Day 23

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

Day 23 Redacted

March 7, 2016

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March 7, 2016 Day 23 Redacted

1 Monday, 7 March 2016

2 (10.30 am)

3 MR JUSTICE HILDYARD: Yes, good morning.

4 MR STROILOV: May it please your Lordship.

5 MR JUSTICE HILDYARD: Good morning.

6 MR VLADIMIR ALEXANDROVICH SKLYAREVSKY (Continued)

7 Cross-examination by MR STROILOV (Continued)

8 MR STROILOV: Good morning, Mr Sklyarevsky.

9 A. Good morning.

10 Q. Can you please call on the screen {I25/39/108}, and the

11 Russian version, {I25/39/101} at the same page.

12 Mr Sklyarevsky, on Friday you referred to something you

13 called Antonenko loan, didn’t you?

14 A. Correct.

15 Q. Is it this loan agreement that you had in mind?

16 A. Yes, yes this is the one, and I can clarify it’s

17 a contract with the City Property Committee of

18 St Petersburg, between that one and Five Star to

19 refurbish/renovate Antonenko property number 2 in —

20 it’s in front of St Isaac’s Cathedral, actually, smack

21 in the centre of the town, so that’s the contract.

22 Q. On the face of it, and you can look further if you like,

23 but on the face of it, it does not explain how some

24 RUB 285 million out of that loan could be spent on any

25 investment in Onega Terminal, does it?

1 possible disclosure?

2 A. I think so, yes.

3 Q. Now, looking further down at clause 1.4, can you clarify

4 what Trak LTD is?

5 A. It’s a company that, together with Five Star,

6 originally, starting in 2007, was conducting work to

7 renovate number 2 Antonenko property. So far as I can

8 recall, Trak and Five Star were together investing funds

9 into this building, renovating it, providing new flats

10 for people who used to live there. I think they had

11 a contract with the City of St Petersburg. Again, I may

12 be wrong, but I think the co-investment contract was

13 precisely between Trak and Five Star, so I bought them

14 out, I conducted due diligence to determine what the

15 value of the investment had to be, how much money had

16 already gone into the renovation, how much more money

17 was required, how much money was required, for instance,

18 to find flats for those people who used to live there

19 according to the contract with the City, and how much

20 money would be required in order to make sure that the

21 refurbishment and the renovation, the upgrading of

22 the building, could be finalised.

23 Q. And who owns Trak company?

24 A. Some individuals. I am not sure I have to disclose

25 their identity. These are individuals residing in

1

1 A. Of course not.

2 Q. So as to get to the bottom of this issue, would you have

3 any objection if the Bank was asked to produce in this

4 court the full loan file in relation to this loan?

5 A. Speaking on behalf of SKIF, I have no objection.

6 Q. There is a reference in clause 1.2 to co-investment

7 agreement number A-01-4/O/08 dated 29 December 2007.

8 Can you see that?

9 A. Yes.

10 Q. Would you have any objection to this co-investment

11 agreement being disclosed too?

12 A. I think this must be part of the credit file. It’s

13 a central provision to that agreement, so that must be

14 part of the file.

15 Q. Well, in the event it isn’t, would you have any

16 difficulty providing a copy of that agreement to

17 the Bank so that it could be disclosed?

18 A. Well, just to reiterate, this was made available to

19 the Bank, because this is an inalienable part of

20 the loan. Number two, if the Bank does not have that

21 available to them, I am happy to provide that to

22 the Bank.

23 Q. There is also reference in the same clause to

24 the assignment agreement dated 2 September 2009. Would

25 the same considerations apply here in relation to

3

1 the City of St Petersburg. This has absolutely nothing

2 to do with these proceedings. These are people who

3 initiated the project back in 2007, way before all these

4 events had taken place.

5 Q. You mentioned on Friday that Renord was also

6 co-investing in this project. How does Renord fit into

7 this scheme you have just outlined?

8 A. Speaking from memory, Renord held some shares in

9 Five Star, and then subsequently when we reached

10 a certain stage in the project, the project was handed

11 over to Five Star completely and Five Star was then the

12 company that was conducting work pursuant to that

13 project.

14 Q. Is it not the case that Trak is a special purpose

15 vehicle of Mr Smirnov or of Renord?

16 A. I don’t think so, or at least, I have no recollection of

17 that.

18 Q. Would you have, for your part, on the part of SKIF,

19 would you have any objection to Renord disclosing its

20 own files in relation to Antonenko project?

21 A. I have no objection to that. Speaking for SKIF, this

22 project was related purely to number 2 Antonenko, so we

23 have absolutely no objection to any documents being

24 disclosed by Renord, by the Bank, or whoever. SKIF is

25 more than happy to give its consent for whatever

2 4
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1 documents need to be disclosed to be disclosed. I am

2 not prepared to let you know who the shareholders of

3 Trak and Five Star were, because those people had

4 absolutely nothing to do with this project.

5 THE INTERPRETER: He has not finished his sentence.

6 MR STROILOV: Yes, I think what we had translated, and I’m

7 sorry if it was lost, was that these people had

8 absolutely nothing to do with this project, and you

9 seemed to have —

10 A. They had nothing to do with these proceedings. In other

11 words, there were some people who had initiated the

12 number 2 Antonenko project, the renovation refurbishment

13 project. At some point in time they needed funding.

14 They asked us to provide funding. We conducted

15 a valuation, how much money — how much debt they had

16 raised, how much money was required for the project, and

17 then, when we achieved a certain stage, some outcome had

18 been achieved, we handed over to Renord. I can clarify

19 that our objective was to make sure that — because

20 originally it was not a very financially viable

21 contract, so we had — and the task before SKIF was to

22 find a good, viable, financial model for the project.

23 Therefore, at the end of the day, this became

24 an apartment hotel, and because the financial modalities

25 had changes, we were able to rehabilitate, resuscitate,

1 A. I believe that SKIF’s files would be very similar to

2 this loan agreement. It was an investment contract,

3 mind you, and so all the documentation that we had

4 available to us at SKIF were also available to the Bank,

5 because it’s a peculiarity of an investment contract

6 that for every payment, for every operation, you have to

7 provide supporting documentation to explain where money

8 is going to or from, whatever due diligence you are

9 conducting, invoices that are being raised.

10 So I think that the files that are available to SKIF

11 must be exactly the same, I would say 100 per cent the

12 same as the files that are available to the Bank. I am

13 almost certain that this is the case.

14 Q. Well, if this is so, would you be willing to disclose

15 SKIF’s copies, just so that we are all sure they are the

16 same?

17 A. I think so, yes, except that, as I said, because there

18 are some of the people whom I work together with under

19 these projects, I would need to talk to those people,

20 I would need to speak with my lawyers just to make sure

21 that third party interests are not being impinged upon

22 here.

23 Once again, I am happy and I can disclose this, but

24 I would need to ask my lawyers to what extent such

25 a disclosure might compromise the interests of those

5 7

1 as it were, this project in order to provide added

2 value. Originally Trak and Five Star had a very complex

3 financial model. They thought that this was going to be

4 a residential — purely residential building, and

5 unfortunately their project really did not make much

6 sense. It was dead in the water.

7 Q. Would you agree to the Bank disclosing the movements of

8 money to and from SKIF accounts in Bank of St Petersburg

9 in the relevant period of time?

10 A. Well, I think that I would be happy for the movements of

11 funds being disclosed with respect to this particular

12 project, but not for the entirety of this period of

13 time, because at the same time, I had other projects

14 with other people, and that I would not like to

15 disclose.

16 I am happy to give my consent to the Bank so that

17 the Bank can disclose the movement of cash with respect

18 to this particular project, because I — as I said,

19 I had some other ongoing projects and I would not like

20 to disclose all the information with respect to this

21 period of time, and I’m referring to 2009, so I am not

22 sure I would be happy to have that disclosed.

23 Q. And would you be willing to disclose SKIF’s own files in

24 relation to the Antonenko project and this loan and

25 other associated agreements?

1 people whom I had started working on this project in the

2 first place, maybe some names would need to be redacted

3 or something like that, but I think I would need to

4 obtain some legal advice before I do that.

5 Q. Right. Would you be willing to permit the Bank’s

6 solicitors, and I stress I am talking about the Bank’s

7 solicitors, not me and Mr Arkhangelsky, the Bank’s

8 solicitors, to search for documents or electronic

9 documents you have in SKIF’s office, so that it is

10 independently verified that nothing relevant is missed?

11 A. Are you referring to this contract only?

12 Q. For the moment, yes, in relation to this contract and

13 the co-investment and the assignment agreements

14 associated with it, and this project, so to speak, this

15 block of documents?

16 A. Well, just to confirm, I have nothing against the Bank

17 disclosing this — that’s number one. Number two, at

18 this point in time I think I would need to obtain legal

19 advice from my lawyers with respect to any disclosure of

20 these documents, and I am not sure whether SKIF would be

21 able to do that on its own.

22 Now, once it has been confirmed that I am happy to

23 disclose those documents, then the next stage, I think,

24 judging from what you have just said, would be someone

25 running a search on those documents in the electronic

6 8
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1 files of SKIF to make sure that there are no other 1 needs, I’m happy to do that. Mind you, I am taking some
2 documents with respect to this contract, apart from the 2 training courses now, so I have a very busy schedule,
3 ones that we are already disclosing; is this what you 3 plus there is a lot of work that I have on my plate, so
4 are referring to? 4 I would need to fit that into my schedule.
5 Q. Yes, well I simply want to — for the moment I just want 5 It would be important for me to be given more than
6 to understand what your position on that possibility is. 6 short notice before I can actually hop on a plane and
7 I may or may not make any application in the future. 7 come to London.
8 Now, I understand, subject to legal advice, in 8 Q. I quite understand.
9 principle you would be prepared to grant the Bank’s 9 Now, moving on to a different subject, you remember
10 lawyers access to SKIF’s files and computers to try and 10 being asked some questions about Mercury LLC on Friday?
11 find documents which might be relevant; is that your 11 A. Yes, I do.
12 attitude for the moment? 12 Q. And just to recap, you explained that it was, in fact,
13 A. Okay, let me first obtain legal advice from my lawyers, 13 operating as a Renord company, and you held shares in
14 because this contract has nothing to do with these 14 Mercury as a nominee of Renord. And also for a period
15 proceedings. This is a totally different transaction 15 of time you were its nominal director general while all
16 with different people. This is absolutely distinct. 16 decisions were in fact taken by Mr Smirnov and
17 SKIF is not at all sure that these funds have been used 17 Mrs Malysheva, as I understood you?
18 with respect to Mr Arkhangelsky’s assets. 18 A. Mostly by Mr Smirnov, and most likely by Mr Smirnov.
19 At this point in time, sitting here today, I have no 19 Q. But your view was that he would only be acting with the
20 objection, and just to show you that I am open, totally 20 Bank’s approval because it was a project where he was
21 open, but because this is a total different project and 21 working for the Bank; isn’t that the correct
22 a totally different matter, I would need to obtain legal 22 understanding?
23 advice. Mind you, we are looking at RUB 1.5 billion and 23 A. Yes. Yes, that is correct.
24 there are lots of participants that have taken place in 24 Q. And isn’t it the case that the reason why Mr Smirnov and
25 this project, so I would need to conduct a risk 25 Mrs Malysheva wanted to use a company which seemed to

9

1 assessment, if I may.

2 Q. I do understand.

3 Now, to ask you a more general question, would you

4 be prepared to give the Bank’s solicitors access to

5 SKIF’s files and computers to search more generally, or

6 perhaps more pointedly, to documents relevant to these

7 proceedings? Would you be prepared to permit them to do

8 that?

9 A. I think so, but once again, please allow me to speak

10 with my lawyers first. I do need — mind you, I am

11 a witness, now, okay, but if I’m required to disclose

12 some information on behalf of SKIF, I would need to

13 obtain legal advice from my lawyers just to make sure

14 that this does not impinge upon the interests of third

15 parties, companies or individuals.

16 Now, in terms of — as a general statement in terms

17 of disclosure, I have nothing against that, but I just

18 need to take a pause.

19 Q. I absolutely understand that.

20 Now, if this is taken further, and there are some

21 documents produced, it may be necessary to ask you some

22 further questions about them. In that scenario, will

23 you come back to London to answer those questions in

24 court, if necessary?

25 A. Well, obviously, if need be, if this is what the court

11

1 belong to you, the purpose of that was to conceal the

2 fact that the transfers of OMG assets were collusive,

3 uncommercial deals between Renord and Renord?

4 THE INTERPRETER: I’m so sorry, this is the interpreter

5 speaking. Mr Stroilov, could you kindly confirm: did

6 you say between Renord and Renord?

7 MR STROILOV: That’s right, yes.

8 A. I categorically disagree with this. I take strong issue

9 with this, and I can clarify why. When the plots of

10 land opened by Scandinavia were being auctioned off by

11 the Russian Auction House, it transpired that

12 irrespective of whatever marketing that had been doing,

13 there were no willing buyers for this because this was

14 not a standalone land plot, but it was part of the Onega

15 Terminal. I think Mr Smirnov spent a lot of time

16 looking for a buyer for that plot of land, and he was

17 not successful.

18 Subsequently he assumed risks of buying those plots

19 of land, the Scandinavia and the LPK Scandinavia plots

20 of land, in order to merge them. I attended those

21 negotiations and discussions, I was aware of this, I was

22 up to speed on all those events. As you know, in

23 the course of the sale — as you know, Solo bought the

24 plot of land that used to be owned by Scandinavia

25 because there were no other willing buyers. Now,

10 12
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1 subsequently, Mr Smirnov did identify a buyer who was

2 happy to buy the whole of a plot of land, and that was

3 ROK 1.

4 Now, his task was to merge those two plots of land

5 in order to then sell it on to ROK 1 and that’s

6 precisely the reason why he called on me and Mercury.

7 I was aware of that transaction. I did not know much

8 about the financials of it, but I was aware of the legal

9 structuring of this, and so far as I know, Mr Smirnov

10 did something quite important and large-scale for

11 Mr Arkhangelsky, because that plot of land was sold for

12 RUB 500 million, which for 2009 and 2010 was a tall

13 order in Russia.

14 Moreover, so far as I know, the contract you showed

15 to me on Friday with respect to the debt assignment,

16 that was Mr Arkhangelsky’s personal loan debt assignment

17 and that was something between RUB 400 million and

18 RUB 500 million, and Mr Arkhangelsky can confirm,

19 I hope, that Mercury did not have any claim against

20 Mr Arkhangelsky with respect to this debt; in other

21 words, Mr Arkhangelsky sold this plot of land for

22 RUB 500 million, not for 29, and so far as I know, the

23 limitation period has already expired, so for all

24 practical purposes the objective was to maximise the

25 value of one single plot of land, and it was basically

1 a problem with the voice here. If they can switch

2 Russian language here, please. (Pause).

3 MR JUSTICE HILDYARD: Is all fixed now?

4 MR ARKHANGELSKY: Yes, thanks. Sorry.

5 MR JUSTICE HILDYARD: You had best repeat the question.

6 MR STROILOV: Yes.

7 Mr Sklyarevsky, what is the source of your knowledge

8 of matters which you have discussed in some detail in

9 your previous answer?

10 A. I knew that from Mr Smirnov and from Mrs Malysheva.

11 Q. Because your answer right now seems much more detailed

12 than the ones you have given on Friday.

13 A. No, I simply didn’t have an opportunity to elaborate and

14 to speak about the deal in details. I know quite a bit

15 about these transactions. I’m prepared to clarify them

16 from the logic point of view, from the point of events

17 in 2009 and 2010, and in this particular case, that is

18 not anything complex or covert, or criminal activity.

19 The object was to maximise the value and the logic was

20 to sell the land plot at maximum value, and in Russia in

21 2009 that was extremely difficult to do because there

22 was no liquidity in the market whatsoever, and the Bank

23 demanded for the money to be repaid, because for the

24 Bank that was quite a complex period, liquidity wise, as

25 well. So they did all they could to find the way to

13 15
1 a series of legal transactions, the purpose of which was 1 sell these assets.
2 not to conceal the value but rather to maximise the 2 Q. Did you discuss these matters with anyone at all during
3 value. 3 this weekend?
4 So I’m trying to explain the logic, the rationale 4 A. No.
5 behind this, and you can see this if you have a look at 5 Q. You have just said, and I am looking at [draft] page 12,
6 the whole chain of events. So the basic idea behind my 6 starting at line 19:
7 participation in this with respect to Mr Arkhangelsky 7 «Subsequently he [meaning Mr Smirnov] assumed risks
8 was to make sure that Renord sell all the plots of land 8 of buying those plots of land, the Scandinavia and the
9 at an open sale, an open auction. That was the main 9 LPK Scandinavia plots of land, in order to merge them.
10 role, that was the operative part of it. 10 I attended those negotiations and discussions, I was
11 So far as I can recall, Mr Smirnov was trying to 11 aware of this, I was up to speed on all those events.»
12 comply with that main requirement, with that main role. 12 Now, which negotiations and discussions you were
13 So what I’m trying to do is explain the logic, starting 13 referring to?
14 with the point in time where part of the plot of land 14 A. These were meetings in autumn 2009 at the Bank where the
15 owned by the insurance company had been sold up until 15 strategy of selling these assets was discussed.
16 the time where Mercury joined in the deal. The idea was 16 Q. So to your knowledge, were the Bank and Mr Smirnov
17 to find a buyer for the land plot and the amount of debt 17 intending, in autumn 2009, to sell both parts of Onega
18 that was assigned to Mercury was deducted from his 18 Terminal to ROK N1 Prichaly?
19 liability vis-a-vis the Bank, at least judging from the 19 A. As far as I know, that was not the case. Initially it
20 case materials that I have had sight of, that was the 20 was presumed to sell the separate land plot of
21 case, I think. 21 Scandinavia Insurance Company, and they were looking for
22 Q. Mr Sklyarevsky, what is the source of your knowledge of 22 a buyer for that part. Subsequently, the understanding
23 the matters you have discussed in your previous answer? 23 dawned on them that it’s impossible to find a buyer for
24 A. In 2009 I was — 24 a piece of the land plot, it’s only possible to find
25 MR ARKHANGELSKY: Sorry, I’m terribly sorry, there is 25 a buyer for the totality of the land plot, and this is
14 16
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1 what happened later.

2 Q. Were you a party to any of the discussions with ROK N1

3 Prichaly?

4 A. No. I was not. I did not negotiate with them.

5 Q. Now, is it your evidence that, to your understanding,

6 the assignment of debt rights to Mercury applied only to

7 any personal liability of Mr Arkhangelsky but not to

8 the pledge of land at Onega Terminal?

9 A. No. As far as I understand the assignment agreement

10 includes all the obligations, including the personal

11 guarantees and the pledge, and the credit. That’s what

12 it says in the Civil Code of Russian Federation. It

13 could not be any other way.

14 Q. I’m just puzzled by what you say at [draft] page 13,

15 starting at line 13:

16 «… the contract you showed to me on Friday with

17 respect to the debt assignment, that was

18 Mr Arkhangelsky’s personal loan debt assignment and that

19 was something between RUB 400 million and

20 RUB 500 million, and Mr Arkhangelsky can affirm, I hope,

21 that…»

22 A. Sorry, may I just have a little correction. It was not

23 his personal loan, it was his personal guarantee,

24 Mr Arkhangelsky’s personal guarantee.

25 Q. But we can look at the agreement again, but isn’t it

1 effectively, Mr Arkhangelsky, his debt was written off.

2 Mr Arkhangelsky had his personal guarantees to that

3 amount, and that amount as at that point in time was not

4 claimed against Mr Arkhangelsky and the limitation

5 period with regard to the loan was closed off.

6 So that was not the objective, but nevertheless,

7 that is the case, and I think Mr Arkhangelsky and

8 Mr Smirnov would confirm the same, saying that there was

9 no enforcement under that loan and there were no

10 negotiations in that regard as well.

11 Q. Now, you also indicated on Friday that it was not

12 unusual, as between you and Mr Smirnov, to use each

13 other’s companies, so to speak, to lend a company to one

14 another; is that so?

15 A. The companies for projects, yes. We sometimes would

16 lend each other companies for projects, at least for

17 2007 to 2010, for that time period.

18 Q. So did you act as director general of any other Renord

19 companies other than Mercury?

20 A. No. I did not act any more. The only thing, part of

21 the companies were sold or assigned to Renord,

22 depending if our opinions would differ on some joint

23 projects, or, vice versa, I would take companies from

24 Renord, with regard to some projects I would take them

25 over to SKIF.

17

1 clearly the purpose of the assignment to release the

2 land from encumbrance so that Mercury becomes both

3 pledger and pledgee, and there is no encumbrance, and

4 then the land can be sold; isn’t that the intention?

5 A. Yes, you are correct, sir.

6 Q. So the personal guarantees, whether or not they were

7 there, are irrelevant; that’s not the purpose of

8 the contract, is it?

9 A. I do not quite understand the question, sir.

10 Q. Well, I think your answer at [draft] page 13 is quite

11 misleading, isn’t it?

12 A. Sir, I do not quite understand what exactly is

13 misleading there? I do not understand the question.

14 Q. Because personal guarantees have nothing to do with it

15 and the point is that a very substantial interest in

16 that property was sold for 97 per cent discount, as you

17 remember.

18 A. Sir, your maths is incorrect, unfortunately. Personal

19 guarantees are obligations under the loan with regard to

20 the loan, and the sale price for the loan, that’s

21 another matter. Should Mercury — should it have bought

22 the obligations for RUB 29 million would say that

23 Mr Arkhangelsky owns RUB 420 million, that would be,

24 indeed, a not very nice deal, a dirty deal.

25 However, Mercury did not press claims and,

19

1 Q. And did you act as a nominal shareholder on behalf of

2 Renord in relation to other companies?

3 A. Discussing Mercury, that would be correct.

4 Q. Apart from Mercury, any other companies?

5 A. I do not recall. Perhaps there were some, but to be

6 honest, I do not remember very well. Mercury was

7 effectively one notable company where I took part, where

8 I worked actively, possibly Khortitsa.

9 Q. Now, I think you give evidence in your statement that

10 a 50 per cent shareholder of SKIF from September 2008

11 to November 2011 was Mr Kalinin, don’t you?

12 A. Yes, that’s correct.

13 Q. And Mr Kalinin held those shares on behalf of Renord,

14 didn’t he?

15 A. That particular case, he was the nominal shareholder,

16 and that was a deal of buying the share of Mr Veary.

17 That was my partner with whom we started SKIF. That was

18 the main reason. That was another project called SK58

19 that we did jointly during that time period.

20 Q. I may have lost it in translation, you referred to

21 Mr Ved, the gentlemen you —

22 A. That’s right, Mr Ved. That is the former head of legal

23 service of AVK and that was the partner with whom we

24 started SKIF in 2005/2006.

25 Q. Then it was in November 2011 that Renord sold

18 20
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1 a 35 per cent shareholding in SKIF to you personally.

2 I think that is your evidence.

3 A. No. Now I bought the final 100 per cent of SKIF.

4 Q. Yes. Yes, I will come to that, but in November 2011,

5 you say they sold you only 35 per cent and kept

6 15 per cent?

7 A. Yes.

8 Q. How much did you pay for that?

9 A. They were very complex payments to Mr Ved. Mr Ved, in

10 2008, we had large projects with Svyaz-Bank, and Mr Ved

11 did not believe in the fate of SKIF, so I had to buy it

12 out and the settlements were complex because the amount

13 was 30 million, but a huge retention was there as well,

14 that depended on the projects that subsequently were

15 done by SKIF, and accordingly, buying Mr Kalinin out was

16 a mirror deal with regard to Mr Ved’s transactions.

17 I think the total amount was about RUB 60 million, if

18 I am not mistaken, that was paid for 50 per cent of

19 SKIF.

20 Q. So that includes the remaining 50 per cent which you say

21 were sold in 2014, in total, RUB 60 million?

22 A. Or thereabouts.

23 Q. Now, did Mr Ved ever work for Renord?

24 A. No, never.

25 Q. Is Moskovski Dvor a Renord company?

1 a Liberian company, prior to that, you see «Kiperort»,

2 is that a Renord entity to your knowledge?

3 A. Yes, Kiperort is a Renord company.

4 Q. And prior to that you see Darya Filina; is that a Renord

5 employee, to your knowledge?

6 A. I think so.

7 Q. And then you see Mr Ved.

8 A. Well, I wouldn’t be able to comment, apart from the fact

9 it must be some personal matters for Mr Ved, he did not

10 consult me in any way in this regard, so I think it’s

11 the usual story when simply a company is registered in

12 his name. I have never seen Moskovski Dvor in SKIF

13 operations, and I didn’t know that Mr Ved was a director

14 general or a shareholder there. That was his personal

15 matter. I think he didn’t do anything there at all; he

16 was a purely nominal figure.

17 Q. And Razvitie Sankt-Peterburga is a Renord company, isn’t

18 it?

19 A. Apparently so.

20 Q. And if you can then — I think in the past it worked, if

21 it could be half scrolled down so that we have the

22 bottom half of this page and the top part of the next

23 page on the screen, if possible

24 {D176-D191/2918.1T/2695}.

25 A. I would recommend to look not in the SPARK database,

21 23

1 A. Maybe. To be honest, I don’t know. To be honest,

2 I haven’t heard of such a company.

3 Q. Now, I beg your pardon, there will be a slight delay

4 while I look it up in the documents, just to be sure we

5 are on the same page. Now, if perhaps we could go to

6 {D176-D191/2918.1T/2692}.

7 Right, so that’s the SPARK profile for

8 Moskovski Dvor. If we scroll down one page, near the

9 top you can see a section called «History of manager

10 changes». {D176-D191/2918.1T/2693}. Then the third

11 line from the bottom is Mr Ved, isn’t it, who appears to

12 have been the director general of that company in 2010?

13 A. Possibly, yes.

14 Q. So that was apparently despite his sceptical view of

15 the Russian economy, wasn’t it?

16 A. Well, he was my partner, I don’t know, possibly it’s

17 a shell company. I’m not quite sure about his personal

18 business, so I wouldn’t be able to comment. As far as

19 I know, at that period of time he did not work at all,

20 and he was looking after his children.

21 Q. If you scroll down one more page,

22 {D176-D191/2918.1T/2694} you can see under «Company

23 structure», «Shareholders», around the middle of

24 the page «Change history», you are aware of this. You

25 see that the present 100 per cent shareholder is

1 because the SPARK database has many documents, and

2 unfortunately SPARK is not a legal document, but look at

3 the Unified Register of Legal Entities extracts, because

4 yesterday I looked into SPARK with regard to SKIF

5 details and there are mistakes there with regard to

6 SKIF, but there are no mistakes in the Unified Register

7 of Legal Entities. Since I have been working with the

8 system for 20 years, I do recommend to look at the

9 extract from the Register of Legal Entities, not the

10 SPARK entries.

11 Q. Thank you very much. We will come to that and you will

12 be able to correct any errors you spot.

13 Now, just for the moment, we will have to go by

14 SPARK, Mr Sklyarevsky.

15 Now, you can see in «Participation in share capital»

16 that Moskovski Dvor was 50 per cent shareholder of

17 Sevzapalians until its liquidation, apparently.

18 A. Apparently so, possibly.

19 Q. Yes. Now, since you mentioned it, perhaps we could go

20 to SKIF, the file on SPARK. That’s at page 3717 in

21 the same tab {D176-D191/2918.1T/3717}. So that is SKIF,

22 isn’t it?

23 A. Yes.

24 Q. And it appears from looking at the bottom of this page

25 that SKIF was incorporated in 2003, wasn’t it?

22 24
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1 A. Yes, that is correct.

2 Q. And at that time it was known, if you look slightly up

3 in «Changes to names and legal status», it was called

4 Vekselnaya Kompaniya Sankt Peterburg?

5 A. Correct. Absolutely correct.

6 Q. And then the same year the name was changed to

7 BSPB-Finans?

8 A. As far as I understand, that happened — oh yes, that is

9 correct, the date is correct, 2003.

10 Q. And BSPB here stands for Bank St Petersburg, doesn’t it?

11 A. Yes, correct.

12 Q. And then if you scroll down one page

13 {D176-D191/2918.1T/3718} and you have the list of

14 historic shareholders, there are present shareholders

15 of — I think it’s not quite up to date in the sense

16 that Mr Kalinin is still recorded as having 15 per cent

17 shareholding, so it may be out of date, I’m not …

18 A. Yes, that is the old version for — yes, that is not the

19 updated version, and there is a mistake there saying

20 that SKIF was called BSPB-Finans prior to 2011. That’s

21 on the first page. That is the mistake I mentioned.

22 Q. So when was the name in fact changed?

23 A. In February 2006, when we bought it.

24 Q. And how much did you pay for it on that occasion?

25 A. Around RUB 3 million.

1 shareholders which are dated 2003, it seems to be owned

2 by Bank of St Petersburg and Solo and two individuals.

3 Do you agree that the share in charter capital column

4 seems incorrect. It’s much more likely that at the time

5 the share capital was RUB 10,000 and these four

6 shareholders owned the company between themselves?

