that the position of

21 Mrs Arkhangelskaya?

22 A. I suggest that you speak to her directly. I would not

23 be representing her position.

24 Q. And what about OMG Ports? I think you speak for them,

25 don’t you?

75

1 inconclusive, isn’t it, on that point?

2 A. Yes.

3 Q. So the expert evidence does not support your case on

4 forgery, does it?

5 A. Not support my case, as well as not supporting your case

6 that it has not been your client who has been doing

7 this.

8 Q. But if we look at your case that these are forged

9 documents, the expert handwriting evidence does not

10 support that allegation, does it?

11 A. Yes.

12 Q. You agree?

13 A. Yes.

14 Q. So the expert handwriting evidence does not provide

15 a basis for an allegation of forgery, does it?

16 A. Yes.

17 Q. Do you agree?

18 A. Yes.

19 Q. So what is your basis for alleging forgery?

20 A. Knowing the fact that I never signed such documents

21 while knowing that.

22 Q. Can you go in your witness statement, please {C1/1/62}.

23 Can you see paragraph 236? (Pause)

24 A. Yes.

25 Q. Where you appear to be having second thoughts or doubts

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1 about whether these documents were forged or fabricated

2 by the Bank; is that right?

3 A. I’m absolutely sure that I have not signed any documents

4 in, let’s say, my normal life. I would not sign that.

5 It might be some documents signed by mistake, but

6 it’s just — if so, very few of them, and just by

7 accident, not while knowing the real substance of

8 the document.

9 Q. But you challenge the personal guarantee that was given

10 for the first Onega loan, don’t you?

11 A. Sorry?

12 Q. You challenge the personal guarantee that you gave to

13 the first Onega loan?

14 A. I challenge all the guarantees, yes.

15 Q. And that was in June 2006, wasn’t it?

16 A. Yes, I think so.

17 Q. That wasn’t during a busy or stressful period of your

18 life, was it?

19 A. I’ve been running a huge company of 620 people, so whole

20 of my life been rather hectic.

21 Q. And you say in paragraph 236:

22 «… I would typically sign a large pile of

23 documents every day that was simply given to me by

24 a secretary. I was generally so busy that I would sign

25 whatever documents my employees asked me to sign without

1 Would you agree with that, Mr Arkhangelsky?

2 A. I’m not really sure what is inside there.

3 Q. I think what he is saying —

4 A. I’m not a specialist in this. I know that my signature

5 is very simple, but I never — before all the

6 proceedings, I never been thinking about that. It was

7 more or less the same signature by my mother and by my

8 father. So I was just — once I had been a small kid,

9 I’ve just been copying what …

10 MR JUSTICE HILDYARD: What you are really asking him,

11 Mr Lord is whether he agrees with his own expert, or

12 what?

13 MR LORD: I’m asking him whether he agrees it was a simple

14 signature.

15 MR JUSTICE HILDYARD: Well, it’s his signature.

16 MR LORD: I will ask it again.

17 Dr Arkhangelsky, would you agree —

18 A. Sorry, can you just keep your mouth just empty when you

19 speak, because I cannot hear you, yes.

20 Q. Did you have a simple signature so that other people

21 could sign on your behalf and copy that signature?

22 A. Absolutely not.

23 Q. So you never gave authority to anybody else —

24 A. No.

25 Q. — to sign on your behalf?

77 79
1 reading them properly or even at all, on the assumption 1 A. No. As I said, I had the same signature for the whole
2 that documents would not have been prepared without my 2 of my life and I’ve been signing all my documents even
3 instructions or agreement.» 3 without thinking about that.
4 A. Yes, generally I agree with that, yes. 4 Q. Can you go, please, to {A1/2/73}.
5 Q. So you would sign — 5 A. It’s okay, they show here, so don’t worry.
6 A. I try to devote as much of my personal time as possible, 6 Q. This is a schedule of all the contracts that you say are
7 but it was not always the case. 7 forged or fabricated; all right?
8 Q. So you had a large pile of documents to sign on a daily 8 A. Yes.
9 basis; is that right? 9 Q. I am going to ask you now, please, to look at the debt
10 A. Yes, of course. 10 schedule. Can you be shown {D74/1101/1}, please.
11 Q. Could you be shown {E1/6/12}, please. If you go, 11 A. No, I can see it here. Don’t worry. It’s better.
12 please, to paragraph 40 on {E1/6/16}, this is 12 Q. Can you see that, Dr Arkhangelsky?
13 Mr Radley’s expert report, and he says this of your 13 A. Yes.
14 signature styles: 14 Q. This is an internal OMG document, described as
15 «It will be appreciated that the structure of all of 15 «Oslo Marine Group Debt Portfolio as of September 25th,
16 these styles of writing are basic forms. There is 16 2008″; can you see that?
17 little fine detail to these writings. They comprise, in 17 A. Yes.
18 the most basic of terms, as a series of up/down pen 18 Q. Is this a document you have looked at before?
19 movements terminating with a long upstroke, sometimes 19 A. Yes.
20 looping at the top, and a long terminal curving 20 Q. This is a document that seems to set out OMG’s debts as
21 descending stroke, previously referred to as the ‘s’. 21 at that date, doesn’t it?
22 These styles of signatures are easily followed and have 22 A. Yes.
23 to be regarded as being highly susceptible to being 23 Q. And if we look down the list, we can see it identifies
24 copied with a fair degree of pictorial success ie 24 certain of the loans in respect of which there are
25 relatively easily copied.» 25 guarantees in issue in these proceedings, doesn’t it?
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1 A. Yes.

2 Q. So if we go to number 2, for example, FIC Scandinavia.

3 A. Yes.

4 Q. There is a mistake on the date; I think it should be

5 25 June 2008. It’s clearly the overdraft facility,

6 isn’t it, for 2008?

7 A. Maybe.

8 Q. 145 million roubles. Can you see «Guarantees:

9 Mr Arkhangelsky»?

10 A. Yes.

11 Q. So it suggests, doesn’t it, from this schedule, that you

12 have given a personal guarantee for that loan?

13 A. No.

14 Q. Why do you say that?

15 A. Because as far as I understood, this table was done by

16 employees, not by their own record, because we haven’t

17 had any such record, but from the information the banks

18 produced. So nobody really been taking care and

19 checking documents.

20 Q. Can you be shown, please, {D74/1104.1/1}.

21 You can see at the bottom of the page

22 Mr Bromley-Martin sends an e-mail on 19 September 2008,

23 subject «Debt schedule»; can you see? He is asking

24 Mr Parker:

25 «Do you have updated debt schedule for the Group?»

1 was our interpreter, in-house interpreter, and he was

2 responsible just for advertising, so he has never been

3 a specialist in any finance or whatever. Maximum he

4 could do, he could be kind of a communicating officer

5 who could send something in English.

6 The second, as I’m absolutely sure, we have not been

7 doing all these statistics, so — we haven’t had enough

8 stuff for doing that, so all the information which we’ve

9 been collecting, at that time had been collected,

10 absolutely sure, from the materials being provided by

11 the banks, and I’m sure that this person even could not

12 check that.

13 So we had a rather big confidence to the bankers,

14 and just to save time, as long as we always been pressed

15 by the time, so this person is not responsible for us.

16 So I would be quite surprised that it’s him but not

17 Berezin who would be doing this.

18 Q. If you could be shown, please, {D35/558/1}. This is

19 a version of the schedule dated February 2008, which

20 was, again, disclosed by the defendants in these

21 proceedings, Dr Arkhangelsky.

22 A. Yes.

23 Q. This schedule doesn’t have the four Vyborg loans on,

24 because by February 2008, those hadn’t been entered

25 into.

81

1 Can you see that?

2 A. Yes.

3 Q. And then there is an e-mail, can you see:

4 «Can this schedule of debt be updated?»

5 Then Daniil Dubitskiy sends an e-mail back to

6 Mr Parker on 25 September 2008, copying you, attaching

7 the debt schedule, doesn’t he?

8 A. Sorry, who sent — to which e-mail are you referring?

9 Q. At the top of the page.

10 A. Yes.

11 Q. Daniil Dubitskiy sends back a debt schedule?

12 A. Yes.

13 Q. He says:

14 «Keith

15 «Please find attached the updated debt portfolio.»

16 A. Yes.

17 Q. «Please note that Norwood, Petroles and Soyuz companies

18 are not officially affiliated with OMG.»

19 A. Yes.

20 Q. And the document that was sent back is the schedule that

21 I’ve shown you?

22 A. Yes.

23 Q. So, why do you say that that is based upon the Bank’s

24 unreliable records?

25 A. First of all, the first comment, Daniil Dubitskiy, he

83

1 A. Yes.

2 Q. Was this a monthly updating exercise that OMG did, this

3 schedule?

4 A. No, as I said, we have not been doing it on any regular

5 basis, or we haven’t had any regular record on that. So

6 from time to time, it depends on the project we were

7 involved, we were collecting information from the banks,

8 because we had not had persons been doing this on

9 a regular basis. We haven’t had any need for that.

10 Q. If you go back to {D75/1101/1}, please. Could you be

11 shown {D93/1182/2}, please. This is an e-mail from

12 Daniil Dubitskiy.

13 A. Yes.

14 Q. And the footer on his e-mail is «Marine Business

15 Development Manager». Was that his job?

16 A. As I said, he was responsible for marketing and

17 advertising, yes. It depends how he puts it on his

18 signature, nobody really controlled that. So he was 23

19 or 22, something like that, so he was — I think at that

20 time he was either finishing or had not yet finished,

21 even, education.

22 Q. You just said he was your in-house interpreter, a moment

23 ago?

24 A. Yes, he was translating documents, if necessary,

25 communicating. So he was, you know, a specialist, what

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1 you call, paralegal. He was doing everything. Even

2 printing, copying and whatever.

3 Q. So if we go back to {D74/1101/1} —

4 A. And actually, just referring to this e-mail, it shows

5 that he went with a photo to the terminal and he made

6 a photo and he decided to send it to Bromley-Martin, so

7 that was his classical, typical work to be done.

8 MR JUSTICE HILDYARD: He was a sort of dogsbody, was he?

9 A. Sorry?

10 MR JUSTICE HILDYARD: Did everything in the office you

11 wanted him to do?

12 A. You know, he was a first year employee, so what — you

13 do whatever, you know.

14 MR LORD: If you look at this September schedule, this is

15 a document that was disclosed by the defendants, isn’t

16 it, in these proceedings?

17 A. Maybe.

18 Q. Take it from me that this document comes from the

19 defendants’ disclosure.

20 A. Okay.

21 Q. And it was provided to Mr Bromley-Martin to show the OMG

22 group debt as at 25 September 2008, wasn’t it?

23 A. Yes.

24 Q. And your evidence seems to be that it is unreliable

25 because it is based upon the Bank’s records; is that

1 five, seven locations, and definitely in each and every,

2 for example, loan agreement, it would be in one office,

3 and probably guarantees, if any guarantees, they would

4 be in another office. Even technically for this person

5 it is impossible to go, for example, to Vyborg to check

6 the files there, or go to the port there. So we

7 completely relied on the Bank’s information, and we

8 had rather friendly and good relations with them, so for

9 them it was not a problem to produce this information as

10 long as they had something. We hadn’t even had any idea

11 to check this information.

12 MR JUSTICE HILDYARD: So when you were asked whether it was

13 reliable and you said yes, are you saying that you — by

14 «reliable» you meant you had relied on the Bank —

15 A. Yes.

16 MR JUSTICE HILDYARD: — and had no reason not to at that

17 time?

18 A. Yes, absolutely. Absolutely.

19 MR JUSTICE HILDYARD: I see.

20 A. So we had complete confidence to the banks, and probably

21 by my mistake I was absolutely sure that they are

22 friends and not enemies, and I’ve been absolutely open

23 to them and I thought that they would be absolutely

24 clean and open to us.

25 MR LORD: But you are not suggesting, are you,

85 87
1 right? 1 Dr Arkhangelsky, that as at September 25, 2008,
2 A. No, it’s reliable because it’s based on the Bank’s 2 Bank of St Petersburg were conspiring against you, are
3 records, because by that time we have been absolutely 3 you?
4 aware that the Bank are honest and good people. So they 4 A. I don’t know what was their intention, but we discussed
5 would not produce any sham documents. Because in that 5 that many times during previous weeks, I am absolutely
6 particular situation and the previous one, for low-level 6 sure, and actually the Bank was quite clear on that,
7 employees, who were not specialists and who were not 7 I mean that time, that we have our own files, our —
8 aware of all the facts and the history of the case, for 8 I mean OMG group had our own loan files and the Bank,
9 them it was much faster and easier just to call to 9 they were manipulating the reserves in the Central Bank,
10 the Bank and get this information and tell: okay, 10 and the Bank was producing their own in-house documents,
11 everything done in fast and correct way and we don’t 11 and I’ve been told many times by Mrs Volodina, Savelyev,
12 need to check that, because it’s produced by the Bank. 12 Guz, Belykh, Shabalina, and afterwards, Mironova, that
13 MR JUSTICE HILDYARD: I think something has been lost in 13 I should not intervene in their in-house work because
14 translation, Mr Lord. 14 they were telling me many times that they are
15 MR LORD: I’m sure it’s my fault, my Lord. 15 manipulating the reserves and the Central Bank
16 MR JUSTICE HILDYARD: I don’t think so, but — 16 supervision and Central Bank regulation, and if they do
17 Mr Arkhangelsky, was this schedule drawn up by someone 17 their in-house files the way they think it should be,
18 in your office? 18 then it would be less reserves, and loans to OMG group
19 A. Yes, I think so, yes. 19 would be cheaper.
20 MR JUSTICE HILDYARD: And was it based on information given 20 So I’ve been quite reluctant to that, so I thought
21 by the Bank? 21 that they are big boys and they know if it’s a bribe or
22 A. Absolutely. 22 if it’s a corruption with Central Bank by the
23 MR JUSTICE HILDYARD: Yes. 23 Bank of St Petersburg, or it’s any other crime against
24 A. And I can, just for your easy understanding, that we had 24 shareholders, but it was not my case. My case was to
25 offices of each and every company, I think at least in 25 develop my group of the companies and get loans at
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1 a comparatively cheap price. So that’s why I was aware

2 that they are fabricating documents for their own

3 purposes.

4 But as long as I was not a subject to — and I was

5 not involved any how in this, so I kept my eyes closed.

6 Q. Dr Arkhangelsky, your evidence, I think, is that it was

7 your practice not to give personal guarantees; is that

8 right?

9 A. Absolutely.

10 Q. To any bank?

11 A. No.

12 Q. So if you look at this schedule, {D35/558/1} you can see

13 that it schedules various loans that are not from

14 Bank of St Petersburg, doesn’t it? Can you see, for

15 example, the fourth entry?

16 A. Yes.

17 Q. Svyaz-Bank?

18 A. Yes.

19 Q. That’s not connected with Bank of St Petersburg, is it?

20 A. No.

21 Q. Presumably the information on the OMG loan and guarantee

22 with that bank would have come from that bank, wouldn’t

23 it, from Svyaz-Bank?

24 A. Yes.

25 Q. And that has listed you as a guarantor, hasn’t it?

1 with the office in St Petersburg, and I assume that they

2 were not probably forming reserves at the level of

3 St Petersburg.

4 Q. And entry number 6, Morskoy Bank.

5 A. Yes.

6 Q. That also lists you as a guarantor, doesn’t it?

7 A. Morskoy Bank is a very small bank and I think they just

8 recently bankrupted, as far as I understood. It’s quite

9 normal practice and you had better ask experts from

10 the — banking experts, that most of the banks are

11 manipulating the reserves, and probably in different

12 volumes, but manipulating.

13 Q. And is it your evidence that OMG did not itself keep any

14 records of the loan agreements and guarantees it entered

15 into?

16 A. No, because we hadn’t had any — we have been developing

17 so fast, so we were growing, let’s say, most big growth

18 came in 2008, actually, in fact. We were employing

19 quite a number of people and so on, and new directors

20 came in; directors of different, independent companies

21 came in 2008. So we hadn’t had any routine by that time

22 yet.

23 So we hadn’t had any need for that, so banks had

24 very big offices and they had a lot of employees, so

25 they’ve been doing most of this work for ourselves, so

89 91

1 A. Yes.

2 Q. So is it right that you did give a guarantee?

3 A. No.

4 Q. So how do you explain the —

5 A. It’s the same explanation. So, all the big banks, they

6 are playing with reserves and that’s their game. So the

7 less — the more secure — to the more secured loan, the

8 lower reserves and the cheaper funding for the Bank. So

9 it’s only cost calculation.

10 Q. So are you saying that this Svyaz-Bank would have, what,

11 told somebody at OMG that you had given a guarantee for

12 the purposes of this schedule, when that wasn’t the

13 case?

14 A. I don’t know who told what and to whom, so I don’t know.

15 I see the table and what I can assume from that table

16 that other bank been also playing with reserves, which

17 is quite a standard thing, and which Mrs Volodina told

18 us on her cross-examination.

19 What I can see from this table, that V-Bank, or

20 Vozrozhdenie Bank, they are much more reliable and solid

21 people, and I think at that time they were even bigger

22 than Bank of St Petersburg or others, so I think they

23 have been more honest and they have not been playing

24 dirty games like with the Central Bank. At least not at

25 the level of St Petersburg, because we have been working

1 they have been reminding how much and when we have to

2 pay, and so on, making a different analysis of our

3 turnover, and so on, and profitability.

4 So we were considering banks as quite reliable

5 sources, and employ a few more people at different

6 companies. You know, it was, even technically,

7 difficult, because we were growing so fast that we could

8 not get that much stuff in the short while.

9 Q. But you must have had some internal records of the loans

10 and guarantees, so that OMG would know how much interest

11 to pay and how to account, surely?

12 A. As I said, information been distributed among different

13 accountant offices and different directors’ offices and

14 so on. So it was not the place that we were collecting

15 each and every file in the same, let’s say, office or

16 the same company or whatever, because for some companies

17 we had — like, for example, Vyborg Port. They are

18 located 120 kilometres outside and they have their own

19 accounting office and all the documents are collected

20 there and they are reporting to the local tax

21 authorities.

22 For some companies we had joint accountants, like,

23 for example, three or four accountants could be

24 producing accountant documents for five or ten

25 companies, like just to save costs.

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1 But at the same time, the director was sitting in

2 a different place and so we haven’t had any — you know,

3 we were not really aware how important it would become,

4 all these litigations with the Bank would become in five

5 or seven years, and we were not even thinking that we

6 would need of doing this.

7 MR LORD: My Lord, I see the time. Would that be

8 a convenient time to break?

9 MR JUSTICE HILDYARD: Yes, and we will come back at 2.10 pm.

10 I remain anxious about the exchange I interrupted.

11 I will need guidance on that. I think — I don’t know

12 when to do that, perhaps at the end of the day. I would

13 quite like to see the exchange in writing and on the

14 screen, and I would like to know what powers I have to

15 excise and prevent publicity of it, because I don’t

16 think that some of it was appropriate.

17 I will take assistance from you on that.

18 A. My Lord, just a small comment, that I have given to your

19 clerk signed affidavits from me and my wife, and my wife

20 really made an impossible thing yesterday and we got

21 missing statements on the Bank accounts, so everything

22 now is in order.

23 I contacted accountants of CoFrance, so they are

24 coming back from vacation on Tuesday next week, and they

25 promised to try to do it fast way. So I hope it might

93

1 be, my wife coming next week for the hearing, she may be

2 able to bring accounts in any way available by middle of

3 next week.

4 MR JUSTICE HILDYARD: Thank you. Yes. We will deal with

5 those other matters at some subsequent time too. Thank

6 you for informing me.

7 (1.11 pm)

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1 [REDACTED]
2
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4 (Hearing in open court)

5 MR LORD: Dr Arkhangelsky, I was asking about the OMG debt

6 schedule; do you remember?

7 A. Yes.

8 Q. And I think, looking at the metadata for the February

9 schedule, it appears that that was produced, or the

10 author of that was a Mr Sazonov?

11 A. Maybe.

12 Q. Can you tell his Lordship who Mr Sazonov is, please?

13 A. He was one of the employees in the group and I think he

14 left in, I’m not sure, May, or April 2008, something

15 like that.

16 Q. And what was his role within the group?

17 A. He was a specialist on financing.

18 Q. Wasn’t he the deputy CEO?

19 A. I don’t remember his position.

20 Q. Could we have up, please, {D33/530/7}.

21 These are CVs of various OMG —

22 A. Yes, and Oslo Marine Invest was the company created for

23 bonds issue, or euro bonds, or any other financial

24 instruments. So it was an empty company created just

25 for potential external financing through the equities,

1 and he was a deputy director as long as I was a general

2 director, and I think there were two persons working for

3 this company: me and him.

4 Q. But if you look at the foot of the page, it says that

5 Mr Sazonov was appointed the deputy director of Oslo

6 Marine Holding. Is that right; was he the deputy

7 director of the holding company?

8 A. As such, we haven’t had any structure or any employees,

9 so he was considered to be one of the key persons for

10 attracting financing, yes.

11 Q. So he was somebody who would have been likely to have

12 done that schedule carefully, wouldn’t he?

13 A. I’m not sure, because he wasn’t a technical specialist,

14 so his general target was to meet the top executives of

15 the banks on my behalf, and I think in this quality he

16 met Mr Smirnov, Malysheva, and others. So I am nearly

17 sure that he was not doing any technical work, as long

18 as he was — his task was to represent and replace me on

19 the meetings with investors.

20 Q. I’m going to ask you about the first Onega loan and the

21 guarantees given to secure that, if I may. Could we

22 please have {D13/301/1}.

23 Do you see that, Dr Arkhangelsky?

24 A. Yes.

25 Q. This is the first Onega loan agreement, dated

115

1 30 June 2006, isn’t it?

2 A. Yes.

3 Q. And that’s a loan agreement that you signed, didn’t you,

4 on behalf of Onega?

5 A. Yes.

6 Q. And you don’t challenge the authenticity of this loan

7 agreement, do you?

8 A. No.

9 Q. And can you see on that page, under 2.5.1 —

10 A. 2.5.1?

11 Q. 2.5, there is the list, isn’t there, of the security?

12 A. Yes.

13 Q. 2.5.1: mortgage of real estate?

14 A. Yes.

15 Q. 2.5.2: guarantee of LLC SO Scandinavia?

16 A. Yes.

17 Q. That’s a reference to Scandinavia Insurance, isn’t it?

18 A. I think so.

19 Q. So that looks like it’s a reference to a Scan guarantee,

20 doesn’t it?

21 A. Maybe.

22 Q. Why do you say «maybe»?

23 A. It is a rather poor translation, but I assume it’s like

24 this, yes.

25 Q. Do you want to see the Russian, to see if that’s the

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1 right translation? That’s at {D13/301/9}.

2 A. Yes, it’s better.

3 Q. And that refers —

4 MR JUSTICE HILDYARD: Is it to the same effect,

5 Mr Arkhangelsky?

6 A. Sorry?

7 MR JUSTICE HILDYARD: Do you think that the English

8 translation sufficiently captures your view of

9 the Russian?

10 A. Yes, it could be accepted, considering that it is much

11 better than a lot of documents they produced.

12 MR LORD: And 2.5.3 refers to a guarantee by LK Scandinavia,

13 doesn’t it?

14 A. Yes.

15 Q. And 2.5.4 refers to a guarantee by LPK Scan, doesn’t it?

16 A. It’s written investment company Scandinavia, yes.

17 Q. So it’s a «yes», is it?

18 A. Sorry?

19 Q. Is it «yes», in answer to the question?

20 A. So it’s referring to investment company Scandinavia.

21 Q. That became known as LPK Scan, didn’t it?

22 A. Most probably, yes, but here it is referring to

23 investment company Scandinavia.

24 Q. Then in 2.5.5 there is a reference, isn’t there, to

25 a guarantee being given by you personally?

1 mentioned here; or it would take a much longer time to

2 renegotiate and so on, and as I have always been meeting

3 Mr Savelyev, he’s always been telling that he needs all

4 of these for the reserving purposes, but our agreement

5 that I don’t issue the personal guarantees as well, it’s

6 forever.

7 Q. You have not given that explanation before, have you,

8 Dr Arkhangelsky, about reserves? About the Bank just

9 putting in this provision to help it on its reserve

10 calculation? It is the first time you have said that,

11 isn’t it?

12 A. I don’t remember, but it is like this.

13 Q. Because in your witness statement, which I took you to

14 this morning, where you said that you signed a large

15 pile of documents every day, you didn’t make any

16 reference to this being a possible explanation, did you?

17 A. I don’t understand your question.

18 Q. Well, it’s the first time that you have suggested that

19 the reference to guarantees is simply something that the

20 Bank wanted for its own internal reserve purposes, as

21 opposed to wanting you to enter into the guarantees

22 themselves?

23 A. I’ve never been entering into any guarantees. I know

24 that they have been using this for the purposes of their

25 reserving; they’ve been doing some artificial and

117

1 A. Yes.

2 Q. Dated 30 June 2006?

3 A. Yes.

4 Q. When you signed this loan agreement, you must have seen

5 the reference to those guarantees, didn’t you?

6 A. Yes.

7 Q. Including that guarantees would be given by Scan

8 Insurance and by you?

9 A. Yes.

10 Q. So why did you think that you wouldn’t be required, or

11 that those guarantees would not be necessary?

12 A. Because as you know on the Russian law, in a two-party

13 agreement, you cannot refer to, whatever, five, six,

14 seven extra third parties, so either it has to be

15 a multi-party agreement, or it has to be — or the

16 validity of all these references are not valid.

17 So what I have been told by the Bank is that these,

18 they require for the purpose of reserving, and if it’s

19 mentioned in one document, then they can make reserves

20 in the volume they need and they want.

21 And they have also always been telling me that these

22 type of the contracts have been agreed by the board of

23 the Bank and not any changes to be implemented. So

24 either I sign this document and take it as it is, and

25 then I don’t need to sign any agreements which are

119

1 whatever work they’ve done.

2 I don’t know details how they did it and what for

3 and how and when, but I know that some contracts,

4 agreements, they could produce internally for the

5 purposes of reserves, and they’ve always been quite

6 optimistic and they’ve always been quite proud that they

7 play games with the Central Banks and reduce seriously

8 reserves.

9 Q. But they would need, wouldn’t they, to have the

10 guarantees in place for that purpose?

11 A. I don’t know if they do it artificially. It depends on

12 their relations with the supervisory authorities. So

13 I have not been deep in how they do it and it’s not

14 absolutely my case, so I am not really interested how

15 they have been bribing Central Bank.

16 Q. Could you please be shown {D50/872/0.1}. The Russian is

17 at {D50/872/1}. This is a copy of an authorisation on

18 behalf of Scandinavia Insurance to an amendment to

19 the Scan guarantee, isn’t it, in relation to Onega?

20 A. Yes, maybe.

21 Q. And it seems to have been signed by you, doesn’t it?

22 A. Yes. I don’t see it signed, but if you say so, yes.

23 Q. On page {D50/872/2}, do you see that in the middle of

24 the page?

25 A. Yes, I think so. It looks like my signature but, again,

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1 I am not sure if it is mine or similar to mine.

2 Q. And you have not challenged this document before, have

3 you?

4 A. I don’t remember. I cannot remember all the documents,

5 and I don’t remember I signed these documents.

6 Q. So are you suggesting that the Bank has forged this

7 document?

8 A. Oh, they can easily do this, yes. And, you know, it’s

9 a classical way of forging documents in Russia, that

10 then you put the stamp on the signature. Experts never

11 ever can make a judgement if it’s an original signature

12 or not.

13 Q. Could you be shown {D13/270/0.1}, please. The Russian

14 is at {D13/270/1}. This is what’s known as a direct

15 debit agreement in relation to a guarantee, isn’t it,

16 Dr Arkhangelsky?

17 A. Yes.

18 Q. And it involves Scandinavia Insurance, doesn’t it?

19 A. Yes.

20 Q. And Bank of St Petersburg?

21 A. Yes.

22 Q. And Scandinavia Insurance’s bank, or one of its bank,

23 Vozrozhdenie Bank, doesn’t it?

24 A. Yes.

25 Q. And this is an agreement, isn’t it, by

1 Scandinavia Insurance?

2 A. Yes.

3 Q. And this time it involves another of their banks,

4 Promsvyazbank Joint-Stock Commercial Bank?

5 A. Yes.

6 Q. And if you go, please, in the Russian to {D14/330/2},

7 again, you can see that it looks as if the seal of that

8 bank has been applied to this document?

9 A. Yes.

10 Q. You are not suggesting, are you, that

11 Bank of St Petersburg forged or fabricated that seal on

12 this document?

13 A. I don’t know.

14 Q. Could you be shown {D14/332/0.1}, please, which is

15 another direct debit agreement in relation to the first

16 Onega loan, again by Scandinavia Insurance, and this

17 time the Bank involved is a bank called City Invest Bank

18 Closed Joint-Stock Company, St Petersburg. Do you see

19 that?

20 A. Yes.

21 Q. The same point, {D14/332/2}, the corporate seal of City

22 Invest Bank seems to have been attached to this

23 document, doesn’t it?

24 A. Yes.

25 Q. And you appear to have signed this document, don’t you?

121

1 Scandinavia Insurance —

2 A. Yes.

3 Q. — which allows various amounts to be debited from its

4 account with the Bank —

5 A. Yes.

6 Q. — in certain circumstances?

7 A. Yes.

8 Q. And if you go to the Russian at {D13/270/1} and go over

9 the page to {D13/270/2}, you can see that there appear

10 to be three different corporate seals; do you see that?

11 A. Yes.

12 Q. And the one in the middle is that of V-Bank, isn’t it?

13 A. Yes.

14 Q. You are not suggesting, are you, that

15 Bank of St Petersburg has somehow forged the seal of

16 the Bank, are you?