7 A. This needs to be checked because I would like to

8 reiterate that SPARK is not very reliable as a source,

9 but based on what you are showing to me, sir, that is

10 possibly correct.

11 Q. Well, surely you know who you bought the company from?

12 A. Yes. There were individuals, and I think one legal

13 entity. That transaction was recommended to me by

14 Mrs Malysheva, who moved to Bank of St Petersburg. I do

15 not deny that that company, that was the Bank’s company

16 that first was held by the Bank. I don’t know how to

17 put it exactly.

18 Q. Why didn’t you mention this in your witness statement?

19 A. I don’t see any material facts in this. This is in

20 the public domain. This information is publicly

21 available. It’s an open source company. SKIF has been

22 well known since 2006. You can Google it. It’s

23 a standalone company that does standalone, independent

24 work, and over the past four or five years it has

25 absolutely nothing to do with Bank of St Petersburg,

25 27

1 Q. So was it a going concern at that time?

2 A. No, it was a shell company but that was formed as

3 a finance company, and one needs to understand, when

4 I left AVK in 2005, I worked as an employee for 10 years

5 and it was a big challenge for me to create my own

6 business, and that was not just the legal entity that

7 could be done in month, costing RUB 10,000, I needed

8 a legal entity with a financial track record, in

9 the financial area, and Ms Malysheva recommended to me

10 a company that, as far as I understand, was not needed

11 by Bank of St Petersburg, but it was formed as a finance

12 company, it had all the hallmarks of a finance company,

13 and we bought it with Mr Ved and renamed it into SKIF.

14 SKIF is an abbreviation.

15 Q. And since we are on that abbreviation, I think you can

16 confirm that it is also the Russian name for Scythians,

17 meaning Barbarian tribe in history, isn’t it, because

18 sometimes we have it translated as Scythian?

19 A. I come from Zaporozhye in the Ukraine, and those are

20 Scythian lands, so hence the company name.

21 Q. Now, if we could look at the list of shareholders there,

22 I think there is another mistake, presumably you are

23 aware of the history of these things as well, so

24 historic shareholders, you can see Mr Kalinin, you can

25 see yourself, you can see Mr Ved, but historic

1 therefore specifying that it used to be blah, blah,

2 blah, it’s really not a relevant fact, particularly

3 because anyone can go into the register and see the

4 information that is part of the public domain for

5 themselves.

6 Q. Yes.

7 Now, if we could scroll down to

8 {D176-D191/2918.1T/3722}, and I apologise, there is no

9 English translation for that but there isn’t much

10 substance I want to draw your attention to, my Lord,

11 I do apologise.

12 Now, is that what you mentioned as the reliable

13 source, Mr Sklyarevsky?

14 A. This is the one, yes.

15 Q. Now, I wonder if — so that’s the Russian official

16 database of corporate bodies?

17 A. Absolutely, that is correct.

18 Q. And I think I may be wrong, is it actually maintained on

19 the federal basis or on the regional basis?

20 A. I’m not aware of the details. I think most likely it is

21 a federal database.

22 Q. Right. Well, where — I suppose you — I imagine you

23 would have a general idea of the layout of SKIF entry.

24 Would you be able to direct the court, through me, where

25 in this extract do I find the historic names and

26 28
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March 7, 2016 Day 23 Redacted

1 historic shareholders of SKIF?

2 A. I think we will need to scroll down. I don’t know how

3 to do this. I do not have a mouse that would allow me

4 to do that, I am afraid.

5 Q. May I ask, then, for this to be … well, unless someone

6 could give Mr Sklyarevsky a hard copy of that bundle,

7 that might be quicker. I will simply ask pages to be

8 turned slowly enough, well, say, for I think three

9 seconds will be enough, really, to look at each page,

10 these are not … and Mr Sklyarevsky will say «stop»

11 when we need to stop. {D176-D191/2918.1T/3724}

12 A. On page 3 we have information about the members of

13 the company as of 25 November 2011, Kalinin and

14 Sklyarevsky, and that, because this excerpt is an old

15 one, and mind you, you did not get it directly from the

16 tax inspectorate, you got it through the SPARK system,

17 which is also a very iffy proposition, if I may.

18 So judging from what I can see down to the bottom

19 here, it says:

20 «Excerpt received through SPARK.»

21 Therefore you can see 55 per cent over 15 per cent,

22 Sklyarevsky and Kalinin, so that’s what we see on

23 page 3.

24 Q. Thank you, if we could scroll down further, and further

25 {D176-D191/2918.1T/3726}.

1 that, but I would like to explain that you have three

2 excerpts, three extracts with respect to SKIF:

3 18 January 2015; 12 December 2013, and then 2010, some

4 time in 2010, you received those extracts through the

5 SPARK system.

6 Unfortunately, SPARK tends to cut off some of

7 the data that it had received previously. Reference

8 page 8 of the extract, dated 12 December 2013, if you

9 take a look at that particular page, you will see the

10 date the changes were made in the register:

11 14 July 2003, 15 July 2003, whereas the full name of

12 the entity, it says «SKIF Ltd».

13 But at that time in 2003, we did not have SKIF at

14 all, so my explanation for this is that you received

15 this extract through SPARK. SPARK, mind you, is an

16 information system run through Interfax agency. Had you

17 received those extracts direct from the tax office, then

18 that information would not have been cut off, but that’s

19 my personal explanation. This is the best I can come up

20 with. I have no other explanation for this. This is

21 just irrelevant.

22 Q. If we look again, and I am sorry to jump around this

23 document, but if we go back to {D176-D191/2918.1T/3718},

24 that’s where we looked at earlier, that’s the printout

25 from the database itself as opposed to the document.

29 31

1 A. Right, here it says that I am the CEO, the director of

2 the company, and I have been one since 14 February 2006.

3 That’s, I think, when we bought the company.

4 Q. Yes, Mr Sklyarevsky, what I am trying to find, and I may

5 be wrong, I couldn’t find it in this extract, is the

6 fact that Bank of St Petersburg was the shareholder,

7 that Solo was the shareholder, that the company was

8 known as Vekselnaya Kompaniya Sankt Peterburg, that the

9 company was known as BSPB-Finans. Where do we find that

10 in that extract? I may have overlooked it, but having

11 checked, I didn’t find it. (Pause).

12 My Lord, I wonder if it might be a good moment to

13 have a break and let Mr Sklyarevsky, in fairness, to go

14 through these pages. Well, perhaps it’s not very fair,

15 because Mr Sklyarevsky may need a break too, but that

16 may be an option.

17 MR JUSTICE HILDYARD: Right. We will have a 10-minute

18 break.

19 (11.36 am)

20 (A short break)

21 (11.46 am)

22 MR STROILOV: May it please your Lordship.

23 Mr Sklyarevsky, have you found any reference to

24 Bank of St Petersburg or BSPB-Finans?

25 A. You see, I have not been able to find any reference to

1 A. Right, but this is a SPARK Interfax database document,

2 once again.

3 Q. Exactly.

4 A. But this is the information basis. This has no legal

5 relevance, this is not a legal document. Interfax is

6 a Russian information agency. This is not a legal

7 company, as it were.

8 Q. Well, I accept that, but nevertheless, they run the

9 fullest known database of legal entities if you have to

10 use.

11 Now, what I would like to draw your attention to is

12 that in the table of shareholders at which we looked

13 earlier, it says «Source: EGRUL». Doesn’t that stand

14 for Unified State Register of Legal Entities, which

15 is — from which — whose SKIF entry we looked a moment

16 ago?

17 A. Yes, it looks like this is the case. Interfax refers to

18 EGRUL, Rosstat Russian statistics agency, yes.

19 Q. Mr Sklyarevsky, how much does it cost to falsify

20 a historic entry in EGRUL?

21 A. I have no answer to that kind of question.

22 Q. Well, I suggest to you that the likeliest explanation is

23 that the EGRUL entry we have looked at was falsified in

24 a corrupt way.

25 A. Could you explain to me why that would have been done?

30 32
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1 Q. For the same reason why you don’t mention the history of 1 from that source are in some way incomplete. I don’t
2 your company in your witness statement: to conceal the 2 know about that, but it seems a — I mean, if they paid
3 connection with Bank of St Petersburg? 3 anything at all, it was pretty good waste of money if
4 A. I’m not concealing my connection with BSP. 4 you could get the same information from SPARK; do you
5 Bank of St Petersburg has been one of my largest clients 5 see what I mean? I mean, why would you do it?
6 between 2006 and 2011. The information with respect to 6 MR STROILOV: Well, my Lord, the point is obviously EGRUL,
7 SKIF shareholders is in the public domain, and if you 7 as Mr Sklyarevsky has pointed out, it is regarded as
8 have been able to receive extracts from Interfax or 8 more official source of information.
9 EGRUL, and I have had a look at quite a few extracts in 9 MR JUSTICE HILDYARD: And what, so people, if they got it
10 the case files, and unfortunately, they are riddled with 10 from SPARK would think: that can’t be right, it must be
11 mistakes, and it would be good if we could confirm that 11 as EGRUL states it now?
12 by some further extracts. 12 I mean, you know, you can make suppositions, but
13 Now, this is a problem with financial information. 13 sometimes one wonders whether there is less mystery than
14 I have been a financial analyst for many years in 14 you are wrapping it in. It may be, there are two
15 Russia, so I know what I’m talking about. So saying 15 possibilities, one is that you haven’t got the full
16 that this has been falsified is absolutely wrong and 16 extract from EGRUL, and some mistake has occurred.
17 a misconceived statement. 17 Alternatively, that the two — that is SPARK and the
18 MR JUSTICE HILDYARD: I am getting a bit lost, I think. You 18 source material — somehow at one moment came to depart.
19 do not suggest that the fact that there were previous 19 Is that a sufficient basis, in your submission, for the
20 shareholders which included Bank of St Petersburg is 20 sort of allegations you put? That’s what I’m wondering
21 incorrect, do you? 21 about.
22 A. This information is absolutely true. 22 MR STROILOV: I think it is, my Lord, considering that if —
23 MR JUSTICE HILDYARD: Yes. 23 MR JUSTICE HILDYARD: All right. I think this witness is
24 A. So I am not concealing that, my Lord. 24 going to say no.
25 MR JUSTICE HILDYARD: No. And at some point the EGRUL 25 MR STROILOV: Yes.
33 35
1 source contained that information? 1 MR JUSTICE HILDYARD: I think he has said no, but there we
2 A. I think that even now it still is part of EGRUL. That 2 are. You know, there we are.
3 information is part of EGRUL. 3 You say, is this right, Mr Sklyarevsky, the
4 MR JUSTICE HILDYARD: Well, maybe because of your 4 following, as I understand it: one is that the reliable
5 substitution, but at one point, at any rate, the source, 5 source is the official source, not SPARK; two,
6 EGRUL, contained this, and no one is suggesting that 6 nevertheless, what SPARK says as to the antecedent
7 SPARK information is not very easily obtainable, even 7 shareholders is correct, though other bits of the SPARK
8 though you think it may not be particularly accurate. 8 document may, in your view, be incorrect, and; thirdly,
9 A. Well, it is inaccurate. In these documents I can see 9 that as far as you are concerned, both before and now,
10 that this information is inaccurate, but I am not making 10 the official record showed the antecedent shareholders
11 any secret of the fact that Solo and BSP had been 11 just as SPARK does?
12 shareholders in the company. 12 A. You are absolutely right, my Lord.
13 MR JUSTICE HILDYARD: Right. The thing is, if it’s readily 13 MR JUSTICE HILDYARD: And that you say that you don’t know
14 obtainable information and it was sourced at one time 14 how much it costs if one were minded to want to change
15 from EGRUL, I’m not quite sure what the basis for 15 the register?
16 suggesting that there would have been any real mileage 16 A. I have no clue, my Lord.
17 in trying to doctor EGRUL’s records, even if you could 17 MR JUSTICE HILDYARD: And implicit in that is certainly you
18 do it, as to which I don’t know, I’m agnostic. 18 haven’t and you don’t know anyone who has; is that
19 MR STROILOV: Well, obviously a lot of people, especially in 19 right?
20 Russia, would go to EGRUL rather than SPARK to check 20 A. Absolutely, that is correct.
21 this kind of thing. 21 MR JUSTICE HILDYARD: There we are. It’s not definitive,
22 MR JUSTICE HILDYARD: But at some point EGRUL did contain 22 but that’s the answers.
23 this information. We don’t know at what point it ceased 23 MR STROILOV: Yes, my Lord.
24 having that information, if ever it did. This witness 24 MR JUSTICE HILDYARD: Yes.
25 suggests it never did and that the extracts you have 25 MR STROILOV: I will carry on. I’m grateful.
34 36
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March 7, 2016 Day 23 Redacted

1 Now, Mr Sklyarevsky, I am not suggesting you did

2 anything wrong necessarily, but I think a few remarks

3 you have made suggest that between Friday and now you

4 yourself had a look at some SPARK entries for relevant

5 companies; is that the case?

6 A. Yes, I did have a look at the extracts that are part of

7 the case files.

8 Q. So did you have an access to the trial bundle over the

9 weekend?

10 A. Yes, I did.

11 Q. Would you mind — yes, I think that’s a legitimate

12 question. I will be stopped if …

13 How did you have that access, in what way?

14 A. I think I got the password prior to starting my

15 interrogation from the lawyers, so I looked up these

16 documents on my computer.

17 Q. So you have access to Magnum? You have your own log-in

18 details for Magnum, don’t you?

19 A. Apparently so, but I do not quite understand whether

20 that is the Magnum system or some other system. This is

21 simply a folder for me. I saw the document that I could

22 have looked at, and I saw the extracts which are also

23 there.

24 Q. Well, were you able to review the transcripts as well?

25 Were you able to review the transcripts over the

1 see a table called «Company ownership hierarchy». Now,

2 could we again half scroll down so that we have the

3 bottom of this page and the top of the next page on the

4 screen {D176-D191/2918.1T/2426},

5 {D176-D191/2918.1T/2427}.

6 So you can see — and the way this is — this table

7 is intended to show indirect shareholders, isn’t it? So

8 the way it is organised is where you have hierarchy

9 level column, so you can see that Alye Parusa is

10 50 per cent shareholder, and then it’s 100 per cent

11 shareholder of Alye Parusa is Kazakova Oksana Borisovna

12 and then you can see in the next line — isn’t that how

13 it works. And then you see Korotkova Olga Valerevna as

14 31 per cent shareholder, and then finally at the bottom

15 of the page, at the bottom of the table but the top of

16 the next page, you have Svyaztroiinvest as 19 per cent

17 shareholder and you as 100 per cent shareholder of

18 Svyaztroiinvest?

19 A. Yes, if you believe this document, that would be

20 correct.

21 Q. Is there any inaccuracy, to your recollection?

22 A. I do not recall any inaccuracies. I remember the

23 general situation with the Leasing Company of

24 St Petersburg. I recall the company called

25 Svyaztroiinvest, why it was created, and what was the

37

1 weekend?

2 A. I didn’t see them, sir. I didn’t see that. I only saw

3 the documents related to the proceedings, but I did not

4 see the transcripts. I didn’t pay any notice.

5 Q. And do you have access to the transcripts in your

6 system?

7 A. I didn’t see that.

8 Q. Now, do you know a company called Leasing Company

9 St Petersburg?

10 A. Yes, I do.

11 Q. And you hold an interest in that company, don’t you?

12 A. That was in 2007/2008, I think so. That was a long time

13 ago.

14 Q. Was it through a company called Svyaztroiinvest?

15 A. Yes, if I recall correctly, that was through

16 Svyaztroiinvest.

17 Q. Now, was your interest about 19 per cent?

18 A. One needs to look it up. I do not recall exactly. It

19 was in 2007, or thereabouts. We could have a look at

20 the company’s extract, if it’s not difficult.

21 Q. Yes. Well, despite your criticism of SPARK database,

22 I would suggest to go to page 2422 of the same tab, and

23 the SPARK entry for Leasing Company.

24 What I am looking at, if we could scroll down to

25 {D176-D191/2918.1T/2426}, at the bottom of the page you

39

1 fate of it, but I do not recall some minor detail.

2 I can only tell in general about the Leasing Company or

3 about Svyaztroiinvest.

4 Q. Isn’t it a fact that Leasing Company St Petersburg is

5 trading from the Bank’s office at Malookhtinsky 64A?

6 A. Yes, that is correct. One could proffer a general

7 qualification so that you would have an idea about the

8 other issues, other companies. When we started in 2006

9 to work with Bank of St Petersburg we had this idea of

10 developing business around the banking business, a

11 managing company, a leasing company and insurance

12 company and so on and so forth. We had various ideas

13 with regard to how to develop this business.

14 As far as I understand, these companies are not

15 quite owned by the Bank of St Petersburg, but we are

16 talking about 2006, 2007, 2008, and subsequently

17 I stopped being involved in these projects for other

18 reasons because I got other businesses. But with regard

19 to Svyaztroiinvest, the very name of the company makes

20 it clear that it was created to build communication

21 networks. This is my speciality. I have several

22 companies which are some of the largest ones in creating

23 communication networks in Russia, and I have been

24 dealing in the telecoms sector for about 15 or 12 years.

25 So that company was created for a specific

38 40
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March 7, 2016 Day 23 Redacted

1 designated project with regard to communications, but

2 unfortunately, that project was not implemented.

3 Q. Right. So that was intended, to your knowledge, to be

4 a leasing company affiliated to Bank of St Petersburg?

5 So to speak, part of the second group?

6 A. No, that company had to service the Bank’s clients in

7 the event of they required any leasing services. It was

8 not part of the same group; it was a service company, it

9 was a business where — well, I do not have any

10 information that the Bank owned that business. That was

11 a standalone business that would be offered to

12 the Bank’s clients and that would be offering leasing

13 services to them.

14 Q. And I think you have said that around the same time

15 you — as part of the same planning deed, you meant to

16 create a managing company, which would be connected with

17 the Bank in the same way?

18 A. There was Nevskaya managing company there. It’s also

19 present in the extracts, and the managers from AVK, well

20 known to me, went over to work to the company, and the

21 objective was to saturate the opportunities with

22 financial businesses, various opportunities with regard

23 to Bank of St Petersburg clients. These were separate

24 businesses not owned by the Bank. Some of them turned

25 out well, some of them did not. Each of them had their

1 period. After that there were different shareholders in

2 the company. I was a minority shareholder, then there

3 were various stories to do with this project, with the

4 communications, or Svyaz, and in 2010, to be honest

5 I now just do not recall.

6 Q. So if you look, then, at the list of historic

7 shareholders in the second half of the page, you only

8 see Bank of St Petersburg with 0.01 per cent.

9 Well, can you look through the list, and if any of

10 the names is familiar to you, explain who is behind

11 them?

12 A. Okay. Renord-Invest, this is clear, as far as I know,

13 Global Konsalting, perhaps it would be a Renord company,

14 but I would not be able to tell you exactly.

15 Diskom elektroniks, I have no idea, some German

16 company. Dobrianova Galina Edazi, I don’t know what

17 these companies are, well of course I know

18 Renord-Invest. I possibly think that Global Konsalting

19 might be their company, and I don’t know about the rest

20 of them.

21 Q. All right. If we could scroll down one page

22 {D176-D191/2918.1T/2425}, you see Kiperort, is that

23 a Renord company?

24 A. Yes, that is their company.

25 Q. You see Solo?

41 43

1 own fate, but that was one of the ideas in early 2006,

2 2007 or 2008.

3 Q. And you also mentioned an insurance company, didn’t you?

4 A. As far as I recall, there was an insurance company

5 called Gayde, and that was actively operating with the

6 Bank of St Petersburg clients to my knowledge.

7 Q. Right, if we could now go back to Leasing Company

8 St Petersburg. Now, I think you said that you only held

9 your shares through Svyaztroiinvest some time ago. Did

10 you say around 2006, from memory? Remind me what date

11 did you give?

12 A. I do not recall exactly, but it would be from 2006

13 through to 2009, that’s the way I imagine. It must have

14 been through that time period but unfortunately I do not

15 recall exactly. That was a very general idea about some

16 leasing projects.

17 Q. Well, if we go to page 2424, so a few pages up

18 {D176-D191/2918.1T/2424}. So you can see in the middle

19 of the page «Company structure», and you can see that,

20 according to SPARK, the Svyaztroiinvest is 19 per cent

21 shareholder since 2010 to that day? Is that incorrect?

22 A. I fear it might not be quite correct. One needs to look

23 into this. We need to look at the extract. As far as

24 I recall, I was the director of Svyaztroiinvest, or in

25 ownership of that company, an owner for some time

1 A. Well, one needs to look into this. I think in 2004,

2 Solo was not Renord’s company because there was no

3 Renord at that point in time. So it was just Solo, and

4 I’m not quite sure who owned it.

5 Q. Wasn’t it the Bank, by any chance?

6 A. I do not know. I didn’t look into it. We need to have

7 a look at the extract for Solo to understand who was its

8 owner at that point in time.

9 Q. We will in due course.

10 Then further down you see Trak LLC. OOO stands for

11 LLC in Russian.

12 A. Yes.

13 Q. Is it the same Trak which was co-investing with you in

14 the Antonenko project?

15 A. It looks similar, judging by its name, but I don’t know

16 what Trak that is. Yes, we need to have a look at the

17 company number, because Trak, there could be various

18 companies.

19 Q. I think you said earlier that, to your knowledge, Trak

20 was not a Renord company. Would you like to revise that

21 evidence?

22 A. No, I don’t wish to do so. I knew who I did the

23 transaction for Antonenko with, but at that point, Trak

24 was not a Renord company, and I’m not even sure whether

25 that is the same Trak.

42 44
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March 7, 2016 Day 23 Redacted

1 Q. Now, I think you have mentioned earlier that at some

2 point in time you acted as a director general of

3 Khortitsa LLC.

4 A. Yes, that was in one of the first companies that we

5 created.

6 Q. Well, do you mean —

7 A. I do not recall whether I was a director general or

8 a shareholder, but Khortitsa — because I was born in

9 Zaporozhye and Khortitsa is an isle on the Dnieper

10 river, so the company was formed there by myself.

11 Q. So you were the one who actually founded that company?

12 A. I think so. I do not recall. We could look into this,

13 but I think so.

14 Q. But it is a Renord company, isn’t it?

15 A. Subsequently, again, let me just clarify, if I may.

16 When SKIF was being formed, we presumed that that

17 company will have lots of investment projects with the

18 Bank. When Renord came about, that was a competitive

19 entity, that was our competitor. So we sold some of

20 the projects to Renord, we transferred some projects to

21 Renord, some projects we did jointly and then would take

22 them over.

23 So that was a situation where we worked jointly in

24 different situations, so it would be either Renord

25 finishing the projects or SKIF would be finishing the

1 Q. And is he an employee of Renord?

2 A. No, I don’t think so. It’s a separate business.

3 I don’t know their structure. It’s a managing company.

4 I don’t know who he works for or, rather, it’s

5 a separate business. I don’t think it’s connected with

6 Renord.

7 Q. And just above Mr Lestovkin, you see Mr Gavrilov taking

8 over in 2009.

9 A. Yes, Mr Gavrilov is a Renord employee, and also

10 Ms Goncharuk.

11 Q. So we can see that the history of managers in that sense

12 is rather diverse. Well, you have you from SKIF in

13 2007, then you have Mr Lestovkin from Nevskaya in 2008,

14 and then Mr Gavrilov and Ms Goncharuk from Renord in

15 2009.

16 What happened? Did you just pass it on between

17 yourselves just for convenience, or what?

18 A. I think, talk about myself and say some other major

19 client, which is my client that I worked with, then

20 I worked with many legal entities and I could have taken

21 part in those projects, and talking about

22 Bank of St Petersburg, the group always has a basket of

23 legal entities which are managed from a specific

24 financial centre.

25 So SKIF would have one financial centre, Renord

45 47
1 project. So as far as I recall, both Khortitsa and 1 would have a different financial centre. If we are
2 Medinvest, that originally was called SKIF Medinvest, 2 selling a company or transferring a company, if we don’t
3 these were the companies that were either transferred or 3 need it, or if there is some project, it’s an ongoing
4 sold to Renord, together with the project in 2007, or 4 work situation in the work of investment groups that
5 2008, so there is nothing surprising here. 5 share assets, sell assets, trade them, so I do not
6 Q. So to your recollection, was Khortitsa transferred to 6 recall very well how the Khortitsa deal was put
7 Renord or sold to Renord? 7 together. I remember we created it, we initiated it.
8 A. As far as I recall, it was sold. I simply do not recall 8 I remember other deals, for example, Medinvest deal, but
9 the circumstances thereof, but I recall that it was sold 9 I do not recall the Khortitsa situation. I’m not quite
10 to Renord, and I just need to recollect what 10 sure why I sold it to Mr Lestovkin. Maybe I didn’t need
11 transactions it was part to. 11 it at the time.
12 Q. Right. And was Mr Ved also involved in Khortitsa, 12 In Russia there is a specific thing, and my Lord
13 wasn’t he? 13 asked about how long would it take to open a legal
14 A. I think so. There were the two of us. We were 50/50 14 entity. It’s very short, about two weeks to a month,
15 partners. We created legal entities and tried to build 15 but the problem is that once you have opened a company,
16 an investment group, so I think so. 16 a legal entity, it’s very hard to close it down. If
17 Q. And perhaps if we — well, if we could briefly look at 17 a company is there, it needs to be used somewhere. If
18 the SPARK entry for Khortitsa at 18 a company is already in existence and is a shell
19 {D176-D191/2918.1T/3493} in the same tab. You can see 19 company, as Mercury was at some point in time, it takes
20 if we scroll down one page, {D176-D191/2918.1T/3494}in 20 longer to close it down and it’s quite expensive. It’s
21 the middle you see «History of manager changes». 21 better to use that company rather than to create a new
22 A. Yes, that was 2007. 2007, 2008. 22 one.
23 Q. And who is Mr Lestovkin, just above your name? 23 So it’s quite likely that that was the same
24 A. If I’m not mistaken, that was a director of Nevskaya 24 situation with Khortitsa.
25 managing company. 25 Q. Now, I just want to clarify … never mind. If we could
46 48
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1 just go two pages down, if we could

2 {D176-D191/2918.1T/3496} and just, again, the list of

3 historic shareholders. I am looking at «Change history»

4 in the middle of the page. So you can see some BVI

5 offshore company at the top. Then I think you said that

6 Ms Goncharuk is a Renord person, and she was

7 100 per cent shareholder immediately before.

8 Then there is Mr Donov. Who is Mr Donov?

9 A. If I recall correctly, that was Renord’s lawyer.

10 Q. And then you see Global Konsalting down there, and prior

11 to Global Konsalting, you see yourself, Mr Ved, and

12 Mr Gorshkov at some point.

13 Now, there seems to be, again, the same mistake as

14 with SKIF, because I think it is pretty obvious that at

15 that point in time and prior to 2009, the charter

16 capital was RUB 10,000. So your share was a lot more

17 than is indicated in the second column from the right;

18 would you agree with that?

19 A. It’s difficult for me to analyse that type of data right

20 here. That is an information database. I wouldn’t be

21 able to analyse it, unfortunately. I would punish my

22 employees for that type of information, so it’s

23 difficult for me to answer your question, sir. Based on

24 the table we see before us, the answer is yes.

25 Q. And based on your recollection?

1 that we have the bottom of this page and …

2 {D176-D191/2918.1T/3719}.

3 So you can see «Participation in share capital», and

4 I think SKIF is recorded as having a 50.1 per cent share

5 in Intermit.

6 A. That was back in 2007, yes. That was the case.

7 Q. Fine, and then if we could now go to page 2798

8 {D176-D191/2918.1T/2798}, so that’s Sevzapalians entry,

9 isn’t it?

10 Then if we could scroll down three pages to

11 {D176-D191/2918.1T/2801}, again, then you see

12 «Participation in share capital» in Intermit, again, the

13 controlling shareholding of Intermit seems to have

14 passed to Sevzapalians.

15 A. It became so on 1 January 2008, from what I can see

16 here, and SKIF, I think, used to hold shares in Intermit

17 in 2007, and then we transferred it to Renord, I think.

18 Again, we would need to double-check the dates, but

19 from what you have just shown to me, it would appear

20 that SKIF’s interests in — so SKIF’s interest in

21 Intermit used to exist before Intermit buying shares in

22 Sevzapalians, or maybe at the same time, but we would

23 need to double-check the documents and we would need to

24 double-check the exact dates. I saw it in the previous

25 extract that you have just shown to me.

49 51

1 A. Based on my recollection, the company — yes, there was

2 RUB 10,000, we did not do any transactions using the

3 company at that time, and it was transferred to Nevskaya

4 managing company. I do not now recall why it was done.

5 Q. And if you look at the second table where it is kind of

6 double-checked, at the bottom of the page, you see the

7 same data coming from the different source, that’s

8 Rosstat, which doesn’t give names, individuals, I think,

9 are called «Citizens of Russia», and you can see that in

10 that table in 2006, you can see that Citizens of Russia

11 owned RUB 10,000 of charter capital, and that amounted

12 to 100 per cent.