17 A. I don’t know. I cannot reply on that.

18 Q. It’s not very likely, is it?

19 A. I don’t know.

20 Q. Please could you be shown {D14/330/0.1}. The Russian is

21 at {D14/330/1}, so it is 0.1 and 1.

22 Dr Arkhangelsky, this is another example of a direct

23 debit agreement in relation to the Onega loan, isn’t it?

24 A. Yes.

25 Q. And it’s another direct debit agreement involving

123

1 A. Maybe.

2 Q. So you accept that that may be your signature?

3 A. It might be, yes, I don’t know.

4 Q. And you would be signing this direct debit agreement in

5 order to authorise deductions from this bank account,

6 effectively out of Scan Insurance’s bank account,

7 wouldn’t you?

8 A. I don’t remember this particular document, but it might

9 be the case that among thousands of documents which

10 I signed for the Bank of St Petersburg, considering the

11 necessity to have documents for the Central Bank

12 regulation and the reserves, I could have signed that,

13 considering the fact that it doesn’t have any real

14 obligations on me; it doesn’t imply any obligations on

15 myself or my companies.

16 Q. But it does, doesn’t it? You are signing on behalf of

17 Scan Insurance. You are signing a right for various

18 deductions to be made from a Scan Insurance bank

19 account, aren’t you?

20 A. Yes, but I can’t see any problems, because all these

21 bank accounts, they’ve never been in operation, so it

22 was empty accounts and I couldn’t see any problems or

23 difficulties. And I was absolutely aware that, even if

24 I signed such document, it would not have been really

25 working.

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1 Q. Each of these three documents refers to the Scan

2 guarantee, doesn’t it?

3 A. Maybe, yes.

4 Q. But when you signed these documents, were you not

5 concerned that you appeared to be signing a document

6 referring to a guarantee that, on your case, had never

7 been entered into?

8 A. No.

9 Q. You were not concerned?

10 A. No, because I’ve been asked by the Bank that they need

11 such documents and they need such things to be formally

12 done, even if the guarantee is not existing.

13 Q. Why would the Bank need a direct debit agreement

14 executed if, in fact, they were never going to —

15 A. Because it’s the easiest point to check for the

16 Central Bank.

17 Q. Is your evidence that you weren’t concerned about

18 signing these direct debit agreements?

19 A. Direct debit agreements, no, because I was absolutely

20 aware that it doesn’t have any influences or any

21 consequences afterwards. Especially on accounts which

22 have never been in operation.

23 Q. So you were comforted by the fact that there would never

24 be any money in these accounts which could then be

25 debited?

1 loan would be cheaper for me?

2 Q. And who told you that?

3 A. Everybody. Especially — my major key contacts were

4 Mr Savelyev, Mr Guz, Mr Belykh, Shabalina, and at the

5 end it was Platonov and Mironova.

6 But the major person who was playing with the

7 reserves was Volodina, and she was deep in all these

8 details.

9 Q. Could you be shown, please, {D13/305/1}; and the Russian

10 is at {D13/305/2}. This is a spousal consent given by

11 your wife, signalling her agreement to a personal

12 guarantee given by you; that’s right, isn’t it?

13 A. Yes, most probably.

14 Q. And it relates to the first Onega loan, doesn’t it?

15 A. Maybe, yes.

16 Q. Well, it does. Number 133/06, dated 30 June 2006.

17 A. Yes.

18 Q. Mr Radley — can we have Mr Radley’s report, please, at

19 {E1/6/28}. At paragraphs 88 and 89, Mr Radley has

20 looked at the signature on document A12. And so you

21 know which one A12 is, if you go back to {E1/6/5}, you

22 can see that he is referring to a consent by

23 Mrs Arkhangelskaya to contract of guarantee

24 number 113/06, 30 June 2006; can you see that?

25 A. No, what should I see?

125 127
1 A. No, theoretically they could be, but, you know, the 1 Q. At the top of the page, A12.
2 rule, if they needed such agreements, formally it had to 2 A. A12, yes.
3 be done on all accounts the company has. So I couldn’t 3 Q. So the document A12 is the spousal consent that I have
4 see any difficulty to sign that, and that could be 4 just shown you at {D13/305/1}.
5 easily traced by the Central Bank, even if they can 5 A. Okay.
6 bribe — if the Bank of St Petersburg can bribe 6 Q. And Mr Radley, at {E1/6/28}, says:
7 Central Bank, but having any enquiries to these banks 7 «A12 [that’s the document] shows a freely and
8 would create trouble for them. 8 spontaneously executed signature which corresponds well
9 So I couldn’t see any difficulties for myself to 9 with the comparison signatures presented. I find no
10 signing that, if the Bank of St Petersburg was asking me 10 significant differences of note.
11 to do so. 11 «Such is the number and nature of similarities and
12 Q. So is your evidence that you think you may have signed 12 absence of significant differences, I am of the opinion
13 these guarantees, but you thought the Bank would never 13 there is very strong evidence to support the proposition
14 enforce them; is that what you are saying? 14 that the signature on A12 was written by
15 A. Sorry, can you repeat? 15 Julia Arkhangelskaya. I consider the possibility that
16 Q. Is your evidence now that you think that you may well 16 this is a copy of her genuine signature style to be
17 have signed these guarantee documents — 17 highly unlikely.»
18 A. I never signed guarantee documents. You are probably 18 Do you see that?
19 referring to these three-party agreements, or — these 19 A. Yes.
20 three-party agreements I could sign, yes, because 20 Q. So if Mr Radley is right, this spousal consent was
21 I couldn’t see any difficulties. 21 signed by your wife?
22 Q. Even though they referred to a Scan guarantee? 22 A. I don’t know. Ask her.
23 A. Yes, if they are referring to the documents which is not 23 Q. But if that’s right, can you come up with any
24 existing, what is the problem of signing that, if the 24 explanation for why your wife would sign a document,
25 Bank asks me to do so and if the Bank tells me that my 25 unless she thought that you had given a personal
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1 guarantee —

2 A. I don’t know.

3 Q. — that needed her consent?

4 A. I don’t know, you had better ask her. And I would not

5 suggest that it’s her signature there.

6 Q. So is your evidence — so I can be clear, is it that you

7 are not saying any longer that these are forged

8 agreements; you are saying that you entered into them

9 but you were assured that the Bank wouldn’t ever really

10 call upon them? Is that —

11 A. Which particular agreements are you saying?

12 Q. The —

13 A. Three-party agreements with the Bank, it might be that

14 I was signing these, yes. I cannot see any difficulty

15 in signing these. Subject that if it’s my signature

16 confirmed by the experts.

17 Q. But it wouldn’t be any use to the Bank, would it, to

18 have you just sign a direct debit agreement if they

19 hadn’t also got you to sign the relevant guarantee?

20 A. No, why not? If they have a list of securities they put

21 for when they calculate reserves, and the more points

22 they stick, they consider the better file is reserved.

23 Q. Can you be shown, please, {D13/302/1}. That’s a copy of

24 a Scan guarantee for the first Onega loan, and the

25 Russian is at {D13/302/3}, and going on to {D13/302/4}.

1 personal guarantee in relation to the first Onega loan.

2 A. It’s a question?

3 Q. Yes.

4 A. I assume not.

5 Q. Can I look at the first Vyborg loan, please. Could you

6 be shown the debt schedule at {D74/1101/1}, and then go

7 on to {D74/1101/2}. Can you see that?

8 A. So what should I see?

9 Q. Page 2. Entry number 18 on page 2, that’s a reference

10 to the first Vyborg loan, isn’t it?

11 A. Yes.

12 Q. And in the column marked «Guarantees» —

13 A. Yes.

14 Q. — there is a reference to Scandinavia Insurance, isn’t

15 there, and to you?

16 A. Yes.

17 Q. And I suggest that this schedule of OMG group accurately

18 records the fact that guarantees were given by

19 Scandinavia Insurance and by you —

20 A. No, I don’t think so. I don’t think so.

21 Q. — to secure the first Vyborg loan?

22 A. As I explained to you before earlier today that these

23 documents have been compilated based on the information

24 provided by the banks.

25 Q. Can you be shown, please, the first Vyborg loan,

129

1 Does that look like your signature there,

2 Mr Arkhangelsky?

3 A. Maybe, it’s a very bad quality of the document.

4 Q. And I suggest to you that you did sign this guarantee.

5 A. I don’t remember. I assume not.

6 Q. But you might have done?

7 A. I don’t know. Most probably not.

8 Q. Can you be shown, please, {D13/304/1}, which is the

9 personal guarantee in relation to the first Onega loan.

10 The Russian is at {D13/304/3} going on to {D13/304/4}.

11 At {D13/304/4}, Dr Arkhangelsky, we see your

12 signature, don’t we?

13 A. It’s rather bad quality of the document, and I cannot

14 recognise if it’s mine or not. I assume that I would

15 not be signing this document.

16 Q. But you accept that it might be your signature?

17 A. I’m not really sure. I would suggest to use expert

18 opinion on that.

19 Q. And is it your evidence that nobody else was ever

20 authorised to sign on your behalf?

21 A. No.

22 Q. So it would either be your signature or something done

23 without your authority?

24 A. Absolutely.

25 Q. I suggest, Dr Arkhangelsky, that you did sign that

131

1 {D34/553/1}. The Russian is at {D38/642/1}.

2 MR JUSTICE HILDYARD: D38?

3 MR LORD: Yes, my fault, {D38/642/1} I’m sorry.

4 A. I would like to see that in the Russian language because

5 it is, again, bad quality of document.

6 Q. The Russian is at {D38/642/8}.

7 A. I’m sorry, your Lordship, can we have a five minutes’

8 break, please?

9 MR JUSTICE HILDYARD: Yes.

10 A. And continue afterwards?

11 (3.14 pm)

12 (A short break)

13 (3.24 pm)

14 MR LORD: Can we please have page 117 up on the screen from

15 today’s [draft] transcript. {Day11/117:1} and could you

16 scroll back to the previous page {Day11/116:22} to have

17 the — thank you.

18 Dr Arkhangelsky, when I was asking some questions

19 about the entering into of these guarantees this

20 afternoon, you said at line 22:

21 «Answer: I don’t know if they do it artificially.

22 It depends on their relations with the supervisory

23 authorities. So I have not been deep in how they do it

24 and it’s not absolutely my case, so I am not really

25 interested how they have been bribing Central Bank.»

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1 Do you want to reconsider that answer?

2 A. No.

3 Q. So you are alleging, are you, that Bank of St Petersburg

4 has been bribing the Russian Central Bank?

5 A. I think so.

6 Q. And what’s your basis for saying that?

7 A. Knowledge. Knowledge. My knowledge.

8 Q. What does that mean?

9 A. I mean that they were manipulating with the accounting

10 and reserving, and that’s why, in proper supervising and

11 proper valuation of the Bank of St Petersburg by the

12 Central Bank, it couldn’t work like this.

13 Q. So you are saying that Bank of St Petersburg and the

14 Russian Central Bank were colluding to fiddle the

15 reserves, the Bank of St Petersburg reserves?

16 A. Of course. I think the volumes of Bank’s troubles and

17 the Bank’s operations would be absolutely clear for the

18 specialists from the Central Bank. It is absolutely

19 obvious.

20 Q. Dr Arkhangelsky, I put to you that there is absolutely

21 no basis for that allegation at all.

22 A. My opinion that this is absolutely true.

23 Q. Could you be shown, please, page 123 of today’s [draft]

24 transcript. Actually, go to 122 first, please,

25 page 122. I was asking you about the direct debit

1 Bank. They created artificial documents to change the

2 level of reserving and change the category of reserves

3 of the loans.

4 Q. So you are really basing this allegation of bribery on

5 the fact that you don’t accept that these guarantees

6 were given?

7 A. No, I am basing that on the information I got, specially

8 from Mrs Volodina, from Savelyev, from Guz and others,

9 so they were openly telling that, and it is was a part

10 of our agreement that, let’s say, in other banks of

11 the same category as Bank of St Petersburg, for example

12 if you have an interest rate of 14 per cent, then they

13 were giving to me, for example, at 12 per cent,

14 considering that they were putting my loans into the

15 different category of reserving.

16 So each and every rouble spent on the reserves is

17 considered to be bank costs. The less reserves they

18 produce, the cheaper money for the Bank is.

19 Q. Dr Arkhangelsky, you have been making allegations of

20 forged documents by Bank of St Petersburg for several

21 years now, haven’t you?

22 A. Yes. For seven years.

23 Q. And you have given lots of statements and affidavits in

24 which you have made that allegation?

25 A. Absolutely, and I am still confirming that allegations.

133

1 agreements, and you said this at line 16:

2 «Answer: … So I couldn’t see any difficulty to

3 sign that, and that could be easily traced by the

4 Central Bank, even if they can bribe — if the Bank of

5 St Petersburg can bribe Central Bank, but having any

6 enquiries to these banks would create trouble for them.»

7 A. Absolutely.

8 Q. So you are alleging that Bank of St Petersburg would

9 bribe the Russian Central Bank?

10 A. Absolutely.

11 Q. What do you mean by «bribe»?

12 A. Each and every Russian bank is supervised by the

13 Central Bank on a daily basis, so the amount of reserves

14 and the proper reservation is the key issue for the

15 control from the Central Bank, and the fact that they

16 are not having sufficient reserves, that the balance

17 sheet of the Bank of St Petersburg having huge holes,

18 this could not be neglected, and any specialist would

19 easily see unproper reservation of reserves.

20 Q. But do you have any actual basis for that? Can you

21 actually identify any particular issue or instance of

22 this happening?

23 A. Yes, of course. The reason is that they were creating

24 documents which were not, in fact, existing in

25 the cooperation between my group of companies and the

135

1 Q. And you have given two witness statements in these

2 proceedings, haven’t you?

3 A. I don’t remember how many, but — I think even more

4 because there were more proceedings in Nice, and they

5 are still ongoing, and the criminal case against the

6 Bank is still going on and I think it would be solved

7 quite soon.

8 Q. You have given a 16th and 19th witness statement in

9 these proceedings, which you confirmed as true today,

10 didn’t you?

11 A. Of course.

12 Q. I don’t think you have ever suggested that

13 Bank of St Petersburg was bribing the Russian

14 Central Bank in relation to reserves before today; would

15 that be right?

16 A. It is a well known fact for the Russian banking

17 community, so I assume that it was — it’s not part of

18 my case and I don’t really want to be involved in any

19 discussions between the Bank of St Petersburg and the

20 Central Bank, considering quite high level of corruption

21 in Russia on different levels and different companies.

22 I don’t care about that because I am living in France

23 for seven years and I don’t — I would never, ever

24 return back to Russia and I am not really concerned

25 about any third party cases with Russian authorities.

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1 So it’s not my job.

2 MR JUSTICE HILDYARD: Can I clarify, because I worry about

3 language: when you say «bribed», that the

4 Bank of St Petersburg bribed the Russian banking

5 regulator, do you mean that there was collusion between

6 them so that they both, knowing the true facts, agreed

7 together that the facts should, as between them, be

8 different; or do you mean a unilateral misleading;

9 that’s to say, do you mean that you allege that

10 Bank of St Petersburg misled the regulator, or

11 Central Bank, by presenting its security documentation

12 and the like as other than truly it was?

13 A. I should say both. First, each and every bank having,

14 let’s say, daily supervisor from the Central Bank, so

15 the person who is controlling the documents and so on.

16 So, absolutely sure that the person who is controlling

17 the Bank on a daily basis is — have to be corrupted;

18 otherwise, you know, for specialists it’s not

19 a difficulty to check of the real status. So everything

20 is quite obvious.

21 But, you know, Central Bank is a rather huge

22 organisation, and from time to time you have different

23 inspections and so on. So formally, on the papers

24 inside the Bank, everything should look rather clean and

25 good. Otherwise you have to pay so huge bribes so that

1 documents, you may see that at least several different

2 people on different occasions signed the documents. So

3 from my point of view, the only explanation that they

4 were creating different artificial documents for

5 different purposes at different time.

6 MR LORD: Dr Arkhangelsky, it is right, isn’t it, that you

7 have not made this allegation before today?

8 A. Most probably not. As I said, I have not been

9 re-reading witness statements, so I haven’t been

10 especially preparing for today, but I am just not

11 experienced in English proceedings and I just — after

12 analysing documents and hearing the Bank’s witnesses,

13 I only come to all these conclusions that it’s important

14 for the court.

15 Q. So is it right that having learned that Ms Volodina

16 referred to reserves, you thought to make this

17 allegation that the forgery that you allege was based

18 upon the issue of reserves for —

19 A. No, Volodina, in spite of what she was telling on the

20 cross-examination, we had a very friendly relation. So

21 I’ve been visiting her office frequently, drinking tea

22 and chocolate in her office. So we’ve been discussing

23 it, all these resource issues for hours and hours. My

24 position was, and is, that my only target was to get

25 loans from the banks at conditions which were

137 139
1 you cannot afford. So you are losing the sense of doing 1 comfortable for me and for my companies, and the Bank
2 this. 2 reserving, or any funding of the Bank, it was
3 So I am absolutely sure that at the level of the 3 an internal case for the Bank.
4 daily supervisory, they pay money on a daily basis. In 4 As long and as much as I could be cooperative with
5 Russia, it’s quite normal that they employ relatives or 5 them, I was like this, because in return I was receiving
6 friends or so on, or give loans, low interest loans, and 6 more attractive loans and more attractive conditions.
7 so on. 7 Q. So on that case, you accept that you would have signed
8 But generally, because people are changing, there 8 these documents, because you were essentially going
9 are quite a number of different situations in each and 9 along with what the Bank was doing with its reserves?
10 every life, so generally files have to be kept rather 10 A. I would never, ever sign any personal guarantees and
11 well, and generally looking, it has to be like 11 guarantees of my companies because it is senseless,
12 everything is in order. On one side. 12 first of all, such documents like a three-party
13 On another side, as Mrs Volodina described quite 13 agreement or any board decisions that I could sign,
14 good in her cross-examination, that at the end of 2008, 14 because it had not had any legal consequences out of
15 the beginning of 2009, the Bank was obtaining quite 15 that.
16 a number of rather large collateral loans from the 16 One of the key issues which I want to stress, just
17 Central Bank, from Vneshsconombank and so on. So it 17 to avoid any further insinuations, that, for example, in
18 means that these funds, they were coming from absolutely 18 2007, the company MKD made an IFRS accounting and there
19 different entities and departments, and then, even for 19 were not any third party obligations in that accounting,
20 them they needed to have proper loan files. 20 as well as in all accounting of each and every
21 So I should say, and I — it’s absolutely obvious 21 independent company whom you claim had a guarantee, you
22 for me that they were creating all these artificial 22 cannot find any guarantees on their balance sheet. And
23 documents for many, many different reasons, and for 23 this is rather strongly controlled by the — first of
24 different purposes. And the fact that on documents 24 all, by the Bank, because it is — for me, it looks
25 which you claim have been signed by me, on all these 25 a bit strange that if the Bank of St Petersburg got
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1 a real guarantee from Insurance Company Scandinavia, and

2 then the Bank of St Petersburg on quarterly, or even

3 sometimes monthly basis, monitoring balance sheet of

4 Insurance Company Scandinavia, and if the

5 Bank of St Petersburg at some stage would not find this

6 guarantee there, then it would create troubles, if it’s

7 a real guarantee.

8 But the fact is that none of independent our

9 companies, none of them issued any corporate guarantees

10 because the major confirmation is that it has not been

11 shown on the balance sheets, and the balance sheets are

12 being controlled on a regular basis by the

13 Bank of St Petersburg.

14 So I am confirming once again the fact that none of

15 the independent companies never issued any corporate

16 guarantees. The same relates to me and my family.

17 Q. Could you please look at your 16th witness statement at

18 paragraph 234 at {C1/1/59}.

19 At paragraph 234 you say this — well, you are

20 dealing with the claim by the Bank to enforce the

21 personal guarantees and personal loan. You say you

22 have:

23 «… no memory … of entering into or signing any

24 of these guarantees, or the personal loan…»

25 And you say:

1 I did in fact sign the documents…»

2 Do you see that?

3 A. Yes, by mistake I could sign some of the documents, for

4 sure.

5 Q. Then over the page —

6 A. But what we heard on cross-examination of Blinova

7 recently, that the Bank indeed produced the different

8 files which are forged, and she confirmed that and she

9 also told us who directed her to do so.

10 So I think I thought too good about the Bank, but

11 now I really recognise that they forged so much

12 documents, and they do have resources and they do have

13 ability to do that.

14 Q. So it is something that’s occurred to you recently,

15 after hearing the Bank’s witnesses; is that right?

16 A. No, I’ve always been aware of this, but I was thinking,

17 you know, that the Bank is probably too lazy to produce

18 so many forged documents, but in fact, they are not. So

19 they made a good job, a big job.

20 Q. And all the people who were involved in that process

21 acting for the Bank, they would have been acting

22 dishonestly, would they?

23 A. I don’t know. I cannot give any judgement, so it’s the

24 court who decides.

25 Q. And you gave some evidence today about having

141 143

1 «Until recently, I was sure that none of them could

2 be genuine. The reasons for this were as follows:»

3 And then if you go over the page — if you have the

4 hard copy you can turn over the pages more easily —

5 {C1/1/60}, {C1/1/61}, and then {C1/1/62}, nowhere in any

6 of those pages do you give us a basis for your forgery

7 allegation, the matters that you have explained today.

8 Can you say why, in a section of your witness

9 evidence for this trial spanning three pages, there is

10 no reference to this question of bribing the Russian

11 Central Bank in relation to reserves?

12 A. Because I was considering that it’s already too much

13 information everywhere and, you know, I didn’t want to

14 expand the case because I think that the case of

15 the raid by the Bank to me is quite obvious, and I think

16 that’s — just not to waste court’s time.

17 Q. Because if you look at paragraph 236 at {C1/1/62}, you

18 refer to your attention being:

19 «… drawn to a number of disclosed documents which

20 refer to my having given or agreed to give guarantees to

21 the Bank. I have no recollection of signing any of

22 these documents either, but realistically, I recognise

23 that the Bank is unlikely to have forged such a large

24 number of documents merely in order to contextualise the

25 original forged guarantees, and that it is possible that

1 conversations with various people at the bank, like

2 Mr Savelyev and Mr Guz.

3 A. Yes.

4 Q. Again —

5 A. I had very good relations with them. We had a lot of

6 meetings, we had a lot of discussions, we spent a lot of

7 time. I’ve been a very big client of them and they have

8 been happy to share my opinions and their situation.

9 Q. Page 123, please, of today’s [draft] transcript.

10 At lines 16 to 23 of the [draft] transcript, you

11 give a response to my answer about who at the bank told

12 you about this practice in relation to the guarantees

13 you are talking about; can you see that?

14 A. Yes.

15 Q. And you say: everybody?

16 A. Yes.

17 Q. Mr Savelyev, Mr Guz, Ms Shabalina?

18 A. Yes. Yes.

19 Q. And Ms Volodina?

20 A. Yes, they are top executives of the Bank and they are

21 a good team of people who had to sign all these

22 documents. So all of them had to be involved in all

23 these things.

24 Q. And, again, you haven’t alleged before, have you, that

25 you had a conversation with all these people at

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1 Bank of St Petersburg about these matters? 1 right?
2 A. No, I had — 2 A. I should say like this: that I left the country, Russia,
3 Q. It’s the first time you have alleged — 3 6th or, whatever, 3rd June 2009, so I left the country
4 A. — I had a lot of conversation with most of people I met 4 in rather a strange situation there. I had been under
5 on a weekly or monthly basis, so I’ve been discussing 5 the risk of arrest and personal threat. So everybody’s
6 many different things, starting from their kids, 6 seen and everybody — I mean in my office, all the
7 relatives from their private life, their vacations and 7 lawyers and all employees, they were aware that I am
8 so on. So we’ve been discussing many, many things. 8 like a Don Quixote struggling with mills and since the
9 And for me, by the way, all this reserving was 9 time I left, I nearly lost reliable contact with anybody
10 absolutely not important and not interesting. It was 10 in my office, and I should say that I was not really
11 important for them; it was part of their life, part of 11 properly informed of what was going on in Russia, of any
12 their business to hide reserves and play with these 12 proceedings, and any, whatever, defence or whatever. So
13 reserves, but it has been considered by me as it’s their 13 that’s why I should say even now I had not —
14 problems which, you know, they wanted to share with me, 14 considering that it’s not important, I had not been in
15 just showing how good relations they have with my group 15 any Russian cases, and I think that any Russian cases
16 of companies, and how forward and straightforward they 16 are of no importance for myself.
17 are behaving. 17 Q. Can I go back to the first Vyborg loan documents,
18 Q. So your evidence is that you don’t think that you ever 18 please. I think I showed you the debt schedule at
19 signed a guarantee, or personal guarantee — 19 {D74/1101/1}. This was a document which OMG sent to
20 A. Yes. 20 Mr Bromley-Martin for the purposes of the information
21 Q. — in favour of Bank of St Petersburg? 21 memorandum, wasn’t it?
22 A. Yes, that’s my evidence. 22 A. Yes, we discussed that two times already today.
23 Q. And so if you had ever faced a claim by 23 Q. And, therefore, it would have been important, wouldn’t
24 Bank of St Petersburg based upon a guarantee, your first 24 it, for OMG to explain to Mr Bromley-Martin accurately
25 reaction would have been one of shock, wouldn’t it, that 25 what guarantees the group had or hadn’t entered into?

145

1 that would be trying to sue you about something that you

2 had never agreed to?

3 A. Absolutely.

4 Q. And that would be the first complaint you would make,

5 wouldn’t it?

6 A. Sorry?

7 Q. That would be the first objection you would make to

8 getting a claim like that, wouldn’t it? In other words,

9 if you get a claim that says you are being sued on

10 a guarantee, and you think: I never sign guarantees, the

11 very first point you would make back is: I never signed

12 it; isn’t that right?

13 A. In normal world, yes, but not in this particular

14 situation, because all the troubles, all the serious

15 troubles I started to get when I left the country and

16 I have not had any proper information and I would not be

17 able to — I couldn’t be able to properly defend myself

18 and understand actually what is going on.

19 So until the time I’ve been arrested in France,

20 I thought that it’s still kind of in-house games and so

21 on. So …

22 Q. So when we go through the various court proceedings,

23 when you are first sued upon a guarantee, we ought to

24 see, oughtn’t we, that your first defence ought to deny

25 that you ever entered into the guarantees; is that

147

1 A. I don’t know. I have not discussed that with

2 Mr Bromley-Martin.

3 Q. So can you explain why there are entries to personal

4 guarantees from you, given your evidence now that you

5 never entered into one?

6 A. Yes, I explained you already today once, that this

7 information had been collected by the Bank employees,

8 and a low level, low quality employee in our office just

9 put what the Bank told them.

10 Q. Yes. Could we have {D74/1104.1/1}, please.

11 Mr Dubitskiy sent this document, this schedule, to

12 Mr Parker, on 25 September 2008, in response to

13 the request by Oxus for an updated debt schedule.

14 A. Yes.

15 Q. And can you see, Dr Arkhangelsky, that you are copied

16 in?

17 A. Yes.

18 Q. Did you not check to see whether that was accurate

19 information?

20 A. Every day I was receiving at least 500 e-mails, so

21 I was — for sure I was not going into attachments and

22 other things. So definitely the task of every employee

23 on the comparatively high level was to put me in

24 the copy, because I wanted to really understand that

25 some processes are going on, just to follow, in case

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1 anybody would complain to each other, so it’s a kind of

2 management tool. But I would not come into the deep

3 details, considering that I have been so busy.

4 Q. Well, I suggest, Dr Arkhangelsky, that you are making up

5 the allegation that you discussed with various

6 Bank of St Petersburg people that these guarantees were

7 just really — they were just attempts to deceive the

8 Central Bank about reserves.

9 A. Sorry, I don’t understand your question.

10 Q. I think you said you had discussions with Mr Savelyev

11 and Mr Guz —

12 A. Yes.

13 Q. — to do with reserves?

14 A. Yes.

15 Q. And they told you what: just sign them and we will never

16 see you on them; or —

17 A. No, no, no. What they’d been telling me, that there are

18 standard sets of documents in the Bank, like the

19 agreement you shown us today. That these documents,

20 they done once by the Bank, by the legal department of

21 the Bank, and all these contracts, loan agreements and

22 so on, they should not be changed.

23 So they do it on an automatic level, and then

24 I don’t need to sign guarantees as long as I am a big

25 client, first of all; secondly, that most of the assets

1 and audit companies who have been checking these,

2 Insurance Company Scandinavia have been, as you

3 remember, rated by AM Best, and AM Best experts who were

4 producing the rating, financial strength rating, they

5 were making inspections of our documents, of our office,

6 of our employees, and in case we would have any

7 corporate governance done by the Insurance Company

8 Scandinavia, it would not be — it would never be rated

9 as high as it has been rated.

10 So BB, that was a really huge and enormous rating,

11 so Bank of St Petersburg have not had such high

12 financial strength rating at that time.

13 So I just want to confirm that in case any guarantee

14 has been issued by any of the companies, that would be

15 immediately criticised or evaluated by rating and

16 accounting specialists.

17 Q. Dr Arkhangelsky, these allegations you have made today,

18 about the reserves and about bribing the Russian

19 Central Bank, I don’t think they were put to Mr Guz when

20 he gave evidence.

21 A. You can put this to Mr Savelyev, as long as he was the

22 key person responsible for that, and still responsible.

23 Q. And I don’t think they were put to Ms Volodina, were

24 they?

25 A. I don’t remember.

149 151

1 which belongs to me anyhow, or most of the assets are

2 already mortgaged to the Bank, so everybody understood

3 the lack of necessity. So what is the value to give

4 a personal guarantee for billions if I don’t have any

5 assets — personal assets, let’s put it this way.