13 A. Yes.

14 Q. And so obviously Citizens of Russia were you and Mr Ved,

15 weren’t you?

16 A. That is possible, yes.

17 Q. Now, if you could go back to — may I ask you about

18 a company called Intermit, does that ring any bells?

19 A. What’s the name again?

20 Q. Intermit.

21 A. Yes, it is a Renord company, I do know that company.

22 Q. If we could, please, go back to SKIF profile at 3717

23 {D176-D191/2918.1T/3717}, and then scroll down one page

24 {D176-D191/2918.1T/3718} and you see at the very bottom

25 of the page, and if you could perhaps scroll down so

1 Q. Just for the record, you said — what this table shows

2 is Sevzapalians having shares in Intermit. I think your

3 answer at some point seems to suggest it was the other

4 way around.

5 A. I simply do not know which shares Sevzapalians is

6 holding, or Intermit is holding. I simply recall you

7 showing me an extract for SKIF, and I believe that that

8 was, or, rather — well, if we can scroll back up to

9 SKIF, I will explain to you what I mean.

10 Q. If we could have a look at {D176-D191/2918.1T/3718}. If

11 we could have the two pages, the bottom of this page and

12 the top of {D176-D191/2918.1T/3719}. We could have it

13 on the other screen, if that’s easier.

14 So what did you have in mind, Mr Sklyarevsky?

15 A. Do I understand correctly that it says that SKIF holds

16 shares in Intermit? That’s the second table on the

17 second page, and I cannot read it properly here, but

18 speaking from memory, and if my memory does not fail me,

19 and judging from what I see here, on 1 January 2008 we

20 did hold shares in it, and then on 1 January 2008 we

21 stopped holding it, or this extract just showed that we

22 did not hold any interests in it, so it may have been

23 disposed of prior to that date.

24 Then, after that, you showed me a Sevzapalians

25 extract as of 1 January 2008, with respect to

50 52
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March 7, 2016 Day 23 Redacted

1 the relationship between Intermit and Sevzapalians, but 1 are others who are affected by having excessively long
2 it doesn’t look like there is any relationship at all. 2 periods instead of chopping up the day in nice, equal
3 I do recall Intermit. There was a certain project that 3 slices; do you see what I mean? But if you say that you
4 was being carried on, and then it was transferred, and 4 are in need to refashion, or at least to consolidate,
5 I really cannot offer any comments on this because by 5 then we can meet at 1.45 to enable you to do so and we
6 that time, Sevzapalians and Intermit were Renord 6 will have breaks during the course of the afternoon.
7 companies, so there is a gap here, as it were. 7 MR STROILOV: I do hope it will shorten things in the run.
8 Q. So what was the project, in general terms? What was the 8 I am still anxious to try and finish today. It doesn’t
9 business? 9 look very hopeful at the moment, but I will try to find
10 A. It was a leisure centre, or something like that. The 10 a way, perhaps during the luncheon adjournment.
11 idea was to create a leisure spa centre, not far from 11 MR JUSTICE HILDYARD: Very well. 1.45 pm, then.
12 St Petersburg, or Vyborg, if I am not mistaken. 12 MR BIRT: I’m sorry, my Lord, you asked for a clip of things
13 Q. So obviously that started with SKIF as controlling 13 on Friday. I don’t know if now is a convenient time to
14 shareholder, didn’t it? 14 hand it up.
15 A. If you are referring to 2006/2007, then at that time, 15 MR JUSTICE HILDYARD: Yes, by all means, yes.
16 Renord had not yet been incorporated. I think it was 16 MR BIRT: You wanted the correspondence which had set out
17 incorporated in 2007, speaking from memory, and 17 the state of play on Mrs Malysheva’s employment
18 obviously at that point in time, SKIF was looking for 18 contract.
19 projects on the market, trying to raise finance. 19 MR JUSTICE HILDYARD: Oh, yes. Thank you. Thank you very
20 I think the idea with respect to that leisure centre or 20 much indeed.
21 the spa did not enjoy much support, we did not find any 21 MR BIRT: On the basis that your Lordship wanted to deal
22 funding, and I think we transferred it to Renord after 22 with it, if we could, today. I will hand that up.
23 it had been incorporated. 23 (Handed).
24 Then in 2008, after it had been incorporated, Renord 24 MR JUSTICE HILDYARD: All right, thank you very much.
25 needed companies, it needed to have some assets 25 (12.42 pm)
53 55

1 available to them, which we sold them, or transferred to

2 them, if we no longer had any use for those assets.

3 Q. Right, well, when you say sold or transferred, it

4 suggests you don’t remember whether it was actually sold

5 or transferred; is that correct?

6 A. At any rate, obviously we disposed of them, we sold them

7 for, say, RUB 10,000, but obviously there were certain

8 transactions where we actually sold it, for instance,

9 Medinvest. So it was an actual large-scale transaction

10 with a huge upside, but then there were instances where

11 companies such as Khortitsa or Intermit, we had no use

12 for them. There were no projects available for them,

13 so — or they were dormant and so we just disposed of

14 them for a price of RUB 10,000.

15 MR STROILOV: My Lord, I’m hesitant to embark on rather long

16 line; would you be opposed to an early lunch break so

17 that we start at 1.40?

18 MR JUSTICE HILDYARD: How long is your next line?

19 MR STROILOV: I suppose it risks going beyond 1.00, and

20 I would like, my Lord, to look at it and see whether

21 I could, perhaps, shorten it, because I am not doing

22 great and I would perhaps like to reshape the plan in

23 the light of the witness’s answers this morning, because

24 there may be evidence I don’t really need.

25 MR JUSTICE HILDYARD: I mean, my hesitation is that there

1 (The Luncheon Adjournment)

2 (1.45 pm)

3 MR STROILOV: May it please your Lordship.

4 MR JUSTICE HILDYARD: Good afternoon.

5 MR STROILOV: Now, Mr Sklyarevsky, may I ask you about

6 Nevskaya Upravlyayushchaya Kompanyia, Nevskaya

7 Management Company. If you could go to its SPARK

8 profile, which is at {D176-D191/2918.1T/2194}.

9 If we could scroll down one page, so just to avoid

10 any confusion, it appears that Nevskaya was previously

11 known as Fabris Invest; is that correct to your

12 knowledge? {D176-D191/2918.1T/2195}.

13 A. I don’t know.

14 Q. I’m sorry, if we could scroll up just for a moment, and

15 if you could see at the very top where there is

16 something called the «Card», and the third line is

17 «Location address», and the next line is «Legal

18 address». Can you confirm that this is the office known

19 as Olimp?

20 A. Yes, that’s Olimp. Olimp at Ispolkomskaya Street number

21 15.

22 Q. That’s also the principal office of Renord, isn’t it?

23 A. Yes, that is the business centre, and Renord is also

24 located there as well.

25 Q. And that is also the address of the company called Asset

54 56
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1 Management Company, Agentstvo Po Upravleniyu Aktivami,

2 which was one of the original purchasers in this case,

3 and which we are told is the company of Mr Zelenov?

4 A. I do not recall where it was registered. We could have

5 a look.

6 Q. We might. And this is also one of the offices of

7 Bank of St Petersburg. Sorry, let me start again. It

8 was, at the time of the events giving rise to this

9 counterclaim, 2008/2009, it was one of the offices of

10 Bank of St Petersburg?

11 A. I do not recall that Ispolkomskaya 15 would also have

12 an office of St Petersburg Bank except that in

13 the building number 15 at Ispolkomskaya Street, there is

14 the largest Mercedes dealer in St Petersburg, and the

15 first two floors of the building are taken up by the

16 dealership, because I bought my car there and I recall

17 that there was a cash desk of St Petersburg Bank.

18 I would not be able to confirm whether that is deemed

19 an office of St Petersburg Bank, but it is easy enough

20 to check on the internet.

21 Q. Well, you have read what you just told the court in

22 Mr Smirnov’s witness statement, didn’t you?

23 A. Well, sir, did you mean that I read that I bought my car

24 at number 15 Ispolkomskaya Street; is that what you

25 mean?

1 {D176-D191/2918.1T/2197}, so we see a continuation of

2 that list. Do you know anything of the company called

3 Linair?

4 A. Virtually nothing. I know nothing about it.

5 Q. When you say «virtually», what do you know about it?

6 A. Nothing. I do not recall anything.

7 Q. Well, I think you have just said «virtually nothing».

8 That suggests that you may know some tiny bits. What is

9 it?

10 A. That is — is that an abbreviation or is it an actual

11 company name, «Linair»?

12 Q. As I understand it, it’s the name.

13 A. I have never heard of it. I don’t know.

14 Q. Supposing I told you it was an abbreviation, what would

15 you then say?

16 A. I would have tried to understand what it could possibly

17 be.

18 Q. And did you have any idea what it could possibly be?

19 A. No.

20 Q. Now, isn’t it the case that Linair is a company jointly

21 owned by Mr Smirnov, Mrs Malysheva and Mrs Ivanikova who

22 is, or was until recently, deputy chair of the Bank?

23 A. I have no idea, I don’t know.

24 Q. Now, if we look at the list of former shareholders, if

25 you could scroll down just for a moment, I would like to

57 59

1 Q. No, what I mean is that you have added the car to

2 collaborate what Mr Smirnov says.

3 Now, could you scroll down one page

4 {D176-D191/2918.1T/2195}, and if you look at the heading

5 near the top called «History of legal address changes»

6 you see that its previous address is Prospekt Nevski Dom

7 174 in St Petersburg. Is that the address of SKIF?

8 A. No. SKIF was located at Sinopskaya Naberezhnaya, 50A,

9 that is effectively — that’s the actual address, and

10 Nevski 174 is the legal address.

11 Q. That was your address, you and Nevskaya were registered

12 at the same address, isn’t that fair?

13 A. Since before lunch we discussed that originally SKIF was

14 BSPB-Finans, and BSPB-Finans was registered at 174

15 Nevski Prospekt, I cannot change that fact. But the

16 actual address of our location was 50A Sinopskaya

17 Naberezhnaya, this is the office where all the employees

18 and myself are located.

19 Q. And could we scroll one page down

20 {D176-D191/2918.1T/2196}. Here at the bottom of

21 the page you see the list of present shareholders. Now,

22 if you could just go down the list. Andreevski Rynok,

23 is that a Renord company?

24 A. All the four companies are not known to me at all.

25 Q. And if we could — if we could scroll down one page more

1 go from bottom to top {D176-D191/2918.1T/2198}. In

2 fairness I want you to have a look at the end of this

3 table, not that I want you to ask you about any of these

4 companies. And then if we could go back one page up

5 {D176-D191/2918.1T/2197} at the bottom of the page you

6 can see SKIF holding various shares in various periods;

7 is that consistent with your recollections?

8 A. Yes.

9 Q. Then we have Linair again, on which you said you know

10 nothing. Kiperort, I understand is a Renord company,

11 isn’t it?

12 A. Yes.

13 Q. And Khortitsa is one of the companies going between you

14 and Renord at various times?

15 A. I think at that time period that was already owned by

16 Renord.

17 Q. And then Intermit is another company which is floating,

18 so to speak, between SKIF and Renord.

19 A. Intermit, yes, but again, these are the dates when

20 Intermit was already transferred.

21 Q. And then Global Konsalting is a Renord entity, isn’t it?

22 A. Apparently so.

23 Q. And then Firma Komavtotrans; isn’t this a subsidiary of

24 Gelios LLC?

25 A. I have no idea, I don’t know.

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1 Q. Right, and if we could go, perhaps on the other screen

2 because I think we will need the SPARK at some later

3 stage, and considering how difficult the reference is,

4 I would like to …

5 Now, if we could — no, on reflection I think we

6 need both screens. If you could go to {D143/2396/0.01}

7 on one screen, and {D143/2396/1} on the other screen.

8 So that seems to be an article published in 2011 by

9 a Russian agency called RBK. Isn’t that a leading

10 business publication in Russia?

11 A. It’s one of the popular ones. One of the popular

12 business newspapers and also an agency.

13 Q. Yes, and at the end of the second paragraph, you see

14 a reference to Khortitsa buying certain oil fields for

15 RUB 1.05 billion; can you see that?

16 A. I can see that, yes.

17 Q. And at the same time, Razvitie Sankt Peterburga also

18 bought some oil fields, if you go four lines up, isn’t

19 that right?

20 I am sorry, the Russian version seems to be in

21 rather small script. I’m sorry about that.

22 A. Yes. Yes, I’m struggling to read the Russian text so

23 I’m referring to the English version, sir.

24 Q. Yes, if that’s all right with you, if there is any

25 difficulties I can read it out and then use the

1 investment company in which she works as the Head of

2 the legal department.»

3 You have read that, haven’t you?

4 A. Yes, I can see that.

5 Q. Now — the Russian text or the English?

6 A. Could you scroll down on the English version, please?

7 Q. Yes, please {D143/2396/0.02}.

8 So there are some further investigations of what

9 these companies might be with reference to this case,

10 including other matters.

11 What I really wanted to ask you is are you surprised

12 with this situation, with journalists trying to

13 investigate what Khortitsa is, calling the phone number,

14 getting it answered by Nevskaya Management Company, but

15 then they still find the person who is supposed to be

16 the shareholder of Khortitsa, and the explanation given

17 to them is that the office is shared by Renord where she

18 works? Are you surprised by that, or is that …?

19 A. No. This does not surprise me. There may be different

20 companies with different principles of confidentiality

21 disclosing. There are some very public companies in

22 Russia that do IPOs, they disclose a lot of information

23 about themselves. Then there are companies that are

24 totally closed and it is very difficult to glean any

25 information about those companies and it is very

61 63
1 interpreters who will interpret it for you. You have 1 difficult for journalists as well. So different
2 got the gist of it? 2 companies have different strategies in terms of
3 A. Yes. 3 disclosing their business information. Some are public,
4 Q. And then RBK was trying to investigate where these 4 others are completely non public, try to make sure that
5 companies are coming from, and in the next paragraph you 5 no one finds out anything about them, about any
6 can see that the sole shareholder of Khortitsa is Elena 6 businesses that they may be owning and so on and so
7 Goncharuk, at that time, 35 years old. Maybe you will 7 forth. It really depends upon the business person
8 just say yes for the record? 8 involved, and it’s their right, mind you.
9 A. Yes, I can see that. 9 Q. Right. Now, just moving on, I think you mention in your
10 Q. And we know that Ms Goncharuk is a Renord employee, 10 evidence, you mentioned a company called
11 isn’t she? 11 Lentelephonestroy?
12 A. Yes. 12 A. Yes, I did.
13 Q. And she is also holding the shares in Khortitsa as 13 Q. Just to be sure, I don’t want to misquote what you say
14 a nominee of Renord? 14 about it. (Pause).
15 A. Yes. 15 I do apologise for the delay. Yes, I think in
16 Q. And then if you look at the next paragraph, the 16 paragraph 5 you say that the chair the board of
17 journalist writes: 17 directors of Lentelephonestroy.
18 «The call on the telephone number provided in 18 A. Correct. That is true.
19 the ownership certificate for the licence for 19 Q. Now, could we … if you could go to
20 Multanovsky field … was answered by one of 20 {D194-D195/2923.2/216}. So this is a translation of —
21 the employees of Nevskaya Upravlyayushchaya Kompanyia 21 and on the other screen, if we could have the same tab,
22 which, according to our collocutor, has nothing to do 22 page 217 {D194-D195/2923.2/217}. If the Russian could
23 with Khortitsa. However, the two companies share the 23 be scrolled down. You can see this is — I am afraid we
24 same office building. We finally managed to contact Ms 24 only got extracts translated in English. There is also
25 Goncharuk: the same office is shared by Renord-Invest 25 a machine translation of the entire document, we may go
62 64
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March 7, 2016 Day 23 Redacted

1 to it if necessary but only extracts were manually

2 translated. So this is the list of affiliated persons

3 and entities of Lentelephonestroy, isn’t it, and that’s

4 for the year 2012.

5 A. It’s 2012, yes.

6 Q. I can see that my extracts translation is incomplete,

7 but I suppose you can confirm that in the Russian

8 version you can see as number 1, Mr Kalinin from Renord

9 who is a member of the board of directors.

10 A. Yes.

11 Q. And then you see your name in line 2, and you are also

12 described as a member of the board of directors, but

13 I understand from your statement that by now you are

14 the chairman?

15 A. But even at that time I was chairman of the board.

16 Q. Right. Then we see Mr Smirnov in line 4. Then if we

17 could scroll the Russian version down one page

18 {D194-D195/2923.2/219}, you can see in line 28

19 «Bank of St Petersburg». Then in brackets it says

20 «(Nominal holder)», and then in «Description», two

21 columns to the right, you see that it is entitled to

22 dispose of 20 per cent of voting shares.

23 Then in the shareholding column, well, I think, yes,

24 there are two shareholding columns, share in charter

25 capital in the second from the right, and general

1 So does that mean that SKIF is amongst the actual

2 shareholders who have deposited shares in

3 Bank of St Petersburg?

4 A. SKIF had always been the actual shareholder. Ever since

5 2007 when Lentelephonestroy was acquired, SKIF has

6 always been an actual shareholder. It was a SKIF

7 project, some time in between 2007 and 2012. In 2013 it

8 was a joint project, together with Renord, and this is

9 a very good example that SKIF did not give all the

10 projects to Renord. I am a professional communications

11 expert, and this is being built by one of the largest

12 companies within my holdings structure.

13 In 2012 this was a joint venture, together with

14 Renord, and people of Renord were members of the board

15 of directors. There’s absolutely no surprise here.

16 This is not surprising at all.

17 Q. Now, is it correct understanding that in Russian

18 business jargon the word «Lavka» is often used to denote

19 a company or any corporate entity?

20 A. Yes, that’s one of the meanings that that locution may

21 have.

22 Q. Yes. Now, Lavka is a slightly archaic word meaning

23 a shop, isn’t it?

24 A. I do not know what the source, what the history of that

25 jargon term is. I really don’t know.

65 67

1 shareholding in the very right column, the far right

2 column.

3 You can see 89.7 per cent of shares are nominally

4 held by Bank of St Petersburg.

5 A. Could I ask you a question? Do you know what a nominee

6 shareholder is in Russia?

7 Q. Well, you explain the position, I don’t think it’s for

8 me to answer questions.

9 MR JUSTICE HILDYARD: Do you want to explain what you think

10 it is?

11 A. In the Russian law on securities, a nominee shareholder

12 is the depository, the depositor is

13 Bank of St Petersburg. Bank of St Petersburg did not

14 hold a single share in Lentelephonestroy, and this

15 extract is most likely a quarterly report prepared for

16 the general meeting of shareholders. The depository has

17 to disclose the list of the actual shareholders, and

18 I think this is a part of European practice and this

19 also applies to England and Wales, it’s the depository

20 that holds securities in the depository, and that’s why

21 this line here, this entry, says «Nominee holder»,

22 that’s the only reason behind this.

23 Q. And then in the next line you see SKIF described as one

24 in the group of entities to whom the joint-stock company

25 belongs.

1 Q. Now, in February 2011, the shareholding in

2 Western Terminal was transferred from Sevzapalians to

3 an offshore company called Altriwa Limited; is that

4 correct, to your knowledge?

5 A. So far as I know, yes.

6 Q. Do you know a gentleman called Sergei Daneikin?

7 A. Yes, I do know that gentleman.

8 Q. And who is that?

9 A. It’s a BSP lawyer, I think he is now the general

10 counsel, the head of the legal department, if I’m not

11 mistaken. I’m not sure about the exact title in that

12 particular bank.

13 Q. And do you recall having any discussions with

14 Mr Daneikin in late August or early September 2012 about

15 Altriwa Limited?

16 A. Yes, we did exchange correspondence. He did ask me

17 whose company it was. I told him that it was a Renord

18 company, and I said that that company belonged to

19 the Renord Group.

20 Q. Could we please go to {D161/2712/0.1} on one screen, and

21 {D161/2712/1} on the other screen. That seems to be

22 an e-mail dated 3 September 2012 from Mr Daneikin to

23 another lawyer of the Bank, Mrs Kosova, where he says:

24 «Tatyana, I’ve spoken with Sklyarevsky, Altriwa

25 Limited is his shop.»

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1 And she is using the word Lavka, denoting a company,

2 and then there is «Western Terminal» in brackets. That

3 doesn’t seem consistent with what you said?

4 A. It is consistent, because I think Sergei Daneikin can

5 hardly tell the difference, or rather, he works for

6 the Bank, he is an employee of the Bank, so for him the

7 companies that work for clients, SKIF, or Renord, or

8 other client companies, for him, it’s one part of

9 a single whole. He spoke with me and I said it’s

10 a Renord company, and he may have said that «This is my

11 ‘shop'», quote unquotes. I really don’t know why he

12 wrote what he wrote. I think this is just

13 a misunderstanding between myself and Daneikin or

14 between Daneikin and Kosova.

15 He was basically interested in who owns Altriwa.

16 Altriwa is purely a Renord company.

17 Q. Now, Mr Sklyarevsky, isn’t it right that SKIF was one of

18 the defendants to the claim brought by Mr and

19 Mrs Arkhangelsky and OMG Ports in BVI?

20 A. I did not go into the details of that claim, but so far

21 as I have been informed, so far as I know, yes, that was

22 the case.

23 Q. Well, did SKIF instruct BVI lawyers to represent it, yes

24 or no?

25 A. You know, this was something that was being done by my

1 shareholder of Sevzapalians; is that correct?

2 A. Yes.

3 Q. And then the next four defendants were not represented,

4 and then the ninth defendant is Agentstvo Po Upravleniyu

5 Aktivami, which is the same as Assets Management Agency,

6 which we are now told is a company owned by Mr Zelenov;

7 is that right?

8 A. Yes.

9 Q. And then Akva-Ladoga is not represented, then Gelios is

10 not represented, then Khortitsa, which you said at that

11 time was already a Renord company, is not represented,

12 then Dom Na Maloy Moyke, a Renord company, is

13 represented by Mr Nader, SKIF is represented by

14 Mr Nader, Aneks Finance is not represented, Nazia is

15 represented by Mr Nader and Group Oslo Marine is there

16 just for disclosure purposes, should not be represented.

17 Mr Sklyarevsky, so it appears that the companies

18 which we are told belong variously to you, Mr Smirnov

19 and Mr Zelenov, were instructing the same lawyers in

20 BVI; is that right?

21 A. Well, most likely so, yes. I don’t understand where the

22 problem lies.

23 Q. And then some other companies, which we are told belong

24 variously to Renord or to Mr Zelenov don’t instruct the

25 same lawyers.

69 71

1 lawyers. I really do not recall this. Mr Arkhangelsky

2 has been of very little interest to me over the past

3 several years. Most likely my lawyers did instruct

4 local lawyers, but to be honest, I did not look into the

5 details and I have no recollection of this.

6 Q. If we could call on the screen just to illustrate, if we

7 could call on the screen {M2/38/1}, that’s one of

8 the orders made in the BVI proceedings but, in fact, any

9 document can do. Then if we scroll down one page,

10 {M2/38/2}, I am actually interested in the last recital:

11 «And upon hearing Mr Philip Marshall QC and with him

12 Ms Arabella Di’Iorio for the First and Second Defendant

13 and Mr Richard Evans and with him Mr Jerry Samuel for

14 the Claimants and Mr Robert Nader for the Third, Fourth,

15 Ninth, Twelfth, Thirteenth, Fourteenth and Sixteenth

16 Defendants.»

17 Can you see that?

18 A. Yes, I can see that.

19 Q. Perhaps if we call the previous page on the other screen

20 {M2/38/1}, {M2/38/2}, so you can see that Mr Nader was

21 representing jointly Havana Trading Limited, and I think

22 that’s a BVI offshore company and at that time

23 a shareholder of Sevzapalians; Moskovski Dvor, which

24 is — I don’t know if you have quite agreed it, but

25 that’s another Renord company, and at that time another

1 A. Well, I can only say one thing, and that is that when we

2 received this order, it was quite an exotic occurrence

3 for Russia. So we spent quite some time looking into

4 how that might impact our Russian businesses, what we

5 needed to do, and our lawyers had a meeting, SKIF,

6 Renord and the Bank lawyers met together, and so they

7 discussed the matter; it was a purely legal matter, ie

8 something that my lawyers were responsible for, so

9 I cannot offer any comment as to why such and such

10 company has instructed such and such lawyers. For me,

11 this is a purely legal matter, particularly because at

12 that time I was already trying not to deal with

13 Mr Arkhangelsky, because this was an absolutely — it

14 was an exercise in futility.

15 Q. Well, isn’t the reason, Mr Sklyarevsky, why you — well,

16 all these companies instructed the same lawyers, isn’t

17 the reason because all these companies have the same

18 beneficial owners?

19 A. No. This is absolutely not the case. Most likely the

20 lawyers got together and some lawyers came up with

21 an idea. That’s what I think happened. St Petersburg

22 lawyers would be hard put to find BVI lawyers, so most

23 likely what happened was that the legal teams were

24 holding discussions between themselves as to which

25 lawyers they should be instructing.

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March 7, 2016 Day 23 Redacted

1 They were all in the same boat, not because they

2 belonged to the same person, but because of

3 Mr Arkhangelsky, because he had sued everyone in a court

4 of law.

5 Q. And isn’t the reason why some Renord companies were

6 represented by that common legal team whereas others

7 were not, and one of the companies, we are told, belongs

8 to Mr Zelenov was represented and the other wasn’t, and

9 then SKIF was represented by the same lawyers, isn’t the

10 reason for that that at that time, you guys intended to

11 present the picture of that system of companies in

12 a different way than it is presented now?

13 A. I don’t think that someone was trying to do something,

14 to represent something. It was about whether the

15 document was received and the lawyers were making some

16 decisions in the matter. I wasn’t present in

17 the meetings and my lawyer told me about such an order

18 being in existence, and he said that he is dealing with

19 the Bank and Renord on the matter.

20 However, if he is dealing with them, that means he

21 independently — and that is the lawyer that was dealing

22 with everything — independently taking decisions how to

23 deal in every situation. It’s very difficult for me to

24 support the logic about someone trying to represent

25 something. To be honest, at that point in time we did

1 MR STROILOV: Yes, I gather that. And if we could have both

2 versions to the interpreters, and the rest I will

3 manage. I will pass to my learned friends in case they

4 want it. (Handed).

5 So English version to my Lord, Russian version to

6 the witness and both versions to the interpreters.

7 Mr Sklyarevsky, this is a table prepared in

8 the Bank, as you can see at the top, dated 2 July 2010;

9 can you see that?

10 A. Yes.

11 Q. And perhaps if you look through the column headings, you

12 will find around the middle the column, or two columns,

13 headed «Founder». Can you see that?

14 A. Yes. Yes, I can.

15 Q. And isn’t it right that in Russian legal speak, and in

16 Russian company law, «Founder» is a slightly misleading

17 term in the sense that founder of a company, for

18 practical purposes, it means owner and controller,

19 rather than historic founder; isn’t that a fair

20 explanation?

21 A. Overall, a founder, that would be the person that

22 founded the company, the person that registered the

23 company, and then it would be either shareholders or

24 people holding stakes in the company. The founder, it’s

25 the company — it’s the person that founded the company.

73 75
1 not quite understand how that would correlate to 1 There is no legal concept of a founder in Russia. It
2 business in Russia, what actions we should undertake, 2 would be either shareholder or stakeholder or the
3 whether we ought to be represented in the BVI court. 3 founder, if that person, indeed, founded the company.
4 So that was between the legal teams. The discussion 4 Q. Mr Sklyarevsky, what I am suggesting to you is if I have
5 was between the legal teams, and it’s obvious that that 5 founded a company and then I give my shareholding to
6 is what they do. 6 you, then in all likelihood, in all documents you, not
7 Q. Thank you. Now … sorry, I am again lost in 7 me, will be named as the founder of the company; would
8 a document. (Pause). 8 you agree with that?
9 Could we go to {D139/2329/1}, and the Russian 9 A. I wouldn’t argue with you, sir, with regard to legal
10 version is, I think, {D139/2329/11} on the same screen. 10 terminology in Russia. I think that the founder is not
11 It’s not very big. Let me see if I have a hard copy, 11 a legal term, it’s not a term of the art, so we could
12 and I think it is a better copy. Let me look if I have 12 find many meanings and not arrive at any solution. It’s
13 a hard copy of that table. (Pause). 13 a person, an entity that founded the company, and it
14 I am afraid it is not the best version available. 14 possibly could be the person that owns the company.
15 Your Lordship will recall there was one with redactions 15 I don’t think there is an argument about that.
16 made in black rather than white, and it is clearer, but 16 Q. Right. If you look at column 8, now what do you
17 that’s the best I can manage. I am afraid … if you 17 understand «UK» to mean, how the abbreviation … ?
18 could hand this up to my Lord, and if you could — I’m 18 A. That most likely would be the shareholding capital, the
19 just wondering how best to do it. I wonder if you 19 chartered capital of the company.
20 could — I am afraid I am short of copies; is it all 20 Q. And obviously, I suppose, you have spotted that line 1
21 right if the English version is handed up to 21 is SKIF there, so does what you see, this 2 million,
22 your Lordship and the Russian version is given to 22 seem correct there for SKIF?
23 the witness, and then I manage? 23 A. Yes, that is about correct amount.
24 MR JUSTICE HILDYARD: If that’s all right between you two, 24 Q. Okay. So if you can look slightly to the left, you see
25 I won’t get much from the Russian version. 25 that the SKIF line is divided into sub lines, where in
74 76
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March 7, 2016 Day 23 Redacted

1 many columns the entries are identical, but in column 5,

2 you see in the first sub line, you see your name and in

3 the second sub line you see Mr Kalinin’s name?