6 So they said, okay, that I need to sign some strange

7 documents like three-party agreements with the other

8 banks, but as long as it’s not having any consequences,

9 any — as long as it doesn’t result in anything, so then

10 it couldn’t create a problem for anybody.

11 Q. So Mr Savelyev and Mr Guz —

12 A. Yes.

13 Q. — told you that you could just sign direct debit

14 agreements?

15 A. Yes.

16 Q. And, what, that you didn’t need to sign any of

17 the guarantee agreements?

18 A. Yes, absolutely, that was the agreement from the very

19 beginning, from my first two meetings with Guz and

20 Savelyev, that I would get loans without any personal or

21 corporate guarantees.

22 And, your Lordship, I want to stress that one of

23 the allegations from Mr Lord right now, that Insurance

24 Company Scandinavia signed any guarantees, what I want

25 to tell, that in addition to international accounting

1 Q. Or Ms Shabalina?

2 A. Ms Shabalina herself, she was a head of a small bank’s

3 office, so she was not personally — she was not dealing

4 with any reserves personally, so she was taking care

5 about affiliated office of the Bank, and just taking

6 care about clients.

7 Q. It wasn’t put to Mr Belykh either, was it?

8 A. He also was not himself responsible for reserves.

9 So the key person, and the person — the only person

10 who I assume had the personal relations to

11 the Central Bank, and responsible for any bribes, is

12 Mr Savelyev.

13 Q. Which of those witnesses’ evidence do you think supports

14 the allegations you are making today about these

15 reserves?

16 A. I don’t know. I have not been really deep and I have

17 not been reconsidering it from that point of view.

18 Q. The idea that this might be an aspect of the forgery

19 case, when did it first occur to you?

20 A. I think it’s the fact that the Bank of St Petersburg is

21 playing with reserves and its financial stabilities,

22 actually it is quite public information and been

23 discussed in the media since 2008. Since the end of

24 2008, it has been a lot of discussions, the Bank in

25 rather poor financial conditions, and it would be bought

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1 soon and community knows that.

2 Q. Could you be shown, please, {D74/1096.1/1}. If you

3 could go, please, to {D74/1096.1/3}, you can see that

4 Mr Bromley-Martin asks Mr Parker for an updated debt

5 schedule for the group.

6 Mr Parker was in charge of your London office,

7 wasn’t he, Dr Arkhangelsky?

8 A. Yes.

9 Q. So he was quite a senior member of the OMG staff, wasn’t

10 he?

11 A. Not really. He was a kind of representative person. We

12 had a small room in the business centre in the City of

13 London, so he was generally taking care about rating

14 issues. Actually, I employed him as a specialist on

15 rating, because before coming to us, he was working as

16 a — he was working for a consultancy company who was

17 organising first rating for us, and then I decided,

18 instead of paying double price to the consultancy

19 company, why not to employ him in the London office? So

20 he was taking care about visits of our employees for

21 negotiations in London, so he was more like

22 a coordinating person, a local person. He was doing

23 presentations for me, for my conferences, as a native

24 English-speaking person, and so on.

25 So I cannot say that he was a — he had any

1 Q. Right. So she sounds like quite an important person to

2 be checking up on the accounts?

3 A. No, I don’t think that she would be checking accounts.

4 So her task was to transfer Russian accounting documents

5 to international auditors, and then to coordinate any

6 additional informations and so on.

7 Q. But it looks as if she then sent an e-mail to

8 Keith Parker, copied to you and to Mr Berezin, on

9 22 September 2008, attaching the group debt portfolio —

10 A. Yes.

11 Q. — as of February 27. And she said:

12 «Dear Sirs,

13 «It is last information, changes only on attachment

14 point 13.»

15 A. Maybe. I think they’ve been cooperating with

16 Daniil Dubitskiy, whom we discussed, and maybe they’ve

17 been replacing each other on this issue. But she’s

18 absolutely not the person who has been taking care about

19 loans and other things.

20 Q. Dr Arkhangelsky, if you are right that you didn’t give

21 any of these personal guarantees and you didn’t sign any

22 of the Scan guarantees, why are you not stepping in to

23 correct the misapprehension that seems —

24 A. Because I have been — I have been so busy, so I haven’t

25 been checking all this information myself. And at the

153 155

1 knowledge of the group business and so on. So he was

2 more marketing and contact person generally.

3 Q. But if you look at {D74/1096.1/2}, which is on the

4 screen in front of you, you can see that Keith Parker

5 seems to have forwarded this enquiry to

6 Mr Bromley-Martin to Maria Generalova; can you see that?

7 A. Yes, maybe.

8 Q. And says:

9 «Can this schedule of debt be updated?

10 «Thanks.»

11 A. I am not really sure who is Maria Generalova.

12 Q. She is described as a «Leading IFRS Specialist,

13 Oslo Marine Group», isn’t she?

14 A. Okay, maybe.

15 Q. Are you saying you don’t know who she was?

16 A. I don’t remember her.

17 Q. And what does «Leading IFRS Specialist» mean to you?

18 A. I would say that it’s the person who would be speaking

19 to audit specialist IFRS accounts, because normally if

20 you employ auditing company, you have to first collect

21 masses of information for auditors.

22 So she’s, as far as I understand, the person who is

23 aware what does it mean, IFRS, and she’s also the

24 contact person in between the accounting department and

25 auditors.

1 same time I’ve been speaking to many, many international

2 banks, international — if you remember, we had at least

3 three major placings, like EBRD, like KIT Finance with

4 LPN, and Robin Bromley-Martin, with his project, was one

5 of three important projects.

6 The same time I was involved in new acquisitions, in

7 office work, in different conferences, participation in

8 different meetings at the governmental level, speaking

9 to other banks and so on.

10 So me personally, I would not expect even to open

11 these e-mails as well as attachments.

12 Q. Can you explain how somebody who was involved in

13 liaising with audits for OMG, how they could think that

14 Scan had given guarantees and you had given personal

15 guarantees if that had never, ever been the case?

16 A. Sorry?

17 Q. Can you explain why somebody who was involved with

18 liaising with audit —

19 A. Yes.

20 Q. — how they could have made this mistake, if you are

21 right; that they could have been sending schedules

22 around to external consultants that have guarantees that

23 are —

24 A. I told you already that as long as we have not had

25 accounting of these in our own accountancy, so they just

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1 collected this information from the banks, and they were

2 not caring about that because they were not considering

3 that as an important information.

4 Q. IFRS means «international financial reporting

5 standards», doesn’t it?

6 A. Of course.

7 Q. So Ms Generalova was a leading international financial

8 reporting standards specialist?

9 A. Let’s put it this way: she was the only specialist in

10 this subject in the group.

11 Q. Dr Arkhangelsky, I suggest that you are not being

12 truthful about the OMG debt schedule, and that that

13 schedule does accurately — that schedule was being

14 compiled to show guarantees, personal guarantees, given

15 by OMG?

16 A. You are mistaken.

17 Q. Do you have any documents, or can you point to any

18 document that would support what you have said today

19 about being told by Bank of St Petersburg that these

20 guarantees were just for their own reserve purposes?

21 A. The confirmation — the only confirmation I have is that

22 without these guarantees, they were issuing loans, and

23 that worked.

24 Q. Can I go back to the first Vyborg loan, please, at

25 {D38/642/1}. I suggest, Dr Arkhangelsky, that you did

1 Q. And you have no reason, have you — you accept, don’t

2 you, that this first Vyborg loan was entered into

3 validly?

4 A. Loan, yes, but this contract, this credit agreement,

5 doesn’t have any legal sense because Mr Erium, he might

6 be good or bad person, but he cannot, while obtaining

7 loans, to guarantee that me as a third party person

8 would issue any personal guarantee or whatever. To be

9 properly valid and not for the — I again tell that this

10 kind of contract is done for the purpose of reserving by

11 the Banks — for the Bank; that in normal Russian world,

12 in case Bank wanted to have real guarantees and

13 signatures of all people involved, then it have to be

14 not two-sides agreement; it has to be at least

15 a five-side agreement.

16 So from the legal point of view, as I believe,

17 inclusion of these conditions doesn’t have any sense.

18 Q. Dr Arkhangelsky, you have never challenged the

19 authenticity of this loan agreement, have you?

20 A. I cannot challenge that because it’s signed by Mr Erium.

21 Q. And this loan agreement refers to the loan being granted

22 in return for various security, doesn’t it?

23 A. The major and the only security, as far as I understood,

24 was the mortgage on the vessel.

25 Q. Sorry, Dr Arkhangelsky, sorry. The agreement, the loan

157

1 sign this loan agreement, or rather — sorry.

2 This loan agreement. Sorry. If we go to

3 {D38/642/7}, you can see that this Vyborg loan was

4 signed on behalf of Vyborg Shipping by Mr Erium, wasn’t

5 it?

6 A. Yes, he seems to be — I think it’s again a bad

7 translation, but if I could see Russian I will tell you.

8 Q. Yes, if you could see {D38/642/13}.

9 A. Yes, it seems to me that he signed that.

10 Q. And he is General Director of Vyborg Shipping, isn’t he?

11 A. Yes.

12 Q. And if you go to the first page of this loan agreement,

13 which, if you want the Russian, it’s at {D38/642/8}, and

14 the English is {D38/642/1}, you can see in paragraph 2.5

15 that —

16 A. Sorry, sorry. 2.5, yes.

17 Q. It reads as follows:

18 «The Loan granted under the Agreement shall be

19 secured by …»

20 Then 2.5.1 is a pledge of the OMG Gatchina vessel.

21 2.5.2 refers to a guarantee given by Scan Insurance,

22 doesn’t it?

23 A. Yes.

24 Q. And 2.5.3 refers to a guarantee given by you personally?

25 A. Yes.

159

1 agreement, the authenticity of which you don’t

2 challenge, refers to the loan being granted in return

3 for security, doesn’t it?

4 A. Yes.

5 Q. And that security expressly includes a Scan guarantee

6 and a personal guarantee from you, doesn’t it?

7 A. Yes, but they’ve never been issued for this contract.

8 Q. So somebody reading this agreement would think, wouldn’t

9 they, that it was a condition of the loan —

10 A. Not in Russia, because in Russia it has to be at least

11 five-parties agreement.

12 Q. Sorry, Dr Arkhangelsky —

13 A. I can just give you an example: that we agree with

14 Mr Judge that you sign the guarantee. We can agree on

15 that, but it doesn’t mean that you would sign this

16 guarantee. It’s what you are telling about.

17 Q. Somebody reading this agreement, Dr Arkhangelsky, would

18 think that the loan from the Bank was being given on

19 condition that a guarantee was given by you, wouldn’t

20 they?

21 A. But Mr Erium — no, everybody understands that —

22 Q. Sorry, Mr Arkhangelsky, could you listen to

23 the question?

24 A. Yes.

25 Q. Somebody reading this loan document would think that the

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1 loan being given by Bank of St Petersburg to

2 Vyborg Shipping was being given on condition that

3 a personal guarantee was given by you as security?

4 A. No. No.

5 Q. Why not?

6 A. Because the person who offered to be security or

7 guarantee or whatever, have to be part of this

8 agreement. So it’s just a wish, not more.

9 Q. No. Dr Arkhangelsky, these are different points, aren’t

10 they? There’s the point you are making about whether or

11 not an agreement can be enforced against a third party.

12 That is the point that you are making. But I am asking

13 about a slightly different point, which is if you look

14 at —

15 A. The person who wants to see that, this person would see

16 that. So as I told you already several times, this type

17 of agreement is done for the purpose to show to

18 the Central Bank that this contract, having many other

19 subcontracts with third parties, which were never in

20 existence. So it’s a kind of game the Bank was playing

21 with the Central Bank and supervision authorities.

22 Q. So when Mr Erium came to sign this loan agreement on

23 behalf of Vyborg Shipping, are you saying — is your

24 evidence that he would have assumed that the references

25 to personal guarantee and Scan guarantee were just

1 A. I could — could — could have signed that. It is a bit

2 strange that the agreement doesn’t have a number, which

3 is quite unusual, which is a bit strange for me. It

4 doesn’t look like any official document. And also my

5 signature is very much different from more or less

6 standard one, but …

7 Q. And your evidence is that the Bank of St Petersburg,

8 what, forged V-Bank’s seal, or went off and got the

9 seal, even though they had no intention —

10 A. I don’t know, but they can easily forge my signature and

11 bring it to V-Bank as the real document.

12 Q. Did you ever give a personal guarantee to V-Bank?

13 A. No.

14 Q. Never?

15 A. No.

16 Q. Could you be shown, please, {D117/1737/1}.

17 {D117/1737/4}; can you see that e-mail? Can you see

18 that?

19 A. Yes, I see the e-mail, yes.

20 Q. It’s an e-mail from Ms Blinova to you on 1 April 2009,

21 subject «Notification»; can you see that?

22 A. Yes, I see that.

23 Q. And it says:

24 «In connection with the presence of overdue debt on

25 loan agreement number 3500-08-01203 of 28 March 2008,

161 163

1 meaningless references?

2 A. I think so, yes, you are right.

3 Q. And you wouldn’t be concerned, would you — or would you

4 have been concerned that your name was appearing on loan

5 agreements as a personal guarantor?

6 A. No. What for?

7 Q. Why not?

8 A. Why? Why? Why should I be concerned? My name is

9 appearing quite in many things and I cannot control

10 that. So if for bank it is comfortable to have my name

11 there, why not? If they are happy, I’m also happy. But

12 I would not sign the guarantees.

13 Q. Could you be shown, please, {D37/623/1}. If you could

14 go, please, scroll down to the Russian on the next page,

15 I think {D37/623/2}. It is on screen. This looks to be

16 an authorisation given by Scan in relation to

17 the guarantee, doesn’t it?

18 A. I’m not sure because I cannot even see my signature

19 there and I don’t remember this document.

20 Q. Could you be shown, please {D38/656.1/0.1}, and if the

21 Russian could be up as well, please {D38/656.1/1}. Can

22 you see this is another direct debit agreement?

23 A. Yes, and the story the same: I don’t see any difficulty

24 in signing this document.

25 Q. So you think that you did sign the agreement —

1 concluded with Vyborg Shipping Company LLC, I am

2 informing you that in accordance with the guarantee

3 agreements concluded with VD Arkhangelsky and Insurance

4 Company Scandinavia LLC, claim notifications will be

5 sent for all Guarantors’ accounts without notice.»

6 A. I don’t remember this e-mail but, as I said, I’ve been

7 receiving hundreds of e-mails and I was not really

8 opening them and reading all of them.

9 Q. But, Dr Arkhangelsky, this was an e-mail that you

10 exhibited in your BVI proceedings, wasn’t it?

11 A. Maybe, yes.

12 Q. So it must have come from within your records, mustn’t

13 it?

14 A. It came — in my obligations for disclosure in the BVI

15 proceedings, I disclosed all the e-mails I had. So

16 I disclosed everything. But I think I’ve been reading

17 and going through all these e-mails only after I decided

18 to sue your clients in BVI and to find the jurisdiction.

19 Q. And you can see that Ms Blinova added two attachments to

20 this e-mail, didn’t she?

21 A. Yes, she has, but I am — even now I am absolutely aware

22 that any notices based on Russian law and standard

23 practice have to come in an official way, with

24 registered e-mails and signed at least. As far as

25 I understood, it looks like drafts, and this was not

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1 really considered serious, I assume.

2 Q. And if you go to {D117/1737/4}, you see the Russian

3 version of this e-mail.

4 A. I am looking on that before. I’ve been looking on that

5 before, yes.

6 Q. And can you see those two attachments?

7 A. Yes.

8 Q. And one of those is a notification under the Scan

9 guarantee, and one is a notification to you under the

10 personal guarantee, isn’t it?

11 A. Maybe. I have not been opening these in that time and

12 came to know all these e-mails only in my BVI

13 proceedings.

14 Q. So you accept that you are likely to have received that

15 e-mail at the time, do you?

16 A. Yes, I came to know about that, yes, several years

17 after, and this is not considered to be any official

18 document as long as it’s not signed and having any date

19 or number.

20 Q. But if you looked at the e-mail she sent to you, you

21 would have seen straight —

22 A. I have not been looking on the e-mails she sent to me at

23 that time, because I have been receiving hundreds of

24 e-mails and I was not going through, and normally all

25 these e-mails had to go to my employees who would take

1 keep that for one moment. Can you look, in particular,

2 at the way it looks on the page, with the text and then

3 the footer and the two attachments between those two;

4 can you see that?

5 A. Sorry, I can’t understand what should I see.

6 Q. If you look at the bottom half of {D117/1737/4}.

7 A. Yes.

8 Q. You can see that there is some Russian text?

9 A. Yes.

10 Q. Then there is some Russian text at the bottom, saying

11 who sent the e-mail?

12 A. Yes.

13 Q. And between those two chunks of text —

14 A. Yes.

15 Q. — are two icons representing attachments?

16 A. Yes.

17 Q. Do you agree with that?

18 A. Yes. But if you see it is on computer. I’ve been

19 scrolling on my BlackBerry, and you cannot see

20 attachments there.

21 Q. I wonder, could you be shown — because you disclose and

22 refer to this e-mail in your BVI proceedings and I would

23 like to show you and his Lordship that, please.

24 I wonder if you could be shown {M1/20/30}. Could we

25 keep {D117/1737/4} up on screen, please.

165 167

1 care about that. And the fact that it’s not copied to

2 anybody, it’s even more considered to be not an official

3 document, because normally it have to go with copies to

4 people responsible in the office.

5 Q. But do you agree that if you had read that four-line

6 e-mail, and if you are telling the truth that you never

7 entered into any personal guarantee or gave a Scan

8 guarantee, you would have been very surprised to get

9 that e-mail from Ms Blinova?

10 A. No, I — for me it’s clear that it’s kind of a mistake

11 and that I would not be taking that seriously.

12 Q. But she is giving you notice of demands —

13 A. I’ve been — I’ve been visiting Blinova and other

14 employees in the Bank more or less on a weekly or daily

15 basis. None of them never, ever said me anything, and

16 referring to this strange e-mail which was just coming

17 to the spam box at that time. It’s … I don’t consider

18 it interesting.

19 Q. Is that an honest answer, Dr Arkhangelsky; that you just

20 think it came into the spam box?

21 A. I mean, when you receive several hundreds of e-mails

22 every day, you just receive them and you don’t open them

23 and you don’t read them.

24 Q. Can you keep in your mind’s eye the Russian version of

25 that e-mail, which we see at {D117/1737/4}? Could you

1 At {M1/20/30} in paragraph 82 — this is your first

2 affidavit in the BVI — you say this:

3 «Around the middle of April 2009, the Bank started

4 demanding early repayment of the loans which it had made

5 to Vyborg Shipping.»

6 Can you see that?

7 A. Yes.

8 Q. «At pages 394 to 406 of VA1 I have exhibited a Notice of

9 Claim issued by the Bank dated 14 April 2009 and

10 associated documents stating …»

11 Can you see that?

12 A. Yes.

13 Q. You don’t say in the affidavit here that you don’t think

14 you would have opened it at the time because it probably

15 went to your spam box, do you?

16 A. Sorry, I don’t understand the question.

17 Q. You don’t say in this affidavit that you don’t think you

18 looked at the e-mails at this time because they went

19 into your spam box, do you?

20 A. I looked into this particular e-mail when I was

21 preparing for the BVI proceedings, and only after that

22 time I started to realise all the consequence of events

23 and what was going on then and how.

24 Q. And the exhibit that you are referring to here,

25 pages 394 to 406 of VA1, is at {D118/1796/0.1}.

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1 A. Sorry …

2 Q. It will come up on the screen, I think. Sorry, could we

3 keep on the left-hand screen the original. Could we

4 have this on the right-hand screen. I think this is in

5 English, so this doesn’t need to be …

6 If we could have {D118/1796/0.1}, this is the

7 beginning of the exhibit, and could you scroll down,

8 please, to {D118/1796/9}, because I think there is

9 a Russian version that’s been translated, I think for

10 the purposes … yes.

11 Can you see that — this is the page from the

12 exhibit to your BVI affidavit, and item 5 in the middle

13 of the page seems to be a copy of the 1 April 2009

14 e-mail from Ms Blinova to you; can you see that?

15 A. Yes.

16 Q. And if you keep that — and it is right, isn’t it, that

17 that was exhibited by you to your first BVI affidavit?

18 A. Yes, I think so, yes. I think it’s the same document,

19 no?

20 Q. And there is an English translation incorporated into

21 the text, isn’t there?

22 A. Yes, and I think it’s two the same documents, if I’m

23 right.

24 Q. Yes. If you compare that extract, which you exhibited,

25 with the document at {D117/1737/4}, you can see that the

1 A. Yes, I’m still aware like this.

2 Q. And it looks as if, when this exhibit was compiled on

3 your behalf in the BVI, somebody went to the trouble of

4 excising the icons that would show that there were these

5 exhibits?

6 A. I don’t know how these exhibits have been done, so you

7 see that it’s the translation and so-and-so; I think

8 it’s Bristows who made all these documents.

9 Q. And is the explanation, Dr Arkhangelsky, that the icons

10 for the attachments were excluded from your BVI

11 affidavit exhibit in order to support your case that

12 these demand notices have never been sent to you?

13 A. No.

14 Q. Can you give any other explanation for why those icons

15 don’t appear on the exhibit that you —

16 A. Yes, I just explained it to you. So all the e-mails

17 I had, I forwarded at that time to Bristows, and then

18 they made all this collection of different e-mails and

19 included translation.

20 MR JUSTICE HILDYARD: The premise of that question, Mr Lord,

21 is that they weren’t in the exhibit; is that right?

22 MR LORD: That they … sorry?

23 MR JUSTICE HILDYARD: Were these documents not in

24 the exhibit? I can see that the icons aren’t, but were

25 the documents? I don’t know.

169 171

1 attachment icons seem to have been excluded from the

2 e-mail copy which you exhibited in the BVI; can you see

3 that? You can take your time, but can you see that the

4 text — if you check the text —

5 A. You see, I have not been compiling these, and —

6 Q. We will come to that, Dr Arkhangelsky. But if you just

7 first follow the points, can you see that the text, the

8 Russian text, seems to be the same in both; in other

9 words, it’s the same in the copy in the Bank’s records,

10 {D117/1737/4}, as the one you exhibited in your records,

11 {D118/1796/9}, can you see it is the same text above and

12 below the icons; do you see that?

13 A. Yes.

14 Q. But the icons don’t appear in your exhibit, do they?

15 A. Maybe.

16 Q. And there are three dots there, aren’t there, dot dot

17 dot? Can you see?

18 A. Yes, it was compiled and done by Bristows at that time

19 so, I don’t know, I had been just forwarding them all

20 e-mails I had, so they done all the work.

21 Q. Because the attachments are demand notices under these

22 guarantees, aren’t they?

23 A. Most probably, yes.

24 Q. And you have alleged, haven’t you, that you never

25 received any demand notices under these guarantees?

1 MR LORD: I don’t think so, my Lord, no.

2 MR JUSTICE HILDYARD: That’s the premise of your question.

3 I just don’t know.

4 A. It’s been five years ago with Bristows and I had full

5 confidence in what and how they were doing, what and how

6 they are attaching. So at that time it was my first

7 experience of international litigation.

8 MR LORD: And do you accept now, having seen {D117/1737/4},

9 that you did receive notices of demand under the —

10 A. I don’t know. I came to know that I got something when

11 I was preparing for BVI proceedings, but exactly not the

12 time you are referring to.

13 Q. Can I show you, please, the spousal consent in relation

14 to the first Vyborg loan, please. {D38/641/1}. If you

15 could put the Russian up as well, if that’s possible, on

16 the left-hand page {D38/641/2}. That looks to be

17 a consent given on behalf of your wife to a guarantee

18 from you in relation to the first Vyborg loan, doesn’t

19 it?

20 A. Yes. It’s Mrs Blinova who signed that it’s done in her

21 presence, and she checked everything and so on. But

22 I assume that Blinova was lying and my wife never done

23 this consent.

24 Q. Might you have signed on her behalf?

25 A. I never sign documents on behalf of anybody.

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1 Q. Ever?

2 A. Never, ever.

3 Q. I wonder if you could be shown Mr Radley’s —

4 MR JUSTICE HILDYARD: Could you read out, so I could have

5 translated, the last sentence on that document at

6 {D38/641/2}?

7 A. I am sorry, are you asking me?

8 MR JUSTICE HILDYARD: Yes, could you read it out in

9 the Russian and then it can be translated to me in

10 the English?

11 A. You mean the last sentence?

12 MR JUSTICE HILDYARD: Yes, the separate paragraph?

13 A. (Interpreted) «The contract of guarantee should include

14 joint and several liability of the guarantor regarding

15 the obligations of the borrower.»

16 A. Your Lordship, I am not really sure what is really

17 written there in Russian, so I am a bit concerned myself

18 what is it about.

19 MR JUSTICE HILDYARD: Right. Thank you.

20 MR LORD: Can you be shown, please, Mr Radley’s expert

21 report at {E1/6/29}, please. Actually, if you go,

22 please, to {E1/6/11}, to his conclusions. Mr Radley

23 says this at the top of the page, paragraph 13 (xi).

24 A. Sorry, your Lordship, can we have a break?

25 MR JUSTICE HILDYARD: I think that we are on the very last

1 documents for anybody, and what Mrs Blinova is telling

2 here is that the signature of my wife was done in her

3 presence, which is a bit strange for me.

4 MR JUSTICE HILDYARD: Mr Lord, are you putting to this

5 witness your case that these were signed by him? Is

6 that your case?

7 MR LORD: I am going to put to him, my Lord, that either you

8 signed this document or you have certainly authorised

9 its being signed?

10 A. No.

11 Q. And that’s true of the Vyborg — of the personal

12 guarantee for the Vyborg loan: you either signed it or

13 you authorised it to be signed?

14 A. I never, ever signed any personal guarantees. I never,

15 ever signed any documents on behalf of my wife.

16 Q. And you either signed or authorised the signing —

17 A. No.

18 Q. — of the Scan guarantee in relation to the —

19 A. No.

20 Q. — first five —

21 MR JUSTICE HILDYARD: But it’s the Bank’s case that the

22 spousal consent was not valid, then?

23 MR LORD: Well, my Lord, we are not sure.

24 MR JUSTICE HILDYARD: Right. Okay.

25 MR LORD: Dr Arkhangelsky, is your evidence that you never

173 175

1 lap, it being 4.30.

2 MR LORD: It’s the last question or two, my Lord.

3 MR JUSTICE HILDYARD: Shall we just finish this question?

4 A. Okay.

5 MR LORD: Can you see, Dr Arkhangelsky, what Mr Radley says

6 in that paragraph?

7 A. Which one?

8 Q. The top of the page.

9 A. 13?

10 Q. Yes. You can see what documents A7 to A10 are. If you

11 go back to {E1/6/4}, you can see that A7 to A10 are for

12 disputed documents purportedly signed by

13 Mrs Arkhangelskaya, and those are four spousal consents

14 to the personal guarantees by you for the four

15 Vyborg Shipping loans; can you see A7, A8, A9, A10?

16 A. Yes.

17 Q. And what Mr Radley said, having looked at the matter,

18 he said this, back at paragraph 13 on {E1/6/11}:

19 «The signatures on A7 to A10, A28 and A29 bear

20 certain writing characteristics which are in a very

21 similar style to that used by Vitaly and not Julia

22 Arkhangelsky. I cannot exclude the possibility that

23 Mr Arkhangelsky was the writer of these signatures on

24 behalf of his wife.»

25 A. That’s not me. I have not done that, I never sign any

1 signed any document on behalf of your wife?

2 A. Yes, it’s true.

3 MR LORD: My Lord, is that a convenient …?

4 MR JUSTICE HILDYARD: Yes, now when are we going to return

5 to what we discussed immediately after the short

6 adjournment and what is to be done in the meantime?

7 Have the transcript writers got a note as to

8 the quarantined bits, including from about page 151 or

9 153 — I can’t remember — with the references which

10 were to be reviewed? I’m speaking delphically because

11 we are in open court.

12 MR LORD: My Lord, shall we have an interim sealing of

13 the record?

14 MR JUSTICE HILDYARD: That’s what I suggest.

15 MR LORD: And come back to it tomorrow?

16 MR JUSTICE HILDYARD: From the very first mention of

17 the issue which has caused anxiety, until the pages

18 where it is agreed they be redacted, they are to be

19 quarantined. They are not to be made available on the

20 internet in the meantime, and tomorrow, or whenever you

21 say that you are ready, you will give me some

22 assistance? Is that agreeable to you?

23 MR LORD: Yes, my Lord.

24 A. My Lord …

25 MR LORD: I assume your Lordship wants us to review all

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1 those pages that we discussed earlier?

2 MR JUSTICE HILDYARD: Yes, except I think we have dealt with

3 one chunk, but the other chunk was more debatable.

4 A. Just to …

5 MR LORD: Sorry, my Lord, where was the earliest point that

6 your Lordship thinks …

7 MR JUSTICE HILDYARD: I thought it was at page 151, but

8 perhaps we should go back.

9 MR LORD: We thought it was [draft transcript] 58, line 14.

10 MR JUSTICE HILDYARD: You are right.

11 MR LORD: But not before then.

12 MR JUSTICE HILDYARD: Can we go to that? Do we have that?

13 Yes, I think that Mr Birt confirmed that that was

14 the first, and that the last debatable page was at — so

15 sorry, I have added 100, I don’t know why. It was at

16 [draft transcript] 63. So from [draft transcript] 58,

17 line 14, and including line 14, to 63 and including

18 line — well, for safety, 25 is to be sequestered, or

19 put in quarantine in the meantime until its status is

20 revealed.