4 A. Yes, that’s correct.

5 Q. And then if you skip to the seventh column, you can see

6 that both of you are recorded to own 50 per cent of

7 charter capital.

8 A. Yes, that’s correct.

9 Q. Right. Then there is the sixth column, which is called

10 «Belonging».

11 A. I can see that.

12 Q. And there is the word «Bank» against your name, and

13 against Mr Kalinin’s name; you can see that. So that

14 suggests to me, Mr Sklyarevsky, that what this table is

15 intending to show is that you and Mr Kalinin are nominal

16 shareholders of SKIF, whereas the beneficial owner is

17 the Bank; do you accept that?

18 A. I do not accept that at all.

19 Q. Do you accept that SKIF’s business is entirely dependent

20 on Bank of St Petersburg?

21 A. This is absolutely something I don’t accept.

22 Q. And do you accept that SKIF and Renord are the same

23 business?

24 A. No, I do not accept that.

25 Q. And that is the same business as Bank of St Petersburg.

1 So the presence of AVK was — it was a very large

2 investment company in Russia, one of the largest ones in

3 the 1990s, in the early 2000s. The brand was extremely

4 well known in the market and AVK had to be in the name.

5 Q. Yes. Did you ever work for any company which would be

6 called OOO Tsennye Bumagi full stop, or would that — if

7 I find a reference to that, that is a reference to AVK

8 Tsennye Bumagi?

9 A. That should have been AVK Tsennye Bumagi. I’ve never

10 worked for a company simply called Tsennye Bumagi, or

11 Securities.

12 Q. Thank you. At that time, or towards the end of your

13 career in AVK, the director general of AVK Securities

14 was Mr Smirnov; isn’t that right?

15 A. Yes.

16 Q. And you were his deputy responsible for mergers and

17 takeovers, isn’t that your position?

18 A. I was responsible at the AVK Group for the corporate

19 sector. That included mergers and acquisitions, and

20 finance-raising for corporations, business structuring

21 and restructuring, so several departments were under my

22 command, they worked with corporate borrowers or with

23 corporations, and another part of AVK was involved in

24 sub federal and federal loans, and the company was known

25 exactly in that domain.

77 79

1 A. No, that is something I do not accept at all.

2 Q. Now, if I now move, should I say, into more ancient

3 history, with your permission. I understand that from

4 1996 to 2006 you worked for something called AVK group

5 of companies?

6 A. That is absolutely correct.

7 Q. And you ended up being one of the top managers of

8 the company called AVK Tsennye Bumagi, or, translated,

9 AVK Securities?

10 A. Yes, I was a top manager of AVK, or AVK Security, and

11 I was a top manager of the AVK Group in total.

12 Q. Just some references, sometimes you find references to

13 OOO Tsennye Bumagi, that is Securities LLC; is that the

14 same company?

15 A. Sir, do you mean OOO Tsennye Bumagi and AVK Security?

16 That is most likely to be a translation, so the answer

17 would be yes.

18 Q. Yes, I mean, is it — sometimes the abbreviation AVK is

19 skipped; you only see Tsennye Bumagi LLC, or Securities

20 LLC translated. So is that — can that be taken to be

21 the same company?

22 A. No, AVK is a key brand of the group of companies, and it

23 was present in all the company names, so it could be

24 just AVK, it could be AVK Tsennye Bumagi or AVK

25 Security, or Managing Company AVK Dvortsovaya Square.

1 Q. And Mrs Malysheva also worked for AVK Securities, didn’t

2 she?

3 A. No, she worked at the AVK company itself, it was closed

4 joint-stock companies, investment company AVK. She did

5 not work at AVK Securities.

6 Q. And that was the parent company of the group, wasn’t it,

7 the AVK CJSC?

8 A. Correct. CJSC AVK, that was the parent company of

9 the group, and I was also Mr Smirnov’s deputy and I was

10 the deputy general director of IC AVK. So my position

11 embraced both and I was in charge of the whole corporate

12 sector.

13 Q. And the director general at the time was Mrs Malysheva,

14 wasn’t she?

15 A. I don’t know what time period you are asking about, sir.

16 She was a director general of IC AVK, then she chaired

17 the board of directors, and there was a different

18 general director then.

19 Q. Right. Well yes, if you could give the court the dates,

20 to the best of your recollection. So in what period was

21 Mr Smirnov the director general of AVK Securities?

22 A. That was 15 years ago, sir, or even longer. I think

23 Mr Smirnov was either there from 1999 or from the year

24 2000, he was a director general of AVK Securities, and

25 Ms Malysheva, it’s difficult for me to recollect, but

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March 7, 2016 Day 23 Redacted

1 I think she was a general director during the crisis of

2 1998, until about 2002/2003, I think, then she changed

3 positions, if my memory doesn’t fail me, because that

4 was a long time ago.

5 Q. Right, and isn’t it right that AVK Group included a bank

6 called St Petersburg Bank of Reconstruction and

7 Development?

8 A. Yes, that was in 2004/2005 when the group has acquired

9 a bank.

10 Q. And Mrs Malysheva chaired the board of directors of that

11 bank, didn’t she?

12 A. No, no, she didn’t chair it, as far as I recall,

13 Ms Yedina(?) was the chairwoman of the board, and

14 I think Ms Malysheva was either on the board of

15 directors or she chaired the board of directors. I do

16 not remember exactly.

17 Q. And at the same time, Mr Smirnov was vice president of

18 St Petersburg Bank of Reconstruction and Development?

19 A. I do not know his position. I do not recall what it was

20 called, but he tried to organise a brokering business

21 together with the Bank, that is true.

22 Q. You mean together with St Petersburg Bank of

23 Reconstruction and Development, not

24 Bank of St Petersburg?

25 A. Yes, that is correct, with the St Petersburg Bank of

1 I think that would be all, from the people mentioned

2 here.

3 Q. Yes, and I think you also said that your partner at

4 SKIF, Mr Ved, was the legal director of the entire

5 group?

6 A. That is correct. Mr Ved was the legal director of

7 the entire group.

8 Q. And I think you also mentioned that the management of

9 Nevskaya Upravlyayushchaya Kompanyia also largely

10 consists of former top managers of AVK?

11 A. That was the management of AVK Dvortsovaya Square, that

12 was the managing company of AVK Group. It managed the

13 investment unit funds.

14 Q. Well, who are the people you had in mind when you spoke

15 of AVK veterans working for Nevskaya? Could you give

16 names?

17 A. As far as I recall, I didn’t know AVK Dvortsovaya Square

18 very well, but I recall Lestovkin, Mr Lestovkin.

19 I think just him. He moved with his team. I don’t

20 recall the names of people on his team.

21 Q. I think also something that one can find in the press is

22 that the press secretary of AVK Group was a lady called

23 Anna Barkhatova; isn’t that right?

24 A. Yes, correct.

25 Q. And she is now the press secretary of

81 83

1 Reconstruction and Development, correct.

2 Q. And I understand that Dmitry Gubko also worked with you

3 at AVK Securities, didn’t he?

4 A. Yes. Dmitry Gubko did work with us.

5 Q. And he is now deputy CEO and chief operating officer of

6 Renord, isn’t he?

7 A. Yes, part of the team left together with me, some moved

8 to Svyazinvest, some left for other banks, and there

9 were 400 people working for AVK so now it is difficult

10 to find a single financial entity in Russia where

11 there wouldn’t be anyone who used to work for AVK. So

12 some left individually, some left as part of their team,

13 because in 2005 and 2006 there was a crisis at AVK, the

14 company fell apart, unfortunately, and people were

15 spread across the market.

16 Q. Well, if you could just have a quick look at

17 Mr Smirnov’s statement, paragraph 12, so that’s

18 {B2/12/3} if you look at paragraph 12 — yes, we need

19 the Russian, but perhaps if paragraph 12 in Russian

20 could be found. I’m sorry, it is difficult for me to

21 find the reference.

22 So looking at the names Mr Smirnov gives there. Who

23 of these people do you remember as working with you at

24 AVK? {B2/12/18}.

25 A. Dmitry Gubko, Elena Goncharuk, Valeria Brodetskaya.

1 Bank of St Petersburg, isn’t she?

2 A. Yes, absolutely correct.

3 Q. So it looks like even though you have made the point

4 that there have been some 400 people working at AVK, but

5 the top management of AVK Group has mostly migrated to

6 the Bank or to various entities that were either

7 associated or working with the Bank, if you prefer that

8 term, entities such as SKIF or Renord; would that be

9 a fair —

10 A. No. No, this is not the case. A large number of people

11 have moved to work in Svyazinvest companies, and that

12 helped me to achieve several projects. Some people went

13 to VTB, some went to Sberbank. I wouldn’t be able to

14 say that everyone exclusively went for Renord or SKIF,

15 and the whole of the AVK legal team moved to a separate

16 business called «Research Advance», so it is impossible

17 to ascertain that everyone went for BSP.

18 Yes, a large number of them went with Ms Malysheva,

19 but I would say that 400 people were, indeed, spread

20 around the market.

21 Q. And isn’t it true that AVK was extremely successful in

22 early 2000s, let’s say?

23 A. Yes, that’s correct.

24 Q. Now, AVK is a business which had been founded in the

25 1990s by a gentleman called Igor Kostikov; isn’t that

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March 7, 2016 Day 23 Redacted

1 right?

2 A. Yes, that’s correct.

3 Q. And he had been a former high-ranking functionary of

4 the Leningrad Region Communist Youth Union, wasn’t he?

5 A. This is not something known to me for sure.

6 Q. And then having founded AVK Group in the 1990s, in

7 the year 2000, Mr Kostikov was appointed the chairman of

8 the Federal Commission on Financial Markets, wasn’t he?

9 A. Yes, that’s correct.

10 Q. That is, effectively, a ministerial position in

11 the Russian Government. He was, for all practical

12 terms, a cabinet minister, wasn’t he?

13 A. I am not very familiar with the grading of state

14 officials, but it is a high position.

15 Q. And in that role, he introduced quite a number of

16 reforms to the regulation of financial markets in

17 Russia; do you recall that?

18 A. Yes, I do recall.

19 Q. He introduced a new and rather strict code of corporate

20 governance, didn’t he?

21 A. Well, firstly he brought it to Russia from England, in

22 fact, the code of corporate governance. In Russia

23 previously no one paid any attention to the corporate

24 governance code. As far as I can recall Mr Kostikov was

25 the first person in the country that at the state level

1 1999 or the year 2000, I do not recall, he sold his

2 shares at AVK company and, to my knowledge, he was not

3 an AVK shareholder when he was a state official, when he

4 was in office.

5 So, firstly, it’s not quite clear to me how

6 Mr Kostikov influenced the actions, the operations of

7 AVK.

8 Second, he was a market regulator, he headed the

9 Securities Committee. Of course that would be the

10 committee issuing licensing and revoking licences, that

11 is indeed the case, but I think it is a normal

12 regulatory function, as far as I understand.

13 Q. Isn’t it the case that licences were revoked and various

14 rules rigorously enforced against major competitors of

15 AVK, but not AVK itself?

16 A. I do not recall such a thing. I wouldn’t be able to

17 corroborate that because I wasn’t a part of that, but

18 I know for sure that AVK had its own business life,

19 the market had its own business life, and Mr Kostikov

20 was regulating the markets and only he would know what

21 objectives he had and what actions he deployed.

22 Q. Well, wasn’t another reform of Mr Kostikov to introduce

23 a requirement that issue of any securities on the market

24 could only be done with the approval of someone called

25 a financial consultant?

85 87
1 would develop and draft the corporate governance code. 1 A. Yes. That was a novelty that he introduced, yes.
2 It wasn’t something new; it was done from scratch for 2 Q. And isn’t it right that AVK made a lot of — well, in
3 companies that would enter the financial markets. That, 3 that period, AVK was very successful in providing this
4 indeed, was the case. 4 service of attaching financial consultants to other
5 Q. And in his period in office, that new code was rather 5 companies who had to issue securities?
6 rigorously enforced, wasn’t it? 6 A. Well, to begin with, let me just mention that originally
7 A. No, this is not the case, because the code did not have 7 AVK had been dealing massively in sub federal loans. We
8 the weight of law, and I believe to this day it is only 8 now have 92 republics in the Russian Federation, and
9 a recommendation in the recommendation form, it is 9 every republic, every constituent entity has the right
10 a sort of self-governing agreement of the market 10 to issue securities in the mid 1990s AVK was
11 participants to use the code when they, for example, 11 a trailblazer on that market, and it played a major role
12 list at the stock exchange or place any bonds or do any 12 on the sub federal loan market.
13 other transactions. It’s not something which has 13 Now, if you are referring to the early 2000s when
14 a force of law in the list of laws of the Russian 14 the financial adviser position was created, yes, that is
15 Federation. It does not have a law on corporate 15 true, AVK did play that role on the market. It was not
16 governance. I would say it’s a declaratory document 16 surprising, because at that time in Russia, AVK was the
17 that was passed by the market participants to have 17 number one fixed income instruments operations on the
18 shared standards when they list at the stock exchange. 18 Russian market. Between 1995 and 2004 I think there
19 It does exist in other countries for tens, dozens, 19 were no companies or banks in Russia that would work
20 or hundreds of years. 20 with fixed income instruments in larger volumes than
21 Q. Isn’t it the case that in that period while Mr Kostikov 21 AVK. So because it was one of the largest, it was the
22 was in office, quite a number of financial market 22 largest company, obviously it was a very prominent
23 companies had their licences revoked? 23 player on the financial consultancy and advice market.
24 A. I would love to clarify, because as far as I know, when 24 Q. Could we look at {D13/269/0.1} on one screen, and
25 Mr Kostikov moved to a state position, I think it was 25 {D13/269/1} on the other, and I am afraid it is not
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1 a great translation, I think it is, again, a Google 1 to pay money to the financial consultants and advisers,
2 translation, but hopefully we will able to manage. I do 2 but then, after various defaults happened in Russia, and
3 apologise, my Lord. 3 when that position of financial consultants was actually
4 Now, this appears to be an article published in 4 cancelled, it so happened that many companies started
5 a Russian publication called Finans about what they 5 manipulating and misleading the markets, providing wrong
6 describe as the collapse of AVK? 6 information to the market players, so it was Kostikov’s
7 A. Yes. 7 idea to resolve the matter in this way, and so far as
8 Q. And if we could scroll down to page 4 on the Russian 8 I understand his logic, his rationale was to shift the
9 screen {D13/169/4}, and {D13/169/0.4} on the English 9 control of information to various market players to make
10 screen. 10 sure that the market players would verify the
11 I am afraid it illustrates the poor quality of 11 information provided by the various issuers to the stock
12 the translation that I want to draw the witness’s 12 market. Mind you, this also applies to the things that
13 attention to the paragraph starting with the words: 13 we are discussing now. It’s all to do with the openness
14 «Lost AVK and another powerful source of income». 14 of the various markets. It’s a very serious problem in
15 Which actually means that AVK also lost another 15 Russia these days, so there must be an independent party
16 source of income; can you see that, Mr Sklyarevsky? 16 that can verify the information made public by the
17 A. Yes, I can see that. 17 various issuers, because there is a lot of manipulation
18 Q. It is suggested here that in 2003 a major source of its 18 with financial accounts. This is an endemic problem in
19 income was providing the services of financial 19 Russia and this is a major problem for investors.
20 consultants under this new system introduced by 20 Q. Isn’t it the case, to your knowledge, Mr Sklyarevsky,
21 Mr Kostikov. 21 that throughout his period in office, Mr Kostikov
22 A. Yes. 22 remained the beneficial owner of AVK?
23 Q. And it suggests that it was believed on the market 23 A. I have no knowledge to that effect at all.
24 widely that the purpose of introducing that institution 24 MR LORD: Sorry, my Lord, I just get to my feet, there are
25 was not to protect the interests of investment 25 two reasons, really. One is to query the relevance of
89 91

1 companies, but rather to ensure that investment

2 companies affiliated to major officials get what is

3 effectively a corrupt income. Is that a fair summary of

4 what is suggested here?

5 A. Well, I do not know what this paragraph says. I really

6 don’t understand it. It’s an opinion expressed by

7 a journalist, and I can explain, and I can support my

8 view to the effect that this is a rather unprofessional

9 view of the market.

10 Q. Isn’t it true that this market — that 80 per cent, as

11 it is asserted in this market, that 80 per cent of that

12 market of financial consultants was divided between AVK

13 and the company called FFK, which was known to be close

14 to the former head of the Presidential administration,

15 Mr Voloshin?

16 A. Well, so far as I understand, you are interested in high

17 profile individuals and names here. I do not know what

18 portion FFK or AVK had on the market. No one conducted

19 any market research to that effect so far as I know.

20 When I was with AVK I did not see any information or

21 data with respect to this market or the various portions

22 of the market held by various companies. It is

23 an opinion held by a journalist, and there must have

24 been companies on the market that were not happy with

25 what financial consultants were doing because they had

1 this lengthy line of questioning from ancient history.

2 I can’t see where this fits into any of the alleged

3 conspiracy allegations at all, that’s the first point.

4 Secondly, in fairness to this witness, he appears to

5 be being cross-examined about journalistic productions

6 alleging corruption, seemingly, in relation to

7 high-ranking officials. I am very concerned in

8 the light of all that has gone in this case, in the last

9 20 minutes or so, how exactly that ties into the case

10 that is being advanced, and certainly to be very astute

11 to make sure that the questioning is confined to that

12 end, particularly in view of the fact that we have

13 a witness who does not work for the defendants, who is

14 now in his third day, he has stayed the weekend, and the

15 threat is he won’t be done today, and time does, in my

16 respectful submission, appear to be being wasted on

17 extraneous and collateral lines of questioning.

18 MR JUSTICE HILDYARD: Well, I will ask Mr Stroilov, we are

19 going to have a break shortly anyway. My understanding

20 is that a line which is being pursued is that it was

21 a tight group of people who worked within AVK and

22 translated, by and large, over to Bank of St Petersburg.

23 That’s one line.

24 The other is it is being suggested, although I am

25 not, myself, entirely clear what the relevance is, that

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1 Mr Kostikov introduced some legislation which AVK, which

2 he may or may not have owned in whole or in part,

3 benefited from considerably because it was in that line

4 of business. I am not absolutely sure what the

5 relevance of that is, Mr Stroilov. I have got that

6 suggestion on board, but ultimately, is it central?

7 MR STROILOV: Well, it’s not central, it is a background,

8 but it is important background.

9 I can explain, or I can press on and I hope to be

10 finished with this line in 5 to 10 minutes, so that may

11 be a wiser course that to argue about this —

12 MR JUSTICE HILDYARD: Well, we will come back in 10 minutes,

13 but I do urge you to move ahead and to make it fairly

14 clear very quickly where the line is going.

15 MR STROILOV: I can explain now. Hopefully it will become

16 clear —

17 MR JUSTICE HILDYARD: I don’t want to trample over your

18 cross-examination if, by explaining it, you undermine

19 it, but if you want to explain it, then explain it, and

20 I can cogitate about it.

21 MR STROILOV: Yes, well, what I suggest is if you have

22 a remarkable number of businessmen claiming to be

23 independent from each other, all involved in this case,

24 and all of them, and there is a remarkable proportion of

25 AVK veterans among them, then if I can show that they

1 relevance.

2 MR JUSTICE HILDYARD: Yes, but even if it does only go to

3 weight, then relevance and weight sometimes get marched

4 hand in hand. This seems to be more amorphous

5 relevance, if any, and the weight of the newspaper

6 article may not be very great. Anyway, I will let you

7 think about that and we will come back in 10 minutes.

8 (3.15 pm)

9 (A short break)

10 (3.25 pm)

11 MR STROILOV: May it please your Lordship.

12 Mr Sklyarevsky, isn’t it the case that AVK was no

13 more and no less than simply a vehicle for Mr Kostikov’s

14 corruption?

15 A. No, of course not.

16 Q. And AVK Securities was at the centre of that corrupt

17 scheme.

18 A. No, definitely not, because AVK Securities was a company

19 that worked with and for clients; it had over 5,000

20 clients, I think. It was a brokerage firm. In other

21 words, if AVK was a general agent, it did corporate

22 finance, AVK Securities — AVK was the back office. AVK

23 Securities was the front office, as it were, and that’s

24 the one that worked mainly with clients.

25 Q. And once Mr Kostikov was out of office, AVK business

93 95

1 have got a common record of involvement in corruption,

2 that increases the inherent probability of their

3 involvement in a conspiracy of this kind now, if that

4 makes sense, my Lord.

5 MR JUSTICE HILDYARD: You are saying — supposing you are

6 right that Mr Kostikov introduced these things, saw

7 an opportunity and made a company in which he had

8 an interest, pursue the opportunity, is that corrupt?

9 I mean, it may be in pursuit of a business opportunity.

10 MR STROILOV: Well, my Lord, I rely on what has been

11 suggested in the article I put to the witness.

12 MR JUSTICE HILDYARD: Yes.

13 MR STROILOV: That essentially it was a form of really

14 obtaining — that the way it worked, that everyone on

15 the market understood that you have to pay AVK in order

16 to get speedy permissions from the government for

17 various things.

18 MR JUSTICE HILDYARD: All right, you can ask this witness

19 whether he knew about that, but remember, newspaper

20 articles aren’t evidence in themselves and may or may

21 not be reliable. They may be written by other people

22 who are cross about the whole situation but don’t really

23 have any factual basis for criticism. One doesn’t know

24 with newspapers.

25 MR STROILOV: Quite, but that goes to weight rather than

1 collapsed, didn’t it?

2 A. Well, it collapsed not because Mr Kostikov was no longer

3 within the government, but because of the economic

4 situation that obtained in the country, plus the change

5 in the budgetary codes, because the core business of AVK

6 was municipal and sub federal loans. Economic growth

7 began at a country because of high oil prices and so on

8 and so forth, and then the budgetary code changed and it

9 was more profitable for them to get transfers from the

10 federal centre rather than to issue loans, and therefore

11 Moscow, St Petersburg and other city loans or bond

12 market stopped, or vanished because of the change of the

13 economic situation in the country. The republics

14 stopped issuing bonds or raising debt, and that was the

15 main blow. The fact that Kostikov was no longer head of

16 that government agency really played no role and did not

17 affect AVK’s position on the market in any way.

18 Feel free to read the history of Russian sub federal

19 bonds and loans and you will see that the market boomed

20 at the end of the 1990s and the early 2000s, and the

21 market collapsed, and unfortunately AVK collapsed

22 together with the market, but that has nothing to do

23 with corruption or anything like that. It was all due

24 to a major change in the system of the budgetary

25 distribution of funds within the Russian Federation.

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1 Q. And isn’t it the case that soon after Mr Kostikov’s

2 departure, the institution of financial consultants was

3 abandoned and that was a major blow to AVK business and

4 especially to AVK Securities?

5 A. Well, to begin with, it was not abolished right away.

6 Number two, AVK Securities had never provided any

7 financial consultancy; it was something that AVK was

8 doing. Number three, the institute of financial

9 advisers or consultants was not abolished; it changed

10 its status. Various stock markets were given discretion

11 as to whether or not financial advisers or consultants

12 need to be brought on board to companies that are

13 listing their shares, so there was a major change on the

14 market, but the financial problems for AVK started when

15 the municipal bonds market diminished by a factor of 10,

16 I would say, and that was the main market that AVK was

17 working on. AVK Securities was the front office; that

18 was selling bonds to companies and individuals. It was

19 selling sub federal bonds to the various buyers.

20 Now, when the business became moribund and when the

21 market collapsed, that led to the collapse in 2005 where

22 AVK was not able to restructure its business and that

23 was the reason why the various top managers of AVK left

24 the company and spread all over the market.

25 Q. So virtually all, or at least the majority of AVK top

1 managers of AVK, have been through quite a few

2 controversies together?

3 A. Well, it’s a school of life, of course. We developed

4 the company together, we developed the financial market

5 in Russia together. I would say we were the pioneers.

6 We opened the St Petersburg stock exchange. We issued

7 the first Eurobonds and, in fact, it was in London in

8 1996, and St Petersburg bonds at St Petersburg stock

9 exchange and the Moscow stock exchange, indeed, that was

10 an exciting period in life when we were doing something

11 in Russia for the first time.

12 Q. So all these controversies and good things and bad

13 things, they do provide some rather solid basis between

14 continuing trust between you, AVK veterans, as a group

15 of people; would you agree with that?

16 A. Of course, with the passage of time, but firstly it’s

17 very difficult to separate business and personal

18 relationships, for example, friendships, so one needs to

19 understand friendship is friendship and business is

20 something separate. Here the issue of trust — of

21 course people who work together, we do trust each other,

22 because we have been through a lot together, still

23 business is business and there are some things where we

24 are competitors, sometimes we disagree with each other.

25 This is life. Yes, now it’s been more than 10 years

97 99

1 managers, left in the first half of 2008, isn’t that

2 right?

3 A. No. That was the end of 2005, early 2006, if my memory

4 doesn’t fail me.

5 Q. I’m sorry, I misspoke. I meant 2006, sorry,

6 Mr Sklyarevsky.

7 So it was in the beginning of 2006, the top managers

8 who left in that period, that included Mrs Malysheva,

9 Mr Smirnov and you; is that right?

10 A. Yes. But there were other top managers there as well,

11 about 10 people altogether, and Mrs Malysheva, Smirnov,

12 Sklyarevsky, were not the only top managers at AVK.

13 That was a large company with 400, 500 people. There

14 were lots of people there. That was the first

15 investment company in St Petersburg where such a large

16 number of people worked, so they had lots of managers.

17 Q. And in 2007, St Petersburg Bank of Reconstruction and

18 Development had its licence revoked for a number of

19 reasons, including repeated breaches in the course of

20 one year of the federal law on countering the money

21 laundering and financing of terrorism, that’s the name

22 of the law; is that correct, to your knowledge?

23 A. I know that the licence was revoked from the Bank and I,

24 to be honest, do not know the reason.

25 Q. Now, so would you agree that you, meaning former top

1 since that time.

2 Q. I am sorry to put it a little crudely, but you guys are

3 a bit of a mafia, aren’t you?

4 A. No, we are not mafia. Do you understand mafia meaning

5 family, as translated from Italian? We are definitely

6 not family.

7 Q. Right. I will move on to a different subject.

8 Now, Mr Sklyarevsky, were you aware in 2009 of the

9 licensing requirements to Russian insurance companies?

10 A. With regard to licences being issued, requirements

11 towards companies being licensed? No, it’s not

12 something I was aware of.

13 Q. Were you aware that the managers of any insurance

14 company were required to have certain qualifications in

15 terms of education and experience?

16 A. Well, yes, as any financial entity that would have

17 a certain set of requirements.

18 Q. So isn’t it correct that the management, including

19 bid(?) director general or another form of executive

20 managers of an insurance company, had to have

21 a university degree in economics or finance, and had to

22 have two years’ experience of working in insurance

23 sphere; does that sound right?

24 A. I am not very familiar with the insurance business,

25 unfortunately. This is the only financial business that

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1 I don’t know very well. That’s insurance business. So

2 it could possibly be the case. I know that there are

3 some legal requirements towards entities involved in —

4 and that’s basically something that executive bodies of

5 the insurance community are involved in, but I don’t

6 have detailed knowledge of these requirements.

7 Q. And in October 2009, Scandinavia Insurance had its

8 licence suspended for non-compliance with those

9 requirements; do you recall that?

10 A. No. I recall and actually, I had a meeting, together

11 with Mr Smirnov. First Mr Smirnov had a meeting, and

12 then we together met with, if I am not mistaken,

13 Mr Mikhailovski, he was the head of Rostekhnadzor that

14 is an insurance regulator in St Petersburg, and the

15 insurance company’s problems included the fact that Scan

16 did not pay on insurance cases. As far as I remember —

17 that was from 2008. As far as I recall, no one could

18 manage Scandinavia from 2009. I didn’t say that —

19 I did mention that in my witness statement.

20 Second, I think another grounds for revoking the

21 licence, as the head of the regulator told me at that

22 point in time, is because the company did not perform

23 its obligations to the people insured, to its clients,

24 and that happened over the course of 2009.