21 MR LORD: My Lord, I wonder whether we should …

22 MR JUSTICE HILDYARD: I am in your hands as to whether

23 we can deal with it now, but I don’t want to bounce you

24 and I don’t want to —

25 MR LORD: My Lord, there have obviously been other

1 this. So the way they publish transcripts is that

2 anybody who wants to read this transcript have to send

3 an e-mail to them, and what I am really very much

4 concerned, that whatever journalists or lawyers who

5 would be interested in the case, in the transcripts,

6 they would be simply afraid of sending any e-mails to

7 RPC showing their interest and that they would need this

8 transcript. So I think it’s really a big problem,

9 because quite a number of people want to read what is

10 going on and what is discussed in the court, considering

11 the fact that recently Bank of St Petersburg have given

12 quite funny releases and publications in Vedomosti

13 newspaper which is absolutely different to what is going

14 on here.

15 So I think that you have to tell that it have to be

16 really public and not just what the Bank want to

17 disclose they disclose. So that’s my very big concern.

18 MR JUSTICE HILDYARD: That’s a rather different concern.

19 I can understand it in light of the various allegations

20 made in the case that people may not wish to be traced

21 as persons interested.

22 MR BIRT: My Lord, yes, I am happy to deal with it as far as

23 one dealt with it in court on Monday. I don’t think it

24 is fair to say that this is some trickery by RPC after

25 the event of something I explained fully and frankly to

177

1 allegations made today.

2 MR JUSTICE HILDYARD: Yes, I mean I was wondering about

3 that.

4 MR LORD: Of a similar — the same point arises. I don’t

5 know whether that is …

6 MR JUSTICE HILDYARD: I doubt it affects it, but I wouldn’t

7 foreclose you arguing that it does. It’s really up to

8 you. If you want 10 minutes’ break now to gather your

9 thoughts?

10 MR LORD: Could we have a 10-minute break and we could maybe

11 pick it up this evening? It would be nice to try to

12 clear this away if we can, or certainly make some

13 progress this afternoon if we may.

14 MR JUSTICE HILDYARD: Mr Arkhangelsky, are you agreeable to

15 that?

16 A. Can I just ask a small question which also relates to

17 that?

18 MR JUSTICE HILDYARD: Yes. Is there anyone here who is not

19 involved in the case in one way or the other? Should

20 we make this private from hereon so that Mr Arkhangelsky

21 doesn’t have to dance around the point?

22 A. No, no, just a small thing, that you said that all the

23 transcripts are to be published — to be public, and

24 just, I don’t know if you noticed that we got an e-mail

25 from RPC yesterday, and they again tried to play with

179

1 you in the presence of Mr Stroilov who, at the time, did

2 not object to it.

3 MR JUSTICE HILDYARD: I can understand the anxiety. I am

4 sure it can be solved.

5 MR BIRT: One of the reasons why it was — what we thought

6 was a practical reason is that quite often after the

7 event there may be a correction to the transcript, or,

8 indeed, today’s event may show that one might like to do

9 something with it, and it might be quite important to

10 tell those who are looking at the transcripts of

11 the change, rather than somebody who has simply looked

12 at it once, taken it away and cut and pasted it and then

13 it is out in the open without any way to control it.

14 That was the reason why — and there may be others, that

15 was the reason that I got hold of before your Lordship

16 came into court, as to why it is sensible to have

17 a sign-up process, simply so that updates and reminders,

18 or your Lordship’s directions that relate to

19 the transcript —

20 A. People in Russia would be absolutely afraid of doing

21 this.

22 MR JUSTICE HILDYARD: Don’t talk across, Mr Arkhangelsky,

23 Mr Birt is trying to explain to me the rationale as to

24 why a procedure which previously seemed fine was

25 adopted. Now you have raised a point which may militate

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1 in favour of some alteration, and I just want to 1 [REDACTED]
2 understand what he has to say. 2
3 MR BIRT: That was the justification, as explained to 3
4 your Lordship on Monday, and some point now raised. 4
5 I mean, I can go and take further instructions, but I am 5
6 not sure how we get around the practical issue that 6
7 we foresaw that we wanted to deal with about this. 7
8 There may be other issues, but I can take instructions 8
9 on that. 9
10 MR JUSTICE HILDYARD: I should have thought that one way 10
11 would be that there is some process to notify people 11
12 that the transcripts are being hosted by RPC and on the 12
13 host bit, on the internet, there should be a warning 13
14 that the transcript may, from time to time, be amended. 14
15 Any amendments will also be posted by correction, and 15
16 I would have thought that that should do it. 16
17 MR BIRT: Can I take instructions to see if there are any 17
18 other points? 18
19 MR JUSTICE HILDYARD: Yes. I didn’t perceive that there was 19
20 this problem. I don’t suggest for a moment that there 20
21 was anything other than an attempt to be as helpful as 21
22 possible when the proposal was put forward. I don’t 22
23 think Mr Arkhangelsky should draw any conclusion to 23
24 the contrary, but I understand that in the rather high 24
25 pressure, or heated context of this case, that 25
181 183
1 Mr Arkhangelsky should worry lest people be fingered in 1 [REDACTED]
2 some way for applying. I don’t suggest for a moment 2
3 that there is any basis for that suggestion, but if it 3
4 can be avoided as a thought in his mind with ease, well 4
5 and good. 5
6 MR BIRT: Given we are going to have a 10-minute break 6
7 anyway, my Lord, can we take instructions on this 7
8 matter. 8
9 MR JUSTICE HILDYARD: Yes. It is a rather different matter 9
10 and one which isn’t quite as urgent as the other, 10
11 I wouldn’t have thought. But, I agree; it has to be 11
12 dealt with fairly quickly. 12
13 So shall we adjourn for 10 minutes, Mr Arkhangelsky, 13
14 I’m so sorry it is a long day, and if you can do it in 14
15 that time, well and good. If you can’t, we will have to 15
16 have an overnight solution and return to it in 16
17 the morning. 17
18 (4.46 pm) 18
19 (A short break) 19
20 (5.04 pm) 20
21 (Hearing in private) 21
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1 [REDACTED] 1 INDEX
2 2 PAGE
3 3 DR VITALY DMITRIEVICH ARKHANGELSKY ……………….1
4 (affirmed)
4
5 Cross-examination by MR LORD ……………..10
6 5 (Hearing in private) …………………………..94
7 6 (Hearing in open court) ……………………….114
8 7 (Hearing in private) ………………………….182
9 8
9
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1 (6.05 pm)
2 (The hearing adjourned until 10.00 am on
3 Thursday, 18 February 2016)
4
5
6
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8
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A

A1 (1) 13:6 A1/2/1 (3) 13:7,10
75:7

A1/2/70 (1) 13:14 A1/2/73 (1) 80:4 A1/2/8 (1) 75:7 A1/2/9 (1) 75:14

A10 (4) 174:10,11,15 174:19

A12 (7) 127:20,21 128:1,2,3,7,14

A28 (1) 174:19

A29 (1) 174:19

A7 (4) 174:10,11,15 174:19

A8 (1) 174:15

A9 (1) 174:15

AA2/12/1 (2) 21:16 21:18

abilities (1) 29:4 ability (2) 33:21

143:13

able (17) 7:13 9:5 11:3 20:9,16 29:6 29:10 34:1 59:20 59:20,22 60:6,13 67:21 94:2 146:17 146:17

abroad (4) 5:18,21 6:19 64:16

absence (2) 61:3 128:12

absolutely (54) 2:2

3:6 9:22 20:2 21:7 25:16 31:14 44:6 47:15 61:17,20 65:22 66:5 67:18 72:4,7,10,13 77:3 79:22 83:6,10 86:3 86:22 87:18,18,21 87:22,23 88:5 89:9 120:14 124:23 125:19 130:24 132:24 133:17,18 133:20,22 134:7,10 135:25 137:16 138:3,18,21 145:10 146:3 150:18 155:18 164:21 179:13 180:20

academy (3) 4:14,14 5:13

accept (13) 19:20 22:6 67:22 70:17 74:9 74:10 124:2 130:16 135:5 140:7 159:1 165:14 172:8

accepted (1) 117:10 accident (1) 77:7 accommodate (1)

33:22

accompany (1) 15:16 accord (1) 41:22 account (6) 63:5

92:11 122:4 124:5 124:6,19

accountancy (1)

156:25 accountant (11) 18:9

18:18,23 19:3,7,12 19:12 20:1,5 92:13 92:24

accountants (4) 29:6 92:22,23 93:23 accounting (25) 10:25

11:1,5,14,16,17,17 11:19,20 17:18,22

19:15 20:10 72:13 58:1 73:13,20 144:11 166:19 160:17,22 161:9
72:25 92:19 133:9 76:12,17 78:4 79:1 answering (1) 10:9 164:3,9 166:19
140:18,19,20 79:17 160:13,14 answers (4) 54:7 170:6 171:9 174:5
150:25 151:16 166:5 167:17 71:16,22 73:9 174:22,23 175:25
154:24 155:4 182:11 anticipated (1) 75:21 178:14,20 180:22
156:25 agreeable (2) 176:22 anxiety (2) 176:17 181:23 182:1,13
accounts (28) 11:3,6 178:14 180:3 215:3
19:5,13,18,21,24 agreed (7) 43:4 50:13 anxious (5) 10:5 28:7 arrange (1) 61:4
20:14,15,17 23:9 118:22 137:6 28:17,24 93:10 arrangements (1)
23:10,20 25:1 142:20 146:2 anybody (14) 14:22 17:14
57:20 72:7,14 176:18 16:3 26:8 30:23 arrest (1) 147:5
93:21 94:2 124:21 agreement (50) 9:8,16 61:16 65:1 79:23 arrested (1) 146:19
124:22 125:21,24 18:3 24:3 44:21 147:9 149:1 150:10 artificial (4) 119:25
126:3 154:19 155:2 58:24 78:3 87:2 166:2 172:25 175:1 135:1 138:22 139:4
155:3 164:5 115:25 116:3,7 179:2 artificially (2) 120:11
accurate (1) 148:18 118:4,13,15 119:4 anyway (2) 53:21 132:21
accurately (3) 131:17 121:15,25 122:23 182:7 Asiltur (1) 62:19
147:24 157:13 122:25 123:15 apart (1) 63:8 asked (11) 2:13 17:17
acquire (2) 30:3 43:17 124:4 125:13 apologise (1) 70:13 28:8 30:15 51:8
acquired (14) 21:8 127:11 129:18 appear (5) 76:25 53:9 54:16 68:19
25:22,23 31:9,23 135:10 140:13 122:9 123:25 77:25 87:12 125:10
40:5,8,16 41:1 149:19 150:18 170:14 171:15 asking (11) 21:21
52:25 56:19 58:18 158:1,2,12,18 appeared (1) 125:5 72:11 79:10,13
60:6,7 159:4,14,15,19,21 appearing (2) 162:4,9 81:23 114:5 126:10
acquiring (1) 56:17 159:25 160:1,8,11 appears (1) 114:9 132:18 133:25
acquisition (16) 6:10 160:17 161:8,11,17 applied (1) 123:8 161:12 173:7
22:12 23:15 27:14 161:22 162:22,25 applying (1) 182:2 asks (2) 126:25 153:4
31:25 40:7 41:5,6 163:2,25 appointed (1) 115:5 aspect (1) 152:18
42:1 44:7 45:17,21 agreements (19) 23:4 appreciated (1) 78:15 aspects (2) 12:3 45:17
51:24 52:6 53:11 91:14 118:25 120:4 appropriate (3) 64:20 asserting (1) 68:11
62:1 125:18,19 126:2,19 70:15 93:16 asset (2) 31:15 32:9
acquisitions (2) 44:16 126:20 129:8,11,13 approvals (2) 35:8 assets (16) 8:5 9:3,23
156:6 134:1 149:21 150:7 50:11 25:22 26:11,18
act (1) 20:4 150:14,17 162:5 approve (1) 1:12 27:10,17 32:12
acting (2) 143:21,21 164:3 approved (3) 45:3 43:17 56:18 73:3
actual (2) 56:14 agrees (2) 79:11,13 50:6,8 149:25 150:1,5,5
134:20 allegation (12) 73:14 April (5) 114:14 assist (1) 70:3
added (3) 40:21 73:14,20 76:10,15 163:20 168:3,9 assistance (3) 14:21
164:19 177:15 133:21 135:4,24 169:13 93:17 176:22
addition (1) 150:25 139:7,17 142:7 aquatoria (6) 58:22 associated (3) 23:5,23
additional (7) 23:3,4 149:5 59:5,11,12,14,21 168:10
24:7 25:17 44:10 allegations (8) 73:18 area (3) 46:25 51:16 assume (15) 43:8 50:1
56:20 155:6 135:19,25 150:23 59:18 56:21 75:3 90:15
additions (1) 35:14 151:17 152:14 areas (2) 8:4 69:10 91:1 116:23 130:5
address (2) 10:12 178:1 179:19 argue (1) 69:18 130:14 131:4
70:23 allege (7) 73:25 74:14 arguing (1) 178:7 136:17 152:10
adjourn (1) 182:13 74:17 75:7,11 arises (1) 178:4 165:1 172:22
adjourned (1) 214:2 137:9 139:17 Arkhangelsk (1) 4:3 176:25
adjournment (2) 94:8 alleged (3) 144:24 Arkhangelskaya (4) assumed (1) 161:24
176:6 145:3 170:24 74:21 127:23 assumption (1) 78:1
administration (1) alleging (3) 76:19 128:15 174:13 assured (1) 129:9
59:10 133:3 134:8 Arkhangelsky (106) attached (3) 44:7
adopted (1) 180:25 allow (1) 24:16 1:9,13,14 10:19,21 82:15 123:22
advertising (2) 83:2 allowed (1) 2:17 13:8,25 17:17 18:1 attaching (4) 43:21
84:17 allows (1) 122:3 18:24 19:20 20:20 82:6 155:9 172:6
advocate (1) 70:7 alteration (1) 181:1 25:10 28:6,14 29:8 attachment (2)
affidavit (8) 5:25 39:3 altogether (1) 30:1 30:9 32:5 33:11 155:13 170:1
168:2,13,17 169:12 Ameli (1) 17:9 34:4 36:1 38:2 39:2 attachments (9)
169:17 171:11 amended (1) 181:14 39:11,19 40:1,11 148:21 156:11
affidavits (3) 12:19 amendment (1) 40:23 41:12 43:15 164:19 165:6 167:3
93:19 135:23 120:18 44:13 45:25 47:6 167:15,20 170:21
affiliated (2) 82:18 amendments (1) 47:19 48:11,18 171:10
152:5 181:15 51:6,25 52:23 attempt (1) 181:21
affirmed (2) 1:14 amount (2) 55:16 53:25 54:12,24 attempts (1) 149:7
215:3 134:13 55:9,23 56:16 60:2 attention (1) 142:18
afford (1) 138:1 amounts (10) 25:17 61:11,12,25 64:4 attract (2) 35:22 67:5
afraid (3) 26:10 179:6 57:12,14 59:3,25 64:24 66:19 68:5 attracting (1) 115:10
180:20 62:10,20 72:5,8 69:6 71:9 73:13 attractive (2) 140:6,6
afternoon (2) 132:20 122:3 79:1,17 80:12 81:9 audit (3) 151:1 154:19
178:13 analysing (1) 139:12 83:21 86:17 88:1 156:18
age (1) 8:20 analysis (1) 92:2 89:6 114:5 115:23 auditing (1) 154:20
aged (1) 4:10 animus (1) 70:22 117:5 119:8 121:16 auditors (3) 154:21,25
agency (6) 43:5 44:5 anniversary (2) 5:6,6 122:22 130:2,11,25 155:5
46:21 50:10 57:17 answer (20) 18:20 132:18 133:20 audits (1) 156:13
58:11 19:23 25:5,8 27:7,8 135:19 139:6 authenticity (3) 116:6
ago (4) 17:17 18:21 28:12,14 45:15 148:15 149:4 159:19 160:1
84:23 172:4 53:25 55:4,23 56:1 151:17 153:7 author (1) 114:10
agree (18) 10:14,14 71:10 117:19 155:20 157:11,25 authorisation (2)
21:19 39:11,18 132:21 133:1 134:2 159:18,25 160:12 120:17 162:16

authorise (1) 124:5 authorised (4) 130:20
175:8,13,16 authorities (9) 19:10

23:24 24:14 60:22 92:21 120:12 132:23 136:25 161:21

authority (2) 79:23 130:23

automatic (1) 149:23 available (5) 40:6

51:18 75:17 94:2 176:19

avoid (2) 47:21 140:17

avoided (1) 182:4 awarding (1) 5:17

aware (26) 4:13 16:19 36:23 45:16,20 53:21 63:10,13,15 65:4 66:11 72:4,8,9 72:20 86:4,8 89:1 93:3 124:23 125:20 143:16 147:7 154:23 164:21 171:1

B

B20/407/1 (1) 43:23 back (27) 6:13,20 10:6 14:12 22:8 25:11

54:11 64:2 73:8,10 82:5,11,20 84:10 85:3 93:9,24 127:21 132:16 136:24 146:11 147:17 157:24 174:11,18 176:15 177:8

background (5) 6:13 10:5,10,23 11:13

bad (5) 130:3,13 132:5 158:6 159:6

balance (12) 24:12,24 25:3,23 27:21 50:18 72:23 134:16 140:22 141:3,11,11

Baltic (2) 8:8,22

bank (173) 23:8,10,11 23:14 53:24 62:20 63:5 70:7 72:7 74:1 74:15,17 75:4 77:2 86:4,10,12,21 87:14 88:2,6,8,9,10 88:15,16,22,23 89:10,14,19,22,22 90:8,16,20,22,24 91:4,7,7 93:4,21 118:17,23 119:8,20 120:15 121:6,20,22 121:22,23 122:4,15 122:16 123:4,8,11 123:17,17,17,22 124:5,6,10,11,18 124:21 125:10,13 125:16 126:5,6,7 126:10,13,25,25 129:9,13,17 132:25 133:3,4,11,12,13 133:14,15,18 134:4 134:4,5,8,9,12,13 134:15,17 135:1,11 135:17,18,20 136:6 136:13,14,19,20 137:4,10,11,13,14 137:17,21,24 138:15,17 140:1,2

140:3,9,24,25

141:2,5,13,20

142:11,15,21,23

143:7,10,17,21 144:1,11,20 145:1 145:21,24 148:7,9 149:6,8,18,20,21 150:2 151:11,19 152:5,11,20,24 157:19 159:11,12 160:18 161:1,18,20 161:21 162:10 163:7 166:14 168:3 168:9 179:11,16

bank’s (11) 82:23 85:25 86:2 87:7 133:16,17 139:12 143:15 152:2 170:9 175:21

bankers (1) 83:13 banking (3) 91:10 136:16 137:4 bankruptcy (1) 8:18 bankrupted (2) 8:14

91:8

banks (26) 35:22 39:1 39:13 42:1 67:14 81:17 83:11 84:7 87:20 90:5 91:10 91:23 92:4 115:15 120:7 123:3 126:7 131:24 134:6 135:10 139:25 150:8 156:2,9 157:1 159:11

bar (2) 27:1 28:21 based (14) 17:3 22:23

44:22 46:15,15 58:24 82:23 85:25 86:2,20 131:23 139:17 145:24 164:22

basic (2) 78:16,18 basing (2) 135:4,7 basis (26) 33:4 34:1

34:13,20 37:2 69:5 72:9 73:17,19 76:15,19 78:9 84:5 84:9 133:6,21 134:13,20 137:17 138:4 141:3,12 142:6 145:5 166:15 182:3

bat (1) 52:23

BB (1) 151:10

bear (2) 75:18 174:19 beginning (6) 8:15

27:11 42:17 138:15 150:19 169:7

behalf (17) 71:17 79:21,25 115:15 116:4 120:18 124:16 130:20 158:4 161:23 171:3 172:17,24,25 174:24 175:15 176:1

behaving (1) 145:17 behaviour (1) 67:17 believe (7) 7:19 13:20 14:15 19:16 20:11

31:2 159:16 believed (1) 20:13 believing (1) 20:19 belong (1) 49:17 belonging (1) 44:24 belongs (2) 44:23

150:1

belt (1) 46:24

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Belykh (3) 88:12 bribed (3) 66:19 137:3 C1/1/62 (3) 76:22 certainly (3) 69:14 collect (1) 154:20 complying (1) 19:10 conspiring (1) 88:2

127:4 152:7 137:4 142:5,17 175:8 178:12 collected (5) 50:12 comprise (1) 78:17 constitute (1) 2:10
Berezin (3) 72:3 83:17 briber (3) 64:14,16,17 C1/1/64 (1) 1:19 challenge (6) 77:9,12 83:9 92:19 148:7 computer (1) 167:18 construction (6) 34:8
155:8 bribery (1) 135:4 C1/3/1 (1) 30:6 77:14 116:6 159:20 157:1 concern (3) 68:13 34:10,12 35:5 37:1
Bermuda (1) 7:3 bribes (10) 62:3 63:8 C1/3/3 (2) 30:25 160:2 collecting (4) 9:23 179:17,18 58:22
berth (3) 42:25 51:17 63:16,21,25 64:9 35:17 challenged (2) 121:2 83:9 84:7 92:14 concerned (9) 125:5,9 constructions (1)
60:20 64:25 68:17 137:25 C1/3/4 (1) 36:9 159:18 collection (1) 171:18 125:17 136:24 33:19
berths (2) 33:7 44:1 152:11 C1/3/7 (1) 31:16 chance (2) 13:25 15:1 colluding (1) 133:14 162:3,4,8 173:17 consultancy (3) 72:17
best (10) 3:10,21 4:23 bribing (6) 120:15 C1/9/1 (1) 2:5 change (6) 13:22,23 collusion (1) 137:5 179:4 153:16,18
7:20 28:13 61:5 132:25 133:4 C1/9/8 (1) 2:5 33:24 135:1,2 column (1) 131:12 concluded (2) 164:1,3 consultants (1)
70:15 75:25 151:3 136:13 142:10 calculate (1) 129:21 180:11 come (21) 6:20 9:5,8 conclusion (1) 181:23 156:22
151:3 151:18 calculating (1) 62:13 changed (2) 17:15 14:2 24:11 25:11 conclusions (2) Consulting (1) 6:22
better (14) 7:12 25:2 brief (1) 70:1 calculation (3) 22:9 149:22 42:9 57:1 72:22 139:13 173:22 contact (7) 16:8,16
25:3 39:15 43:14 bring (6) 3:13 15:8 90:9 119:10 changes (4) 14:4 73:8,9 89:22 93:9 condition (3) 160:9,19 17:2,9 147:9 154:2
49:10 56:12 64:23 60:22 72:12 94:2 call (5) 1:11 16:12 33:16 118:23 128:23 139:13 161:2 154:24
80:11 91:9 117:2 163:11 85:1 86:9 129:10 155:13 149:2 164:12,23 conditions (7) 6:6,17 contacted (2) 30:17
117:11 129:4,22 bringing (1) 10:10 called (10) 6:21 8:16 changing (5) 10:1,1,1 169:2 170:6 176:15 59:6 139:25 140:6 93:23
beyond (3) 27:7 69:2 Bristows (4) 170:18 8:17,18 13:10 18:4 35:14 138:8 comes (3) 22:9 43:13 152:25 159:17 contacts (2) 29:9
71:4 171:8,17 172:4 26:5 45:1 46:1 channel (2) 59:13 85:18 conferences (3) 4:20 127:3
big (28) 4:10,22 8:14 broking (1) 7:6 123:17 60:23 comfortable (2) 140:1 153:23 156:7 containers (1) 60:17
8:18 23:14 26:6 Bromley-Martin (35) capacity (2) 33:20 characterisation (3) 162:10 confidence (7) 9:11 content (1) 2:19
27:25 28:4 29:12 30:7,19 31:1,7,17 60:24 68:16 69:14 70:14 comforted (1) 125:23 20:18 31:1 65:11 contents (2) 13:15
29:19 31:2 43:3,11 35:18 36:3,10 capital (2) 40:22 55:12 characteristics (1) coming (7) 27:11 83:13 87:20 172:5 21:4
50:17,22 57:14 38:24 39:13,15 captains (1) 8:11 174:20 72:11 93:24 94:1 confident (2) 2:22 context (1) 181:25
60:10 63:1 83:13 41:22 42:7 43:8,20 captures (1) 117:8 charge (1) 153:6 138:18 153:15 72:10 contextualise (1)
88:21 90:5 91:17 44:13 45:16 49:11 care (17) 6:9 11:12 charges (1) 64:2 166:16 confirm (8) 2:8 3:8 142:24
91:24 143:19 144:7 51:6 52:15 54:4,7 32:25 44:11 62:7 cheap (1) 89:1 comment (2) 82:25 13:3,15 14:14 continue (2) 27:9
149:24 179:8,17 54:16 56:9,14 72:6,14,15 73:1 cheaper (4) 88:19 93:18 53:15 75:16 151:13 132:10
bigger (1) 90:21 64:24 81:22 85:6 81:18 136:22 152:4 90:8 127:1 135:18 Commercial (1) 123:4 confirmation (5) continuing (1) 50:14
biggest (2) 6:2,10 85:21 147:20,24 152:6 153:13,20 check (11) 25:10 communicating (2) 12:16 37:10 141:10 contract (22) 22:24
billion (5) 21:12 22:9 148:2 153:4 154:6 155:18 166:1 37:10 41:17 83:12 83:4 84:25 157:21,21 23:7 43:22,25
25:13,18 53:3 156:4 careful (1) 71:5 86:12 87:5,11 communication (1) confirmed (11) 11:21 45:22 46:1,6,15,15
billions (1) 150:4 Bromley-Martin’s (4) carefully (4) 11:25 125:15 137:19 29:4 11:25 12:7 21:4 47:5 49:6,9 50:16
biology (1) 3:20 30:5,24 35:16 12:8,9 115:12 148:18 170:4 community (3) 8:10 37:22 51:8 75:5 50:16 53:2 72:17
Birt (7) 177:13 179:22 45:14 caring (1) 157:2 checked (1) 172:21 136:17 153:1 129:16 136:9 143:8 127:23 159:4,10
180:5,23 181:3,17 brought (1) 15:12 carried (1) 34:18 checking (5) 81:19 companies (31) 3:11 177:13 160:7 161:18
182:6 budget (4) 58:25 59:3 carry (1) 32:15 151:1 155:2,3,25 6:2 7:1,6,14 8:7 confirming (2) 135:25 173:13
bit (12) 3:1 20:24 59:18 60:1 case (54) 3:9,9 7:19 chief (7) 18:9,18,23 10:10 11:15 23:20 141:14 contracts (8) 23:22,23
40:21 48:19 51:11 budgets (1) 59:11 10:6 13:6,13 14:18 19:3,12,25 20:4 23:22 27:18 34:10 confirms (1) 75:15 25:2 72:16 80:6
68:3 140:25 163:1 build (2) 3:10 7:10 16:4 17:12 26:23 childhood (2) 3:10 37:1 55:14 82:17 confused (1) 25:12 118:22 120:3
163:3 173:17 175:3 buildings (1) 49:7 27:23 30:22,23 9:15 88:25 91:20 92:6 connected (5) 29:11 149:21
181:13 built (2) 8:2 10:3 43:19 61:16,19 chocolate (1) 139:22 92:16,22,25 124:15 47:11 57:20 66:21 contrary (1) 181:24
bits (1) 176:8 bundle (7) 2:4 13:6 67:13 73:4,13 Chris (3) 16:19,21,22 134:25 136:21 89:19 control (3) 134:15
BlackBerry (1) 167:19 38:1,5 47:24 54:2 75:22,25 76:3,5,5,8 Christopher (1) 16:24 140:1,11 141:9,15 connection (2) 3:6 162:9 180:13
Blinova (9) 143:6 75:6 78:7 86:8 88:24,24 chunk (2) 177:3,3 145:16 151:1,14 163:24 controlled (3) 84:18
163:20 164:19 bureaucrat (1) 57:24 90:13 120:14 124:9 chunks (1) 167:13 company (38) 6:21 connections (3) 9:12 140:23 141:12
166:9,13 169:14 business (11) 4:15 125:6 132:24 136:5 circumstances (2) 8:6,8,13,22 18:4,9 29:14 45:8 controlling (2) 137:15
172:20,22 175:1 6:14 7:20,20 29:13 136:18 140:3,7 1:10 122:6 19:6,9 25:4 31:10 consent (9) 127:10,22 137:16
board (2) 118:22 37:15,20 84:14 142:14,14 148:25 City (4) 5:11 123:17 33:18 46:1 72:23 128:3,20 129:3 convenience (1) 38:2
140:13 145:12 153:12 151:6,13 152:19 123:21 153:12 77:19 86:25 92:16 172:13,17,23 convenient (3) 61:7
body (2) 46:25 47:2 154:1 156:15 159:12 claim (10) 29:22 30:8 114:22,24 115:3,7 175:22 93:8 176:3
bonds (2) 114:23,23 businesses (1) 66:4 171:11 175:5,6,21 138:25 140:21 117:16,20,23 consents (1) 174:13 conversation (2)
born (1) 3:15 businessman (2) 178:19 179:5,20 141:20 145:23 123:18 126:3 consequence (1) 144:25 145:4
borrowed (2) 22:16 29:12 64:8 181:25 146:8,9 164:4 140:18,21 141:1,4 168:22 conversations (1)
22:21 busy (4) 77:17,24 cases (3) 136:25 168:9 150:24 151:2,7 consequences (7) 144:1
borrower (2) 37:7 149:3 155:24 147:15,15 clarify (1) 137:2 153:16,19 154:20 68:10,10,17 69:15 cooperating (1)
173:15 buy (15) 7:21 9:16 cash (2) 41:2 72:12 classical (2) 85:7 164:1,4 125:21 140:14 155:15
bothered (1) 68:3 24:14,16 29:10 category (3) 135:2,11 121:9 company’s (1) 6:9 150:8 cooperation (3) 63:1
bottom (5) 51:10 69:1 47:8,13,16 49:14 135:15 clean (3) 29:7 87:24 comparatively (3) consider (4) 9:8 69:9 134:25
81:21 167:6,10 49:16 51:7,24 52:9 causation (2) 69:4,21 137:24 26:8 89:1 148:23 128:15 129:22 cooperative (1) 140:4
bought (18) 25:7 52:11 55:25 caused (1) 176:17 clear (7) 45:24 72:18 compare (1) 169:24 166:17 coordinate (1) 155:5
26:24 32:6,13,16 buying (4) 24:25 26:5 cent (4) 24:8 46:7 88:6 129:6 133:17 compared (1) 31:15 consideration (1) coordinating (1)
33:23 34:21,22 53:11 55:8 135:12,13 166:10 178:12 comparison (2) 6:5 25:14 153:22
45:7 47:23 48:3,12 BVI (16) 12:17,19 39:4 Central (33) 88:9,15 clearly (1) 81:5 128:9 considered (20) 9:24 Copenhagen (1) 5:13
48:12 49:10 50:14 164:10,14,18 88:16,22 90:24 clerk (1) 93:19 compilated (1) 131:23 26:6,15 32:9 36:24 copied (5) 78:24,25
52:8 67:2 152:25 165:12 167:22 120:7,15 124:11 client (3) 76:6 144:7 compiled (4) 71:16 43:8 44:9,24 46:20 148:15 155:8 166:1
bounce (1) 177:23 168:2,21 169:12,17 125:16 126:5,7 149:25 157:14 170:18 53:17 58:17,23 copies (2) 47:25 166:3
box (6) 61:16 72:11 170:2 171:3,10 132:25 133:4,12,14 client’s (1) 70:2 171:2 65:2,6 115:9 copy (15) 38:6 48:8,20
166:17,20 168:15 172:11 133:18 134:4,5,9 clients (6) 6:25 10:2 compiling (1) 170:5 135:17 145:13 54:10,24,25 79:21
168:19 134:13,15 136:14 73:18 75:5 152:6 complain (3) 63:22 165:1,17 166:2 120:17 128:16
boys (1) 88:21 C 136:20 137:11,14 164:18 64:1 149:1 considering (19) 6:14 129:23 142:4
break (12) 61:2,9,23 C1/1/1 (2) 1:17 20:23 137:21 138:17 clock (2) 61:3,4 complaint (1) 146:4 8:24 9:3,7,9,10 148:24 169:13
70:24 93:8 132:8 142:11 149:8 closed (2) 89:5 123:18 complete (1) 87:20 58:20 59:7 92:4 170:2,9
C1/1/11 (1) 20:23
132:12 173:24 151:19 152:11 coastal (1) 46:24 completed (1) 71:23 117:10 124:10,13 copying (3) 79:9 82:6
C1/1/12 (1) 21:11
178:8,10 182:6,19 161:18,21 Coffin (3) 16:23,24,24 completely (1) 87:7 135:14 136:20 85:2
C1/1/20 (1) 34:3
bribe (12) 60:2,5,11 centre (1) 153:12 CoFrance (1) 93:23 complex (1) 24:1 142:12 147:14 corporate (6) 122:10
C1/1/59 (1) 141:18
60:12 63:18 88:21 CEO (1) 114:18 cold (1) 15:1 complicated (2) 9:4 149:3 157:2 179:10 123:21 141:9,15
C1/1/60 (1) 142:5
126:6,6 134:4,5,9 certain (5) 69:4,5 collapse (1) 8:18 23:19 consisted (2) 42:11 150:21 151:7
C1/1/61 (1) 142:5
134:11 80:24 122:6 174:20 collateral (1) 138:16 comply (2) 19:9 20:1 44:19 correct (8) 12:10

Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900

218

February 17, 2016 Day 11 — Redacted

14:16 25:15 36:14 57:2 65:23 86:11 155:23

corrected (1) 16:12 correction (2) 180:7

181:15 corrections (1) 14:1 correctly (1) 55:11 corresponds (1) 128:8 corrupted (1) 137:17 corruption (2) 88:22

136:20

cost (18) 21:11,12 22:12 29:21 31:11 31:25 41:13,23 42:1 52:6,19,20 53:11 54:18 55:3 62:1 68:8 90:9

costs (4) 24:8 29:23 92:25 135:17 counsel (2) 5:2 68:5

counterclaim (2)

13:11,16 countries (1) 7:3 country (3) 146:15

147:2,3 couple (5) 16:11

26:24 30:20 32:14 45:11

course (19) 12:2 13:17 14:20 17:20 18:2 36:5 37:9,21 37:24 56:25 70:10 72:2 73:16 74:3 78:10 133:16 134:23 136:11 157:6

court (14) 2:17 3:13 23:6 57:16 75:4 114:4 139:14 143:24 146:22 176:11 179:10,23 180:16 215:6

court’s (1) 142:16 covered (3) 33:2,4

44:21 covering (2) 42:13

48:1

covers (1) 46:11 create (7) 42:24 44:25

59:5 126:8 134:6 141:6 150:10

created (3) 114:22,24

135:1 creating (4) 49:24

134:23 138:22 139:4

credit (1) 159:4 crime (1) 88:23 criminal (6) 8:19 26:7

63:18 68:9 69:16 136:5

criminals (3) 9:10,11 28:20

criticised (1) 151:15 cross-examination (8)

10:13,18 28:9 90:18 138:14 139:20 143:6 215:4

cross-examined (1)

61:15 currencies (1) 57:11 currency (2) 21:18

23:12

current (4) 33:18,18

51:17 73:24 curving (1) 78:20 cut (1) 180:12 CVs (1) 114:21

Cyprus (1) 46:2

D

D-M-I-T-R-I-E-N-K-O …

58:9

D117/1737/1 (1)

163:16

D117/1737/4 (8)

163:17 165:2 166:25 167:6,25 169:25 170:10 172:8

D118/1796/0.1 (2)

168:25 169:6

D118/1796/9 (2)

169:8 170:11

D13/270/0.1 (1)

121:13

D13/270/1 (2) 121:14 122:8

D13/270/2 (1) 122:9 D13/301/1 (1) 115:22 D13/301/9 (1) 117:1 D13/302/1 (1) 129:23 D13/302/3 (1) 129:25 D13/302/4 (1) 129:25 D13/304/1 (1) 130:8 D13/304/3 (1) 130:10 D13/304/4 (2) 130:10

130:11

D13/305/1 (2) 127:9 128:4

D13/305/2 (1) 127:10

D14/330/0.1 (1)

122:20

D14/330/1 (1) 122:21 D14/330/2 (1) 123:6

D14/332/0.1 (1)

123:14

D14/332/2 (1) 123:21

D196/2931/1 (1)

47:24

D20/407/1 (2) 45:23 45:25

D33/530/7 (1) 114:20 D34/553/1 (1) 132:1 D35/558/1 (2) 83:18

89:12

D37/623/1 (1) 162:13 D37/623/2 (1) 162:15 D38 (1) 132:2 D38/641/1 (1) 172:14 D38/641/2 (2) 172:16

173:6

D38/642/1 (4) 132:1,3 157:25 158:14

D38/642/13 (1) 158:8 D38/642/7 (1) 158:3 D38/642/8 (2) 132:6

158:13

D38/656.1/0.1 (1)

162:20

D38/656.1/1 (1)

162:21

D48/829/1 (2) 54:4,6 D48/829/2 (3) 54:6,16

71:9

D48/829/3 (1) 54:6

D50/872/0.1 (1)

120:16

D50/872/1 (1) 120:17 D50/872/2 (1) 120:23 D52/889/1 (3) 35:25

39:6 42:19

D52/889/15 (4) 40:13 51:3,4,5

D52/889/37 (1) 40:20 D52/889/9 (1) 39:25

D74/1096.1/1 (1) 146:24 147:12 138:9,19,23,24 215:3
153:2 defend (1) 146:17 139:1,2,4,5,5 143:7 Dmitry (4) 58:25 62:5
D74/1096.1/2 (1) defendants (3) 75:18 145:6 156:7,8 65:4,6
154:3 83:20 85:15 161:9,13 163:5 doctor (3) 4:2 6:4
D74/1096.1/3 (1) defendants’ (1) 85:19 171:18 179:13,18 15:10
153:3 definitely (9) 8:4 182:9 document (59) 2:4
D74/1101/1 (4) 80:10 29:11 32:12 52:12 difficult (7) 26:19 27:2 13:18,21 17:25
85:3 131:6 147:19 53:19 56:8,11 87:1 27:23 36:25 45:21 37:3,8 38:14,20,20
D74/1101/2 (1) 131:7 148:22 66:22 92:7 38:24 39:3,11 44:3
D74/1104.1/1 (2) degree (4) 6:5 20:8,9 difficulties (3) 124:23 53:4 54:14,21
81:20 148:10 78:24 126:9,21 55:10 71:23 77:8
D75/1101/1 (1) 84:10 deleting (1) 59:13 difficulty (5) 126:4 80:14,18,20 82:20
D93/1182/2 (1) 84:11 Deliya (2) 16:19,24 129:14 134:2 85:15,18 118:19,24
daily (10) 34:13,20 delphically (1) 176:10 137:19 162:23 121:2,7 123:8,12
37:2 78:8 134:13 demand (4) 170:21,25 dilemma (2) 4:10 28:4 123:23,25 124:8,24
137:14,17 138:4,4 171:12 172:9 diligence (7) 23:16,19 125:5 127:20 128:3
166:14 demanding (1) 168:4 27:22 28:1 37:9 128:7,24 130:3,13
dance (1) 178:21 demands (1) 166:12 53:23 66:22 130:15 132:5
Daniil (5) 82:5,11,25 deny (1) 146:24 dim (1) 64:11 147:19 148:11
84:12 155:16 department (3) 23:12 direct (12) 121:14 157:18 160:25
date (5) 38:19 40:7 149:20 154:24 122:22,25 123:15 162:19,24 163:4,11
80:21 81:4 165:18 departments (1) 124:4 125:13,18,19 165:18 166:3
dated (5) 83:19 138:19 129:18 133:25 169:18,25 173:5
115:25 118:2 dependent (1) 67:16 150:13 162:22 175:8 176:1
127:16 168:9 depends (5) 63:3 84:6 directed (1) 143:9 documentation (2)
day (10) 17:16 30:21 84:17 120:11 directions (1) 180:18 45:10 137:11
34:21 72:12 77:23 132:22 directly (1) 74:22 documents (92) 10:1
93:12 119:15 depressed (1) 7:12 director (13) 19:7,8 13:23 14:5,13,18
148:20 166:22 deputy (4) 114:18 27:1 28:21 32:24 16:10 23:6 25:4
182:14 115:1,5,6 72:2 73:2 93:1 29:7 34:15 38:11
Day11/116:22 (1) descending (1) 78:21 115:1,2,5,7 158:10 38:14,19,22 44:1,2
132:16 describe (3) 34:7,14 directors (5) 7:16 44:8 50:2 59:17
Day11/117:1 (1) 66:15 26:20 27:19 91:19 74:11,12 75:5,11
132:15 described (7) 33:14 91:20 75:16 76:9,20 77:1
days (1) 3:3 34:6 42:25 60:14 directors’ (1) 92:13 77:3,5,23,25 78:2,8
deal (5) 24:1 94:4 80:14 138:13 dirty (1) 90:24 80:2 81:19 84:24
177:23 179:22 154:12 disappeared (1) 26:21 86:5 88:10 89:2
181:7 describes (2) 45:19 disclose (3) 167:21 92:19,24 117:11
dealing (2) 141:20 51:6 179:17,17 119:15 121:4,5,9
152:3 describing (1) 34:3 disclosed (10) 34:15 124:9,11 125:1,4
dealt (3) 177:2 179:23 description (1) 68:9 38:4,21 43:2 50:1 125:11 126:17,18
182:12 designed (1) 52:13 83:20 85:15 142:19 126:23 131:23
Dear (1) 155:12 detail (2) 14:3 78:17 164:15,16 134:24 135:1,20
debatable (2) 177:3 details (8) 10:9 24:23 disclosure (5) 34:9,15 137:15 138:23,24
177:14 43:7,12 62:20 44:8 85:19 164:14 139:1,2,4,12 140:8
debit (12) 121:15 120:2 127:8 149:3 discuss (2) 3:14 31:18 140:12 142:19,22
122:23,25 123:15 determine (1) 71:1 discussed (11) 30:22 142:24 143:1,3,12
124:4 125:13,18,19 develop (5) 54:21 56:10 88:4 147:22 143:18 144:22
129:18 133:25 60:13 65:10 66:17 148:1 149:5 152:23 147:17 149:18,19
150:13 162:22 88:25 155:16 176:5 177:1 150:7 151:5 155:4
debited (2) 122:3 developed (3) 45:10 179:10 157:17 168:10
125:25 50:5 67:1 discussing (12) 17:13 169:22 171:8,23,25
debt (22) 23:21 40:10 developing (2) 45:5 27:12 30:23 34:25 172:25 174:10,12
41:3 55:20 80:9,15 91:16 37:2 45:6 46:18 175:1,15
81:23,25 82:4,7,11 development (20) 48:2 63:3 139:22 dogsbody (1) 85:8
82:15 85:22 114:5 39:21 40:14 43:10 145:5,8 doing (30) 7:1 9:18
131:6 147:18 44:10,17 45:19,20 discussion (1) 30:18 11:1,14 19:17 27:5
148:13 153:4 154:9 49:8 50:3,23 51:19 discussions (6) 9:6 32:23 33:1,17,17
155:9 157:12 57:25 59:2,18 60:9 56:9 136:19 144:6 33:19 34:13 50:13
163:24 60:19 66:11,14 149:10 152:24 65:12 76:6 83:7,8
debts (1) 80:20 67:3 84:15 dishonestly (1) 83:17 84:4,8 85:1
deceive (1) 149:7 devote (1) 78:6 143:22 91:25 93:6 115:17
December (2) 17:7,8 devoted (2) 4:18,21 dishonesty (1) 73:15 119:25 138:1 140:9
decided (8) 4:16 6:20 died (4) 26:21 27:1 disputed (2) 75:16 153:22 172:5
7:6,10 8:13 85:6 28:21,21 174:12 180:20
153:17 164:17 difference (2) 62:1,10 distributed (3) 8:23 dollar (3) 21:23 22:2,3
decides (1) 143:24 differences (2) 128:10 35:22 92:12 Don (1) 147:8
decisions (1) 140:13 128:12 distributing (1) 73:2 dot (3) 170:16,16,17
deductions (2) 124:5 different (59) 3:6 4:20 distribution (1) 27:17 dots (1) 170:16
124:18 5:22,23 8:16 9:25 divided (2) 8:15,23 double (1) 153:18
deed (2) 47:9 49:20 11:15,16 23:22 divider (8) 13:7 39:2,6 doubt (1) 178:6
deeds (3) 46:17 49:5 27:15 33:6 34:9 39:9 47:24 48:9 doubts (1) 76:25
58:19 35:8,11 37:1 38:12 54:3,5 Dr (82) 1:14 10:19,21
deep (7) 7:9 11:19 39:7 42:1 44:6 56:9 dividing (1) 54:5 13:8,25 17:17 18:1
120:13 127:7 57:20,21 62:20,20 Dmitrienko (12) 44:4 18:24 19:20 20:20
132:23 149:2 63:4 67:18 91:11 45:9 46:23 50:9,19 25:10 28:14 29:8
152:16 91:20 92:2,5,12,13 57:16 58:7,25 59:8 30:9 32:5 33:11
defence (7) 13:11,15 93:2 122:10 135:15 62:5 65:4 72:16 34:4 36:1 38:2 39:2
74:5 75:6,21 136:21,21 137:8,22 DMITRIEVICH (2) 1:14 39:11,19 40:1,11

40:23 41:12 43:15 44:13 45:25 47:6 47:19 48:11,18 51:6,25 53:25 54:12 55:9,23 56:16 60:2 61:11 61:12,25 64:24 66:19 71:9 79:17 80:12 83:21 88:1 89:6 114:5 115:23 119:8 121:16 122:22 130:11,25 132:18 133:20 135:19 139:6 148:15 149:4 151:17 153:7 155:20 157:11,25 159:18,25 160:12 160:17 161:9 164:9 166:19 170:6 171:9 174:5 175:25 215:3

draft (7) 132:15 133:23 144:9,10 177:9,16,16

drafts (4) 38:3,12 39:7 164:25

draught (6) 59:5 60:20,23 67:19,20 67:22

draw (2) 48:6 181:23 drawing (1) 54:8 drawn (2) 86:17

142:19 dredge (1) 69:11 dredged (1) 67:24 dredging (3) 59:4

60:21 67:7 drinking (1) 139:21 driving (1) 15:14 Dubitskiy (6) 82:5,11

82:25 84:12 148:11 155:16

due (8) 23:16,19 27:22 28:1 37:9 53:23 66:22 70:10

E

e-mail (30) 62:18,18 81:22 82:3,5,8 84:11,14 85:4 155:7 163:17,19,20 164:6,9,20 165:3 165:15,20 166:6,9 166:16,25 167:11 167:22 168:20 169:14 170:2 178:24 179:3

e-mails (21) 16:10,11 16:18 17:3 30:20 148:20 156:11 164:7,15,17,24 165:12,22,24,25 166:21 168:18 170:20 171:16,18 179:6

E1/6/11 (2) 173:22 174:18

E1/6/12 (1) 78:11 E1/6/16 (1) 78:12 E1/6/28 (2) 127:19

128:6

E1/6/29 (1) 173:21 E1/6/4 (1) 174:11 E1/6/5 (1) 127:21 earlier (5) 65:13 66:21

69:3 131:22 177:1 earliest (1) 177:5 early (1) 168:4

Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900

219

February 17, 2016 Day 11 — Redacted

ease (1) 182:4 146:25 147:25 exclude (1) 174:22 80:7 123:11 financial (11) 40:6
easier (3) 54:25 66:12 148:5 159:2 166:7 excluded (2) 170:1 fabricating (1) 89:2 72:2,6 73:2 114:23
86:9 entering (3) 119:23 171:10 face (1) 64:2 151:4,12 152:21,25
easiest (1) 125:15 132:19 141:23 executed (2) 125:14 faced (1) 145:23 157:4,7
easily (12) 8:3 19:15 entirely (1) 41:5 128:8 facilitate (1) 69:9 financing (7) 28:2
38:5 53:22 78:22 entities (3) 25:22,23 executives (4) 3:23 facility (2) 51:17 81:5 33:13 45:11 54:21
78:25 121:8 126:5 138:19 8:10 115:14 144:20 fact (22) 58:17 59:15 114:17,25 115:10
134:3,19 142:4 entitled (3) 64:11,17 exercise (1) 84:2 65:22 66:22 76:20 find (5) 82:15 128:9
163:10 64:19 exhibit (10) 14:13 91:18 124:13 140:22 141:5
easy (1) 86:24 entries (1) 148:3 168:24 169:7,12 125:14,23 131:18 164:18
EBRD (4) 27:24 36:24 entry (4) 71:21 89:15 170:14 171:2,11,15 134:15,24 135:5 fine (3) 69:18 78:17
36:24 156:3 91:4 131:9 171:21,24 136:16 138:24 180:24
economics (6) 3:16,17 equipment (1) 33:22 exhibited (9) 14:15,19 141:8,14 143:1,18 fingered (1) 182:1
4:11,16 10:23 20:9 equities (1) 114:25 39:3 164:10 168:8 152:20 166:1 finish (3) 19:1 52:5
educated (2) 3:21 equity (1) 55:12 169:17,24 170:2,10 179:11 174:3
27:24 Erium (5) 158:4 159:5 exhibits (3) 35:24 facts (5) 14:10 71:7 finished (4) 4:9 10:7
education (4) 5:3,21 159:20 160:21 171:5,6 86:8 137:6,7 10:14 84:20
8:2 84:21 161:22 existence (1) 161:20 faculty (1) 4:11 finishing (1) 84:20
educational (1) 11:13 especially (6) 9:11 existing (6) 34:1 42:12 fair (3) 28:18 78:24 Finland (1) 5:13
effect (4) 60:2 61:15 29:6 33:7 125:21 55:20 125:12 179:24 first (62) 2:16 7:5
70:14 117:4 127:3 139:10 126:24 134:24 fairly (1) 182:12 11:21,25 25:5,7
effectively (1) 124:6 essentially (1) 140:8 expand (2) 8:3 142:14 false (1) 42:4 29:3 31:22 39:3
efforts (2) 23:13 67:4 establish (4) 6:21 68:8 expansion (1) 8:4 familiar (1) 14:18 42:7 45:7 54:14
either (12) 25:23 68:23 73:24 expect (1) 156:10 familiarise (1) 38:17 56:12 58:18 70:25
35:13 71:23 84:20 established (3) 4:12 expected (1) 66:7 family (11) 3:15,21 77:10,13 82:25,25
118:14,24 130:22 41:12 65:5 expecting (3) 18:15,16 4:5,6,7,22 8:12,21 85:12 115:20,25
142:22 152:7 175:7 estate (2) 32:12 73:9 9:12 10:5 141:16 119:10,18 123:15
175:12,16 116:13 expense (1) 50:17 famous (1) 6:25 127:14 129:24
elected (1) 5:4 euro (2) 21:24 114:23 expenses (1) 23:4 far (16) 2:21,21 17:15 130:9 131:1,5,10
electricity (1) 9:2 European (2) 6:18 experience (3) 7:25 22:14 34:8 38:15 131:21,25 133:24
element (1) 36:17 35:6 8:1 172:7 56:5,8 71:4 74:20 137:13 140:12,23
emerge (1) 10:11 euros (1) 34:24 experienced (1) 81:15 91:8 154:22 145:3,24 146:4,7
employ (4) 92:5 138:5 evaluated (1) 151:15 139:11 159:23 164:24 146:11,23,24
153:19 154:20 evening (1) 178:11 expert (10) 75:15,22 179:22 147:17 149:25
employed (6) 6:12 event (3) 179:25 75:25 76:3,9,14 fast (4) 86:11 91:17 150:19 152:19
7:22 11:14 20:12 180:7,8 78:13 79:11 130:17 92:7 93:25 153:17 154:20
35:11 153:14 events (1) 168:22 173:20 faster (6) 66:12,14 157:24 158:12
employee (3) 85:12 everybody (9) 1:8 experts (6) 24:7 91:9 67:12,13,14 86:9 159:2 168:1 169:17
148:8,22 3:13 4:13 8:11 91:10 121:10 father (2) 3:20 79:8 170:7 172:6,14,18
employees (12) 77:25 127:3 144:15 147:6 129:16 151:3 fault (2) 86:15 132:3 175:20 176:16
81:16 86:7 91:24 150:2 160:21 explain (15) 18:25 favour (2) 145:21 177:14
114:13 115:8 147:7 everybody’s (1) 147:5 53:9 61:13 66:15 181:1 five (11) 2:15 4:25
148:7 151:6 153:20 evidence (39) 2:10,19 66:25 69:7,8 70:10 February (10) 1:1 17:5 18:20 61:9 87:1
165:25 166:14 10:6 14:1 20:3,11 71:21 90:4 147:24 17:5,6 35:19 83:19 92:24 93:4 118:13
employing (1) 91:18 41:17 43:16,18,19 148:3 156:12,17 83:24 114:8 155:11 132:7 172:4 175:20
employment (1) 18:3 45:24 56:13,15 180:23 214:3 five-parties (1) 160:11
empty (3) 79:18 61:25 75:15,22,25 explained (9) 39:18 federal (25) 44:5 five-side (1) 159:15
114:24 124:22 76:3,9,14 85:24 62:3 68:1 131:22 49:12 50:7,10 focus (2) 28:12 71:7
enclosed (2) 23:6,7 89:6 91:13 125:17 142:7 148:6 171:16 57:17 58:11,21,23 follow (9) 13:9 25:3,3
encourage (1) 37:4 126:12,16 128:13 179:25 181:3 58:24,25 59:1,2,9 28:10,11 54:25
encouragements (1) 129:6 130:19 142:9 explaining (1) 38:18 59:10,11,16,17,22 65:9 148:25 170:7
24:16 143:25 145:18,22 explains (1) 36:20 59:23 60:1,5,21 followed (2) 23:11
endeavour (1) 68:12 148:4 151:20 explanation (10) 66:13,13 67:5 78:22
endeavours (1) 70:2 152:13 161:24 26:14,16 66:24 Federation (4) 49:13 follows (3) 31:22
enemies (3) 8:24 9:7 163:7 175:25 90:5 119:7,16 68:2,12 70:8 142:2 158:17
87:22 ex-assets (1) 8:22 128:24 139:3 171:9 feel (1) 68:5 foot (2) 51:10 115:4
energy (1) 7:17 ex-Baltic (1) 8:5 171:14 feeling (2) 2:22 71:3 footer (2) 84:14 167:3
enforce (2) 126:14 ex-contacts (1) 30:16 exploit (1) 66:7 felt (1) 29:10 footing (1) 68:7
141:20 ex-directors (1) 8:11 expressly (1) 160:5 fence (1) 49:2 forces (1) 27:19
enforced (1) 161:11 exactly (5) 22:22 extension (1) 69:10 FIC (1) 81:2 foreclose (1) 178:7
engineering (4) 35:2,4 32:23 62:11 66:9 external (3) 41:3 fiddle (1) 133:14 forensic (2) 75:15,17
35:5 37:1 172:11 114:25 156:22 figure (3) 41:20 52:3 foresaw (1) 181:7
English (9) 2:20 6:6 examination (1) 75:17 extra (6) 24:11 51:22 53:10 forever (1) 119:6
83:5 117:7 139:11 example (17) 14:12 56:24 57:8,9 figures (5) 42:8 43:14 forge (2) 74:9 163:10
158:14 169:5,20 17:7 38:21 50:20 118:14 57:2,10,21 forged (16) 74:1 75:11
173:10 67:6,6 81:2 87:2,5 extract (1) 169:24 file (3) 48:21 92:15 76:8 77:1 80:7
English-speaking (1) 89:15 92:17,23 extradite (1) 64:17 129:22 121:6 122:15
153:24 122:22 135:11,13 extradited (1) 64:2 files (7) 87:6 88:7,8,17 123:11 129:7
enormous (1) 151:10 140:17 160:13 extradition (6) 63:22 138:10,20 143:8 135:20 142:23,25
enormously (2) 59:14 exceeded (1) 28:9 68:10,18 69:16 final (5) 34:21 35:24 143:8,11,18 163:8
60:24 exchange (5) 21:18,22 70:3,7 38:25 39:9,12 forgeries (1) 73:18
enquiries (3) 17:4 22:1 93:10,13 extremely (1) 10:4 finalise (3) 5:20 23:2 forgery (11) 73:13,14
126:7 134:6 exchanged (2) 17:3 eye (1) 166:24 27:10 73:25 75:7,23 76:4
enquiry (4) 16:11 68:7 30:20 eyes (1) 89:5 finalised (2) 37:14,18 76:15,19 139:17
71:4 154:5 exchanges (2) 21:20 finally (1) 4:16 142:6 152:18
ensure (1) 37:13 54:3 F finance (5) 11:13 forging (1) 121:9
enter (1) 119:21 exchanging (1) 16:9 fabricated (7) 74:1,15 39:20 59:11 83:3 formally (4) 1:11
entered (9) 83:24 excise (1) 93:15 156:3 125:11 126:2
74:17 75:4 77:1
91:14 125:7 129:8 excising (1) 171:4 financed (1) 22:13 137:23

forming (2) 42:21

91:2

forms (1) 78:16 forward (3) 7:7

145:16 181:22

forwarded (3) 16:13 154:5 171:17 forwarding (1) 170:19

fought (1) 8:5

found (3) 8:20,21 9:5 four (5) 16:1 83:23

92:23 174:13,14 four-line (1) 166:5 fourth (1) 89:15 France (2) 136:22

146:19 frankly (1) 179:25 freehold (5) 40:16

52:24,25 53:5,12 freely (1) 128:7 French (2) 12:23 70:7 frequently (1) 139:21 friendly (2) 87:8