25 Q. Right. I don’t accept that.

1 from her that starting from January to August, salaries

2 were not paid to the company’s employees

3 from December 2009 until August. No interest payments

4 had been made, all the documents were stolen from the

5 company and all the information systems were stolen and

6 now you are saying to me, sir, that the licence was

7 revoked because the director did not have the necessary

8 requisite qualifications? It’s an interesting version,

9 I grant you, however, the facts speak for themselves.

10 The insurance company could not carry on with the

11 operations due to the reason of not being able to

12 perform its obligations before the clients, and;

13 secondly, because in July 2009, Mr Arkhangelsky has

14 taken from the company all the documents and all the

15 information databases and the company could not simply

16 carry on its functions. So possibly, of course, the

17 director had absence of some qualifications, but you can

18 see it’s a nonsense because, you know, there are no

19 payments for a year and the licence is revoked because

20 the chairman of the board doesn’t have some university

21 document. These are completely different things.

22 Q. Now, I think you have just accused Mr Arkhangelsky of

23 stealing all the documents of Scan. Do you mean that

24 the documents were stolen from the office at

25 Mezhevoy Canal, the primary OMG office where the Scan

101 103

1 Did Mr Kuvshinov, to your knowledge, have the

2 necessary qualifications to run an insurance company?

3 A. As I said in my witness statement, all the matters of

4 management of companies were within the remit of Renord.

5 I know that Ms Maslenikova(?) and Kuvshinov, they were

6 introduced by Mr Smirnov. As far as I know, when we met

7 with the head of Rostekhnadzor, he did not have any —

8 well, at least it was mentioned that he had no negative

9 comments with regard to the director not fitting the

10 requirements; he was more interested in the fact that

11 Scan Insurance company stopped in principle performing

12 its obligations before the market participants. That

13 was his main headache, his main problem, and he was

14 meeting and communicating with us in order to change

15 that situation.

16 Q. Well, I put it to you, Mr Sklyarevsky, that because

17 Mr Kuvshinov did not have the requisite qualifications,

18 the revocation of Scan’s licence was an inevitable

19 consequence of changing the management of Scan to

20 Mr Kuvshinov; what do you say to that?

21 A. I completely disagree with that. I think it’s absurd,

22 because I knew the situation quite well in Scan

23 Insurance company, at least in summer 2009, and in

24 autumn 2009. I met with Mrs Lukina several times when

25 she was deputy general director of the company. I knew

1 was mainly operating from?

2 A. No, as far as I recall. The main office of

3 the insurance company was at Pravdy Street, that’s

4 a different location. When Mr Kuvshinov went there, the

5 folders with documents were strewn around. There were

6 no computers left and all the personal files or all

7 insurance dossiers were taken away somewhere to

8 a location unknown, and I mentioned in my witness

9 statement that I have met Mrs Lukina in this regard, and

10 it came to our mind that no one should suffer from the

11 conflict: Not the employees, not the persons insured,

12 and she endeavoured to at least negotiate with

13 Mr Arkhangelsky, at least, that’s what she said to me.

14 She was saying: okay, I will offset, I will pay the

15 employees’ salaries, she will then agree with

16 Mr Arkhangelsky about the return of the documents.

17 Unfortunately the documents were not returned, and

18 so the insurance company — well, the insurance

19 company’s main assets are the information, the data, the

20 reinsurance contracts, all of that was stolen.

21 Mr Kuvshinov has sent a letter to FSB, to

22 the prosecutor’s office, to MVD, to Rostekhnadzor, about

23 him not being able to perform any of his functions

24 because the entity has no documents left, and all the

25 information databases were gone.

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1 So, accordingly, the documents were held by

2 Mr Arkhangelsky. So whether I accuse him or not, but in

3 the same way as in March 2009, I endeavoured,

4 I attempted to communicate with the Bank, and also

5 in July 2009 I endeavoured to preserve the insurance

6 company, and when I failed in doing that, Rostekhnadzor,

7 I recall I think it must be in September/October 2009,

8 has revoked the licence.

9 Q. Now, Mr Sklyarevsky, I suggest to you that the story you

10 are telling is not true: the Bank was not in the least

11 interested in keeping Scan as an insurance business, as

12 evidenced by the fact that Renord, acting on behalf of

13 the Bank, appointed an unqualified director.

14 A. I don’t know if he was appointed by Renord. I don’t

15 know about that person’s qualifications, but I can only

16 say that I myself, personally, directly, was involved in

17 that. I personally went to meet with Ms Lukina several

18 times, we met three or four times. We drew up a list of

19 people because I had no data. I couldn’t understand who

20 is owed what salary. So we were drawing up lists of

21 employees, we were determining the grand total for

22 paying the salaries and I was involved in that

23 personally, only to have an opportunity to preserve the

24 insurance company, because an insurance company cannot

25 perform its functions without information databases and

1 conflict, some third parties come to suffer and that

2 means employees, persons insured, well, it’s not good,

3 and my position was to maximise — well, I agree, I even

4 agreed for Mrs Lukina to stay on and manage the company.

5 We agreed with her that she will carry on some

6 management functions, but the main issue between us was

7 how to get the documents back from Mr Arkhangelsky.

8 Q. Now, I don’t accept that this is a truthful evidence,

9 but I move on. I think you have told the court in your

10 evidence that you were trying to find an amicable

11 settlement, and one of the options you considered,

12 together with the Bank, was obtaining refinancing of OMG

13 loans to the Bank; is that a fair summary?

14 A. Well, if all the parties would sit around the

15 negotiation table, I would of course offer some

16 opportunities of some services of mine.

17 Q. Did the Bank at any stage inform you about OMG’s own

18 efforts to refinance its debts in the end of 2008, the

19 beginning of 2009?

20 A. Ms Malysheva did not inform me all that much, but I know

21 from Mr Berezin and actually he asked me to assist, to

22 help, with KIT Finance group, and they were endeavouring

23 to raise financing at that point in time, because I know

24 quite a lot of people at KIT Finance, I worked with them

25 a lot, in order to help together with them and maybe

105

1 without documents, and these documents were held by

2 Mr Arkhangelsky because the information was provided by

3 the deputy general director of Scandinavia Insurance

4 Company, by Mrs Lukina, and if you are saying that

5 couldn’t have happened, well, I did it personally,

6 I personally talked to Mrs Lukina, so of course I can

7 believe the version that perhaps the Bank wouldn’t

8 profit from that, or Renord wouldn’t profit from that,

9 but my goal and my communication with Rostekhnadzor

10 revolved around the fact of somehow making the

11 operations, bringing them back to normal, and paying

12 those who insured themselves with the company, because

13 for Rostekhnadzor the main thing was for the clients not

14 to suffer. Unfortunately they did suffer in the end.

15 Q. Mr Sklyarevsky, isn’t it the case that Mrs Malysheva

16 and, indeed, the Bank as a whole, and Renord, and you,

17 were only ever interested in the real estate owned by

18 Scan, rather than in Scan as an insurance business?

19 A. Of course, my objective was to repay the money to

20 the Bank, to return the Bank’s money. However, Scan’s

21 bankruptcy — well, that’s an outrage. That conflict

22 should not have led to bankrupting the company. There

23 could have been a corporate dispute, there could have

24 been court hearings, but the company should have gone on

25 existing and performing its obligations. If, within the

107

1 come to some agreement, but as far as I know,

2 KIT Finance was in a grave financial situation, and

3 I think in 2009 it also ceased to be.

4 So I knew that Mr Arkhangelsky was trying to find

5 the money and Mr Berezin told me about that, but it

6 would have been better if it happened around the

7 negotiation table and everyone came to some agreement.

8 Q. And were you aware of Mr Arkhangelsky’s negotiations

9 with the bank called BNP Paribas?

10 A. I’m sorry, I’ve just heard about it. I didn’t know any

11 detail.

12 Q. Did you hear about it at the time?

13 A. I can’t recollect.

14 Q. Were you aware that BNP had agreed in principle to

15 accept a mandate to raise a US $300 million syndicated

16 loan from western banks for the development of

17 Western Terminal?

18 A. No, I didn’t know about that, but I think that this is,

19 that looks like a fake.

20 Q. And that 80 million of that loan was intended to

21 refinance the existing indebtedness of the group.

22 A. Well, I didn’t know about that. I don’t believe that

23 very much because BNP Paribas in St Petersburg hasn’t

24 closed a single investment deal, to my knowledge. So

25 all of that sounds like some castles in the sky.

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1 Q. Now, if we could perhaps have a look at

2 Mr Arkhangelsky’s witness statement at {C1/1/25}, and

3 that’s paragraph 97.

4 I am afraid there is no Russian version,

5 Mr Sklyarevsky, so if you are not comfortable with this

6 I will read it out to you and it will be interpreted.

7 If you could read paragraph 97. (Pause).

8 A. Yes, sir, I can see the paragraph.

9 Q. Did Mrs Malysheva or anyone from the Bank inform you

10 about any of this at the time?

11 A. Not as in much detail as Mr Arkhangelsky is describing

12 here. Still, nevertheless, nothing prevented

13 Mr Arkhangelsky from meeting me in a hotel and telling

14 me about it.

15 Q. Now, the question is did — putting Mr Berezin and

16 Mr Arkhangelsky on one side, did the Bank inform you or

17 discuss with you anything about Mr Arkhangelsky’s own

18 refinancing efforts?

19 A. No, apart from the fact that Mr Arkhangelsky stopped

20 paying the interest.

21 Q. Now, I suggest to you that a logical inference from that

22 fact is that whatever other outcome the Bank wanted you

23 to help to procure, it was not interested in OMG

24 refinancing its debts; isn’t this a fair inference?

25 A. No. Of course the Bank was interested for

1 do that over that time period, through home — and

2 I endeavoured either to organise a meeting or to speak

3 or to build some bridges in some way.

4 Q. And presumably the Bank knew about that?

5 A. Yes. I think I mentioned on Friday that despite the

6 fact that Ms Malysheva was outraged with regard to the

7 fact — when she found out about the Morskoy loan, she

8 was prepared to meet Mr Arkhangelsky, and at the meeting

9 between Vasiliev, Berezin and Kapustin, or rather when

10 I was going to Europa Hotel, to the meeting, presuming

11 that Arkhangelsky would be also present there, Berezin

12 told me he would organise a meeting with Arkhangelsky

13 for me. So I arrived at the hotel thinking I would see

14 Mr Arkhangelsky and organise a meeting with Ms Malysheva

15 for him. Instead of him I saw three of his top

16 managers, had a conversation with them, and I also sent

17 a request via them saying that it would be a good idea

18 to talk to the Bank.

19 Q. Is there, Mr Sklyarevsky, any written record of your

20 alleged attempts to contact Mr Arkhangelsky in that

21 period?

22 A. Naturally there are no written records. All of them

23 were oral. All the top managers of OMG can corroborate

24 that. All the ones that communicated with me.

25 Q. Now, Mr Sklyarevsky, I mean you would expect, wouldn’t

109 111

1 Mr Arkhangelsky and OMG group to find the money and to

2 repay and perform its obligations before the Bank. Of

3 course the Bank was interested in that.

4 Q. I think you claim in your witness statement that you

5 have tried to contact Mr Arkhangelsky a number of times,

6 on countless occasions during the spring — well, during

7 spring 2009; is that a correct reading of it?

8 A. I did not try to contact him by phone because I did not

9 have his number. I sent my request for a meeting to

10 Mr Berezin, then to Mr Berezin, Vasiliev and Kapustin,

11 and when the court proceedings have commenced in

12 St Petersburg Arbitrazh court, my lawyers communicated

13 with Mr Erokhin and offered to organise negotiations

14 with Mr Arkhangelsky, and on the last occasion I asked

15 Ms Lukina either to speak to me or to meet me, and that

16 was July 2009.

17 So several occasions with several people who could

18 corroborate, I endeavoured either to meet

19 Mr Arkhangelsky or to communicate my position about the

20 need for negotiations.

21 Q. Well, I am focusing for the moment on the period

22 from March to June 2009. So is it your evidence that

23 you persistently tried to contact Mr Arkhangelsky in

24 that period?

25 A. I just said, I just told you, sir, how I was trying to

1 you, the Bank to — who had a long-standing relationship

2 with Mr Arkhangelsky after all, to try and communicate

3 to him that — well, here is Mr Sklyarevsky, he has our

4 authority to negotiate with you, please meet him, or

5 something along these lines. Would you expect some kind

6 of record along these lines to be present?

7 A. There are no such records, these were my conversations

8 with Ms Malysheva, my conversation with the managers,

9 with OMG managers. Perhaps there is some correspondence

10 between myself, Lukina and Berezin, I didn’t check on

11 that one, where I said, perhaps maybe I sent some text

12 messages saying I would like to have a meeting.

13 However, to be honest, seven years on or eight years on,

14 I do not recall.

15 Q. Are you aware that in that very period, Mr Arkhangelsky

16 was repeatedly trying to arrange a meeting with

17 Mr Savelyev?

18 A. I read this in his witness statement. I was quite

19 surprised to read that. So far as I understand, they

20 both, both Malysheva and Arkhangelsky, had each other’s

21 phone numbers, and if Mr Arkhangelsky found some

22 difficulty in finding a way to set up a meeting with

23 Savelyev, he would definitely have been able to get in

24 touch with Malysheva, who was in charge of all this.

25 Q. And Mr Sklyarevsky, I put it to you that there could be

110 112
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March 7, 2016 Day 23 Redacted

1 no difficulty at all in the Bank contacting 1 A. What’s the paragraph again, please?
2 Mr Arkhangelsky, because he was visiting the Bank’s 2 Q. Let’s begin with paragraph 34 first. Perhaps even it’s
3 branch office several times a week throughout that 3 better to start from 33. 33 to 34, just for
4 period. 4 completeness, so that we see that. (Pause).
5 A. Well, I would be hard put to discuss what he visited and 5 A. Would you like me to offer comments?
6 how often. I simply know that the logic underlying what 6 Q. If you would like to.
7 the Bank was doing was quite simple. The banks never 7 A. Well, number one, before February 2009 I was not aware
8 chase up borrowers who are in a position of default. 8 of the existence of OMG group or Mr Arkhangelsky.
9 It’s always a defaulting borrower who comes to the Bank 9 That’s number one.
10 and proposes solutions to the problem. It was not 10 Number two, my attempts to get in touch with
11 a problem that was created by the Bank, it was a problem 11 Arkhangelsky were due to my vision of the situation. It
12 that the borrower created for the Bank, therefore, 12 was my initiative, my personal initiative, and in this
13 I fully understood Malysheva’s position. She said that: 13 particular instance, I understand that Mr Arkhangelsky
14 it’s not me who owes money to Arkhangelsky, Arkhangelsky 14 is saying that there are lots of people in Russia who
15 owes money to the Bank, so she expected him to take 15 try to resolve issues, but I had a very clear-cut
16 certain steps to settle the problem. 16 message for Vasiliev, Kapustin and Berezin, to
17 Now, whom he met and whom he visited and how many 17 the effect that I wanted them to have a meeting with
18 times, I simply do not know, I am afraid. All I know is 18 Malysheva, because a change of directors will result in
19 that the decision maker with the Bank on this particular 19 a conflict.
20 matter was Mrs Malysheva, she was in contact with 20 It was not assistance. It was not a situation
21 Mr Arkhangelsky, and there was a breakdown in 21 whereby I was offering my help or my assistance: it was
22 communication for whatever reason. 22 a — again, it may well be the case that Berezin and
23 Moreover, what Mr Arkhangelsky has been doing is 23 other top managers for whatever reason did not report
24 quite different from what other defaulting borrowers 24 this to Arkhangelsky, and I don’t know why, for some
25 have been doing, because those people spend hours, they 25 fantastical reason, they failed to do that, but that
113 115

1 spend nights in the Bank, knocking on the Bank’s door,

2 trying to meet people, trying to find a solution to

3 their issues. So, to be honest, the way Mr Arkhangelsky

4 behaved was completely illogical.

5 Now, in terms of the subsequent events, I think

6 I know, I have a theory as to why he behaved the way he

7 behaved.

8 Q. Now, couldn’t you be mistaken in your recollections,

9 Mr Sklyarevsky, about your meeting with Mr Berezin and

10 Mrs Lukina in Grand Hotel Europa? Couldn’t that have

11 been August or September 2009 rather than in the spring,

12 as you suggest?

13 A. No. It was definitely in early April, and I never met

14 Lukina in Grand Hotel Europa. I met Vasiliev, Kapustin

15 and Berezin in Grand Hotel Europa, and for some reason

16 Mr Arkhangelsky has forgotten about this meeting, the

17 way I understand it, or he was not aware of this, but

18 it’s very difficult to assume that the financial

19 director and the chief of security and the general

20 counsel are meeting someone and he doesn’t know about

21 it, they do not report to him about those meetings.

22 Q. Now, if we could look at Mr Arkhangelsky’s 19th witness

23 statement, at {C1/9/7}, and again, I apologise, there is

24 no Russian version. So if you have any difficulty,

25 please say so and we will find a solution.

1 conversation did take place, and my position was that

2 there is this very good Russian saying, that a bad peace

3 is better than a good war, and that was the underlying

4 rationale behind my position.

5 Q. Right. Then if we could sort of half scroll down so

6 that we have the paragraph 35 and then the top of next

7 page {C1/9/7}, {C1/9/8}.

8 A. Interestingly, Mr Arkhangelsky is confused here, because

9 in April 2009, I was not aware of Mrs Lukina’s

10 existence, and I had never had any meetings with her in

11 Grand Hotel Europe. The meeting was between myself,

12 Kapustin, Vasiliev and Berezin. I only started meeting

13 Lukina in the late June, July and August — sorry, in

14 late July and August 2009.

15 Q. Now, whoever is right about that, Mr Arkhangelsky here,

16 as you can see, he conveys Mrs Lukina’s account of

17 the meeting as involving:

18 «…some attempt by Mr Sklyarevsky to play the ‘good

19 cop’ role: He said that unless OMG agrees to

20 ‘cooperate’ with him, Mr Savelyev would deal with [them]

21 ‘by his own methods’.»

22 I think a little above, sorry, should I start again?

23 Just read the whole paragraph, perhaps, that is quicker.

24 (Pause).

25 A. Well, there are two processes that govern the world, or

114 116
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March 7, 2016 Day 23 Redacted

1 two theories that govern the world: one was chaos and

2 one is collusion. Mr Arkhangelsky’s theory is that

3 there is a collusion and that everything happened

4 because I somehow was threatening Mrs Lukina. I have

5 already mentioned what we have discussed with Lukina.

6 The main issue was documents plus paying the salaries to

7 the employees. It would be difficult to assume that

8 I come to see Lukina and I scare her and that she is

9 asking for money to be paid by myself to her employees.

10 That really doesn’t make sense. It doesn’t hold water.

11 We had several meetings and why Mr Arkhangelsky

12 believes that I was threatening her and saying that

13 Mr Savelyev is in control of everything, I really have

14 no idea, I really have no clue. This is a fiction that

15 he comes up with in the context of him suspecting

16 everyone of being part of a major conspiracy or

17 a collusion directed against Mr Arkhangelsky.

18 Q. Well, can’t it be that your account of those events is

19 a piece of fiction?

20 A. Well, you see, I have been through all of this, and

21 I have a lot of facts to support my position. This was

22 not a plan; in other words, there was no original plan

23 of conducting affairs or working with OMG group. SKIF,

24 the Bank, or Renord did not have a plan. All decisions

25 were made based on the information that was — and, as

1 in January 2009.

2 Now, if you are looking at this from the point of

3 view of a pre-existing plan, this means, this

4 presupposes that we had known that this was going to

5 happen, but we’re not gods; we could not in any way

6 forecast this. Everything happened opportunistically if

7 and when the information became available, while

8 Mr Arkhangelsky is trying to portray this in a way that

9 this was a pre-existing plan. How on earth can

10 I remote-control Mr Arkhangelsky?

11 MR STROILOV: My Lord, I think I have to report now that

12 I’ve lost hope of finishing today. I think I still need

13 an hour, an hour and a half, thereabouts. I fear

14 I don’t think … I am happy to carry on, but I just

15 wanted to make you aware.

16 MR JUSTICE HILDYARD: Are you suggesting that we break now,

17 is that what you are saying?

18 MR STROILOV: Not really, I am happy to carry on as long as

19 you are, but it has to always be — even if we sit

20 slightly late, I don’t hope to finish before — well,

21 unless we can sit to 5.30 or thereabouts, and then there

22 is — I don’t know how big re-examination is likely to

23 be, and your Lordship’s questions.

24 MR JUSTICE HILDYARD: Well, I want to stop at 4.30 pm today,

25 I am afraid, because I need to get away to a meeting at

117 119

1 and when it was becoming available. Had there been

2 a plan and a distribution of roles, everything would

3 have happened differently. All those things, Berezin,

4 criminal cases, obtaining control over the companies,

5 bankrupting Scandinavia, this is a chain of events that

6 could not have been planned one step ahead: this was

7 something that was happening opportunistically, as it

8 were. As information became available, it was being

9 analysed and decisions were made.

10 Now, what you are trying to say now, you are trying

11 to present this as a plan, but if you look at this from

12 the point of view of the theory of probability, this is

13 not something that could have been planned

14 in January 2009 or in March 2009, because the theory of

15 probability works against you, sir. I’m sorry about it,

16 this is not something that can be prognosticated. This

17 cannot be forecast. One could not forecast that

18 he would get a loan from Morskoy Bank and would not let

19 BSP know.

20 Not only did he raise a debt from Morskoy, he

21 siphoned the money off out of the company in an unknown

22 direction. No one could have forecast that, or one day

23 Mr Arkhangelsky was going to have a criminal case

24 opened. No one could have prognosticated that the

25 insurance company would stop performing its obligations

1 4.45 pm.

2 Assuming that we are going to stop at 4.30 at the

3 latest, are you saying this is a good place to stop?

4 MR STROILOV: Yes. If 4.30 is the place, then I think now

5 is a good place. Yes, my Lord.

6 MR JUSTICE HILDYARD: All right.

7 Well, you have probably heard that bad news,

8 Mr Sklyarevsky: that we need you again tomorrow, though

9 tomorrow is the final day, because I know that you must

10 be back in time for the 9th. I’m sorry about that, but

11 please continue to observe the rule of speaking to

12 no one, directly or indirectly, at all about this case

13 over that short time.

14 I have a prior hearing tomorrow. I think we are

15 starting at 9.15 and hoping to finish by 10.30, but

16 I had best mark this not before 10.30 am in case that

17 overruns a little bit. It is the RBS matter in which

18 there are very many parties, and so I am hoping it will

19 finish, but …

20 Housekeeping

21 MR LORD: My Lord, can I raise one matter to do with witness

22 availability, and I would like to go into private for

23 that purpose. It is the same issue that we discussed on

24 Friday and it doesn’t need to detain Mr Sklyarevsky.

25 MR JUSTICE HILDYARD: Yes.

118 120
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1 Mr Sklyarevsky, you are invited now to go and enjoy

2 yourself more, and I must ask all people who are not

3 directly involved in the case as lawyers or clients,

4 please to leave and then we will go into private.

5 (Hearing in private)

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8 (Hearing in open court)

9 MR JUSTICE HILDYARD: I say nothing about this further, but

10 I may need some further help on issues of causation

11 which may affect the relevance of the business expert

12 exchange. I don’t mean to say that I have made any

13 provisional view, but the fact is, you have invited me,

14 Mr Stroilov, to consider the question of parcelling off

15 part of the trial, and I think I would take that

16 opportunity, but also would take the opportunity to see

17 possible problems of causation which may arise.

18 MR STROILOV: I am grateful for this indication. Well,

19 seeing the time and your earlier indication, that is for

20 another day.

21 MR JUSTICE HILDYARD: I give you that as a warning, because

22 it is not impossible that towards the end of the —

23 before Easter I will ask for some preliminary guidance

24 on that, so that we can begin to see the shape of

25 the trial, but just to be candid, some of the answers

126

1 Mr Bromley-Martin gave may affect that.

2 MR STROILOV: I am grateful, my Lord.

3 MR JUSTICE HILDYARD: All right. 10.30ish. I will do my

4 very best to get back to you by 10.30 am, but we had

5 better mark it not before.

6 (4.28 pm)

7 (The court adjourned until 10.30 am on

8 Tuesday, 8 March 2016)

9

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127

1 INDEX
2 PAGE
3 MR VLADIMIR ALEXANDROVICH ……………………….1
SKLYAREVSKY (Continued)

4 Cross-examination by MR STROILOV …………..1 (Continued)
5 Housekeeping …………………………………120

6 (Hearing in private) ………………………….121

7 (Hearing in open court) ……………………….126

8

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129

March 7, 2016 Day 23 Redacted

A

A-01-4/O/08 (1) 2:7 abandoned (1) 97:3 abbreviation (6) 26:14

26:15 59:10,14 76:17 78:18

able (20) 5:25 8:21 22:18 23:8 24:12 28:24 30:25 33:8 37:24,25 43:14 49:21 57:18 84:13 87:16 89:2 97:22 103:11 104:23 112:23

abolished (2) 97:5,9 absence (1) 103:17 absolutely (20) 4:1,23 5:4,8 9:16 10:19 25:5 27:25 28:17 33:16,22 36:12,20 67:15 72:13,19

77:21 78:6 84:2 93:4

absurd (1) 102:21 accept (11) 32:8 77:17

77:18,19,21,22,24 78:1 101:25 107:8 108:15

access (6) 9:10 10:4 37:8,13,17 38:5 account (2) 116:16

117:18

accounts (2) 6:8 91:18 accurate (1) 34:8 accuse (1) 105:2 accused (1) 103:22 achieve (1) 84:12 achieved (2) 5:17,18 acquired (2) 67:5 81:8 acquisitions (1) 79:19 act (3) 19:18,20 20:1 acted (1) 45:2

acting (2) 11:19 105:12

actions (3) 74:2 87:6 87:21

actively (2) 20:8 42:5 activity (1) 15:18 actual (8) 54:9 58:9,16

59:10 66:17 67:1,4 67:6

added (2) 6:1 58:1 address (11) 56:17,18

56:25 58:5,6,7,9,10 58:11,12,16

adjourned (1) 127:7 adjournment (2)

55:10 56:1 administration (1)
90:14

Advance (1) 84:16 advanced (1) 92:10 advice (7) 8:4,19 9:8 9:13,23 10:13

88:23 adviser (1) 88:14

advisers (3) 91:1 97:9 97:11

affairs (1) 117:23 affect (3) 96:17 126:11 127:1

affiliated (3) 41:4 65:2 90:2

affirm (1) 17:20 afraid (10) 29:4 64:23

74:14,17,20 88:25 89:11 109:4 113:18 119:25

afternoon (2) 55:6 56:4
agency (7) 31:16 32:6 32:18 61:9,12 71:5 96:16

agent (1) 95:21 Agentstvo (2) 57:1

71:4

agnostic (1) 34:18 ago (5) 32:16 38:13 42:9 80:22 81:4 agree (8) 6:7 27:3

49:18 76:8 98:25 99:15 104:15 107:3

agreed (4) 70:24 107:4,5 108:14

agreement (12) 1:15 2:7,11,13,16,24 7:2 17:9,25 86:10 108:1,7

agreements (2) 6:25

8:13

agrees (1) 116:19 ahead (2) 93:13 118:6

Aktivami (2) 57:1 71:5 Akva-Ladoga (1) 71:9

ALEXANDROVICH (2)

1:6 128:3

allegations (2) 35:20 92:3

alleged (2) 92:2 111:20

alleging (1) 92:6 allow (2) 10:9 29:3

Alternatively (1)

35:17 altogether (1) 98:11

Altriwa (5) 68:3,15,24

69:15,16

Alye (2) 39:9,11 amicable (1) 107:10 amorphous (1) 95:4 amount (6) 14:17

19:3,3 21:12,17 76:23

amounted (1) 50:11 analyse (2) 49:19,21 analysed (1) 118:9 analyst (1) 33:14 ancient (2) 78:2 92:1 Andreevski (1) 58:22 Aneks (1) 71:14 Anna (1) 83:23 answer (11) 10:23

14:23 15:9,11 18:10 32:21 49:23 49:24 52:3 66:8 78:16

answered (2) 62:20 63:14

answers (3) 36:22 54:23 126:25 antecedent (2) 36:6

36:10

Antonenko (9) 1:13 1:19 3:7 4:20,22 5:12 6:24 44:14,23

anxious (1) 55:8 anyway (2) 92:19 95:6 apart (5) 9:2 20:4 23:8

82:14 109:19 apartment (1) 5:24 apologise (5) 28:8,11

64:15 89:3 114:23 apparently (6) 22:14

23:19 24:17,18 37:19 60:22

appear (2) 51:19

92:16

appears (6) 22:11 24:24 56:10 71:17 89:4 92:4

application (1) 9:7 applied (1) 17:6 applies (2) 66:19

91:12 apply (1) 2:25

appointed (3) 85:7 105:13,14

approval (2) 11:20 87:24

April (2) 114:13 116:9

Arabella (1) 70:12 Arbitrazh (1) 110:12 archaic (1) 67:22 area (1) 26:9

argue (2) 76:9 93:11 argument (1) 76:15 Arkhangelsky (63) 8:7 13:11,18,20,21 14:7,25 15:4 17:7