139:20

friends (3) 8:12 87:22 138:6

front (2) 50:4 154:4 fulfil (1) 23:18 fulfilled (1) 25:2

full (4) 20:18 65:11,11 172:4

fully (1) 179:25 funded (3) 25:15 40:8

55:12

funding (5) 35:22 43:6 59:10 90:8 140:2

fundraising (1) 41:7 funds (5) 22:21 67:5 67:13,15 138:18

funny (1) 179:12 further (5) 41:18 51:7

66:14 140:17 181:5 future (4) 40:15 44:17

54:20 60:9

G

game (2) 90:6 161:20 games (3) 90:24 120:7
146:20 gas (1) 7:1

Gatchina (1) 158:20 gather (1) 178:8 general (9) 11:18

26:25 28:21 32:24 65:25 72:25 115:1 115:14 158:10

generally (11) 7:2 32:7 45:2 62:10 77:24 78:4 138:8 138:10,11 153:13 154:2

Generalova (3) 154:6

154:11 157:7 generating (1) 32:1 genuine (3) 75:18 128:16 142:2

geology (1) 3:19 Germany (1) 5:19 getting (4) 28:17,20 28:24 146:8

give (19) 2:19 24:14 24:20 26:2 67:6 72:11 89:7 90:2 138:6 142:6,20 143:23 144:11 150:3 155:20 160:13 163:12 171:14 176:21

given (43) 5:11 24:7 27:8 30:7,13,16 34:9 52:5 54:2 77:9 77:23 81:12 86:20 90:11 93:18 115:21 117:25 118:7 119:7 127:10,12 128:25 131:18 135:6,23 136:1,8 142:20 148:4 156:14,14 157:14 158:21,24 160:18,19 161:1,2 161:3 162:16 172:17 179:11 182:6
giving (3) 13:25 135:13 166:12

global (1) 11:12

go (61) 1:17,19 2:3,5 2:21 4:10,14,16 5:18 6:1,8,13 7:7 13:7 21:11 22:8 30:24 31:16 34:2 35:16 36:9 38:8 39:25 40:13 42:17 43:16 47:23 54:1 54:16 69:4 75:14 76:22 78:11 80:4 81:2 84:10 85:3 87:5,6 122:8,8 123:6 127:21 131:6 133:24 142:3 146:22 147:17 153:3 157:24 158:2 158:12 162:14 165:2,25 166:3 173:21 174:11 177:8,12 181:5

goes (3) 1:18 12:16 72:21

going (31) 20:20 21:20 27:22 33:2 33:12 41:17,25 55:7 65:10 71:6 73:8,12 80:9 115:20 125:14 129:25 130:10 136:6 140:8 146:18 147:11 148:21,25 164:17 165:24 168:23 175:7 176:4 179:10,13 182:6

good (29) 1:8,8 3:4 7:23 8:3,21 10:25 17:18 18:21 19:5 19:20,24 29:5,9 30:13 48:1 61:5 86:4 87:8 137:25 138:14 143:10,19 144:5,21 145:15 159:6 182:5,15

governance (1) 151:7 government (6) 59:23 66:10 67:3,15,16

69:9 governmental (1)

156:8

Governor (1) 50:20 grandfather (5) 3:16 3:19 4:12,13,19 grandparents (1) 4:5 granted (3) 158:18 159:21 160:2

grateful (1) 10:16 great (2) 9:12 31:1 greater (1) 60:18 groundworks (1)

33:25

group (27) 3:10 6:10

Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900

220

February 17, 2016 Day 11 — Redacted

24:12 25:24 26:5,6 26:7 31:9 72:25 73:3 80:15 81:25 85:22 88:8,18,25 114:13,16 131:17 134:25 145:15 147:25 153:5 154:1 154:13 155:9 157:10

growing (2) 91:17 92:7

grown (1) 3:20 growth (4) 67:12,12

67:14 91:17 guarantee (63) 77:9

77:12 81:12 89:21 90:2,11 116:15,19 117:12,15,25 120:19 121:15 125:2,6,12 126:17 126:18,22 127:12 127:23 129:1,19,24 130:4,9 131:1 140:21 141:1,6,7 145:19,19,24 146:10,23 150:4,17 151:13 158:21,24 159:7,8 160:5,6,14 160:16,19 161:3,7 161:25,25 162:17 163:12 164:2 165:9 165:10 166:7,8 172:17 173:13 175:12,18

guarantees (58) 74:2 74:4,18 77:14 80:25 81:8 87:3,3 89:7 91:14 92:10 115:21 118:5,7,11 119:5,19,21,23 120:10 126:13 131:12,18 132:19 135:5 140:10,11,22 141:9,16,21,24 142:20,25 144:12 146:10,25 147:25 148:4 149:6,24 150:21,24 155:21 155:22 156:14,15 156:22 157:14,14 157:20,22 159:12 162:12 170:22,25 174:14 175:14

guarantor (4) 89:25 91:6 162:5 173:14

Guarantors’ (1) 164:5 guest (1) 5:11 guidance (1) 93:11 guys (1) 29:19

Guz (9) 88:12 127:4 135:8 144:2,17 149:11 150:11,19 151:19

H

half (5) 25:18,18 34:24 50:24 167:6
handle (1) 60:17 handling (2) 33:3,21 hands (1) 177:22 handwriting (4) 75:17

75:22 76:9,14

Hang (1) 52:5 happen (2) 26:13

33:12 happened (4) 3:14

14:11 26:22 30:14 happening (1) 134:22

happy (6) 3:12 21:19 144:8 162:11,11 179:22

hard (8) 38:5 47:25 48:8,19 54:10,24 54:25 142:4

head (6) 4:2 44:4 50:9 57:17 58:11 152:2 headed (2) 2:4 46:22 heading (3) 40:14,22

40:22 headline (1) 26:15

health (2) 15:20 34:10 hear (3) 70:11,25

79:19 heard (1) 143:6

hearing (11) 3:4 94:1 94:10 114:4 139:12 143:15 182:21 214:2 215:5,6,7

heated (1) 181:25 heavy (1) 33:25 hectares (9) 44:2

50:25 51:18 52:10 53:16,17 55:8 56:5 56:20

hectic (1) 77:20 help (4) 16:3 30:15

65:10 119:9 helped (1) 14:22 helpful (1) 181:21 hereon (1) 178:20 hide (1) 145:12 high (6) 20:8 136:20

148:23 151:9,11 181:24

highly (2) 78:23 128:17

HILDYARD (96) 1:8,15 1:17,22,25 2:3,7,10 2:13,18,23 3:1 10:3 10:8,15 25:12,17 25:21,25 26:14,17 27:6 28:6 42:16,20 48:15 49:14,19,21 50:24 51:2 52:17 52:22 61:1,6,9,12 61:18,21 64:20 68:3,15,21 69:2,6 69:23 70:10,20 79:10,15 85:8,10 86:13,16,20,23 87:12,16,19 93:9 94:4 117:4,7 132:2 132:9 137:2 171:20 171:23 172:2 173:4 173:8,12,19,25 174:3 175:4,21,24 176:4,14,16 177:2 177:7,10,12,22 178:2,6,14,18 179:18 180:3,22 181:10,19 182:9

history (2) 26:19 86:8 hmm (1) 60:8

hold (2) 42:16 180:15 holding (2) 115:6,7 hole (1) 40:4

holes (1) 134:17 honest (7) 37:14,18

37:20,23 86:4 90:23 166:19 honesty (1) 70:18

hope (2) 36:19 93:25 hospital (2) 3:24 4:2 host (1) 181:13 hosted (1) 181:12 hour (1) 15:14 hours (2) 139:23,23

huge (6) 50:2 77:19 134:17 137:21,25 151:10

hundreds (4) 8:23 164:7 165:23 166:21

I

icons (8) 167:15 170:1 170:12,14 171:4,9 171:14,24

idea (2) 87:10 152:18 identifies (1) 80:23 identify (1) 134:21 identifying (1) 44:14 IFRS (6) 140:18

154:12,17,19,23

157:4

IM (2) 31:19,20

IM’ (1) 35:21 immediately (3) 51:16

151:15 176:5 implement (1) 6:17 implemented (1)

118:23 implications (1) 6:6 imply (1) 124:14 importance (3) 36:20

36:22 147:16 important (23) 6:24 37:7,12 39:23 42:10 44:9 45:4

58:21 59:19 60:10 61:10 65:2 67:15 93:3 139:13 145:10 145:11 147:14,23 155:1 156:5 157:3 180:9

impossible (3) 67:23 87:5 93:20

imprisonment (1)

27:19 improvements (2)

32:10,15 in-house (6) 83:1

84:22 88:10,13,17 146:20

incentives (1) 24:15 include (3) 52:15

59:25 173:13 included (6) 24:2 56:5

56:6 59:3,16 171:19

includes (1) 160:5 including (4) 118:7 176:8 177:17,17

inclusion (2) 31:19 159:17

inconclusive (1) 76:1 incorporated (1)

169:20

increase (6) 33:20,21 33:21 59:4,14 60:24

increasing (2) 32:11

59:12

independent (5)

46:20 91:20 140:21 141:8,15

index (5) 38:8,10,11 38:17 215:1

indicates (3) 42:22,23 48:17

influences (1) 125:20 information (56) 14:8 31:20 35:21,24

36:7,17,18 37:3,10 37:13,17 38:3,13

38:25 39:8,12,19 39:21,23 40:6,21 41:25 42:17 43:12 51:5 52:3,12,16,20 54:1,9 56:3 62:2 81:17 83:8 84:7 86:10,20 87:7,9,11 89:21 92:12 131:23 135:7 142:13 146:16 147:20 148:7,19 152:22 154:21 155:13,25 157:1,3

informations (1)

155:6

informed (1) 147:11 informing (2) 94:6

164:2 initial (1) 27:14

initially (2) 9:16 57:5 inside (3) 73:3 79:2

137:24

insinuations (1)

140:17 insofar (1) 70:21 inspecting (1) 33:2

inspections (2) 137:23 151:5

instalments (1) 57:19 instance (1) 134:21 institutes (2) 35:10,12 institutions (2) 27:25

35:4 instructions (5) 78:3

181:5,8,17 182:7 instruments (1)

114:24 insurance (27) 5:12

6:2,6,9 7:5,8,14 11:2,13 116:17 118:8 120:18 121:18 122:1 123:1 123:16 124:17,18 131:14,19 141:1,4 150:23 151:2,7 158:21 164:3

Insurance’s (2) 121:22 124:6

intention (2) 88:4 163:9

interest (5) 70:12 92:10 135:12 138:6 179:7

interested (5) 9:24 120:14 132:25 179:5,21

interesting (4) 10:4,15

145:10 166:18 interim (1) 176:12 internal (5) 40:9 80:14

92:9 119:20 140:3 internally (1) 120:4 international (17)

6:25 7:8,13,14 8:1 8:2 11:17,18 53:20 67:13 150:25 155:5 156:1,2 157:4,7 172:7

internet (2) 176:20

181:13

Interpreted (1)

173:13 interpreter (3) 83:1,1

84:22 interrupted (2) 68:6

93:10 interrupting (1) 69:3 intervene (2) 29:19

88:13

interviews (1) 9:19 introduce (2) 2:15 3:5 introduced (2) 65:3,9 Invest (3) 114:22

123:17,22 investigation (1) 33:8 investment (14) 42:13

43:2 44:2 45:1,3 46:20 49:24,25 50:5 56:19 60:15 117:16,20,23

investor (1) 53:24 investors (2) 52:14

115:19 inviting (1) 17:12 involved (16) 11:5

23:16 28:16,20,25 84:7 89:5 123:17 136:18 143:20 144:22 156:6,12,17 159:13 178:19

involvement (1) 27:18 involves (2) 121:18

123:3

involving (1) 122:25 island (1) 59:13 issue (11) 23:1 80:25

114:23 119:5 134:14,21 139:18 155:17 159:8 176:17 181:6

issued (5) 141:9,15 151:14 160:7 168:9

issues (4) 139:23 140:16 153:14 181:8

issuing (1) 157:22 item (1) 169:12

J

January (1) 17:3 job (4) 84:15 137:1
143:19,19

joint (2) 92:22 173:14

Joint-Stock (2) 123:4 123:18

journalists (1) 179:4 judge (2) 70:9 160:14 judgement (2) 121:11

143:23

Julia (2) 128:15

174:21

July (2) 39:1,14

June (8) 41:8 77:15 81:5 116:1 118:2 127:16,24 147:3

jurisdiction (1) 164:18 jurisdictions (1) 29:17 JUSTICE (96) 1:8,15,17 1:22,25 2:3,7,10,13

2:18,23 3:1 10:3,8 10:15 25:12,17,21 25:25 26:14,17 27:6 28:6 42:16,20 48:15 49:14,19,21 50:24 51:2 52:17 52:22 61:1,6,9,12 61:18,21 64:20 68:3,15,21 69:2,6 69:23 70:10,20 79:10,15 85:8,10 86:13,16,20,23 87:12,16,19 93:9 94:4 117:4,7 132:2 132:9 137:2 171:20 171:23 172:2 173:4 173:8,12,19,25 174:3 175:4,21,24

176:4,14,16 177:2 177:7,10,12,22 178:2,6,14,18 179:18 180:3,22 181:10,19 182:9
justification (1) 181:3 justify (2) 52:2 73:5

K

Kaliningrad (1) 4:3

Kalmar (1) 34:25 keep (8) 28:7 79:18

91:13 166:24 167:1 167:25 169:3,16

Keith (5) 31:8 35:19 82:14 154:4 155:8 kept (2) 89:5 138:10

key (9) 23:1 62:6 66:10 115:9 127:3 134:14 140:16 151:22 152:9

keys (1) 72:7 kid (2) 15:8 79:8 kids (1) 145:6 killed (1) 26:12

kilometres (1) 92:18 kind (7) 83:4 146:20 149:1 153:11 159:10 161:20

166:10

KIT (1) 156:3

knew (5) 63:8 71:13 71:24 72:19,20 know (64) 8:6 10:4 20:10 27:2 28:2

29:12 35:4 36:22 38:10 44:22 63:15 67:23 71:6 79:4 84:25 85:12,13 88:4,21 90:14,14 92:6,10 93:2,11,14 118:12 119:23 120:2,3,11 121:8 122:17,19 123:13 124:3 126:1 127:21 128:22 129:2,4 130:7 132:21 137:18,21 142:13 143:17,23 145:14 148:1 152:16 154:15 163:10 165:12,16 170:19 171:6,25 172:3,10 172:10 177:15 178:5,24

knowing (9) 7:15,16 7:18 9:14 27:25 76:20,21 77:7 137:6

knowledge (4) 133:7 133:7,7 154:1 known (7) 4:6 8:11

26:5 71:25 117:21 121:14 136:16

knows (1) 153:1

L

lack (1) 150:3

land (34) 8:25 9:1,2 31:10 43:25 44:2 44:12 45:18,18 46:8,9,11,24 47:10 48:16 49:6,16 51:7 51:8,11,22,24 52:7 52:9 53:5,6 55:8,14 55:14 56:4,17,20 58:18,23

language (3) 6:16

132:4 137:3 languages (1) 7:25 lap (1) 174:1

large (6) 62:3 77:22 78:8 119:14 138:16 142:23

law (3) 44:23 118:12 164:22

lawyers (4) 16:9 29:6 147:7 179:4

lazy (1) 143:17 leading (4) 6:8 154:12

154:17 157:7

learned (2) 64:8

139:15 leave (1) 73:10

lectureship (1) 5:11 left (6) 4:22 114:14 146:15 147:2,3,9 left-hand (2) 169:3

172:16

legal (8) 45:17,21 70:14,21 140:14 149:20 159:5,16

legitimate (2) 68:7 71:4

lend (1) 37:4

lender (3) 37:4 39:23 55:24

lenders (1) 53:4 lending (1) 73:6 lest (1) 182:1

let’s (21) 2:21 3:3,7,7 4:21 5:21 8:9 19:11 26:11 27:13 33:14 33:15 47:23 67:17 77:4 91:17 92:15 135:10 137:14 150:5 157:9

level (10) 73:5 90:25 91:2 135:2 136:20 138:3 148:8,23 149:23 156:8

levels (2) 5:22 136:21 liabilities (4) 23:20

25:1 41:19 53:6 liability (1) 173:14 liable (1) 19:19 liaising (2) 156:13,18 life (11) 3:9,12 4:15

26:2 77:4,18,20 80:2 138:10 145:7 145:11

light (3) 70:11 71:22 179:19

limitation (1) 47:11 Limited (1) 46:2 line (6) 132:20 134:1

177:9,17,17,18 lines (1) 144:10 liquidity (1) 33:18 list (7) 24:19 49:5

50:11 74:4 80:23 116:11 129:20

listed (1) 89:25 listen (2) 41:15 160:22

lists (1) 91:6 litigation (1) 172:7 litigations (2) 29:16

93:4

little (10) 3:1 31:12,14 31:25 40:6,21 41:23 54:5 68:3 78:17

live (1) 6:16

living (2) 64:16 136:22 LK (1) 117:12

LLC (5) 31:10,24

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221

February 17, 2016 Day 11 — Redacted

116:15 164:1,4

Lloyd’s (1) 7:17

loan (58) 22:14 25:15 55:16,18 74:14,15 77:10,13 81:12 87:2 88:8 89:21 90:7 91:14 115:20 115:25 116:3,6 118:4 122:23 123:16 127:1,14 129:24 130:9 131:1 131:5,10,21,25 138:20 141:21,24 147:17 149:21 157:24 158:1,2,3 158:12,18 159:2,4 159:19,21,21,25 160:2,9,18,25 161:1,22 162:4 163:25 172:14,18 175:12

loans (22) 41:3 55:13 55:13 80:24 83:23 88:18,25 89:13 92:9 135:3,14 138:6,6,16 139:25 140:6 150:20 155:19 157:22 159:7 168:4 174:15

local (5) 7:11 36:15 59:9 92:20 153:22

located (1) 92:18 locations (1) 87:1 logic (1) 56:11 London (9) 5:12 7:2

17:14 29:16 30:21 153:6,13,19,21

long (25) 2:16 3:5 4:6 4:21 8:9 19:7 33:16 45:7 50:11 60:9 78:19,20 83:14 87:10 89:4 115:1 115:17 140:4 149:24 150:8,9 151:21 156:24 165:18 182:14

longer (3) 35:6 119:1 129:7

look (22) 22:1 32:7 45:22 52:23 55:23 71:9 76:8 80:9,23 85:14 89:12 115:4 130:1 131:5 137:24 141:17 142:17 154:3 161:13 163:4 167:1,6

looked (7) 80:18 127:20 165:20 168:18,20 174:17 180:11

looking (6) 114:8 138:11 165:4,4,22 180:10

looks (12) 46:1 47:4 116:19 120:25 123:7 140:24 155:7 162:15 164:25 167:2 171:2 172:16

looping (1) 78:20

Lord (92) 10:17,18,19 25:10 27:9 28:10 28:14 39:7 48:18 51:4 52:23 61:2,3,3 61:8,10,10,25 64:20,22,22 68:3 68:14,14,20,20,25 68:25 69:4,19,19 69:21 70:4,4,17,17 71:9 73:8 79:11,13

79:16 85:14 86:14 86:15,15 87:25 93:7,7,18 114:5 117:12 132:3,14 139:6 150:23 171:20,22 172:1,1 172:8 173:20 174:2 174:2,5 175:4,7,7 175:23,23,25 176:3 176:3,12,12,15,23 176:23,24,25 177:5 177:5,9,11,21,21 177:25,25 178:4,10 179:22 182:7 215:4

Lordship (23) 11:24 14:17 37:22,25 42:15 48:3,14 51:8 54:10 59:19 60:19 69:20 70:6 114:12 132:7 150:22 167:23 173:16,24 176:25 177:6 180:15 181:4

Lordship’s (1) 180:18 losing (1) 138:1

lost (2) 86:13 147:9 lot (17) 4:20 9:19

31:18 32:1 33:4,6 33:24 56:8 58:14 63:1 91:24 117:11 144:5,6,6 145:4 152:24

lots (1) 135:23

low (7) 26:8,15 66:15 66:19 138:6 148:8 148:8

low-level (1) 86:6 lower (2) 40:4 90:8

LPK (2) 117:15,21

LPN (1) 156:4 lunch (1) 17:12 Luncheon (1) 94:8 lying (1) 172:22

M

M&A (2) 9:25 29:2

M1/20/30 (2) 167:24 168:1

machine (1) 34:22 machines (3) 33:23,24

33:25 magic (1) 30:14

major (12) 3:11 4:2 7:1,16 8:7 23:15 58:17 127:3,6 141:10 156:3 159:23

Makarov (1) 4:14 making (10) 35:14 43:16 66:2 92:2

135:19 149:4 151:5 152:14 161:10,12

Malysheva (1) 115:16 managed (3) 5:24 6:8

6:24

management (3)

11:12 36:15 149:2 manager (2) 19:8

84:15 manipulating (5) 88:9

88:15 91:11,12 133:9

March (2) 34:23 163:25

Maria (2) 154:6,11 marine (9) 6:6,21

58:11 59:10 80:15 84:14 114:22 115:6

154:13 mariners (1) 4:1 mark (4) 48:11,22,23

71:1 marked (2) 49:1

131:12 marker (1) 49:2

market (6) 6:7 7:11,12 7:20 9:14 26:2

marketing (2) 84:16 154:2

markets (2) 7:2,8 masses (1) 154:21 materials (1) 83:10 matter (3) 174:17

182:8,9

matters (6) 10:11,25 71:8 94:5 142:7 145:1

maximum (2) 60:23

83:3

mean (24) 15:18 20:10 23:17 35:2 45:10 49:17 59:9 65:25 88:7,8 133:8 133:9 134:11 137:5 137:8,9 147:6 154:17,23 160:15 166:21 173:11 178:2 181:5

meaningless (1) 162:1 means (5) 21:8 27:13 27:21 138:18 157:4 meant (2) 2:18 87:14

measure (1) 62:3 media (2) 9:19 152:23 medical (2) 3:24,25 Medvedev’s (1) 65:6 meet (2) 3:13 115:14 meeting (1) 119:2 meetings (5) 63:2

115:19 144:6 150:19 156:8 member (1) 153:9 memorandum (33)

14:8 31:20 35:21 35:25 36:7,18 37:3 37:13,18 38:3,13 38:25 39:8,12,19 41:25 43:10 44:3 44:11 45:1,3 46:21 49:24 50:6 51:5 52:3,13,20 53:21 54:9 60:15 62:2 147:21

memory (3) 4:19 14:10 141:23

mention (1) 176:16 mentioned (4) 49:5

57:15 118:19 119:1 mentions (1) 49:6 merely (1) 142:24 met (3) 35:19 115:16

145:4 metadata (2) 16:12

114:8 metres (6) 46:25

60:21,22 67:20 69:12,12

metres’ (1) 67:19 Meylanov (1) 16:24 middle (6) 40:3 94:2 120:23 122:12 168:3 169:12

military (1) 27:19 militate (1) 180:25 million (62) 18:8,17

19:4 22:10,12,18 22:22 24:9,11,13

25:13 29:22,23 30:1 34:24 39:20 40:8,9,10 41:2,4,8 41:9,13,18,20 42:2 52:3,19,20 53:1,5,7 53:10 55:5,7,8,12 55:13,17,19,20,25 56:15,17 57:3,6,8 57:13 62:1,2,12 64:8 68:9,24,24 69:7,8 71:22 72:12 73:6 81:8

mills (1) 147:8 mind (1) 182:4 mind’s (1) 166:24 mine (5) 1:21 2:6

121:1,1 130:14 ministries (2) 50:7,7 ministry (4) 5:3 44:3

45:4,8 minor (1) 32:10 minutes (4) 2:15

17:17 18:20 182:13 minutes’ (3) 61:9

132:7 178:8

Mironova (2) 88:12

127:5

misapprehension (1)

155:23 misleading (1) 137:8 misled (1) 137:10 missing (1) 93:21 mistake (8) 74:10,11

77:5 81:4 87:21 143:3 156:20 166:10

mistaken (2) 13:1 157:16

misunderstanding (3)

47:22 53:19,22

MKD (1) 140:18

Mm (2) 22:25 60:8 modern (4) 6:18 8:3

34:22 35:6 modernising (1) 35:14 moment (6) 61:7

69:24 84:22 167:1 181:20 182:2

Monday (2) 179:23

181:4

money (20) 18:14 22:16,20,23,23 23:9 26:10 41:23 43:17 54:21 56:24 59:3,12,16,18 66:13 72:22 125:24 135:18 138:4

monitoring (1) 141:3 month (3) 18:8,17

19:4

monthly (3) 84:2

141:3 145:5

months (4) 16:4,17

17:10 26:24 morning (9) 1:8,9 12:7

21:4 41:12 71:19 73:9 119:14 182:17

Morskoy (2) 91:4,7 mortgage (3) 55:15 116:13 159:24 mortgaged (1) 150:2 Moscow (4) 6:2,8,15

63:2

mother (4) 3:23 4:15 8:9 79:7

mother’s (1) 9:12 mouth (1) 79:18 move (3) 48:18 68:22

70:15

movements (1) 78:19 movie (1) 9:22 multi-party (1) 118:15 Munster (1) 5:12 Murmansk (2) 4:3

50:20

mustn’t (1) 164:12

N

N11/19/103 (1) 17:23 N11/19/104 (1) 17:24 naive (2) 27:4 29:17 name (11) 4:6,7 44:4

58:4,6 62:14,15,18 162:4,8,10

names (2) 24:20 30:16

native (1) 153:23 natural (1) 56:1 nature (1) 128:11 naval (2) 4:14,14 nearly (2) 115:16

147:9 necessary (4) 23:3

52:15 84:24 118:11 necessity (2) 124:11

150:3

need (20) 2:23 51:13 66:18 70:21 84:9 86:12 91:23 93:6 93:11 118:20,25 120:9 125:10,11,13 149:24 150:6,16 169:5 179:7

needed (3) 126:2

129:3 138:20

needs (1) 119:3 neglected (1) 134:18 negotiations (3) 9:6

27:24 153:21

neighbouring (1)

47:10

never (45) 11:1,5,14 11:19 27:21 65:1 76:20 79:5,6,23 83:2 119:23 121:10 124:21 125:6,14,22 125:23 126:13,18 136:23 140:10 141:15 146:2,10,11 148:5 149:15 151:8 156:15 159:18 160:7 161:19 163:14 166:6,15 170:24 171:12 172:22,25 173:2 174:25 175:14,14 175:25

new (4) 33:22,23 91:19 156:6 newly (1) 34:24

newspaper (1) 179:13 nice (3) 15:14 136:4

178:11

Nobel (2) 3:16,17 nobility (2) 3:15,21 nominal (1) 46:8 normal (10) 3:7 26:20

59:24 65:12 68:2 77:4 91:9 138:5 146:13 159:11

normally (3) 154:19 165:24 166:3

north (1) 3:25 north-west (1) 51:16

Norway (4) 5:2,3,5 7:2

Norwegian (1) 6:5

Norwood (1) 82:17

note (5) 24:22 59:19 82:17 128:10 176:7
notice (5) 11:15 60:20 164:5 166:12 168:8

noticed (1) 178:24 notices (5) 164:22

170:21,25 171:12 172:9

notification (3) 163:21 165:8,9

notifications (1) 164:4 notify (1) 181:11 number (33) 7:23

8:14 11:15 29:12 32:17 33:5,9,23 34:9 35:11 38:12 39:13 46:9 47:9 50:6 55:2 57:19 75:4 81:2 91:4,19 127:16,24 128:11 131:9 138:9,16 142:19,24 163:2,25 165:19 179:9

nursing (1) 4:1

O

oath (2) 11:21 56:13 object (1) 180:2 objection (1) 146:7 obligation (1) 19:18 obligations (7) 19:14

24:24 124:14,14 140:19 164:14 173:15

obtain (1) 6:24 obtained (1) 49:21 obtaining (4) 10:2

50:15 138:15 159:6 obvious (4) 133:19

137:20 138:21 142:15

obviously (2) 61:10 177:25

occasions (2) 4:18 139:2

occur (1) 152:19 occurred (1) 143:14 offence (1) 63:18 offered (2) 68:1 161:6 office (24) 6:9 7:24

63:2 72:11 73:1 85:10 86:18 87:2,4 91:1 92:15,19 139:21,22 147:6,10 148:8 151:5 152:3 152:5 153:6,19 156:7 166:4

officer (1) 83:4 offices (4) 86:25 91:24

92:13,13 official (14) 59:17

60:5 62:6 63:21,25 64:9 65:15 66:7 71:13 72:16 163:4 164:23 165:17 166:2

officially (2) 46:17 82:18

officials (8) 57:12

59:25 62:4 65:14 65:14 66:3,18,18

Oh (2) 63:7 121:8 oil (1) 7:1

okay (13) 2:21,25 16:25 26:10 38:7 80:5 85:20 86:10 128:5 150:6 154:14 174:4 175:24

old (1) 6:4

OMG (42) 11:8,10,11 37:14 40:16 41:1,2 41:4 46:3 52:25 53:11 54:1,3,7 55:4 55:13,24 63:8 71:10,17 72:24 74:24 80:14 82:18 84:2 85:21 88:8,18 89:21 90:11 91:13 92:10 114:5,21 131:17 147:19,24 153:9 156:13 157:12,15 158:20

OMG’s (2) 40:9 80:20

OMGP (1) 21:9 once (7) 53:15 66:25

79:8 141:14 148:6 149:20 180:12

Onega (14) 9:17 65:17 77:10,13 115:20,25 116:4 120:19 122:23 123:16 127:14 129:24 130:9 131:1

ongoing (3) 53:17

57:15 136:5

open (11) 57:16 72:14 75:4 87:22,24 114:4 156:10 166:22 176:11 180:13 215:6

opened (1) 168:14 opening (2) 164:8

165:11 openly (1) 135:9 operates (1) 72:21 operating (3) 4:2

44:20 56:4 operation (2) 124:21

125:22 operations (3) 33:9

72:6 133:17

opinion (3) 128:12 130:18 133:22 opinions (1) 144:8

opportunity (2) 3:5,13 opposed (1) 119:21 optimistic (1) 120:6 order (10) 60:5 69:6,9

69:11 73:5 93:22 124:5 138:12 142:24 171:11

organisation (1)

137:22 organisations (2)

23:24 35:9 organising (1) 153:17 original (4) 38:10

121:11 142:25 169:3

Oslo (5) 5:13 80:15 114:22 115:5 154:13

ought (4) 13:2 68:10 146:23,24

oughtn’t (1) 146:24 outside (1) 92:18 overdraft (1) 81:5 overdue (1) 163:24 overnight (1) 182:16 owned (3) 31:10