17:20 18:23 19:1,2 19:4,7 69:19 70:1 72:13 73:3 103:13 103:22 104:13,16 105:2 106:2 107:7 108:4 109:11,13,16 109:19 110:1,5,14 110:19,23 111:8,11 111:12,14,20 112:2 112:15,20,21 113:2 113:14,14,21,23 114:3,16 115:8,11 115:13,24 116:8,15 117:11,17 118:23 119:8,10

Arkhangelsky’s (9)

9:18 13:16 17:18 17:24 108:8 109:2 109:17 114:22 117:2

arrange (1) 112:16 arrive (1) 76:12 arrived (1) 111:13 art (1) 76:11 article (4) 61:8 89:4

94:11 95:6 articles (1) 94:20 ascertain (1) 84:17 asked (7) 2:3 5:14

11:10 48:13 55:12 107:21 110:14

asking (2) 80:15 117:9 asserted (1) 90:11 assessment (1) 10:1 Asset (1) 56:25 assets (10) 9:18 12:2

16:1,15 48:5,5 53:25 54:2 71:5 104:19

assigned (2) 14:18 19:21

assignment (9) 2:24 8:13 13:15,16 17:6 17:9,17,18 18:1

assist (1) 107:21 assistance (2) 115:20

115:21 associated (3) 6:25

8:14 84:7 assume (2) 114:18

117:7 assumed (2) 12:18

16:7

Assuming (1) 120:2 astute (1) 92:10 attaching (1) 88:4 attempt (1) 116:18

attempted (1) 105:4 attempts (2) 111:20
115:10 attended (2) 12:20

16:10 attention (4) 28:10

32:11 85:23 89:13 attitude (1) 9:12 auction (2) 12:11 14:9 auctioned (1) 12:10 August (6) 68:14

103:1,3 114:11 116:13,14

authority (1) 112:4 autumn (3) 16:14,17

102:24 availability (1) 120:22 available (13) 2:18,21

7:4,4,10,12 27:21 54:1,12 74:14 118:1,8 119:7

AVK (99) 20:23 26:4 41:19 78:4,8,9,10 78:10,11,15,18,22 78:24,24,24,25 79:1,4,7,9,13,13,18 79:23 80:1,3,4,5,7 80:8,10,16,21,24 81:5 82:3,9,11,13 82:24 83:10,11,12 83:15,17,22 84:4,5 84:15,21,24 85:6 87:2,3,7,15,15,18 88:2,3,7,10,15,16 88:21 89:6,14,15 90:12,18,20 91:22 92:21 93:1,25 94:15 95:12,16,18 95:21,22,22,22,25 96:5,21 97:3,4,6,7 97:14,16,17,22,23 97:25 98:12 99:1 99:14

AVK’s (1) 96:17 avoid (1) 56:9

aware (17) 12:21 13:7 13:8 16:11 22:24 26:23 28:20 100:8 100:12,13 108:8,14 112:15 114:17 115:7 116:9 119:15

B

B2/12/18 (1) 82:24 B2/12/3 (1) 82:18 back (16) 4:3 10:23

31:23 42:7 50:17 50:22 51:6 52:8 60:4 93:12 95:7,22 106:11 107:7 120:10 127:4

background (2) 93:7,8 bad (3) 99:12 116:2

120:7

bank (108) 2:3,17,19 2:20,22 4:24 6:7,8 6:16,17 7:4,12 8:16 11:21 14:19 15:22 15:24 16:14,16 25:10 26:11 27:2 27:14,16,25 30:6 30:24 33:3,5,20 40:9,15 41:4,10,17 41:23,24 42:6 43:8 44:5 45:18 47:22 57:7,10,12,17,19 59:22 65:19 66:4 66:13,13 67:3

68:12,23 69:6,6 72:6 73:19 75:8 77:12,17,20,25 81:5,6,9,11,18,21 81:22,24,25 84:1,6 84:7 92:22 98:17 98:23 105:4,10,13 106:7,16,20 107:12 107:13,17 108:9 109:9,16,22,25 110:2,3 111:4,18 112:1 113:1,7,9,11 113:12,15,19 114:1 117:24 118:18

Bank’s (13) 8:5,6,7 9:9 10:4 11:20 27:15 40:5 41:6,12 106:20 113:2 114:1

banking (1) 40:10 bankruptcy (1) 106:21 bankrupting (2)

106:22 118:5 banks (4) 82:8 88:19

108:16 113:7

Barbarian (1) 26:17 Barkhatova (1) 83:23 based (5) 27:9 49:23

49:25 50:1 117:25 basic (1) 14:6 basically (3) 13:25

69:15 101:4 basis (8) 28:19,19

32:4 34:15 35:19 55:21 94:23 99:13

basket (1) 47:22 becoming (1) 118:1 beg (1) 22:3

began (1) 96:7 beginning (2) 98:7

107:19

behalf (5) 2:5 10:12 20:1,13 105:12 behaved (3) 114:4,6,7 believe (7) 7:1 21:11 39:19 52:7 86:8

106:7 108:22 believed (1) 89:23 believes (1) 117:12 bells (1) 50:18 belong (3) 12:1 71:18

71:23 belonged (2) 68:18

73:2

Belonging (1) 77:10 belongs (2) 66:25

73:7

beneficial (3) 72:18 77:16 91:22 benefited (1) 93:3 Berezin (14) 107:21 108:5 109:15

110:10,10 111:9,11 112:10 114:9,15 115:16,22 116:12 118:3

best (8) 15:5 31:19 74:14,17,19 80:20 120:16 127:4

better (6) 48:21 74:12 108:6 115:3 116:3 127:5

beyond (1) 54:19 bid (1) 100:19 big (3) 26:5 74:11

119:22

billion (2) 9:23 61:15

BIRT (3) 55:12,16,21 bit (4) 15:14 33:18 100:3 120:17

bits (2) 36:7 59:8 black (1) 74:16 blah (3) 28:1,1,2 block (1) 8:15 blow (2) 96:15 97:3 BNP (3) 108:9,14,23

board (13) 64:16 65:9 65:12,15 67:14 80:17 81:10,13,14 81:15 93:6 97:12 103:20

boat (1) 73:1 bodies (2) 28:16

101:4 bond (1) 96:11

bonds (7) 86:12 96:14 96:19 97:15,18,19 99:8

boomed (1) 96:19 Borisovna (1) 39:11 born (1) 45:8 borrower (2) 113:9,12 borrowers (3) 79:22

113:8,24

bottom (16) 2:2 22:11 23:22 24:24 29:18 38:25 39:3,14,15 50:6,24 51:1 52:11 58:20 60:1,5

bought (11) 3:13 12:23 18:21 21:3 25:23 26:13 27:11 30:3 57:16,23 61:18

brackets (2) 65:19 69:2

branch (1) 113:3 brand (2) 78:22 79:3 breaches (1) 98:19 break (8) 30:13,15,18

30:20 54:16 92:19 95:9 119:16

breakdown (1) 113:21 breaks (1) 55:6 bridges (1) 111:3 briefly (1) 46:17 bringing (1) 106:11 Brodetskaya (1) 82:25 brokerage (1) 95:20 brokering (1) 81:20

Bromley-Martin (1)

127:1 brought (3) 69:18

85:21 97:12 BSP (5) 33:4 34:11

68:9 84:17 118:19

BSPB (1) 25:10

BSPB-Finans (6) 25:7

25:20 30:9,24 58:14,14
budgetary (3) 96:5,8 96:24

build (3) 40:20 46:15 111:3

building (6) 3:9,22 6:4 57:13,15 62:24

built (1) 67:11

Bumagi (9) 78:8,13,15 78:19,24 79:6,8,9 79:10

bundle (2) 29:6 37:8 business (44) 22:18 26:6 40:10,10,13 41:9,10,11 47:2,5 53:9 56:23 61:10 61:12 64:3,7 67:18

74:2 77:19,23,25 79:20 81:20 84:16 84:24 87:18,19

93:4 94:9 95:25 96:5 97:3,20,22 99:17,19,23,23 100:24,25 101:1 105:11 106:18 126:11
businesses (5) 40:18 41:22,24 64:6 72:4

businessmen (1)

93:22 busy (1) 11:2

buy (2) 13:2 21:11 buyer (6) 12:16 13:1

14:17 16:22,23,25 buyers (3) 12:13,25

97:19

buying (6) 12:18 16:8 20:16 21:15 51:21 61:14

BVI (8) 49:4 69:19,23 70:8,22 71:20 72:22 74:3

C

C1/1/25 (1) 109:2 C1/9/7 (2) 114:23
116:7

C1/9/8 (1) 116:7 cabinet (1) 85:12 call (5) 1:10 62:18

70:6,7,19

called (36) 1:13 13:6 20:18 22:9 25:3,20 38:8,14 39:1,24 42:5 46:2 50:9,18 56:16,25 58:5 59:2 61:9 64:10 68:3,6 77:9 78:4,8 79:6,10 81:6,20 83:22 84:16,25 87:24 89:5 90:13 108:9

calling (1) 63:13 Canal (1) 103:25 cancelled (1) 91:4 candid (1) 126:25 capital (11) 24:15 27:3

27:5 49:16 50:11 51:3,12 65:25 76:18,19 77:7

car (3) 57:16,23 58:1

Card (1) 56:16 career (1) 79:13 carried (1) 53:4

carry (6) 36:25 103:10 103:16 107:5 119:14,18

case (39) 4:14 7:13 11:24 14:20,21 15:17 16:19 19:7 20:15 32:17 33:10 37:5,7 51:6 57:2 59:20 63:9 69:22 72:19 75:3 84:10 86:4,7,21 87:11,13 91:20 92:8,9 93:23 95:12 97:1 101:2 106:15 115:22 118:23 120:12,16 121:3

cases (2) 101:16 118:4 cash (2) 6:17 57:17 castles (1) 108:25 categorically (1) 12:8 Cathedral (1) 1:20 causation (2) 126:10

126:17

ceased (2) 34:23

108:3

Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900

130

March 7, 2016 Day 23 Redacted

cent (30) 7:11 18:16 client (3) 47:19,19 67:12 69:7,8 71:17 conduct (1) 9:25 copies (2) 7:15 74:20
20:10 21:1,3,5,6,18 69:8 71:23 72:16,17 conducted (3) 3:14 copy (5) 2:16 29:6
21:20 22:25 24:16 clients (13) 33:5 41:6 73:5,7,11 78:5,22 5:14 90:18 74:11,12,13
25:16 29:21,21 41:12,23 42:6 69:7 80:4 84:11 86:3,23 conducting (4) 3:6 core (1) 96:5
38:17 39:10,10,14 95:19,20,24 101:23 88:5,19 90:1,2,22 4:12 7:9 117:23 corporate (12) 28:16
39:16,17 42:20 103:12 106:13 90:24 91:4 97:12 confidentiality (1) 67:19 79:18,22
43:8 49:7 50:12 121:3 97:18 100:9,11 63:20 80:11 85:19,22,23
51:4 65:22 66:3 clip (1) 55:12 102:4 118:4 confined (1) 92:11 86:1,15 95:21
77:6 90:10,11 close (3) 48:16,20 company (182) 3:5,23 confirm (9) 8:16 12:5 106:23
central (3) 2:13 93:6,7 90:13 4:12 11:13,25 13:18 19:8 26:16 corporations (2) 79:20
centre (10) 1:21 47:24 closed (4) 19:5 63:24 14:15 16:21 19:13 33:11 56:18 57:18 79:23
47:25 48:1 53:10 80:3 108:24 20:7 21:25 22:2,12 65:7 correct (43) 1:14
53:11,20 56:23 clue (2) 36:16 117:14 22:17,22 23:1,3,11 confirmed (1) 8:22 11:21,23 18:5 20:3
95:16 96:10 co-investing (2) 4:6 23:17 26:2,3,10,12 conflict (4) 104:11 20:12 24:12 25:1,5
CEO (2) 30:1 82:5 44:13 26:12,20 27:6,11 106:21 107:1 25:5,9,9,11 27:10
certain (9) 4:10 5:17 co-investment (4) 2:6 27:15,15,21,23 115:19 28:17 36:7,20
7:13 53:3 54:7 2:10 3:12 8:13 29:13 30:2,3,7,9 confused (1) 116:8 39:20 40:6 42:22
61:14 100:14,17 code (9) 17:12 85:19 32:7 33:2 34:12 confusion (1) 56:10 54:5 56:11 64:18
113:16 85:22,24 86:1,5,7 38:8,8,11,14,23 connected (2) 41:16 67:17 68:4 71:1
certainly (2) 36:17 86:11 96:8 39:1,23,24 40:2,4 47:5 76:22,23 77:4,8
92:10 codes (1) 96:5 40:11,11,12,19,25 connection (2) 33:3,4 78:6 80:8 81:25
certificate (1) 62:19 cogitate (1) 93:20 41:4,6,8,16,18,20 consent (2) 4:25 6:16 82:1 83:6,24 84:2
chain (2) 14:6 118:5 collaborate (1) 58:2 42:3,4,7,19,25 43:2 consequence (1) 84:23 85:2,9 98:22
chair (3) 59:22 64:16 collapse (2) 89:6 43:13,16,19,23,24 102:19 100:18 110:7
81:12 97:21 44:2,17,20,24 consider (1) 126:14 correction (1) 17:22
chaired (3) 80:16 collapsed (5) 96:1,2 45:10,11,14,17 considerably (1) 93:3 correctly (3) 38:15
81:10,15 96:21,21 97:21 46:25 47:3 48:2,2 considerations (1) 49:9 52:15
chairman (4) 65:14,15 collateral (1) 92:17 48:15,17,18,19,21 2:25 correlate (1) 74:1
85:7 103:20 collocutor (1) 62:22 49:5 50:1,3,4,18,21 considered (1) 107:11 correspondence (3)
chairwoman (1) 81:13 collusion (3) 117:2,3 50:21 56:7,25 57:1 considering (2) 35:22 55:16 68:16 112:9
challenge (1) 26:5 117:17 57:3 58:23 59:2,11 61:3 corroborate (3) 87:17
chance (1) 44:5 collusive (1) 12:2 59:20 60:10,17 consistent (3) 60:7 110:18 111:23
change (10) 22:24 column (12) 27:3 39:9 63:1,14 64:10 69:3,4 corrupt (4) 32:24 90:3
36:14 49:3 58:15 49:17 65:23 66:1,2 66:24 67:19 68:3 consists (1) 83:10 94:8 95:16
96:4,12,24 97:13 75:11,12 76:16 68:17,18,18 69:1 consolidate (1) 55:4 corruption (4) 92:6
102:14 115:18 77:1,5,9 69:10,16 70:22,25 conspiracy (3) 92:3 94:1 95:14 96:23
changed (5) 25:6,22 columns (4) 65:21,24 71:6,11,12 72:10 94:3 117:16 cost (1) 32:19
81:2 96:8 97:9 75:12 77:1 75:16,17,22,23,24 constituent (1) 88:9 costing (1) 26:7
changes (6) 5:25 come (11) 10:23 11:7 75:25,25 76:3,5,7 consult (1) 23:10 costs (1) 36:14
22:10 25:3 31:10 21:4 24:11 26:19 76:13,14,19 78:8 consultancy (2) 88:23 counsel (2) 68:10
46:21 58:5 31:19 93:12 95:7 78:14,21,23,25 97:7 114:20
changing (1) 102:19 107:1 108:1 117:8 79:2,5,10,24 80:3,4 consultant (1) 87:25 counterclaim (1) 57:9
chaos (1) 117:1 comes (2) 113:9 80:6,8 82:14 83:12 consultants (9) 88:4 countering (1) 98:20
charge (2) 80:11 117:15 87:2 88:22 90:13 89:20 90:12,25 countless (1) 110:6
112:24 comfortable (1) 109:5 94:7 95:18 97:24 91:1,3 97:2,9,11 countries (1) 86:19
charter (5) 27:3 49:15 coming (2) 50:7 62:5 98:13,15 99:4 contact (6) 62:24 country (4) 85:25 96:4
50:11 65:24 77:7 command (1) 79:22 100:14,20 101:22 110:5,8,23 111:20 96:7,13
chartered (1) 76:19 commenced (1) 102:2,11,23,25 113:20 course (19) 2:1 12:23
chase (1) 113:8 110:11 103:5,10,14,15 contacting (1) 113:1 43:17 44:9 55:6
check (3) 34:20 57:20 comment (3) 22:18 104:3,18 105:6,24 contain (1) 34:22 87:9 93:11 95:15
112:10 23:8 72:9 105:24 106:4,12,22 contained (2) 34:1,6 98:19 99:3,16,21
checked (2) 27:7 comments (3) 53:5 106:24 107:4 context (1) 117:15 101:24 103:16
30:11 102:9 115:5 118:21,25 continuation (1) 59:1 106:6,19 107:15
chief (2) 82:5 114:19 Commission (1) 85:8 company’s (4) 38:20 continue (1) 120:11 109:25 110:3
children (1) 22:20 committee (3) 1:17 101:15 103:2 Continued (4) 1:6,7 courses (1) 11:2
chopping (1) 55:2 87:9,10 104:19 128:3,4 court (15) 2:4 10:24
circumstances (1) common (2) 73:6 94:1 competitive (1) 45:18 continuing (1) 99:14 10:25 28:24 57:21
46:9 communicate (3) competitor (1) 45:19 contract (16) 1:17,21 73:3 74:3 80:19
Citizens (3) 50:9,10,14 105:4 110:19 112:2 competitors (2) 87:14 3:11,12,19 5:21 7:2 106:24 107:9
city (5) 1:17 3:11,19 communicated (2) 99:24 7:5 8:11,12 9:2,14 110:11,12 126:8
4:1 96:11 110:12 111:24 completely (5) 4:11 13:14 17:16 18:8 127:7 128:7
Civil (1) 17:12 communicating (1) 64:4 102:21 103:21 55:18 covert (1) 15:18
CJSC (2) 80:7,8 102:14 114:4 contracts (1) 104:20 create (4) 26:5 41:16
claim (4) 13:19 69:18 communication (4) completeness (1) control (3) 91:9 48:21 53:11
69:20 110:4 40:20,23 106:9 115:4 117:13 118:4 created (9) 39:25
Claimants (1) 70:14 113:22 complex (5) 6:2 15:18 controller (1) 75:18 40:20,25 45:5
claimed (1) 19:4 communications (3) 15:24 21:9,12 controlling (2) 51:13 46:15 48:7 88:14
claiming (1) 93:22 41:1 43:4 67:10 comply (1) 14:12 53:13 113:11,12
claims (1) 18:25 Communist (1) 85:4 compromise (1) 7:25 controversies (2) 99:2 creating (1) 40:22
clarify (8) 1:16 3:3 community (1) 101:5 computer (1) 37:16 99:12 credit (2) 2:12 17:11
5:18 12:9 15:15 companies (60) 10:15 computers (3) 9:10 convenience (1) 47:17 criminal (3) 15:18
45:15 48:25 86:24 19:13,15,16,19,21 10:5 104:6 convenient (1) 55:13 118:4,23
clause (3) 2:6,23 3:3 19:23 20:2,4 37:5 conceal (3) 12:1 14:2 conversation (3) crisis (2) 81:1 82:13
clear (6) 40:20 43:12 40:8,14,22 43:17 33:2 111:16 112:8 116:1 criticism (2) 38:21
87:5 92:25 93:14 44:18 45:4 46:3 concealing (2) 33:4,24 conversations (1) 94:23
93:16 53:7,25 54:11 concept (1) 76:1 112:7 cross (1) 94:22
clear-cut (1) 115:15 58:24 60:4,13 62:5 concern (1) 26:1 conveys (1) 116:16 cross-examination (3)
clearer (1) 74:16 62:23 63:9,20,21 concerned (2) 36:9 cooperate’ (1) 116:20 1:7 93:18 128:4
clearly (1) 18:1 63:23,25 64:2 92:7 cop’ (1) 116:19 cross-examined (1)

92:5

crudely (1) 100:2 cut (2) 31:6,18

D

D13/169/0.4 (1) 89:9 D13/169/4 (1) 89:9 D13/269/0.1 (1) 88:24 D13/269/1 (1) 88:25 D139/2329/1 (1) 74:9

D139/2329/11 (1)

74:10

D143/2396/0.01 (1)

61:6

D143/2396/0.02 (1)

63:7

D143/2396/1 (1) 61:7

D161/2712/0.1 (1)

68:20

D161/2712/1 (1)

68:21

D176-D191/2918.1T…

56:8

D176-D191/2918.1T…

56:12 58:4

D176-D191/2918.1T…

58:20

D176-D191/2918.1T…

59:1 60:5

D176-D191/2918.1T…

60:1

D176-D191/2918.1T…

42:18

D176-D191/2918.1T…

43:22

D176-D191/2918.1T…

38:25 39:4

D176-D191/2918.1T…

39:5

D176-D191/2918.1T…

22:6

D176-D191/2918.1T…

22:10

D176-D191/2918.1T…

22:22

D176-D191/2918.1T…

23:24

D176-D191/2918.1T…

51:8

D176-D191/2918.1T…

51:11

D176-D191/2918.1T…

46:19

D176-D191/2918.1T…

46:20

D176-D191/2918.1T…

49:2

D176-D191/2918.1T…

24:21 50:23

D176-D191/2918.1T…

25:13 31:23 50:24 52:10

D176-D191/2918.1T…

51:2 52:12

D176-D191/2918.1T…

28:8

D176-D191/2918.1T…

29:11

D176-D191/2918.1T…

29:25

D194-D195/2923.2/…

64:20

D194-D195/2923.2/…

64:22

D194-D195/2923.2/…

65:18

Daneikin (6) 68:6,14

68:22 69:4,13,14

Darya (1) 23:4 data (6) 31:7 49:19
50:7 90:21 104:19 105:19

database (9) 23:25 24:1 28:16,21 31:25 32:1,9 38:21 49:20

databases (3) 103:15 104:25 105:25

date (6) 25:9,15,17 31:10 42:10 52:23

dated (6) 2:7,24 27:1 31:8 68:22 75:8

dates (4) 51:18,24 60:19 80:19 dawned (1) 16:23 day (8) 5:23 42:21

55:2 86:8 92:14 118:22 120:9 126:20

days (1) 91:15 dead (1) 6:6

deal (13) 14:16 15:14 18:24,24 20:16 21:16 48:6,8 55:21 72:12 73:23 108:24 116:20

dealer (1) 57:14 dealership (1) 57:16 dealing (5) 40:24

73:18,20,21 88:7 deals (2) 12:3 48:8 debt (11) 5:15 13:15

13:16,20 14:17 17:6,17,18 19:1 96:14 118:20

debts (2) 107:18 109:24

December (4) 2:7 31:3 31:8 103:3

decision (1) 113:19 decisions (5) 11:16 73:16,22 117:24

118:9 declaratory (1) 86:16 deducted (1) 14:18 deed (1) 41:15 deemed (1) 57:18 default (1) 113:8 defaulting (2) 113:9

113:24 defaults (1) 91:2 defendant (2) 70:12

71:4

defendants (4) 69:18 70:16 71:3 92:13 definitely (4) 95:18 100:5 112:23

114:13 definitive (1) 36:21 degree (1) 100:21 delay (2) 22:3 64:15 demanded (1) 15:23 denote (1) 67:18 denoting (1) 69:1 deny (1) 27:15 depart (1) 35:18 department (2) 63:2

68:10 departments (1)

79:21 departure (1) 97:2 depended (1) 21:14 dependent (1) 77:19 depending (1) 19:22 depends (1) 64:7 deployed (1) 87:21 deposited (1) 67:2

Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900

131

March 7, 2016 Day 23 Redacted

depositor (1) 66:12 depository (4) 66:12
66:16,19,20 deputy (7) 59:22

79:16 80:9,10 82:5 102:25 106:3

describe (1) 89:6 described (2) 65:12

66:23

describing (1) 109:11 Description (1) 65:20 designated (1) 41:1 desk (1) 57:17 despite (3) 22:14

38:21 111:5 detail (4) 15:8 40:1

108:11 109:11 detailed (2) 15:11

101:6

details (6) 15:14 24:5 28:20 37:18 69:20 70:5

detain (1) 120:24 determine (1) 3:14 determining (1)

105:21 develop (2) 40:13

86:1

developed (2) 99:3,4 developing (1) 40:10 development (6) 81:7 81:18,23 82:1

98:18 108:16

Di’Iorio (1) 70:12 differ (1) 19:22 difference (1) 69:5 different (19) 9:15,16

9:21,22 11:9 43:1 45:24 48:1 50:7 63:19,20 64:1,2 73:12 80:17 100:7 103:21 104:4 113:24

differently (1) 118:3 difficult (14) 15:21 38:20 49:19,23 61:3 63:24 64:1

73:23 80:25 82:9 82:20 99:17 114:18 117:7

difficulties (1) 61:25 difficulty (4) 2:16

112:22 113:1 114:24
diligence (2) 3:14 7:8 diminished (1) 97:15 direct (2) 28:24 31:17 directed (1) 117:17 direction (1) 118:22 directly (4) 29:15

105:16 120:12 121:3

director (27) 11:15 19:18 22:12 23:13 30:1 42:24 45:2,7 46:24 79:13 80:10 80:13,16,18,21,24 81:1 83:4,6 100:19 102:9,25 103:7,17 105:13 106:3 114:19

directors (9) 64:17 65:9,12 67:15 80:17 81:10,15,15 115:18

dirty (1) 18:24 disagree (3) 12:8

99:24 102:21

disclose (11) 3:24

6:15,17,20,23 7:14 7:23 8:23 10:11 63:22 66:17

disclosed (7) 2:11,17 4:24 5:1,1 6:11,22 disclosing (6) 4:19 6:7 8:17 9:3 63:21 64:3 disclosure (5) 3:1 7:25

8:19 10:17 71:16 discount (1) 18:16 discretion (1) 97:10 discuss (3) 16:2

109:17 113:5 discussed (7) 14:23

15:8 16:15 58:13 72:7 117:5 120:23

discussing (2) 20:3 91:13

discussion (1) 74:4 discussions (6) 12:21 16:10,12 17:2

68:13 72:24

Diskom (1) 43:15 dispose (1) 65:22 disposed (3) 52:23

54:6,13 dispute (1) 106:23 distinct (1) 9:16

distribution (2) 96:25 118:2

diverse (1) 47:12 divided (2) 76:25

90:12

Dmitry (3) 82:2,4,25 Dnieper (1) 45:9 Dobrianova (1) 43:16 doctor (1) 34:17 document (14) 24:2

31:23,25 32:1,5 36:8 37:21 39:19 64:25 70:9 73:15 74:8 86:16 103:21

documentation (2)

7:3,7

documents (32) 4:23 5:1 8:8,9,15,20,23 8:25 9:2,11 10:6,21 22:4 24:1 34:9 37:16 38:3 51:23 76:6 103:4,14,23 103:24 104:5,16,17 104:24 105:1 106:1 106:1 107:7 117:6

doing (9) 12:12 54:21 90:25 97:8 99:10 105:6 113:7,23,25

Dom (2) 58:6 71:12 domain (4) 27:20 28:4

33:7 79:25

Donov (2) 49:8,8 door (1) 114:1 dormant (1) 54:13 dossiers (1) 104:7 double-check (3)

51:18,23,24 double-checked (1)

50:6

dozens (1) 86:19 draft (4) 16:5 17:14

18:10 86:1

draw (3) 28:10 32:11 89:12

drawing (1) 105:20 drew (1) 105:18 due (6) 3:14 7:8 44:9

96:23 103:11 115:11

Dvor (5) 21:25 22:8 23:12 24:16 70:23

Dvortsovaya (3) 78:25

83:11,17

E

e-mail (1) 68:22 earlier (5) 31:24 32:13
44:19 45:1 126:19 early (9) 42:1 54:16

68:14 79:3 84:22 88:13 96:20 98:3 114:13

earth (1) 119:9 easier (1) 52:13 easily (1) 34:7 Easter (1) 126:23 easy (1) 57:19 economic (3) 96:3,6

96:13

economics (1) 100:21 economy (1) 22:15 Edazi (1) 43:16 education (1) 100:15 effect (4) 90:8,19

91:23 115:17 effectively (5) 19:1
20:7 58:9 85:10 90:3

efforts (2) 107:18 109:18

EGRUL (15) 32:13,18 32:20,23 33:9,25 34:2,3,6,15,20,22 35:6,11,16

EGRUL’s (1) 34:17 eight (1) 112:13 either (10) 45:24 46:3

75:23 76:2 80:23 81:14 84:6 110:15 110:18 111:2

elaborate (1) 15:13 electronic (2) 8:8,25 elektroniks (1) 43:15

Elena (2) 62:6 82:25 embark (1) 54:15 embraced (1) 80:11 employee (6) 23:5

26:4 47:1,9 62:10 69:6

employees (9) 49:22 58:17 62:21 103:2 104:11 105:21 107:2 117:7,9

employees’ (1)

104:15 employment (1)

55:17 enable (1) 55:5

encumbrance (2) 18:2 18:3

endeavoured (5)

104:12 105:3,5 110:18 111:2

endeavouring (1)