34:17,21

owner (6) 19:8 32:8,9 49:23 50:2,15

owners (8) 26:21 27:16 35:13 43:4 45:2,6,8 65:8

owning (3) 8:25,25

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222

February 17, 2016 Day 11 — Redacted

9:1

Oxus (5) 33:13,14 44:11 54:8 148:13

P

page (35) 1:22 21:11 36:9 40:3 51:10 52:23 81:21 82:9 115:4 116:9 120:23 120:24 122:9 128:1 131:9,9 132:14,16 133:23,25 142:3 143:5 144:9 158:12 162:14 167:2 169:11,13 172:16 173:23 174:8 176:8 177:7,14 215:2

pages (7) 142:4,6,9 168:8,25 176:17 177:1

paid (33) 18:8,17 22:15 25:17,21 26:7 29:23 34:23 39:22 41:2 43:6,17 50:17,18,18 53:3,4 55:25 56:17,23,24 57:5,5,11,16 58:13 62:10 63:16,21,25 64:8,25 70:22

paper (1) 54:6 papers (1) 137:23 paragraph (31) 10:22

18:6 20:23,24 21:6 21:12 30:24 31:4,5 31:16,21,22 34:3 35:17 36:1,10 40:15 51:14 75:14 76:23 77:21 78:12 141:18,19 142:17 158:14 168:1 173:12,23 174:6,18

paragraphs (4) 51:10 75:8,8 127:19
paralegal (1) 85:1 parents (1) 4:5 Paris (1) 17:12 Parker (9) 31:8 36:4

81:24 82:6 148:12 153:4,6 154:4 155:8

part (36) 3:11 23:15 42:12,12,21,23,23 43:1,6 44:6,8,10,19 44:20,22,24 45:4,7 45:9,21 46:18 51:24 53:18 56:4 58:19,21 68:4,12 68:12 70:1,24 135:9 136:17 145:11,11 161:7

partial (1) 8:1 participation (1) 156:7 particular (13) 2:23

43:1,6,7 47:8 69:17 86:6 124:8 129:11 134:21 146:13 167:1 168:20

particularly (1) 40:2 parties (4) 24:16,20 118:14 161:19

partly (1) 55:12 parts (9) 8:16 42:11

43:8,11 44:19 46:16 53:16 58:17 71:3

party (5) 36:25 136:25 140:19 159:7 161:11

passages (1) 2:23 59:2,21 60:23 74:1 46:24 49:11 153:23 professional (1) 17:22
pasted (1) 180:12 88:2,23 89:14,19 plural (1) 65:14 presented (1) 128:9 professor (3) 3:19,20
Pause (3) 36:13 75:10 90:22,25 91:1,3 plus (1) 62:13 presenting (1) 137:11 5:11
76:23 121:20 122:15 pm (11) 61:6,22,24 President (1) 5:17 profitability (2) 60:25
pay (9) 23:21,22 123:11,18 124:10 93:9 94:7,9 132:11 pressed (2) 52:18 92:3
26:10 57:18 62:9 126:6,10 133:3,11 132:13 182:18,20 83:14 programme (4) 59:1,1
92:2,11 137:25 133:13,15 134:5,8 214:1 pressure (1) 181:25 59:16 67:11
138:4 134:17 135:11,20 point (24) 26:18,18 presumably (5) 10:19 progress (1) 178:13
paying (5) 45:6 59:24 136:13,19 137:4,10 33:7 52:14 54:13 12:16 30:14 36:3 project (28) 33:16
60:12 63:18 153:18 140:25 141:2,5,13 54:20 61:1 76:1 89:21 35:10,23 40:14
payment (4) 24:21 145:1,21,24 149:6 123:21 125:15 pretty (2) 9:22 11:3 42:13 43:2,3,9,9
57:8 62:3 70:18 151:11 152:20 139:3 146:11 prevent (2) 19:14 44:6 49:25 50:22
payments (25) 24:4 157:19 161:1 163:7 152:17 155:14 93:15 53:17,18 56:7,19
24:13 25:6 57:22 179:11 157:17 159:16 previous (21) 12:17 57:15 58:2,2,16,21
57:23 59:7,8 62:16 Petroles (1) 82:17 161:10,12,13 177:5 12:25 14:1 26:19 60:10,25 62:7,7
62:22,24 63:4,6 PhD (2) 5:5 6:3 178:4,21 180:25 26:20,25 32:14 65:2 84:6 156:4
65:13,16 66:2,6 photo (2) 85:5,6 181:4 35:13,15 43:4 45:2 projecting (2) 23:24
68:16 69:5,8,13 photographs (1) points (5) 24:2 129:21 45:6,8 46:18 49:23 35:12
70:22 71:13 72:19 47:25 161:9 170:7 181:18 50:15 65:3,8 86:6 projects (7) 28:3
72:20,22 pick (1) 178:11 police (1) 27:18 88:5 132:16 56:22 65:10 66:1
PDF (2) 38:13,20 pictorial (1) 78:24 politician (1) 65:7 previously (4) 28:15 66:12,25 156:5
pen (1) 78:18 picture (7) 42:15,18 poor (5) 31:24 32:6,10 69:11 78:21 180:24 prolongation (1)
people (36) 6:15 7:23 47:20,23 48:1,21 116:23 152:25 price (19) 22:8 24:8 50:15
7:24 8:23 9:6,15 49:11 port (15) 9:18 23:2,17 26:8,15 29:20 32:1 promised (1) 93:25
14:21 20:12,18 piece (10) 8:25 9:1,2 23:18 26:4 29:10 32:11 39:17,22 promoted (1) 6:1
25:18 27:16 28:15 9:16 39:23 44:12 32:12 58:23 59:2 56:15 66:16,19,21 Promsvyazbank (1)
29:5,13 59:8 77:19 46:19 47:10 49:6 59:21 65:19 66:3 68:8 71:11,21 73:5 123:4
79:20 86:4 90:21 49:10 67:8 87:6 92:17 89:1 153:18 proper (7) 35:10
91:19 92:5 138:8 pieces (2) 8:16 56:17 portfolio (3) 80:15 primary (1) 25:14 73:17 133:10,11
139:2 143:20 144:1 pile (3) 77:22 78:8 82:15 155:9 printing (1) 85:2 134:14 138:20
144:21,25 145:4 119:15 ports (9) 31:3 44:23 prior (1) 40:7 146:16
149:6 159:13 166:4 pink (1) 54:5 46:3 50:10 65:8,24 private (6) 94:10 properly (6) 32:14
179:9,20 180:20 place (3) 92:14 93:2 66:8,11 74:24 145:7 178:20 35:1 78:1 146:17
181:11 182:1 120:10 posed (1) 54:8 182:21 215:5,7 147:11 159:9
perceive (1) 181:19 placings (1) 156:3 position (14) 18:18,23 privatisation (3) 8:17 property (16) 27:15
perimeter (1) 49:2 plan (1) 45:20 19:3,21,24,25 27:11,13 31:11 44:1 46:17
period (1) 77:17 planned (1) 42:24 58:10 69:21 70:2 prize (2) 3:16,17 47:9 48:3,12 49:5
permission (1) 24:14 plans (6) 17:15 40:15 73:24 74:20,23 probably (22) 4:23 49:12,20 52:12
permissions (2) 35:8,9 44:14 50:3 67:7,8 114:19 139:24 10:13 18:12 27:4 55:14,14 56:18
person (34) 19:16 plates (1) 33:5 possibility (2) 128:15 29:3 42:10 49:10 58:18 66:13
20:8 62:5,6 65:4,5 Platonov (1) 127:5 174:22 51:2 60:19 69:3 proposal (1) 181:22
65:23 66:10 72:5 play (3) 120:7 145:12 possible (8) 30:16 87:3,20 91:2,11 proposition (1)
83:11,15 87:4 178:25 47:20 60:17 78:6 117:22 126:18 128:13
127:6 137:15,16 players (1) 7:13 119:16 142:25 127:13 130:7 139:8 prosecute (1) 64:14
151:22 152:9,9,9 playing (6) 90:6,16,23 172:15 181:22 143:17 168:14 prospective (1) 65:7
153:11,22,22,24 127:6 152:21 posted (1) 181:15 170:23 protection (2) 46:24
154:2,18,22,24 161:20 postponed (3) 67:9,10 problem (5) 87:9 47:1
155:1,18 159:6,7 pleaded (1) 13:13 67:10 126:24 150:10 proud (1) 120:6
161:6,15,15 please (92) 2:3 10:20 potential (6) 37:4 179:8 181:20 provide (1) 76:14
personal (42) 5:16 13:7,14 17:23,24 40:23 51:7,18 53:4 problems (4) 50:4 provided (4) 54:7
8:12 11:12 59:8 19:1,2 20:20,22 114:25 124:20,22 145:14 83:10 85:21 131:24
66:9 74:14,15 77:9 21:15,16 24:19 pound (1) 21:23 procedure (1) 180:24 providing (1) 56:3
77:12 78:6 81:12 30:6,24,25 31:16 power (1) 29:14 proceedings (27) 1:20 provision (1) 119:9
89:7 119:5 127:11 34:2,3 35:16 36:9 powers (1) 93:14 2:11 12:17,21,23 public (3) 152:22
128:25 130:9 131:1 36:11,13 38:1 39:5 practical (3) 45:17 24:6 30:8 38:4 39:4 178:23 179:16
140:10 141:21,21 39:25 40:13 43:20 180:6 181:6 43:3 70:7 79:6 publications (1)
141:24 145:19 45:22 47:23 48:4,8 practice (4) 89:7 91:9 80:25 83:21 85:16 179:12
147:5 148:3 150:4 48:20,22 54:2 144:12 164:23 136:2,4,9 139:11 publicity (1) 93:15
150:5,20 152:10 70:25 71:10 73:12 precisely (2) 43:11,12 146:22 147:12 publish (1) 179:1
155:21 156:14 73:24 75:6,9,14 prefer (1) 69:12 164:10,15 165:13 published (1) 178:23
157:14 159:8 160:6 76:22 78:11,12 preferable (1) 59:5 167:22 168:21 punch (1) 40:4
161:3,25 162:5 80:4,9,10 81:20 preliminary (1) 9:15 172:11 purchase (19) 22:8,24
163:12 165:10 82:15,17 83:18 Premina (1) 46:2 process (13) 23:19 23:7 24:3,8 29:20
166:7 174:14 84:10,11 114:12,20 premise (2) 171:20 27:22 34:16 36:20 39:17,22 43:22,24
175:11,14 115:22 120:16 172:2 36:22 49:24 53:23 44:21 45:22 46:1
personally (22) 7:15 121:13 122:20 prepare (1) 14:23 66:23 69:16 70:3 56:14 66:16 68:8
7:16 16:19 19:13 123:6,14 127:9,18 prepared (4) 20:14,15 143:20 180:17 71:11,21 73:4
19:15,19 20:4,10 129:23 130:8 131:5 21:25 78:2 181:11 purchased (5) 31:9
32:24 33:1 34:11 131:25 132:8,14 preparing (8) 14:9,22 processes (3) 50:12 42:22 55:5,6,7
34:13 45:9 50:19 133:23,24 141:17 14:25 16:4 24:5 72:4 148:25 purchasing (1) 23:17
57:12,16 62:8 144:9 147:18 139:10 168:21 produce (7) 35:21 purportedly (1)
117:25 152:3,4 148:10 153:2,3 172:11 36:6 86:5 87:9 174:12
156:10 158:24 157:24 162:13,14 presence (4) 163:24 120:4 135:18 purpose (5) 10:2
persons (5) 16:18 162:20,21 163:16 172:21 175:3 180:1 143:17 118:18 120:10
84:8 115:2,9 167:23,25 169:8 present (3) 41:3,9 produced (5) 81:18 159:10 161:17
179:21 172:13,14 173:20 71:3 86:12 114:9 117:11 purposes (15) 12:8
Petersburg (56) 4:3,11 173:21,22 presentation (3) 143:7 14:5,22 41:6 89:3
5:10 6:13,20 8:6 pledge (1) 158:20 37:14,20,23 producing (3) 88:10 90:12 119:4,20,24
23:8,10,11 29:9 plot (6) 46:8,9,11,11 presentations (1) 92:24 151:4 120:5 138:24 139:5

147:20 157:20 169:10

put (26) 3:7 4:18 19:11,14 22:20 38:4 42:1 47:20 67:17 69:24 73:5 121:10 129:20 133:20 148:9,23 150:5 151:19,21,23 152:7 157:9 172:15 175:7 177:19 181:22

puts (1) 84:17 putting (4) 53:10

119:9 135:14 175:4

Q

qualified (3) 20:4,6,7 quality (6) 70:21
115:15 130:3,13 132:5 148:8

quarantine (1) 177:19 quarantined (2) 176:8

176:19 quarterly (1) 141:2 question (30) 12:7

18:11 19:1,17 27:7 27:8 28:12 29:15 41:15 46:18 48:2 52:5,17 54:17,19 55:2 64:3 68:17 117:19 119:17 131:2 142:10 149:9 160:23 168:16 171:20 172:2 174:2 174:3 178:16

questions (16) 2:14 10:9 16:15 20:21 21:21 28:7 53:22 54:8,23 68:6,15,18 70:13,17,19 132:18

quickly (2) 36:11 182:12

quite (66) 6:18 7:18 7:23 8:3 9:4 11:14 23:18 24:5 26:20 27:2 28:8 29:12 31:18 32:1,17 33:5 33:9,23 34:9 35:11 44:9 45:4,24 50:6 50:17,22 57:11,14 57:19 58:14 59:19 60:10 68:1 71:4 72:2,13,18 75:4 83:16 88:6,20 90:17 91:8,19 92:4 93:13 120:5,6 136:7,20 137:20 138:5,9,13,15 142:15 152:22 153:9 155:1 162:9 163:3 179:9,12 180:6,9 182:10

Quixote (1) 147:8

R

Radley (7) 127:18,19 128:6,20 173:22 174:5,17

Radley’s (4) 78:13 127:18 173:3,20

raid (1) 142:15 railroad (1) 32:20 railroads (2) 32:19

49:6

raise (3) 39:20 54:21 55:18

raised (2) 180:25

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223

February 17, 2016 Day 11 — Redacted

181:4 68:22 69:13 70:24 130:9 131:1 136:14 70:18 119:9,20
rate (2) 22:1 135:12 70:25 81:16,17 139:20 142:11 157:20
rated (3) 151:3,8,9 84:5 176:13 144:12 162:16 reserved (1) 129:22
rates (3) 21:18,20,23 records (9) 82:24 172:13,18 175:18 reserves (37) 88:9,15
rating (8) 151:4,4,10 85:25 86:3 91:14 relations (9) 28:5 88:18 90:6,8,16
151:12,15 153:13 92:9 131:18 164:12 65:24 66:9 87:8 91:2,11 118:19
153:15,17 170:9,10 120:12 132:22 119:8 120:5,8
rationale (1) 180:23 recreate (3) 29:7 144:5 145:15 124:12 127:7
re-amended (2) 13:10 42:24 44:25 152:10 129:21 133:15,15
13:15 recreating (1) 59:4 relative (1) 31:25 134:13,16,19 135:2
re-read (1) 75:8 recreation (1) 45:18 relatively (4) 31:12,14 135:16,17 136:14
re-reading (1) 139:9 redacted (54) 94:11 41:23 78:25 139:16,18 140:9
reachstacker (2) 34:22 95:1 96:1 97:1 98:1 relatives (2) 138:5 142:11 145:12,13
34:25 99:1 100:1 101:1 145:7 149:8,13 151:18
reaction (1) 145:25 102:1 103:1 104:1 releases (1) 179:12 152:4,8,15,21
read (17) 11:6,10 12:8 105:1 106:1 107:1 relevant (1) 129:19 reserving (9) 118:18
12:9 15:1 20:16 108:1 109:1 110:1 reliable (8) 40:6 72:2 119:4,25 133:10
36:11 40:3,25 111:1 112:1 113:1 86:2 87:13,14 135:2,15 140:2
43:11 51:13 166:5 114:1 176:18 90:20 92:4 147:9 145:9 159:10
166:23 173:4,8 182:22 183:1 184:1 relied (2) 87:7,14 resource (1) 139:23
179:2,9 185:1 186:1 187:1 reluctant (1) 88:20 resources (3) 33:18
reading (10) 19:21,24 188:1 189:1 190:1 rely (1) 70:21 40:9 143:12
30:12 56:1 78:1 191:1 192:1 193:1 remain (1) 93:10 respect (4) 12:16
160:8,17,25 164:8 194:1 195:1 196:1 remember (37) 17:18 30:21 68:16 80:24
164:16 197:1 198:1 199:1 18:10,13 22:5,6,14 response (2) 144:11
reads (4) 11:8 31:22 200:1 201:1 202:1 23:13 24:23 26:25 148:12
63:17 158:17 203:1 204:1 205:1 32:23 34:23 39:16 responsibility (1)
ready (1) 176:21 206:1 207:1 208:1 43:7,20 56:8 57:21 20:15
real (14) 27:16 31:15 209:1 210:1 211:1 62:15,17 63:7 responsible (16) 3:24
32:8,9,12 73:19 212:1 213:1 71:19 74:13 114:6 19:11,13,19 57:25
77:7 116:13 124:13 redistributing (1) 73:3 114:19 119:12 62:6 65:23 66:10
137:19 141:1,7 redistribution (1) 121:4,4,5 124:8 83:2,15 84:16
159:12 163:11 27:17 130:5 136:3 151:3 151:22,22 152:8,11
realisation (1) 50:16 reduce (1) 120:7 151:25 154:16 166:4
realise (1) 168:22 refer (5) 38:5 118:13 156:2 162:19 164:6 restricted (1) 47:1
realised (2) 58:3 142:18,20 167:22 176:9 restructuring (1) 7:8
66:12 reference (13) 34:5 remind (2) 69:20 70:6 result (1) 150:9
realistically (1) 142:22 45:13 52:7 69:15 reminders (1) 180:17 return (7) 69:23
really (44) 3:11,12,21 116:17,19 117:24 reminding (1) 92:1 136:24 140:5
6:23 7:5 10:14 14:7 118:5 119:16,19 renegotiate (1) 119:2 159:22 160:2 176:4
14:9 15:17 16:1 131:9,14 142:10 renovations (3) 33:6 182:16
20:4 26:2 65:2 71:3 references (4) 118:16 33:15,19 revealed (1) 177:20
79:2,10 81:18 161:24 162:1 176:9 repair (2) 34:5,7 review (1) 176:25
84:18 93:3,20 referred (3) 78:21 repaired (1) 32:20 reviewed (5) 11:24
120:14 124:24 126:22 139:16 repairing (2) 32:19 13:18 14:5,8
129:9 130:17 referring (15) 44:21 33:8 176:10
132:24 135:4 47:8,12 51:14 82:8 repayment (1) 168:4 reviewing (2) 3:3
136:18,24 143:11 85:4 117:20,22 repeat (1) 126:15 13:19
147:10 148:24 125:6 126:19,23 repeated (2) 40:13,20 revise (2) 12:4,12
149:7 151:10 127:22 166:16 replace (1) 115:18 revisions (1) 14:1
152:16 153:11 168:24 172:12 replacing (1) 155:17 rhetorical (1) 64:3
154:11 164:7 165:1 refers (9) 38:24 117:3 replied (1) 16:14 right (61) 10:23 18:18
173:16,16 178:7 117:12,15 125:1 replies (1) 16:13 18:19 19:25 22:5
179:3,8,16 158:21,24 159:21 reply (2) 29:15 122:17 25:22,25 26:17
reason (8) 73:4,21 160:2 report (3) 78:13 29:8,10,24 31:14
87:16 134:23 159:1 refinancing (2) 28:2 127:18 173:21 32:5 36:7 46:4 47:6
180:6,14,15 55:20 reporting (4) 72:15 47:13,16,17 49:9
reasons (4) 26:7 regarded (5) 4:7,8 92:20 157:4,8 49:19,22 57:3,6,11
138:23 142:2 180:5 5:14 7:18 78:23 reports (1) 34:10 62:4 68:11,14 70:4
recall (1) 32:1 regarding (1) 173:14 represent (2) 70:8 70:5,18 71:14 77:2
receive (5) 18:16,16 Region (1) 50:20 115:18 78:9 80:7 86:1 89:8
166:21,22 172:9 registered (3) 46:2,16 representative (1) 90:2 115:6 117:1
received (2) 165:14 164:24 153:11 124:17 127:12
170:25 regular (6) 33:4,9 84:4 represented (1) 46:3 128:20,23 136:15
receiving (5) 62:17 84:5,9 141:12 representing (2) 139:6,15 143:15
140:5 148:20 164:7 regulation (2) 88:16 74:23 167:15 146:12 147:1
165:23 124:12 represents (1) 57:8 150:23 155:1,20
recognise (4) 17:25 regulations (1) 20:1 reputation (3) 8:21 156:21 162:2
130:14 142:22 regulator (2) 137:5,10 9:13 66:23 169:16,23 171:21
143:11 reinsurance (2) 7:2,6 request (2) 73:6 173:19 175:24
recollection (1) relate (2) 41:4 180:18 148:13 177:10
142:21 related (2) 29:23 require (1) 118:18 right-hand (1) 169:4
reconsider (2) 18:20 41:18 required (1) 118:10 rights (9) 44:1 46:17
133:1 relates (7) 29:1,2 requirements (2) 19:9 47:5,7,9 52:12
reconsidering (1) 43:25 44:18 127:14 28:1 56:19,24 57:9
152:17 141:16 178:16 research (2) 5:2,3 risk (1) 147:5
reconstruction (2) relation (15) 65:16 reservation (2) 134:14 risks (1) 23:16
33:15 55:19 120:19 121:15 134:19 River (2) 46:22 58:11
record (10) 48:20,21 122:23 123:15 reserve (5) 69:21 Robin (1) 156:4

role (1) 114:16 room (1) 153:12 Ros-holding’ (1) 26:6 rouble (6) 21:23,24,24

22:2 23:9 135:16 roubles (11) 18:8,17 19:4 21:13 22:2,9

25:13,19 46:8 53:3 81:8

rough (1) 24:7 roughly (4) 22:2 25:20

51:18 62:13 routine (1) 91:21

RPC (5) 16:9 178:25 179:7,24 181:12

rule (1) 126:2 rules (1) 53:20 run (2) 23:8 53:23

running (2) 4:19 77:19 Rusiv (1) 18:4

Russia (22) 4:25 19:6 19:12 20:8 26:3,20 29:2 35:4 44:22 47:7,9 63:19 64:2 121:9 136:21,24 138:5 147:2,11 160:10,10 180:20

Russian (79) 2:24 3:17 3:25 6:7,25 7:5,20 9:19 11:16 12:21 17:24 19:10 20:1 26:2,5 43:4 46:21 49:12,25,25 50:10 53:20 57:24 62:4,6 62:6 63:25 64:1,6 64:11,16,19 66:10 68:2,12 69:16 70:8 116:25 117:9 118:12 120:16 121:13 122:8,20 123:6 127:9 129:25 130:10 132:1,4,6 133:4,14 134:9,12 136:13,16,25 137:4 142:10 147:15,15 151:18 155:4 158:7 158:13 159:11 162:14,21 164:22 165:2 166:24 167:8 167:10 169:9 170:8 172:15 173:9,17

S

s’ (1) 78:21 safety (2) 34:11
177:18 sailors (1) 3:25 salary (1) 19:4 sale (1) 24:3 sanitise (1) 69:25 satisfied (1) 37:17 Saturday (1) 15:12

save (2) 83:14 92:25

Savelyev (11) 88:11 119:3 127:4 135:8 144:2,17 149:10 150:11,20 151:21 152:12

saying (17) 41:22 47:13 49:15 56:23 71:19 79:3 87:13 90:10 126:14 129:7 129:8,11 133:6,13 154:15 161:23 167:10

says (13) 31:17 35:18 36:16 52:24 78:13 82:13 115:4 128:6

146:9 154:8 163:23 173:23 174:5

Sazonov (3) 114:10,12 115:5

scan (23) 6:21 46:7 74:18 116:19 117:15,21 118:7 120:19 124:6,17,18 125:1 126:22 129:24 155:22 156:14 158:21 160:5 161:25 162:16 165:8 166:7 175:18

scandals (1) 8:14 Scandinavia (21) 81:2

116:15,17 117:12 117:16,20,23 120:18 121:18,22 122:1 123:1,16 131:14,19 141:1,4 150:24 151:2,8 164:4

Scandinavian (1) 7:3 scared (1) 28:24 schedule (31) 74:4

75:12 80:6,10 81:11,23,25 82:4,7 82:11,20 83:19,23 84:3 85:14 86:17 89:12 90:12 114:6 114:9 115:12 131:6 131:17 147:18 148:11,13 153:5 154:9 157:12,13,13

scheduled (1) 35:3 schedules (2) 89:13

156:21 scholarship (3) 5:2,7

5:16 school (1) 4:9

screen (14) 17:23,24 21:15 38:9 47:21 48:19 93:14 132:14 154:4 162:15 167:25 169:2,3,4

scroll (3) 132:16 162:14 169:7

scrolling (1) 167:19 sea (2) 46:22 69:11 seal (6) 122:15 123:7

123:11,21 163:8,9 sealing (1) 176:12 seals (1) 122:10 second (17) 4:24 5:1,4

5:7,9 26:18 31:21 40:15 42:10,12,16 44:22 56:4,6 58:19 76:25 83:6

secondly (2) 29:5

149:25 secret (1) 9:20

secretary (1) 77:24 section (1) 142:8 secure (6) 67:12,15,25

90:7 115:21 131:21 secured (2) 90:7

158:19 securing (1) 66:2 securities (1) 129:20 security (8) 116:11

137:11 159:22,23 160:3,5 161:3,6

see (141) 2:16,21 13:8 13:10,11 18:6 21:22,24 22:1 26:14 31:13,21 32:3 36:1,10 38:8 38:11,16,18 39:25

40:2,11,18,22 41:10 42:15 43:20 44:11 45:19 46:6,7 46:9 48:7,14,18 49:4 51:9,20 54:3 54:12,14 55:10,21 62:2 64:22 75:19 76:23 80:11,12,16 80:23 81:8,21,23 82:1,3 87:19 89:12 89:14 90:15,19 93:7,13 115:23 116:9,25,25 120:22 120:23 122:9,10 123:7,18 124:20,22 126:4,9,21 127:22 127:24,25 128:18 129:14 130:11 131:7,8 132:4 134:2,19 139:1 143:2 144:13 146:24 148:15,18 149:16 153:3 154:4 154:6 158:3,7,8,14 161:15,15 162:18 162:22,23 163:17 163:17,19,21,22 164:19 165:2,6 166:25 167:4,5,8 167:18,19 168:6,11 169:11,14,25 170:2 170:3,5,7,11,12,17 171:7,24 174:5,10 174:11,15 181:17

seek (2) 64:14 70:2 seeking (1) 39:20 seen (8) 5:25 49:10 53:6 75:3 118:4

147:6 165:21 172:8 seldom (1) 4:7 self-aware (1) 29:4 sell (2) 7:13 49:17 seller (4) 22:15 49:4

49:17 52:11 sellers (3) 28:5 65:3

66:23 selling (1) 46:16

seminars (1) 4:20 send (3) 83:5 85:6

179:2 sending (3) 62:19

156:21 179:6 sends (3) 81:22 82:5

82:11 senior (1) 153:9

sense (3) 138:1 159:5 159:17

senseless (1) 140:11 sensible (1) 180:16 sent (15) 16:11,18,18 37:3 39:9 82:8,20 147:19 148:11

155:7 164:5 165:20 165:22 167:11 171:12

sentence (3) 21:12 173:5,11

separate (4) 43:6 47:13,16 173:12

September (8) 80:15 81:22 82:6 85:14 85:22 88:1 148:12 155:9

sequestered (1)

177:18 series (1) 78:18 serious (3) 73:14

146:14 165:1

seriously (2) 120:7

Opus 2 International transcripts@opus2.com
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224