107:22

ended (1) 78:7 endemic (1) 91:18 enforced (2) 86:6

87:14 enforcement (1) 19:9 England (2) 66:19

85:21

English (8) 28:9 61:23 63:5,6 64:24 74:21 75:5 89:9

enjoy (2) 53:21 121:1 ensure (1) 90:1 enter (1) 86:3

entire (3) 64:25 83:4,7

entirely (2) 77:19 92:25
entirety (1) 6:12 entities (13) 24:3,7,9

32:9,14 46:15 47:20,23 65:3 66:24 84:6,8 101:3

entitled (1) 65:21 entity (15) 23:2 26:6,8

27:13 31:12 45:19 48:14,16 60:21 67:19 76:13 82:10 88:9 100:16 104:24

entries (3) 24:10 37:4 77:1

entry (8) 28:23 32:15 32:20,23 38:23 46:18 51:8 66:21

equal (1) 55:2 Erokhin (1) 110:13 errors (1) 24:12 especially (2) 34:19

97:4

essentially (1) 94:13 estate (1) 106:17 Eurobonds (1) 99:7 Europa (4) 111:10

114:10,14,15

Europe (1) 116:11 European (1) 66:18 Evans (1) 70:13 event (2) 2:15 41:7 events (9) 4:4 12:22

14:6 15:16 16:11 57:8 114:5 117:18 118:5

evidence (10) 17:5 20:9 21:2 44:21 54:24 64:10 94:20 107:8,10 110:22

evidenced (1) 105:12 exact (2) 51:24 68:11 exactly (11) 7:11

18:12 27:17 32:3 38:18 42:12,15 43:14 79:25 81:16 92:9

example (4) 48:8 67:9 86:11 99:18

excerpt (2) 29:14,20 excerpts (1) 31:2 excessively (1) 55:1 exchange (7) 68:16

86:12,18 99:6,9,9 126:12

exciting (1) 99:10 exclusively (1) 84:14 executive (2) 100:19

101:4 exercise (1) 72:14

exist (2) 51:21 86:19 existence (4) 48:18

73:18 115:8 116:10 existing (2) 106:25

108:21 exotic (1) 72:2 expect (2) 111:25

112:5

expected (1) 113:15 expensive (1) 48:20 experience (2) 100:15

100:22 expert (2) 67:11

126:11 expired (1) 13:23

explain (15) 1:23 7:7 14:4,13 31:1 32:25 43:10 52:9 66:7,9 90:7 93:9,15,19,19

explained (1) 11:12 explaining (1) 93:18 explanation (6) 31:14 31:19,20 32:22

63:16 75:20 expressed (1) 90:6 extent (1) 7:24 extract (15) 24:9

28:25 30:5,10 31:8 31:15 35:16 38:20 42:23 44:7 51:25 52:7,21,25 66:15

extracts (14) 24:3 31:2,4,17 33:8,9,12 34:25 37:6,22 41:19 64:24 65:1,6

extraneous (1) 92:17 extremely (3) 15:21

79:3 84:21

F

Fabris (1) 56:11 face (2) 1:22,23 fact (25) 11:12,16

12:2 23:8 25:22 28:2 30:6 33:19 34:11 40:4 58:15 70:8 85:22 92:12 96:15 99:7 101:15 102:10 105:12 106:10 109:19,22 111:6,7 126:13

factor (1) 97:15 facts (3) 27:19 103:9

117:21 factual (1) 94:23 fail (3) 52:18 81:3

98:4

failed (2) 105:6 115:25

fair (7) 30:14 58:12 75:19 84:9 90:3 107:13 109:24

fairly (1) 93:13 fairness (3) 30:13 60:2

92:4

fake (1) 108:19 falsified (2) 32:23

33:16 falsify (1) 32:19

familiar (3) 43:10 85:13 100:24 family (2) 100:5,6

fantastical (1) 115:25 far (36) 3:7 13:9,14,22 14:11 16:19 17:9 22:18 25:8 26:10

36:9 40:14 42:4,23 43:12 46:1,8 53:11 66:1 68:5 69:20,21 81:12 83:17 85:24 86:24 87:12 90:16 90:19 91:7 101:16 101:17 102:6 104:2 108:1 112:19

fate (3) 21:11 40:1 42:1

fear (2) 42:22 119:13

February (4) 25:23 30:2 68:1 115:7

federal (12) 28:19,21 79:24,24 85:8 88:7 88:12 96:6,10,18 97:19 98:20

Federation (4) 17:12 86:15 88:8 96:25

Feel (1) 96:18 feet (1) 91:24

fell (1) 82:14

FFK (2) 90:13,18 fiction (2) 117:14,19 field (1) 62:20 fields (2) 61:14,18 figure (1) 23:16

file (4) 2:4,12,14 24:20
files (11) 4:20 6:23 7:1 7:10,12 9:1,10 10:5 33:10 37:7 104:6

Filina (1) 23:4 final (2) 21:3 120:9 finalised (1) 3:22

finally (2) 39:14 62:24 finance (10) 26:3,11 26:12 53:19 71:14

95:22 100:21 107:22,24 108:2
finance-raising (1)

79:20

financial (36) 5:22,24 6:3 26:8,9 33:13,14 41:22 47:24,25 48:1 82:10 85:8,16 86:3,22 87:25 88:4 88:14,23 89:19 90:12,25 91:1,3,18 97:2,7,8,11,14 99:4 100:16,25 108:2 114:18

financially (1) 5:20 financials (1) 13:8 financing (2) 98:21

107:23

Finans (1) 89:5 find (29) 3:18 5:22

9:11 14:17 15:25 16:23,24 28:25 30:4,5,9,11,25 53:21 55:9 63:15 72:22 75:12 76:12 78:12 79:7 82:10 82:21 83:21 107:10 108:4 110:1 114:2 114:25

finding (1) 112:22 finds (1) 64:5 Fine (1) 51:7

finish (4) 55:8 119:20 120:15,19

finished (2) 5:5 93:10 finishing (3) 45:25,25

119:12 firm (1) 95:20 Firma (1) 60:23

first (17) 8:2 9:13 10:10 25:21 27:16 45:4 57:15 70:12 77:2 85:25 92:3 98:1,14 99:7,11 101:11 115:2

firstly (3) 85:21 87:5 99:16

fit (2) 4:6 11:4 fits (1) 92:2 fitting (1) 102:9

five (10) 1:18 3:5,8,13 4:9,11,11 5:3 6:2 27:24

fixed (3) 15:3 88:17 88:20

flats (2) 3:9,18 floating (1) 60:17 floors (1) 57:15 focusing (1) 110:21 folder (1) 37:21 folders (1) 104:5 following (1) 36:4

force (1) 86:14 forecast (4) 118:17,17
118:22 119:6 forgotten (1) 114:16 form (3) 86:9 94:13

100:19

formed (4) 26:2,11 45:10,16

former (6) 20:22 59:24 83:10 85:3 90:14 98:25

forth (3) 40:12 64:7 96:8

found (4) 30:23 82:20 111:7 112:21

founded (8) 45:11 75:22,25 76:3,5,13 84:24 85:6

founder (10) 75:13,16 75:17,19,21,24 76:1,3,7,10

four (6) 27:5,24 58:24 61:18 71:3 105:18

Fourteenth (1) 70:15 Fourth (1) 70:14 free (1) 96:18 Friday (11) 1:12 4:5

11:10 13:15 15:12 17:16 19:11 37:3 55:13 111:5 120:24

friends (1) 75:3 friendship (2) 99:19

99:19 friendships (1) 99:18 front (3) 1:20 95:23

97:17

FSB (1) 104:21 full (4) 2:4 31:11 35:15 79:6 fullest (1) 32:9 fully (1) 113:13 function (1) 87:12 functionary (1) 85:3 functions (4) 103:16 104:23 105:25

107:6

funding (3) 5:13,14 53:22

funds (5) 3:8 6:11 9:17 83:13 96:25

further (11) 1:22 3:3 10:20,22 29:24,24 33:12 44:10 63:8 126:9,10

futility (1) 72:14 future (1) 9:7

G

Galina (1) 43:16 gap (1) 53:7 gather (1) 75:1

Gavrilov (3) 47:7,9,14 Gayde (1) 42:5 Gelios (2) 60:24 71:9 general (30) 10:3,16

11:15 19:18 22:12 23:14 28:23 39:23 40:2,6 42:15 45:2,7 53:8 65:25 66:16 68:9 79:13 80:10 80:13,16,18,21,24 81:1 95:21 100:19 102:25 106:3 114:19

generally (1) 10:5 gentleman (3) 68:6,7

84:25 gentlemen (1) 20:21

Opus 2 International transcripts@opus2.com
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132

March 7, 2016 Day 23 Redacted

German (1) 43:15 getting (2) 33:18
63:14 gist (1) 62:2

give (12) 4:25 6:16 10:4 20:9 29:6 42:11 50:8 67:9 76:5 80:19 83:15 126:21

given (5) 11:5 15:12 63:16 74:22 97:10

gives (1) 82:22 giving (1) 57:8 glean (1) 63:24 Global (5) 43:13,18

49:10,11 60:21 go (30) 22:5 24:13,19

28:3 30:13 31:23 34:20 38:22 42:7 42:17 49:1 50:17 50:22 51:7 56:7 58:22 60:1,4 61:1,6 61:18 64:19,25 68:20 69:20 74:9 95:2 120:22 121:1 121:4

goal (1) 106:9 gods (1) 119:5 goes (1) 94:25 going (12) 6:3 7:8

26:1 35:24 54:19 60:13 92:19 93:14 111:10 118:23 119:4 120:2

Goncharuk (7) 47:10 47:14 49:6 62:7,10 62:25 82:25

good (18) 1:3,5,8,9 5:22 30:12 33:11 35:3 56:4 67:9 99:12 107:2 111:17 116:2,3,18 120:3,5

Google (2) 27:22 89:1 Gorshkov (1) 49:12 govern (2) 116:25

117:1

governance (5) 85:20

85:22,24 86:1,16

government (4) 85:11

94:16 96:3,16 grading (1) 85:13 grand (5) 105:21 114:10,14,15

116:11

grant (2) 9:9 103:9 grateful (3) 36:25 126:18 127:2

grave (1) 108:2 great (3) 54:22 89:1

95:6

grounds (1) 101:20 group (28) 41:5,8

46:16 47:22 66:24 68:19 71:15 78:4 78:11,22 79:18 80:6,9 81:5,8 83:5 83:7,12,22 84:5 85:6 92:21 99:14 107:22 108:21 110:1 115:8 117:23

groups (1) 48:4 growth (1) 96:6 guarantee (2) 17:23

17:24 guarantees (5) 17:11

18:6,14,19 19:2 Gubko (3) 82:2,4,25 guidance (1) 126:23 guys (2) 73:10 100:2

H

half (7) 23:21,22 39:2 43:7 98:1 116:5 119:13

hallmarks (1) 26:12 hand (5) 55:14,22 74:18 95:4,4

handed (5) 4:10 5:18 55:23 74:21 75:4

happen (1) 119:5 happened (13) 17:1

25:8 47:16 72:21 72:23 91:2,4 101:24 106:5 108:6 117:3 118:3 119:6

happening (1) 118:7 happy (12) 2:21 4:25 6:10,16,22 7:23 8:22 11:1 13:2 90:24 119:14,18 hard (6) 29:6 48:16 72:22 74:11,13

113:5

Havana (1) 70:21 head (8) 20:22 63:1

68:10 90:14 96:15 101:13,21 102:7

headache (1) 102:13 headed (2) 75:13 87:8 heading (1) 58:4 headings (1) 75:11 hear (1) 108:12 heard (4) 22:2 59:13

108:10 120:7 hearing (6) 70:11

120:14 121:5 126:8 128:6,7

hearings (1) 106:24 held (10) 4:8 11:13 20:13 27:16 42:8

66:4 90:22,23 105:1 106:1

help (5) 107:22,25 109:23 115:21 126:10

helped (1) 84:12 hesitant (1) 54:15 hesitation (1) 54:25 hierarchy (2) 39:1,8 high (3) 85:14 90:16

96:7 high-ranking (2) 85:3

92:7

HILDYARD (41) 1:3,5 15:3,5 30:17 33:18 33:23,25 34:4,13 34:22 35:9,23 36:1 36:13,17,21,24 54:18,25 55:11,15 55:19,24 56:4 66:9 74:24 92:18 93:12 93:17 94:5,12,18 95:2 119:16,24 120:6,25 126:9,21 127:3

historic (9) 25:14 26:24,25 28:25 29:1 32:20 43:6 49:3 75:19

history (13) 22:9,24 26:17,23 33:1 46:21 47:11 49:3 58:5 67:24 78:3 92:1 96:18

hold (6) 38:11 51:16 52:20,22 66:14 117:10

holder (2) 65:20 66:21

holding (7) 52:6,6,21 60:6 62:13 72:24 75:24

holdings (1) 67:12 holds (2) 52:15 66:20 home (1) 111:1 honest (9) 20:6 22:1,1

43:4 70:4 73:25 98:24 112:13 114:3

hop (1) 11:6

hope (6) 13:19 17:20 55:7 93:9 119:12 119:20

hopeful (1) 55:9 hopefully (2) 89:2

93:15

hoping (2) 120:15,18 hotel (8) 5:24 109:13 111:10,13 114:10 114:14,15 116:11

hour (2) 119:13,13 hours (1) 113:25 House (1) 12:11

Housekeeping (2)

120:20 128:5 huge (2) 21:13 54:10 hundreds (1) 86:20

I

I25/39/101 (1) 1:11 I25/39/108 (1) 1:10
IC (2) 80:10,16 idea (16) 14:6,16

28:23 40:7,9 42:15 43:15 53:11,20 59:18,23 60:25 72:21 91:7 111:17 117:14

ideas (2) 40:12 42:1 identical (1) 77:1 identify (1) 13:1 identity (1) 3:25 iffy (1) 29:17

Igor (1) 84:25 illogical (1) 114:4 illustrate (1) 70:6 illustrates (1) 89:11 imagine (2) 28:22

42:13 immediately (1) 49:7 impact (1) 72:4 impinge (1) 10:14 impinged (1) 7:21 implemented (1) 41:2 implicit (1) 36:17 important (3) 11:5

13:10 93:8 impossible (3) 16:23

84:16 126:22 inaccuracies (1) 39:22 inaccuracy (1) 39:21 inaccurate (2) 34:9,10 inalienable (1) 2:19 included (5) 33:20

79:19 81:5 98:8 101:15

includes (2) 17:10 21:20

including (4) 17:10 63:10 98:19 100:18

income (6) 88:17,20 89:14,16,19 90:3 incomplete (2) 35:1

65:6 incorporated (5)
24:25 53:16,17,23 53:24

incorrect (5) 18:18

27:4 33:21 36:8 42:21

increases (1) 94:2 indebtedness (1)

108:21 independent (3)

27:23 91:15 93:23

independently (3)

8:10 73:21,22

INDEX (1) 128:1 indicated (2) 19:11

49:17

indication (2) 126:18 126:19

indirect (1) 39:7 indirectly (1) 120:12 individually (1) 82:12 individuals (8) 3:24,25

10:15 27:2,12 50:8 90:17 97:18

inevitable (1) 102:18 inference (2) 109:21

109:24 influenced (1) 87:6 inform (4) 107:17,20

109:9,16 information (41) 6:20

10:12 27:20 28:4 29:12 31:16,18 32:4,6 33:6,13,22 34:1,3,7,10,14,23 34:24 35:4,8 41:10 49:20,22 63:22,25 64:3 90:20 91:6,9 91:11,16 103:5,15 104:19,25 105:25 106:2 117:25 118:8 119:7

informed (1) 69:21 inherent (1) 94:2 Initially (1) 16:19 initiated (3) 4:3 5:11

48:7

initiative (2) 115:12 115:12

inspectorate (1) 29:16 instance (3) 3:17 54:8

115:13 instances (1) 54:10 institute (1) 97:8 institution (2) 89:24

97:2

instruct (3) 69:23 70:3 71:24

instructed (2) 72:10 72:16

instructing (2) 71:19 72:25

instruments (2) 88:17 88:20

insurance (31) 14:15 16:21 40:11 42:3,4 100:9,13,20,22,24 101:1,5,7,14,15,16 102:2,11,23 103:10 104:3,7,18,18 105:5,11,24,24 106:3,18 118:25

insured (4) 101:23 104:11 106:12 107:2

intended (4) 39:7 41:3 73:10 108:20

intending (2) 16:17 77:15

intention (1) 18:4 interest (8) 18:15 38:11,17 51:20 70:2 94:8 103:3

109:20 interested (9) 69:15

70:10 90:16 102:10 105:11 106:17 109:23,25 110:3

interesting (1) 103:8 Interestingly (1) 116:8 interests (6) 7:21,25 10:14 51:20 52:22

89:25

Interfax (5) 31:16 32:1 32:5,17 33:8

Intermit (18) 50:18,20 51:5,12,13,16,21 51:21 52:2,6,16 53:1,3,6 54:11 60:17,19,20

internet (1) 57:20 interpret (1) 62:1 interpreted (1) 109:6 interpreter (3) 5:5

12:4,4 interpreters (3) 62:1

75:2,6 interrogation (1)

37:15 introduce (1) 87:22

introduced (7) 85:15 85:19 88:1 89:20 93:1 94:6 102:6 introducing (1) 89:24

Invest (1) 56:11 investigate (2) 62:4

63:13 investigations (1) 63:8 investing (1) 3:8 investment (15) 1:25

3:15 7:2,5 45:17 46:16 48:4 63:1 79:2 80:4 83:13 89:25 90:1 98:15 108:24

investors (1) 91:19 invited (2) 121:1

126:13 invoices (1) 7:9 involved (10) 40:17

46:12 64:8 79:23 93:23 101:3,5 105:16,22 121:3

involvement (2) 94:1

94:3

involving (1) 116:17 IPOs (1) 63:22 irrelevant (2) 18:7

31:21 irrespective (1) 12:12 Isaac’s (1) 1:20

isle (1) 45:9

Ispolkomskaya (4)

56:20 57:11,13,24 issue (10) 2:2 12:8

87:23 88:5,10 96:10 99:20 107:6 117:6 120:23

issued (2) 99:6 100:10 issuers (2) 91:11,17 issues (4) 40:8 114:3

115:15 126:10 issuing (2) 87:10

96:14

Italian (1) 100:5

Ivanikova (1) 59:21

J

January (8) 31:3 51:15 52:19,20,25 103:1 118:14 119:1

jargon (2) 67:18,25 Jerry (1) 70:13 joined (1) 14:16

joint (3) 19:22 67:8,13 joint-stock (2) 66:24

80:4

jointly (5) 20:19 45:21 45:23 59:20 70:21

journalist (3) 62:17 90:7,23

journalistic (1) 92:5 journalists (2) 63:12

64:1

judging (5) 8:24 14:19 29:18 44:15 52:19 July (8) 31:11,11 75:8

103:13 105:5 110:16 116:13,14

jump (1) 31:22 June (2) 110:22

116:13

JUSTICE (41) 1:3,5 15:3,5 30:17 33:18 33:23,25 34:4,13 34:22 35:9,23 36:1 36:13,17,21,24 54:18,25 55:11,15 55:19,24 56:4 66:9 74:24 92:18 93:12 93:17 94:5,12,18 95:2 119:16,24 120:6,25 126:9,21 127:3

K

Kalinin (9) 20:11,13 21:15 25:16 26:24 29:13,22 65:8 77:15

Kalinin’s (2) 77:3,13 Kapustin (5) 110:10 111:9 114:14 115:16 116:12

Kazakova (1) 39:11 keeping (1) 105:11 kept (1) 21:5

key (1) 78:22 Khortitsa (20) 20:8

45:3,8,9 46:1,6,12 46:18 48:6,9,24 54:11 60:13 61:14 62:6,13,23 63:13 63:16 71:10

kind (5) 32:21 34:21 50:5 94:3 112:5

kindly (1) 12:5 Kiperort (4) 23:1,3

43:22 60:10 KIT (3) 107:22,24

108:2

knew (7) 15:10 44:22 94:19 102:22,25 108:4 111:4

knocking (1) 114:1 know (90) 5:2 12:22

12:23 13:7,9,14,22 15:14 16:19 22:1 22:16,19 23:13 27:11,16 29:2 33:15 34:18,23 35:2,12 36:2,13,18 38:8 43:12,16,17 43:19 44:6,15 47:3 47:4 50:21 52:5 55:13 56:13 59:2,4 59:5,8,13,23 60:9 60:25 62:10 66:5 67:24,25 68:5,6,7

69:11,21,25 70:24 80:15 81:19 83:17 86:24 87:18,20 90:5,17,19 94:23 98:23,24 101:1,2 102:5,6 103:18 105:14,15 107:20 107:23 108:1,10,18 108:22 113:6,18,18 114:6,20 115:24 118:19 119:22 120:9

knowledge (17) 14:22 15:7 16:16 23:2,5 41:3 42:6 44:19 56:12 68:4 87:2 91:20,23 98:22 101:6 102:1 108:24

known (14) 25:2 27:22 30:8,9 32:9 41:20 56:11,18 58:24 79:4,24 85:5 90:13 119:4

Komavtotrans (1)

60:23

Kompaniya (2) 25:4

30:8

Kompanyia (3) 56:6 62:21 83:9

Konsalting (5) 43:13 43:18 49:10,11 60:21

Korotkova (1) 39:13

Kosova (2) 68:23

69:14

Kostikov (15) 84:25 85:7,24 86:21,25 87:6,19,22 89:21 91:21 93:1 94:6 95:25 96:2,15

Kostikov’s (3) 91:6

95:13 97:1

Kuvshinov (6) 102:1,5

102:17,20 104:4,21

L

lady (1) 83:22

land (23) 12:10,14,16 12:19,20,24 13:2,4 13:11,21,25 14:8 14:14,17 15:20 16:8,9,20,24,25 17:8 18:2,4

lands (1) 26:20 language (1) 15:2 large (7) 21:10 79:1

84:10,18 92:22 98:13,15

large-scale (2) 13:10 54:9

largely (1) 83:9 larger (1) 88:20 largest (7) 33:5 40:22

57:14 67:11 79:2 88:21,22

late (4) 68:14 116:13 116:14 119:20

latest (1) 120:3 laundering (1) 98:21 Lavka (3) 67:18,22

69:1

law (8) 66:11 73:4 75:16 86:8,14,15 98:20,22

laws (1) 86:14 lawyer (5) 49:9 68:9

68:23 73:17,21 lawyers (28) 7:20,24

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133

March 7, 2016 Day 23 Redacted

8:19 9:10,13 10:10 liquidity (2) 15:22,24
10:13 37:15 69:23 list (15) 25:13 26:21
70:1,3,4 71:19,25 43:6,9 49:2 58:21
72:5,6,8,10,16,20 58:22 59:2,24 65:2
72:20,22,22,25 66:17 86:12,14,18
73:9,15 110:12 105:18
121:3 listing (1) 97:13
layout (1) 28:23 lists (1) 105:20
leading (1) 61:9 little (5) 17:22 70:2
learned (1) 75:3 100:2 116:22
leasing (11) 38:8,23 120:17
39:23 40:2,4,11 live (2) 3:10,18
41:4,7,12 42:7,16 LLC (8) 11:10 44:10,11
leave (1) 121:4 45:3 60:24 78:13
led (2) 97:21 106:22 78:19,20
left (11) 26:4 76:24 loan (21) 1:13,15,24
82:7,8,12,12 97:23 2:4,4,20 6:24 7:2
98:1,8 104:6,24 13:16 17:18,23
legal (46) 8:4,18 9:8 18:19,20,20 19:5,9
9:13,22 10:13 13:8 88:12 108:16,20
14:1 20:22 24:2,3,7 111:7 118:18
24:9 25:3 26:6,8 loans (7) 79:24 88:7
27:12 32:4,5,6,9,14 96:6,10,11,19
46:15 47:20,23 107:13
48:13,16 56:17 local (1) 70:4
58:5,10 63:2 68:10 located (3) 56:24 58:8
72:7,11,23 73:6 58:18
74:4,5 75:15 76:1,9 location (4) 56:17
76:11 83:4,6 84:15 58:16 104:4,8
101:3 locution (1) 67:20
legislation (1) 93:1 log-in (1) 37:17
legitimate (1) 37:11 logic (7) 14:4,13 15:16
leisure (3) 53:10,11 15:19 73:24 91:8
53:20 113:6
lend (2) 19:13,16 logical (1) 109:21
lengthy (1) 92:1 London (3) 10:23 11:7
Leningrad (1) 85:4 99:7
Lentelephonestroy (5) long (7) 38:12 48:13
64:11,17 65:3 54:15,18 55:1 81:4
66:14 67:5 119:18
Lestovkin (6) 46:23 long-standing (1)
47:7,13 48:10 112:1
83:18,18 longer (5) 48:20 54:2
let’s (2) 84:22 115:2 80:22 96:2,15
letter (1) 104:21 look (48) 1:22 14:5
level (2) 39:9 85:25 17:25 22:4 23:25
liability (2) 14:19 17:7 24:2,8 25:2 26:21
Liberian (1) 23:1 29:9 31:9,22 33:9
licence (9) 62:19 37:4,6 38:18,19
98:18,23 101:8,21 42:22,23 43:6,9
102:18 103:6,19 44:1,6,7,16 45:12
105:8 46:17 50:5 52:10
licences (4) 86:23 53:2 54:20 55:9
87:10,13 100:10 57:5 58:4 59:24
licensed (1) 100:11 60:2 62:16 70:4
licensing (2) 87:10 74:12 75:11 76:16
100:9 76:24 82:16,18
lies (1) 71:22 88:24 109:1 114:22
life (5) 87:18,19 99:3 118:11
99:10,25 looked (7) 24:4 31:24
light (2) 54:23 92:8 32:12,15,23 37:15
likeliest (1) 32:22 37:22
likelihood (1) 76:6 looking (13) 3:3 9:23
limitation (2) 13:23 12:16 16:5,21
19:4 22:20 24:24 38:24
Limited (4) 68:3,15,25 49:3 53:18 72:3
70:21 82:22 119:2
Linair (4) 59:3,11,20 looks (4) 32:17 44:15
60:9 84:3 108:19
line (23) 16:6 17:15 Lord (24) 28:10 30:12
22:11 39:12 54:16 33:24 35:6,22
54:18 56:16,17 36:12,16,23 48:12
65:11,16,18 66:21 54:15,20 55:12
66:23 76:20,25 74:18 75:5 89:3
77:2,3 92:1,20,23 91:24,24 94:4,10
93:3,10,14 119:11 120:5,21,21
lines (5) 61:18 76:25 127:2
92:17 112:5,6 Lordship (7) 1:4 30:22
liquidation (1) 24:17 55:21 56:3 74:15

74:22 95:11

Lordship’s (1) 119:23 lost (7) 5:7 20:20

33:18 74:7 89:14 89:15 119:12

lot (11) 11:3 12:15 34:19 49:16 63:22 88:2 91:17 99:22 107:24,25 117:21

lots (5) 9:24 45:17 98:14,16 115:14

love (1) 86:24

LPK (2) 12:19 16:9

Lukina (14) 102:24 104:9 105:17 106:4 106:6 107:4 110:15 112:10 114:10,14 116:13 117:4,5,8

Lukina’s (2) 116:9,16 lunch (2) 54:16 58:13 luncheon (2) 55:10

56:1

M

M2/38/1 (2) 70:7,20 M2/38/2 (2) 70:10,20 machine (1) 64:25 mafia (3) 100:3,4,4

Magnum (3) 37:17,18 37:20

main (13) 14:9,12,12 20:18 96:15 97:16 102:13,13 104:2,19 106:13 107:6 117:6 maintained (1) 28:18

major (10) 47:18 87:14 88:11 89:18 90:2 91:19 96:24 97:3,13 117:16

majority (1) 97:25 maker (1) 113:19 making (3) 34:10 73:15 106:10

Malookhtinsky (1)

40:5

Maloy (1) 71:12

Malysheva (24) 11:17

11:25 15:10 26:9 27:14 59:21 80:1 80:13,25 81:10,14 84:18 98:8,11 106:15 107:20 109:9 111:6,14 112:8,20,24 113:20 115:18

Malysheva’s (2) 55:17

113:13

manage (6) 74:17,23 75:3 89:2 101:18 107:4

managed (3) 47:23 62:24 83:12

management (11)

56:7 57:1 63:14 71:5 83:8,11 84:5 100:18 102:4,19 107:6

manager (4) 22:9

46:21 78:10,11 managers (18) 41:19 47:11 78:7 83:10

97:23 98:1,7,10,12 98:16 99:1 100:13 100:20 111:16,23 112:8,9 115:23

managing (8) 40:11 41:16,18 46:25 47:3 50:4 78:25

83:12

mandate (1) 108:15 manipulating (1) 91:5 manipulation (1)