February 17, 2016 Day 11 — Redacted

166:11 79:15,20,21 80:1 solved (3) 53:22 136:6 sportsman (2) 15:9 straightforward (1)
services (2) 3:25 84:18 120:25 180:4 16:2 145:16
19:11 121:10,11 124:2 somebody (13) 63:21 spotted (1) 51:2 strange (9) 6:18 27:15
set (3) 46:8 50:2 127:20 128:8,14,16 63:25 71:23,25 spousal (6) 127:10 140:25 147:4 150:6
80:20 129:5,15 130:1,12 90:11 115:11 128:3,20 172:13 163:2,3 166:16
sets (2) 21:22 149:18 130:16,22 162:18 156:12,17 160:8,17 174:13 175:22 175:3
seven (6) 29:16 87:1 163:5,10 175:2 160:25 171:3 square (1) 46:25 strength (2) 151:4,12
93:5 118:14 135:22 signatures (6) 75:18 180:11 St (56) 4:3,11 5:10 stress (2) 140:16
136:23 78:22 128:9 159:13 son (3) 15:12 16:1 6:13,20 8:6 23:8,10 150:22
Shabalina (5) 88:12 174:19,23 62:11 23:11 29:9 59:2,21 stressful (1) 77:17
127:4 144:17 152:1 signed (50) 1:23,25 son’s (2) 62:14,15 60:23 74:1 88:2,23 Stroilov (1) 180:1
152:2 13:19,24 25:2 44:3 soon (3) 73:21 136:7 89:14,19 90:22,25 stroke (1) 78:21
sham (1) 86:5 49:9 76:20 77:3,5 153:1 91:1,3 121:20 strong (2) 10:23
share (3) 7:21 144:8 93:19 116:3 118:4 sorry (53) 11:9 13:9 122:15 123:11,18 128:13
145:14 119:14 120:21,22 15:10 16:24 17:13 124:10 126:6,10 strongly (1) 140:23
shareholders (3) 121:5 123:25 19:1 20:24 25:9 133:3,11,13,15 struck (2) 68:19,21
26:12 27:20 88:24 124:10,12,24 125:4 28:19 47:19 51:13 134:5,8,17 135:11 structure (3) 40:23
shares (2) 46:3,7 126:12,17,18 51:14 54:23 57:3,8 135:20 136:13,19 78:15 115:8
sheet (7) 24:12 25:23 128:21 138:25 58:6,16 61:3,10 137:4,10 140:25 struggling (1) 147:8
50:18 72:23 134:17 139:2 140:7 145:19 62:23 63:11,24 141:2,5,13 145:1 student (4) 4:24,25
140:22 141:3 146:11 150:24 64:5 77:11 79:18 145:21,24 149:6 5:1,9
sheets (5) 24:24 25:3 158:4,9 159:20 82:8 85:9 117:6,18 151:11 152:20 students (1) 5:18
27:21 141:11,11 163:1 164:24 126:15 132:3,7 157:19 161:1 163:7 study (2) 4:17,25
shipping (18) 8:5,7,8 165:18 172:20,24 146:6 149:9 156:16 179:11 studying (2) 5:19,21
8:22 31:2 43:5 44:5 174:12 175:5,8,9 158:1,2,16,16 stabilities (1) 152:21 stuff (2) 83:8 92:8
50:10 65:8,24 67:3 175:12,13,14,15,16 159:25,25 160:12 staff (1) 153:9 stupid (1) 29:18
158:4,10 161:2,23 176:1 160:22 167:5 stage (5) 6:11 7:22 style (2) 128:16
164:1 168:5 174:15 significant (2) 128:10 168:16 169:1,2 53:18 67:1 141:5 174:21
shock (1) 145:25 128:12 171:22 173:7,24 stages (3) 57:14,21 styles (3) 78:14,16,22
short (8) 6:24 40:9 signing (16) 13:4 80:2 177:5,15 182:14 63:4 subcontract (1) 19:16
52:13 61:23 92:8 124:4,16,17 125:5 sort (3) 24:15 65:16 stamp (1) 121:10 subcontracts (1)
132:12 176:5 125:18 126:10,24 85:8 standard (4) 90:17 161:19
182:19 129:14,15 130:15 sought (1) 36:16 149:18 163:6 subject (8) 6:5 7:10
shortfall (1) 57:4 141:23 142:21 sounds (2) 28:14 164:22 46:6 81:23 89:4
shorthand (1) 31:20 162:24 175:16 155:1 standards (5) 11:16 129:15 157:10
show (15) 34:16 similar (3) 121:1 source (1) 54:1 11:19 53:20 157:5 163:21
39:17 42:9,14 174:21 178:4 sources (1) 92:5 157:8 subjects (1) 5:23
43:22 48:8,25 80:5 similarities (1) 128:11 Soviet (3) 3:22 6:17 start (2) 5:24 6:14 subsequent (1) 94:5
85:21 157:14 simple (3) 79:5,13,20 8:7 started (4) 43:4 subsequently (2)
161:17 167:23 simply (10) 26:9 27:4 Soyuz (1) 82:17 146:15 168:3,22 49:14 52:8
171:4 172:13 180:8 28:12 66:9 69:24 spam (4) 166:17,20 starting (2) 62:18 substance (1) 77:7
showed (2) 39:13 77:23 119:19 179:6 168:15,19 145:6 substantial (5) 24:5
147:18 180:11,17 spanning (1) 142:9 starts (1) 51:15 28:8 57:12 59:3,25
showing (2) 145:15 single (1) 43:9 speak (4) 56:12 74:22 state (18) 4:11 27:15 success (3) 9:20 10:10
179:7 Sirs (1) 155:12 74:24 79:19 31:24 32:6,10 35:8 78:24
shown (32) 13:14 sit (2) 1:15 26:9 speaking (14) 6:16 41:9 44:23,24 successful (1) 6:23
30:5 37:25 38:9 site (2) 40:23 41:5 7:25 17:11 22:22 49:12,25 50:1 suddenly (2) 26:21
75:6 78:11 80:10 sitting (1) 93:1 24:6 36:25 56:21 60:16 64:1,6,11,16 27:1
81:20 82:21 83:18 situation (4) 86:6 60:14,18,18 154:18 64:19 sue (2) 146:1 164:18
84:11 120:16 144:8 146:14 147:4 156:1,8 176:10 stated (1) 52:18 sued (2) 146:9,23
121:13 122:20 situations (1) 138:9 special (3) 7:11 43:1 statement (29) 1:18 sufficient (1) 134:16
123:14 127:9 128:4 six (3) 16:17 17:10 62:18 1:19 2:1,5 7:4 sufficiently (1) 117:8
129:23 130:8 131:6 118:13 specialised (2) 35:7 10:22 11:22,25 suggest (12) 74:22
131:25 133:23 size (1) 63:21 65:7 12:3,6 13:6 14:19 129:5 130:4,17,25
141:11 149:19 ski (1) 15:15 specialist (15) 31:2 20:22 21:5 30:6,7 131:17 149:4
153:2 162:13,20 skiing (5) 15:3,5,7,11 34:12 35:10 79:4 30:12,13,25 34:2,5 157:11,25 176:14
163:16 167:21,24 15:17 83:3 84:25 114:17 35:17 42:25 45:14 181:20 182:2
173:3,20 skis (2) 15:19,20 115:13 134:18 52:19 76:22 119:13 suggested (2) 119:18
shows (2) 85:4 128:7 slightly (2) 28:17 153:14 154:12,17 136:8 141:17 136:12
side (4) 67:24,24 161:13 154:19 157:8,9 statements (10) 1:12 suggesting (5) 43:15
138:12,13 slips (1) 54:5 specialists (5) 34:11 11:23 12:9,17,25 87:25 121:6 122:14
sign (43) 19:17,18 slopes (1) 15:18 86:7 133:18 137:18 14:13 93:21 135:23 123:10
20:14 74:10 77:4 slower (1) 67:4 151:16 136:1 139:9 suggestion (1) 182:3
77:22,24,25 78:5,8 slowly (1) 20:24 specially (1) 135:7 stating (1) 168:10 suggests (1) 81:11
79:21,25 118:24,25 slowness (3) 68:4 speed (1) 67:3 statistics (1) 83:7 sum (1) 41:1
126:4,20 128:24 69:3 70:12 spell (1) 58:8 status (3) 10:1 137:19 summary (1) 52:13
129:18,19 130:4,20 small (10) 59:13 69:20 spend (2) 54:19 55:7 177:19 summer (2) 35:20
130:25 134:3 70:6 79:8 91:7 spending (2) 29:16 stay (2) 17:16 29:20 36:6
140:10,13 143:1,3 93:18 152:2 153:12 59:18 stealing (1) 9:3 Sunday (1) 15:12
144:21 146:10 178:16,22 spends (1) 59:12 Stephanie (4) 16:20 supervised (2) 32:14
149:15,24 150:6,13 smart (1) 6:12 spent (9) 3:9 4:1 5:20 16:25,25 17:1 134:12
150:16 155:21 Smirnov (1) 115:16 6:19 23:13 41:18 stepping (1) 155:22 supervising (1) 133:10
158:1 160:14,15 snow (1) 15:24 66:13 135:16 144:6 sterling (1) 21:23 supervision (3) 23:24
161:22 162:12,25 so-and-so (1) 171:7 spite (1) 139:19 stick (1) 129:22 88:16 161:21
172:25 174:25 so-called (1) 42:13 split (1) 31:21 Stockholm (1) 5:13 supervisor (1) 137:14
sign-up (1) 180:17 sold (3) 46:2 47:4,7 spoil (1) 28:4 stop (2) 64:22,23 supervisory (3)
signalling (1) 127:11 solid (3) 33:5,15 90:20 spoke (1) 30:19 story (4) 9:4,20 27:2 120:12 132:22
signature (30) 1:22,23 solidity (1) 33:8 spontaneously (1) 162:23 138:4
2:7 78:14 79:4,7,14 solution (1) 182:16 128:8 straight (1) 165:21 supplemental (1) 12:6

support (15) 30:7 58:2,22 65:25 66:3 66:14,18 67:2 75:22 76:3,5,10 128:13 157:18 171:11

supporting (1) 76:5 supports (1) 152:13 sure (34) 1:24 10:8

18:14 29:13 45:16 45:20 55:10 61:11 68:4 71:16 77:3 79:2 83:6,10,11 86:15 87:21 88:6 114:14 115:13,17 121:1 130:17 137:16 138:3 142:1 143:4 148:21 154:11 162:18 173:16 175:23 180:4 181:6

surely (1) 92:11 surface (1) 33:3 surprised (2) 83:16

166:8 susceptible (1) 78:23 Svyaz-Bank (3) 89:17

89:23 90:10 swear (1) 1:13 swore (1) 13:13 sworn (1) 1:11 syndicates (1) 7:17

T

tab (2) 2:3 51:4 table (7) 21:18,22
26:9 81:15 90:15 90:15,19

tabs (1) 38:22

take (20) 11:24 14:17 18:23 19:3 20:15 21:5 35:5 58:20 64:11 67:4 85:18 93:17 118:24 119:1 165:25 170:3 181:5 181:8,17 182:7

taken (5) 38:2 41:4 53:2 55:13 180:12

talk (3) 61:16,18 180:22
talked (1) 28:20 talking (11) 34:18

41:20 44:14,16,16 47:6 48:22 51:9,11 74:12 144:13

talks (2) 46:24 47:1 target (4) 34:7 37:9 115:14 139:24

task (4) 11:11 115:18 148:22 155:4

tax (2) 19:10 92:20 tea (1) 139:21

team (4) 8:3 29:5 65:6 144:21

technical (2) 115:13 115:17

technically (4) 52:9 67:22 87:4 92:6
tell (12) 3:1 38:15 48:3 58:16 64:24 86:10 114:12 150:25 158:7 159:9 179:15 180:10

telling (12) 9:21 13:3 53:3 88:14 118:21 119:3 135:9 139:19 149:17 160:16 166:6 175:1

tells (2) 50:3 126:25 ten (2) 17:17 92:24 term (2) 33:16 40:9 terminal (86) 9:17

20:21 21:8 22:8,13 23:1,18 24:15,17 24:21 25:7 26:4,25 28:16,25 29:1,21 30:3 31:10,11,24 31:24 32:6,13,16 33:20 34:4,17 38:1 39:18,21,22 40:7 41:5,13 42:11,18 42:22 43:18,23 44:7,9,10,19,20 45:23 46:3,12,16 46:19 47:17,21 48:13,16 49:4,8 50:3,14 51:19,25 52:6 53:11 54:22 55:5,6,25 56:18 59:6,15 60:6,7,13 60:21 65:2,17,21 65:22,25 66:16,17 67:7,21 69:10 71:11 78:20 85:5

terminals (3) 24:25 26:4 66:14

terminating (1) 78:19 terms (5) 11:18 68:17 68:22 69:15 78:18

terribly (1) 15:1 territories (1) 59:4 territory (6) 42:14,24

44:25 57:25 58:19 60:15

text (10) 167:2,8,10 167:13 169:21 170:4,4,7,8,11 thank (10) 1:16 2:13

10:8 36:13 48:24 61:21 94:4,5 132:17 173:19

thanks (2) 2:25 154:10

theoretically (2) 67:21 126:1

thesis (1) 5:5 they’d (1) 149:17 thing (5) 69:20 70:6

90:17 93:20 178:22 things (18) 8:19 11:20

26:12 27:13 29:19 32:17,23 43:16 49:18 59:23 71:6 125:11 144:23 145:6,8 148:22 155:19 162:9

think (127) 1:10 3:4 6:23 10:12,17 16:11,14 18:15 27:7 28:11,15 29:21 30:10,11 36:14,15 37:6,16 38:19,22 39:8,15 39:24 41:14 43:11 43:13 51:7 52:14 52:17,22 55:24 56:10,11 57:2,10 63:10,20 65:13 68:15,19 69:2,6,25 70:13,15,20 73:10 73:21 74:6,8,16,19 74:24 77:16 79:3 81:4 84:19 86:13 86:16,19,25 88:17 89:6 90:21,22 91:7 93:11,16 114:8,13 115:2,15 116:18

Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900

225

February 17, 2016 Day 11 — Redacted

117:7 118:10 120:25 126:12,16 131:20,20 133:5,16 136:3,6,12 142:14 142:15 143:10 145:18 146:10 147:15,18 149:10 151:19,23 152:13 152:20 155:3,15 156:13 158:6 160:8 160:18,25 162:2,15 162:25 164:16 166:20 168:13,17 169:2,4,8,9,18,18 169:22 171:7 172:1 173:25 177:2,13 179:8,15,23 181:23

thinking (4) 79:6 80:3 93:5 143:16

thinks (1) 177:6

third (9) 5:9 9:1 58:20 118:14 136:25 140:19 159:7 161:11,19

thought (21) 6:12 8:2 25:5,7 29:5 33:11 69:17 87:23 88:20 126:13 128:25 139:16 143:10 146:20 177:7,9 180:5 181:10,16 182:4,11

thoughts (2) 76:25 178:9

thousands (1) 124:9 threat (1) 147:5 three (17) 5:22,22

16:1,18 17:3 50:24 51:10 58:17 66:3,8 92:23 122:10 125:1 142:9 156:3,5 170:16

three-party (5) 126:19 126:20 129:13 140:12 150:7

thrown (1) 70:9 Thursday (1) 214:3 timber (3) 31:19 32:2

33:3

time (99) 2:16 3:22 4:23 5:7,14,21,24 6:3,21 7:7,7 8:5 9:19,21 11:11 15:7 15:8,8,11,22 17:12 23:13,15 25:4 26:3 27:3 28:9 29:18 30:17,19 31:23 33:1,1 34:17 35:6 36:23 42:22 44:20 46:18,22 48:4 49:23 50:8,9 56:9 57:17 61:14 62:21 63:19 65:1 67:25 78:6 83:9,14,15 84:6,6,20 86:3 87:17 88:7 90:21 91:21 93:1,7,8 94:5 119:1,10,18 123:3 123:17 137:22,22 139:5 142:16 144:7 145:3 146:19 147:9 151:12 156:1,6 165:11,15,23 166:17 168:14,18 168:22 170:3,18 171:17 172:6,12 180:1 181:14,14 182:15

timekeeping (1) 61:4

times (8) 56:10 61:5 63:3 88:5,11,14 147:22 161:16

today (25) 11:21 12:1 12:8 13:22 14:6,9 14:22,25 25:8 37:22 56:13 131:22 136:9,14 139:7,10 142:7 143:25 147:22 148:6 149:19 151:17 152:14 157:18 178:1

today’s (4) 132:15 133:23 144:9 180:8

told (16) 14:24 66:21 88:11 90:11,14,17 118:17 127:2 143:9 144:11 148:9 149:15 150:13 156:24 157:19 161:16

tomorrow (2) 176:15 176:20

tool (1) 149:2 top (10) 3:23 8:10

52:24 78:20 82:9 115:14 128:1 144:20 173:23 174:8

topic (1) 5:20 total (3) 24:9 55:16

62:9 totalling (1) 41:4 touch (1) 7:19

traced (3) 126:5 134:3 179:20

trading (1) 8:8 transaction (6) 23:3,5

23:8,10,14 24:2 transactions (3) 9:25

23:23 29:2 transcript (17) 25:10

63:17 69:25 71:2 132:15 133:24 144:9,10 176:7 177:9,16,16 179:2 179:8 180:7,19 181:14

transcripts (5) 178:23 179:1,5 180:10 181:12

transfer (1) 155:4 transferred (1) 57:20 translated (5) 2:24

35:1 169:9 173:5,9 translating (1) 84:24 translation (9) 45:25

86:14 116:23 117:1 117:8 158:7 169:20 171:7,19

Transport (6) 43:5 44:4,5 45:9 46:22 58:12

travelling (2) 17:14 30:21

trial (1) 142:9 trickery (1) 179:24 tried (2) 70:8 178:25 trouble (3) 126:8

134:6 171:3 troubles (4) 133:16

141:6 146:14,15 true (21) 2:1,8 10:24 11:22,23 12:1

13:14,16,20 14:15 18:12 21:5,6 36:3 41:19 70:4 133:22 136:9 137:6 175:11

176:2

truly (1) 137:12 truth (4) 13:2,4,5
166:6

truthful (3) 37:8 53:25 157:12

try (7) 37:4 64:17 68:7 71:7 78:6 93:25 178:11

trying (8) 6:16 33:13 52:2 55:18 68:23 68:25 146:1 180:23

Tuesday (1) 93:24 turn (4) 10:13 20:22

39:5 142:4 turnover (3) 32:1 33:21 92:3

two (27) 2:10 5:17,22 5:22 14:13,25 17:3 38:18,19,22 42:11 44:1,19 71:22 74:10 115:2 136:1 147:22 150:19 164:19 165:6 167:3 167:3,13,15 169:22 174:2

two-party (1) 118:12 two-sides (1) 159:14 type (3) 45:18 118:22

161:16 typical (1) 85:7 typically (1) 77:22

U

understand (27) 11:3 11:18 19:21 20:16 25:9 26:1 27:6 28:6 28:19 44:18 53:14 53:15 56:7,14 67:18 74:20 119:17 146:18 148:24 149:9 154:22 167:5 168:16 179:19 180:3 181:2,24

understanding (7)

26:1,3 27:4 32:11 43:14 65:11 86:24 understands (2) 61:11

160:21 understood (14) 6:11

7:22 17:15 25:14 31:8 34:8 56:6 70:1 71:12 81:15 91:8 150:2 159:23 164:25

unilateral (1) 137:8 Union (2) 3:22 8:7 university (10) 4:11 4:17,24,25 5:4,10

5:11,12,18 20:9 unproper (1) 134:19 unreliable (2) 82:24

85:24

unusual (2) 5:8 163:3 up/down (1) 78:18 updated (6) 81:25

82:4,15 148:13 153:4 154:9

updates (1) 180:17 updating (1) 84:2 upgrade (1) 44:14 upstroke (1) 78:19 urgent (1) 182:10 use (6) 10:2 47:11,16

63:5 129:17 130:17

V

V-Bank (7) 22:14,16

25:15 90:19 122:12 39:17 45:23 58:16 49:4,8 50:2,14
163:11,12 69:21,24 116:25 51:17,19,25 52:6
V-Bank’s (1) 163:8 118:20 133:1 53:11 54:18,22
VA1 (2) 168:8,25 136:18 140:16 55:3,5,6,25 56:18
vacation (1) 93:24 142:13 150:22,24 59:15 60:6,7,13,20
vacations (1) 145:7 151:13 158:13 65:1,21,22,24
valid (3) 118:16 159:9 177:23,24 178:8 66:16,17 67:7
175:22 179:9,16 181:1 69:10 71:11
validity (1) 118:16 wanted (11) 7:19 whilst (1) 68:7
validly (1) 159:3 16:10 28:15 67:14 white (1) 49:1
valuation (2) 24:6 67:25 85:11 119:20 wife (13) 63:13 93:19
133:11 145:14 148:24 93:19 94:1 127:11
valuations (1) 24:7 159:12 181:7 128:21,24 172:17
value (7) 31:15 40:23 wanting (1) 119:21 172:22 174:24
46:8 56:6,21 59:15 wants (3) 161:15 175:2,15 176:1
150:3 176:25 179:2 wild (1) 26:2
valued (3) 41:6,7,8 warning (1) 181:13 wish (6) 10:12 12:3,11
various (16) 20:1 warrant (1) 63:22 69:18 161:8 179:20
24:13 25:18 29:23 wasn’t (20) 18:11 wishes (1) 28:11
38:3 41:18 69:8 22:3 42:2,4 54:19 withdrawn (1) 73:21
89:13 114:21 122:3 54:21 60:3 73:8 Withers (4) 16:3,16
124:17 144:1 77:15,17 85:22 30:17,17
146:22 149:5 90:12 114:18 witness (33) 1:18,19
159:22 179:19 115:13 147:21 2:1,4 7:4 10:22
Varsas (2) 45:10,11 152:7 153:7,9 11:21,23,25 12:9
VD (1) 164:3 158:4 164:10 14:13,19 20:22
Vedomosti (1) 179:12 waste (1) 142:16 30:5,25 34:2,5
venture (1) 6:23 watched (1) 9:22 35:16 37:25 42:25
venturing (1) 27:7 water (19) 9:1 42:14 45:13 52:18 61:15
verify (1) 36:16 42:23 44:23,24 68:23 72:3 76:22
version (9) 35:24 46:19,25 47:1,2,5,7 119:13 136:1,8
38:14,25 39:9,12 47:10,12 49:11 139:9 141:17 142:8
83:19 165:3 166:24 50:4 58:19,22,24 175:5
169:9 67:24 witnesses (2) 139:12
versions (1) 38:19 way (25) 3:7 4:18 143:15
vessel (2) 158:20 12:14 19:12 39:17 witnesses’ (1) 152:13
159:24 65:12 67:1,17 68:1 Woman (1) 9:22
vessels (1) 67:22 69:24 86:11 88:17 wonder (8) 20:21
videolink (1) 3:6 93:25 94:2 121:9 21:15 39:5 61:1
view (9) 33:7 52:14 145:9 150:5 157:9 167:21,24 173:3
64:4,6,12 117:8 164:23 167:2 177:21
139:3 152:17 178:19 179:1 wondering (2) 64:21
159:16 180:13 181:10 178:2
Vinarsky (1) 32:25 182:2 Word (2) 38:14,20
visiting (2) 139:21 we’ve (15) 7:17,18 words (4) 3:8 66:16
166:13 33:17,17,19 34:25 146:8 170:9
visits (1) 153:20 36:22,25 53:6 work (19) 6:2 18:8
Vitaly (6) 1:14 31:18 62:17 63:2 75:3 19:15 20:13 33:4
31:23 35:19 174:21 83:8 139:22 145:8 33:12 34:1,16 36:4
215:3 Wednesday (1) 1:1 44:15 50:14 85:7
Vneshsconombank (1) week (4) 15:12 93:24 88:13 91:25 115:17
138:17 94:1,3 120:1 133:12 156:7
Volodina (9) 88:11 weekend (2) 15:22,23 170:20
90:17 127:7 135:8 weekends (2) 15:24 worked (2) 35:20
138:13 139:15,19 16:1 157:23
144:19 151:23 weekly (2) 145:5 working (12) 5:24
volume (3) 52:16 166:14 6:15 7:15 20:13,19
67:18 118:20 weeks (2) 14:25 88:5 36:14,24 90:25
volumes (2) 91:12 went (12) 9:14 15:7 115:2 124:25
133:16 15:11 36:17 69:2,7 153:15,16
Vozrozhdenie (2) 71:4 85:5 163:8 works (20) 33:2,6,10
90:20 121:23 168:15,18 171:3 33:14,14 34:6,8,12
Vyborg (29) 9:18 23:2 weren’t (5) 17:21 34:18,20 35:2,3,5,7
23:18 26:4,24 20:16 71:16 125:17 35:10,12,15 59:11
32:12 65:19 83:23 171:21 59:12 67:19
87:5 92:17 131:5 western (82) 3:25 world (5) 3:7 35:6
131:10,21,25 9:17 20:21 21:8 61:18 146:13
147:17 157:24 22:8,12 23:1,17 159:11
158:3,4,10 159:2 24:14,17,21 25:7 worldwide (1) 8:8
161:2,23 164:1 26:4,24 28:16,25 worry (5) 25:11 80:5
168:5 172:14,18 29:1,20 30:3 31:9 80:11 137:2 182:1
174:15 175:11,12 31:10,23 32:5,13 wouldn’t (25) 11:4
32:16 34:4 38:1 37:7,12 41:23
W 39:18,21,22 40:5,7 55:24 60:12 63:18
walk (1) 15:18 41:1,3,13 42:11,18 64:12,18 89:22
42:21 43:18,22 115:12 118:10
want (30) 3:8 6:17
44:7,8,18 45:23 120:9 124:7 129:9
13:21,23 14:2,4
46:3,11,16,19 129:17 145:25
18:20 21:19 29:20
47:16,20 48:12,16 146:5,8 147:23

160:8,19 162:3 178:6 182:11

write (1) 5:5 writer (1) 174:23 writers (1) 176:7 writing (4) 43:10

78:16 93:13 174:20 writings (1) 78:17 written (7) 7:4 18:12

22:6 55:11 117:16 128:14 173:17

WT (1) 55:15

X

xi (1) 173:23

Y

year (13) 4:24 5:1,4 5:10,17,19 15:25 17:7 27:12 41:7 67:9,16 85:12

years (17) 3:10 4:1 5:1 6:4,19 21:20 27:13 29:16 32:14 45:11 67:8 93:5 135:21 135:22 136:23 165:16 172:4

Yeltsin (1) 5:17 yesterday (6) 16:14

17:11,13 30:20 93:20 178:25

yield (1) 10:17 young (4) 6:11 7:23

29:18 65:7

Z

zone (1) 47:1 Zurich (1) 6:10

0

0.1 (1) 122:21

1

1 (12) 18:8,17 19:4 21:12 22:9 25:13 46:9 53:3 122:21 163:20 169:13 215:3

1.11 (1) 94:7

10 (12) 6:19 30:24 31:5 38:23 39:2,6,9 51:4 67:8 178:8 182:13 215:4

10-minute (2) 178:10 182:6

10,000 (1) 46:8

10.00 (1) 214:2

10.30 (1) 1:2

100 (3) 46:7 72:12 177:15

113/06 (1) 127:24 114 (1) 215:6 117 (1) 132:14

12 (3) 54:17 55:2 135:13

12.05 (1) 61:6

12.08 (1) 61:22

12.20 (1) 61:24

120 (1) 92:18

122 (2) 133:24,25

123 (2) 133:23 144:9

13 (6) 47:24 48:9 155:14 173:23 174:9,18

130 (1) 55:12 133/06 (1) 127:16

14 (9) 60:22 67:19,22

Opus 2 International transcripts@opus2.com
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226
February 17, 2016 Day 11 — Redacted

69:12 135:12 168:9 177:9,17,17
140 (1) 40:9
145 (1) 81:8
15 (2) 6:19 67:8
151 (2) 176:8 177:7
153 (1) 176:9
16 (2) 134:1 144:10
160 (5) 57:6,8,13
62:12 64:8
166 (1) 41:8
16th (3) 1:19 136:8 141:17

17 (5) 1:1 4:10 27:13 35:17 36:2

18 (2) 131:9 214:3

180 (2) 55:8 57:3

182 (1) 215:7

188 (1) 41:9

19 (1) 81:22

1975 (1) 3:15

1990s (3) 6:1 8:15 27:12

19th (3) 2:4 5:6 136:8

2

2 (4) 13:7 81:2 131:9 131:9
2.10 (2) 93:9 94:9

2.5 (3) 116:11 158:14 158:16

2.5.1 (4) 116:9,10,13 158:20
2.5.2 (2) 116:15 158:21
2.5.3 (2) 117:12 158:24
2.5.4 (1) 117:15

2.5.5 (1) 117:24

20 (8) 5:15 7:24 24:11 24:13 29:23 41:18 57:5 62:13

2006 (5) 77:15 116:1 118:2 127:16,24

2007 (16) 21:9 22:1 27:12 31:9 40:5,16 41:1 43:18 48:13 51:25 52:25 53:12 56:1 60:16 62:25 140:18

2008 (27) 35:19,20 36:6 37:13 39:1,14 41:8 60:16 62:25 80:16 81:5,6,22 82:6 83:19,24 85:22 88:1 91:18 91:21 114:14 138:14 148:12 152:23,24 155:9 163:25

2009 (7) 34:23 138:15 147:3 163:20 168:3 168:9 169:13

2016 (2) 1:1 214:3

20th (1) 5:6 21 (1) 5:16

22 (5) 36:10,12 84:19 132:20 155:9

220 (18) 40:8 41:2 42:2 52:3,20 53:1,5 53:10 55:5,19,25 62:2 68:9,24 69:8 71:22,24 72:1

220m (1) 40:17

23 (2) 84:18 144:10

234 (2) 141:18,19

236 (3) 76:23 77:21 142:17

24 (1) 75:8 9 (2) 2:3 38:23
25 (12) 6:4,4 22:2 9/11 (2) 7:9,12
39:1 42:1 75:8 81:5 90 (2) 41:4 55:13
82:6 85:22 88:1 94 (1) 215:5
148:12 177:18
25th (1) 80:15
27 (1) 155:11
28 (2) 75:11 163:25

3

3 (2) 18:6 55:8

3.14 (1) 132:11

3.24 (1) 132:13

30 (5) 8:21 116:1 118:2 127:16,24

300 (3) 39:20 55:17 73:6

31 (1) 75:14

35 (1) 7:24

3500-08-01203 (1)

163:25

36 (1) 31:16

394 (2) 168:8,25

3rd (1) 147:3

4

4 (6) 51:18 52:10 53:16 56:5,20 69:12

4.30 (1) 174:1

4.46 (1) 182:18

4.5 (2) 60:21 67:20

40 (21) 4:1 22:10,12 22:18,22 25:13 29:22 41:13 52:19 53:7 55:7 56:15,17 57:5 62:1,13 68:24 69:7 71:24,25 78:12

406 (2) 168:8,25

42 (5) 20:23,25 21:1,6 21:12

5

5 (1) 169:12

5.04 (1) 182:20

50 (2) 6:15 24:8

50,000 (1) 5:18

500 (1) 148:20

500,000 (1) 60:17

58 (2) 177:9,16

6

6 (1) 91:4

6.05 (1) 214:1

60 (4) 6:15 24:9 30:1
41:20
620 (1) 77:19
63 (2) 177:16,17
68 (1) 51:17
6th (1) 147:3

7

7 (3) 10:22 38:14,22

7,932 (1) 46:25

75 (1) 34:3

8

8 (4) 38:15,22 44:2 53:17
8.5 (1) 40:22

80 (2) 40:10 55:20

82 (1) 168:1

88 (1) 127:19

89 (1) 127:19

9

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