91:17 manually (1) 65:1 March (5) 1:1 105:3

110:22 118:14 127:8

marched (1) 95:3 Marine (1) 71:15 mark (2) 120:16 127:5 market (43) 15:22

53:19 79:4 82:15 84:20 86:10,17,22 87:8,19,23 88:11 88:12,15,18,23 89:23 90:9,10,11 90:12,18,19,21,22 90:24 91:6,9,10,12 94:15 96:12,17,19 96:21,22 97:14,15 97:16,21,24 99:4 102:12

marketing (1) 12:12 markets (7) 85:8,16

86:3 87:20 91:5,14 97:10

Marshall (1) 70:11 Maslenikova (1) 102:5 massively (1) 88:7 material (2) 27:19

35:18 materials (1) 14:20 maths (1) 18:18 matter (12) 9:22

18:21 23:15 72:7,7 72:11 73:16,19 91:7 113:20 120:17 120:21

matters (6) 14:23 15:8 16:2 23:9 63:10 102:3

maximise (4) 13:24 14:2 15:19 107:3 maximum (1) 15:20

mean (20) 35:2,5,5,12 45:6 52:9 54:25 55:3 57:23,25 58:1 67:1 76:17 78:15 78:18 81:22 94:9 103:23 111:25 126:12

meaning (5) 16:7 26:17 67:22 98:25 100:4

meanings (2) 67:20 76:12

means (6) 55:15 73:20 75:18 89:15 107:2 119:3

meant (2) 41:15 98:5

Medinvest (4) 46:2,2 48:8 54:9

meet (7) 55:5 105:17 110:15,18 111:8 112:4 114:2

meeting (23) 66:16 72:5 101:10,11 102:14 109:13 110:9 111:2,8,10 111:12,14 112:12 112:16,22 114:9,16 114:20 115:17 116:11,12,17 119:25

meetings (5) 16:14 73:17 114:21 116:10 117:11

member (2) 65:9,12 members (2) 29:12
67:14

memory (7) 4:8 42:10 52:18,18 53:17 81:3 98:3

mention (5) 27:18 33:1 64:9 88:6 101:19

mentioned (13) 4:5 24:19 25:21 28:12 42:3 45:1 64:10 83:1,8 102:8 104:8 111:5 117:5

Mercedes (1) 57:14

Mercury (15) 11:10,14

13:6,19 14:16,18 17:6 18:2,21,25 19:19 20:3,4,6 48:19

merge (3) 12:20 13:4 16:9

mergers (2) 79:16,19 message (1) 115:16 messages (1) 112:12 met (9) 72:6 101:12 102:6,24 104:9 105:18 113:17

114:13,14 methods’ (1) 116:21 Mezhevoy (1) 103:25 mid (1) 88:10 middle (5) 22:23

42:18 46:21 49:4 75:12

migrated (1) 84:5

Mikhailovski (1)

101:13 mileage (1) 34:16 million (16) 1:24

13:12,17,18,22 17:19,20 18:22,23 21:13,17,21 25:25 76:21 108:15,20

mind (14) 1:15 7:3 9:23 10:10 11:1 29:15 31:15 37:11 48:25 52:14 64:8 83:14 91:12 104:10

minded (1) 36:14 mine (1) 107:16 minister (1) 85:12 ministerial (1) 85:10 minor (1) 40:1 minority (1) 43:2 minutes (4) 92:9

93:10,12 95:7 mirror (1) 21:16 misconceived (1)

33:17 misleading (4) 18:11

18:13 75:16 91:5 misquote (1) 64:13 missed (1) 8:10 misspoke (1) 98:5 mistake (5) 25:19,21

26:22 35:16 49:13 mistaken (6) 21:18

46:24 53:12 68:11 101:12 114:8

mistakes (3) 24:5,6

33:11

misunderstanding (1)

69:13 modalities (1) 5:24 model (2) 5:22 6:3

moment (11) 8:12 9:5 9:12 24:13 30:12 32:15 35:18 55:9

56:14 59:25 110:21

Monday (1) 1:1 money (20) 3:15,16

3:17,20 5:15,16 6:8 7:7 15:23 35:3 91:1 98:20 106:19,20 108:5 110:1 113:14 113:15 117:9 118:21

month (2) 26:7 48:14 moribund (1) 97:20 morning (5) 1:3,5,8,9

54:23

Morskoy (3) 111:7 118:18,20

Moscow (2) 96:11

99:9

Moskovski (5) 21:25 22:8 23:12 24:16 70:23

mouse (1) 29:3 move (4) 78:2 93:13

100:7 107:9 moved (6) 27:14 82:7

83:19 84:11,15 86:25

movement (1) 6:17 movements (2) 6:7,10 moving (2) 11:9 64:9 Moyke (1) 71:12

Multanovsky (1)

62:20

municipal (2) 96:6

97:15

MVD (1) 104:22 mystery (1) 35:13

N

N1 (2) 16:18 17:2

Naberezhnaya (2)

58:8,17

Nader (5) 70:14,20

71:13,14,15 name (19) 23:12 25:6

25:22 26:16,20 31:11 40:19 44:15 46:23 50:19 59:11 59:12 65:11 77:2,3 77:12,13 79:4 98:21

named (1) 76:7 names (10) 8:2 25:3

28:25 43:10 50:8 78:23 82:22 83:16 83:20 90:17

Naturally (1) 111:22 Nazia (1) 71:14 near (2) 22:8 58:5 necessarily (1) 37:2 necessary (5) 10:21

10:24 65:1 102:2 103:7

need (38) 5:1 7:19,20 7:24 8:2,3,18 9:22 9:25 10:10,12,18 10:25 11:4 29:2,11 30:15 42:23 44:6 44:16 46:10 48:3 48:10 51:18,23,23 54:24 55:4 61:2,6 82:18 97:12 110:20 119:12,25 120:8,24 126:10

needed (6) 5:13 26:7 26:10 53:25,25 72:5

needs (8) 11:1 26:3 27:7 38:18 42:22

44:1 48:17 99:18 negative (1) 102:8 negotiate (3) 17:4

104:12 112:4

negotiation (2)

107:15 108:7 negotiations (7) 12:21

16:10,12 19:10 108:8 110:13,20

networks (2) 40:21,23 never (10) 21:24

23:12 34:25 48:25 59:13 79:9 97:6 113:7 114:13 116:10

nevertheless (4) 19:6 32:8 36:6 109:12

Nevskaya (12) 41:18 46:24 47:13 50:3 56:6,6,10 58:11 62:21 63:14 83:9 83:15

Nevski (3) 58:6,10,15 new (6) 3:9 48:21

85:19 86:2,5 89:20 news (1) 120:7 newspaper (2) 94:19

95:5

newspapers (2) 61:12 94:24

nice (2) 18:24 55:2 nights (1) 114:1 ninth (2) 70:15 71:4 nominal (6) 11:15

20:1,15 23:16 65:20 77:15 nominally (1) 66:3 nominee (5) 11:14

62:14 66:5,11,21 non (1) 64:4 non-compliance (1)

101:8

nonsense (1) 103:18 normal (2) 87:11

106:11 notable (1) 20:7 notice (2) 11:6 38:4 novelty (1) 88:1 November (4) 20:11

20:25 21:4 29:13 number (30) 1:19 2:7

2:20 3:7 4:22 5:12 8:17,17 44:17 56:20 57:13,24 62:18 63:13 65:8 84:10,18 85:15 86:22 88:17 93:22 97:6,8 98:16,18 110:5,9 115:7,9,10

numbers (1) 112:21

O

object (1) 15:19 objection (7) 2:3,5,10
4:19,21,23 9:20 objective (5) 5:19

13:24 19:6 41:21 106:19

objectives (1) 87:21 obligations (9) 17:10 18:19,22 101:23 102:12 103:12 106:25 110:2

118:25 observe (1) 120:11

obtain (5) 8:4,18 9:13 9:22 10:13

obtainable (2) 34:7,14

Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900

134

March 7, 2016 Day 23 Redacted

obtained (1) 96:4 obtaining (3) 94:14 107:12 118:4 obvious (2) 49:14

74:5

obviously (10) 10:25 34:19 35:6 50:14 53:13,18 54:6,7 76:20 88:22

occasion (2) 25:24

110:14

occasions (2) 110:6,17 occurred (1) 35:16 occurrence (1) 72:2 October (1) 101:7 offer (4) 53:5 72:9

107:15 115:5 offered (2) 41:11

110:13 offering (2) 41:12

115:21

office (24) 8:9 31:17 40:5 56:18,22 57:12,19 58:17 62:24,25 63:17 86:5,22 87:4 91:21 95:22,23,25 97:17 103:24,25 104:2,22 113:3

officer (1) 82:5 offices (2) 57:6,9 official (5) 28:15 35:8

36:5,10 87:3 officials (3) 85:14 90:2

92:7

offset (1) 104:14 offshore (3) 49:5 68:3

70:22

oh (2) 25:8 55:19 oil (3) 61:14,18 96:7 okay (5) 9:13 10:11

43:12 76:24 104:14

Oksana (1) 39:11 old (3) 25:18 29:14

62:7

Olga (1) 39:13

Olimp (3) 56:19,20,20 OMG (11) 12:2 69:19 103:25 107:12

109:23 110:1 111:23 112:9 115:8 116:19 117:23

OMG’s (1) 107:17 once (6) 7:23 8:22 10:9 32:2 48:15

95:25

Onega (4) 1:25 12:14 16:17 17:8

ones (6) 9:3 15:12 40:22 61:11 79:2 111:24

ongoing (2) 6:19 48:3

OOO (4) 44:10 78:13 78:15 79:6

open (8) 9:20,21 14:9 14:9 27:21 48:13 126:8 128:7

opened (4) 12:10 48:15 99:6 118:24

openness (1) 91:13 operating (4) 11:13 42:5 82:5 104:1 operation (1) 7:6 operations (5) 23:13

87:6 88:17 103:11 106:11

operative (1) 14:10 opinion (2) 90:6,23 opinions (1) 19:22

opportunistically (2)

118:7 119:6

opportunities (3)

41:21,22 107:16 opportunity (7) 15:13 94:7,8,9 105:23

126:16,16

opposed (2) 31:25

54:16 option (1) 30:16

options (1) 107:11 oral (1) 111:23 order (11) 3:20 6:1

12:20 13:5,13 16:9 72:2 73:17 94:15 102:14 107:25

orders (1) 70:8 organise (5) 81:20

110:13 111:2,12,14 organised (1) 39:8 original (2) 57:2

117:22

originally (6) 3:6 5:20 6:2 46:2 58:13 88:6

Oslo (1) 71:15 other’s (2) 19:13

112:20 ought (1) 74:3 outcome (2) 5:17

109:22 outlined (1) 4:7 outrage (1) 106:21 outraged (1) 111:6 Overall (1) 75:21

overlooked (1) 30:10 overruns (1) 120:17 owed (1) 105:20 owes (2) 113:14,15 owned (14) 12:24

14:15 27:1,6 40:15 41:10,24 44:4 50:11 59:21 60:15 71:6 93:2 106:17

owner (5) 42:25 44:8 75:18 77:16 91:22

owners (1) 72:18 ownership (3) 39:1 42:25 62:19

owning (1) 64:6 owns (4) 3:23 18:23

69:15 76:14

P

page (52) 1:11 16:5 17:14 18:10 22:5,8 22:21,24 23:22,23 24:20,24 25:12,21 29:9,12,23 31:8,9 38:22,25 39:3,3,15 39:16 42:17,19 43:7,21 46:20 49:4 50:6,23,25 51:1,7 52:11,17 56:9 58:3 58:19,21,25 60:4,5 64:22 65:17 70:9 70:19 89:8 116:7 128:2
pages (6) 29:7 30:14 42:17 49:1 51:10 52:11

paid (5) 21:18 35:2 85:23 103:2 117:9

paragraph (16) 61:13 62:5,16 64:16 82:17,18,19 89:13 90:5 109:3,7,8 115:1,2 116:6,23

parcelling (1) 126:14

pardon (1) 22:3 periods (2) 55:2 60:6 plus (3) 11:3 96:4 56:10 85:23
parent (2) 80:6,8 permission (1) 78:3 117:6 price (2) 18:20 54:14
Paribas (2) 108:9,23 permissions (1) 94:16 pm (8) 55:11,25 56:2 prices (1) 96:7
part (30) 2:12,14,19 permit (2) 8:5 10:7 95:8,10 119:24 Prichaly (2) 16:18 17:3
4:18,18 12:14 persistently (1) 120:1 127:6 primary (1) 103:25
14:10,14 16:22 110:23 Po (2) 57:1 71:4 principal (1) 56:22
19:20 20:7 23:22 person (11) 49:6 point (29) 5:13 8:18 principle (3) 9:9
28:4 34:2,3 37:6 63:15 64:7 73:2 9:19 14:14 15:16 102:11 108:14
41:5,8,15 46:11 75:21,22,25 76:3 15:16 18:15 19:3 principles (1) 63:20
47:21 66:18 69:8 76:13,14 85:25 33:25 34:5,22,23 printout (1) 31:24
79:23 82:7,12 person’s (1) 105:15 35:6 44:3,8,23 45:2 prior (8) 23:1,4 25:20
87:17 93:2 117:16 personal (18) 13:16 48:19 49:12,15 37:14 49:10,15
126:15 17:7,10,18,23,23 52:3 53:18 73:25 52:23 120:14
participants (4) 9:24 17:24 18:6,14,18 84:3 92:3 101:22 private (4) 120:22
86:11,17 102:12 19:2 22:17 23:9,14 107:23 118:12 121:4,5 128:6
participation (4) 14:7 31:19 99:17 104:6 119:2 probability (3) 94:2
24:15 51:3,12 115:12 pointed (1) 35:7 118:12,15
particular (8) 6:11,18 personally (6) 21:1 pointedly (1) 10:6 probably (1) 120:7
15:17 20:15 31:9 105:16,17,23 106:5 poor (1) 89:11 problem (12) 15:1
68:12 113:19 106:6 popular (2) 61:11,11 33:13 48:15 71:22
115:13 persons (3) 65:2 portion (1) 90:18 91:14,18,19 102:13
particularly (4) 28:2 104:11 107:2 portions (1) 90:21 113:10,11,11,16
34:8 72:11 92:12 Peterburg (2) 25:4 portray (1) 119:8 problems (3) 97:14
parties (4) 10:15 30:8 Ports (1) 69:19 101:15 126:17
107:1,14 120:18 Peterburga (1) 61:17 position (18) 9:6 66:7 proceedings (7) 4:2
partner (4) 20:17,23 Petersburg (57) 1:18 79:17 80:10 81:19 5:10 9:15 10:7 38:3
22:16 83:3 3:11 4:1 6:8 25:10 85:10,14 86:25 70:8 110:11
partners (1) 46:15 26:11 27:2,14,25 88:14 91:3 96:17 processes (1) 116:25
parts (1) 16:17 30:6,24 33:3,5,20 107:3 110:19 113:8 procure (1) 109:23
party (3) 7:21 17:2 38:9 39:24 40:4,9 113:13 116:1,4 produce (1) 2:3
91:15 40:15 41:4,23 42:6 117:21 produced (1) 10:21
Parusa (2) 39:9,11 42:8 43:8 47:22 positions (1) 81:3 productions (1) 92:5
pass (2) 47:16 75:3 53:12 57:7,10,12 possibilities (1) 35:15 professional (1) 67:10
passage (1) 99:16 57:14,17,19 58:7 possibility (1) 9:6 proffer (1) 40:6
passed (2) 51:14 65:19 66:4,13,13 possible (5) 3:1 16:24 profile (4) 22:7 50:22
86:17 67:3 72:21 77:20 23:23 50:16 126:17 56:8 90:17
password (1) 37:14 77:25 81:6,18,22 possibly (11) 20:8 profit (2) 106:8,8
pause (9) 10:18 15:2 81:24,25 84:1 22:13,16 24:18 profitable (1) 96:9
30:11 64:14 74:8 92:22 96:11 98:15 27:10 43:18 59:16 prognosticated (2)
74:13 109:7 115:4 98:17 99:6,8,8 59:18 76:14 101:2 118:16,24
116:24 101:14 108:23 103:16 project (35) 4:3,6,10
pay (7) 21:8 25:24 110:12 powerful (1) 89:14 4:10,13,20,22 5:4,8
38:4 91:1 94:15 Philip (1) 70:11 practical (3) 13:24 5:12,13,16,22 6:1,5
101:16 104:14 phone (3) 63:13 110:8 75:18 85:11 6:12,18,24 8:1,14
paying (4) 105:22 112:21 practice (1) 66:18 9:21,25 11:20
106:11 109:20 picture (1) 73:11 Pravdy (1) 104:3 20:18 41:1,2 43:3
117:6 piece (2) 16:24 117:19 pre-existing (2) 119:3 44:14 46:1,4 48:3
payment (1) 7:6 pioneers (1) 99:5 119:9 53:3,8 67:7,8
payments (3) 21:9 place (8) 4:4 8:2 9:24 precisely (2) 3:13 13:6 projects (21) 6:13,19
103:3,19 86:12 116:1 120:3 prefer (1) 84:7 7:19 19:15,16,23
peace (1) 116:2 120:4,5 preliminary (1) 126:23 19:24 21:10,14
peculiarity (1) 7:5 plan (8) 54:22 117:22 prepared (8) 5:2 9:9 40:17 42:16 45:17
people (41) 3:10,18 117:22,24 118:2,11 10:4,7 15:15 66:15 45:20,20,21,25
4:2 5:3,7,11 6:14 119:3,9 75:7 111:8 47:21 53:19 54:12
7:18,19 8:1 9:16 plane (1) 11:6 presence (1) 79:1 67:10 84:12
34:19 35:9 67:14 planned (2) 118:6,13 present (10) 22:25 prominent (1) 88:22
75:24 82:9,14,23 planning (1) 41:15 25:14 41:19 58:21 properly (1) 52:17
83:1,14,20 84:4,10 plate (1) 11:3 73:11,16 78:23 property (4) 1:17,19
84:12,19 92:21 play (3) 55:17 88:15 111:11 112:6 3:7 18:16
94:21 98:11,13,14 116:18 118:11 proportion (1) 93:24
98:16 99:15,21 played (2) 88:11 presented (1) 73:12 proposes (1) 113:10
101:23 105:19 96:16 preserve (2) 105:5,23 proposition (1) 29:17
107:24 110:17 player (1) 88:23 president (1) 81:17 prosecutor’s (1)
113:25 114:2 players (3) 91:6,9,10 Presidential (1) 90:14 104:22
115:14 121:2 please (16) 1:4,10 press (5) 18:25 83:21 Prospekt (2) 58:6,15
perform (5) 101:22 10:9 15:2 30:22 83:22,25 93:9 protect (1) 89:25
103:12 104:23 50:22 56:3 63:6,7 presumably (2) 26:22 provide (5) 2:21 5:14
105:25 110:2 68:20 95:11 112:4 111:4 6:1 7:7 99:13
performing (3) 102:11 114:25 115:1 presumed (2) 16:20 provided (4) 62:18
106:25 118:25 120:11 121:4 45:16 91:11 97:6 106:2
period (27) 6:9,12,21 pledge (2) 17:8,11 presuming (1) 111:10 providing (5) 2:16 3:9
11:14 13:23 15:24 pledgee (1) 18:3 presupposes (1) 88:3 89:19 91:5
19:5,17 20:19 pledger (1) 18:3 119:4 provision (1) 2:13
22:19 42:14 43:1 plot (13) 12:14,16,24 pretty (2) 35:3 49:14 provisional (1) 126:13
60:15 80:15,20 13:2,11,21,25 prevented (1) 109:12 public (7) 27:20 28:4
86:5,21 88:3 91:21 14:14,17 15:20 previous (6) 14:23 33:7 63:21 64:3,4
98:8 99:10 110:21 16:20,24,25 15:9 33:19 51:24 91:16
110:24 111:1,21 plots (7) 12:9,18,19 58:6 70:19 publication (2) 61:10
112:15 113:4 13:4 14:8 16:8,9 previously (3) 31:7 89:5

publicly (1) 27:20 published (2) 61:8
89:4

punish (1) 49:21 purchasers (1) 57:2 purely (6) 4:22 6:4

23:16 69:16 72:7 72:11

purpose (7) 4:14 12:1 14:1 18:1,7 89:24 120:23

purposes (3) 13:24 71:16 75:18 pursuant (1) 4:12

pursue (1) 94:8 pursued (1) 92:20 pursuit (1) 94:9 put (9) 27:17 35:20

48:6 72:22 94:11 100:2 102:16 112:25 113:5

putting (1) 109:15 puzzled (1) 17:14

Q

QC (1) 70:11 qualification (1) 40:7 qualifications (6)

100:14 102:2,17 103:8,17 105:15

quality (1) 89:11 quarterly (1) 66:15 query (1) 91:25 question (10) 10:3

15:5 18:9,13 32:21 37:12 49:23 66:5 109:15 126:14

questioning (3) 92:1

92:11,17 questions (5) 10:22

10:23 11:10 66:8 119:23

quick (1) 82:16 quicker (2) 29:7

116:23 quickly (1) 93:14

quite (32) 11:8 13:10 15:14,24 18:9,10 18:12 22:17 25:15 33:9 34:15 37:19 40:15 42:22 44:4 48:9,20,23 70:24 72:2,3 74:1 85:15 86:22 87:5 94:25 99:1 102:22 107:24 112:18 113:7,24

quote (1) 69:11

R

raise (5) 53:19 107:23 108:15 118:20 120:21

raised (2) 5:16 7:9 raising (1) 96:14 rate (2) 34:5 54:6 rationale (3) 14:4 91:8

116:4

Razvitie (2) 23:17

61:17

RBK (2) 61:9 62:4

RBS (1) 120:17 re-examination (1)

119:22 reached (1) 4:9

read (12) 52:17 57:21 57:23 61:22,25 63:3 96:18 109:6,7 112:18,19 116:23

Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900

135

March 7, 2016 Day 23 Redacted

readily (1) 34:13 108:21 60:18,21 62:10,14 revoking (2) 87:10
reading (1) 110:7 refinancing (3) 107:12 63:17 65:8 67:8,10 101:20
real (2) 34:16 106:17 109:18,24 67:14,14 68:17,19 revolved (1) 106:10
really (19) 6:5 28:2 reflection (1) 61:5 69:7,10,16 70:25 Richard (1) 70:13
29:9 53:5 54:24 reform (1) 87:22 71:11,12,24 72:6 riddled (1) 33:10
63:11 64:7 67:25 reforms (1) 85:16 73:5,19 77:22 82:6 right (61) 8:5 12:7
69:11 70:1 90:5 refurbish/renovate … 84:8,14 102:4 15:11 20:22 22:7
91:25 94:13,22 1:19 105:12,14 106:8,16 28:22 30:1,17 32:1
96:16 117:10,13,14 refurbishment (2) 117:24 34:13 35:10,23
119:18 3:21 5:12 Renord’s (2) 44:2 49:9 36:3,12,19 41:3
reason (16) 11:24 regard (17) 18:19 19:5 Renord-Invest (3) 42:7 43:21 46:12
13:6 20:18 33:1 19:10,24 21:16 43:12,18 62:25 49:17,19 54:3
66:22 72:15,17 23:10 24:4,5 40:13 renovate (1) 3:7 55:24 61:1,19,24
73:5,10 97:23 40:18 41:1,22 76:9 renovating (1) 3:9 64:8,9 65:16,21,25
98:24 103:11 100:10 102:9 104:9 renovation (3) 3:16 66:1,1 69:17 71:7
113:22 114:15 111:6 3:21 5:12 71:20 74:21,24
115:23,25 regarded (1) 35:7 repaid (1) 15:23 75:15 76:16 77:9
reasons (3) 40:18 Region (1) 85:4 repay (2) 106:19 79:14 80:19 81:5,5
91:25 98:19 regional (1) 28:19 110:2 83:23 85:1 88:2,9
recall (48) 3:8 14:11 register (7) 24:3,6,9 repeat (1) 15:5 94:6,18 97:5 98:2,9
20:5 38:15,18 28:3 31:10 32:14 repeated (1) 98:19 100:7,23 101:25
39:22,24 40:1 42:4 36:15 repeatedly (1) 112:16 116:5,15 120:6
42:12,15,24 43:5 registered (5) 23:11 report (4) 66:15 127:3
45:7,12 46:1,8,8,9 57:4 58:11,14 114:21 115:23 rights (1) 17:6
48:6,9 49:9 50:4 75:22 119:11 rigorously (2) 86:6
52:6 53:3 57:4,11 regulating (1) 87:20 represent (3) 69:23 87:14
57:16 59:6 68:13 regulation (1) 85:16 73:14,24 ring (1) 50:18
70:1 74:15 81:12 regulator (3) 87:8 represented (13) 71:3 rise (1) 57:8
81:19 83:17,18,20 101:14,21 71:9,10,11,13,13 risk (1) 9:25
85:17,18,24 87:1 regulatory (1) 87:12 71:14,15,16 73:6,8 risks (3) 12:18 16:7
87:16 101:9,10,17 rehabilitate (1) 5:25 73:9 74:3 54:19
104:2 105:7 112:14 reinsurance (1) representing (1) river (1) 45:10
recap (1) 11:12 104:20 70:21 Robert (1) 70:14
receive (1) 33:8 reiterate (2) 2:18 27:8 republic (1) 88:9 ROK (4) 13:3,5 16:18
received (7) 29:20 related (2) 4:22 38:3 republics (2) 88:8 17:2
31:4,7,14,17 72:2 relation (7) 2:4,25 96:13 role (7) 14:10,12
73:15 4:20 6:24 8:12 20:2 request (2) 110:9 85:15 88:11,15
recital (1) 70:10 92:6 111:17 96:16 116:19
recollect (3) 46:10 relationship (3) 53:1,2 required (7) 3:17,17 roles (1) 118:2
80:25 108:13 112:1 3:20 5:16 10:11 Rosstat (2) 32:18 50:8
recollection (7) 4:16 relationships (1) 41:7 100:14 Rostekhnadzor (6)
39:21 46:6 49:25 99:18 requirement (2) 14:12 101:13 102:7
50:1 70:5 80:20 release (1) 18:1 87:23 104:22 105:6 106:9
recollections (2) 60:7 relevance (8) 32:5 requirements (7) 106:13
114:8 91:25 92:25 93:5 100:9,10,17 101:3 RUB (21) 1:24 9:23
recommend (2) 23:25 95:1,3,5 126:11 101:6,9 102:10 13:12,17,18,22
24:8 relevant (6) 6:9 8:10 requisite (2) 102:17 17:19,20 18:22,23
recommendation (2) 9:11 10:6 28:2 37:4 103:8 21:17,21 25:25
86:9,9 reliable (4) 27:8 28:12 research (2) 84:16 26:7 27:5 49:16
recommended (2) 36:4 94:21 90:19 50:2,11 54:7,14
26:9 27:13 rely (1) 94:10 reshape (1) 54:22 61:15
Reconstruction (5) remained (1) 91:22 residential (2) 6:4,4 rule (1) 120:11
81:6,18,23 82:1 remaining (1) 21:20 residing (1) 3:25 rules (1) 87:14
98:17 remarkable (2) 93:22 resolve (2) 91:7 run (4) 31:16 32:8
record (7) 26:8 36:10 93:24 115:15 55:7 102:2
52:1 62:8 94:1 remarks (1) 37:2 respect (15) 6:11,17 running (1) 8:25
111:19 112:6 remember (11) 11:9 6:20 8:19 9:2,18 Russia (29) 13:13
recorded (3) 25:16 18:17 20:6 39:22 13:15,20 14:7 15:20 33:15 34:20
51:4 77:6 48:7,8 54:4 81:16 17:17 31:2 33:6 40:23 48:12 50:9
records (3) 34:17 82:23 94:19 101:16 52:25 53:20 90:21 50:10,14 61:10
111:22 112:7 Remind (1) 42:10 respectful (1) 92:16 63:22 66:6 72:3
redacted (7) 8:2 121:6 remit (1) 102:4 responsible (3) 72:8 74:2 76:1,10 79:2
122:1 123:1 124:1 remote-control (1) 79:16,18 82:10 85:17,21,22
125:1 126:1 119:10 rest (2) 43:19 75:2 88:16,19 91:2,15
redactions (1) 74:15 renamed (1) 26:13 restructure (1) 97:22 91:19 99:5,11
refashion (1) 55:4 Renord (90) 4:5,6,8,15 restructuring (1) 115:14
reference (11) 2:6,23 4:19,24 5:18 11:13 79:21 Russian (40) 1:11
30:23,25 31:7 61:3 11:14 12:3,3,6,6 result (1) 115:18 12:11 15:2 17:12
61:14 63:9 79:7,7 14:8 19:18,21,24 resuscitate (1) 5:25 22:15 26:16 28:15
82:21 20:2,13,25 21:23 retention (1) 21:13 32:6,18 44:11 61:9
references (2) 78:12 21:25 23:2,3,4,17 return (2) 104:16 61:20,22 63:5
78:12 43:13,23 44:3,20 106:20 64:22 65:7,17
referred (2) 1:12 44:24 45:14,18,20 returned (1) 104:17 66:11 67:17 72:4
20:20 45:21,24 46:4,7,7 review (2) 37:24,25 74:9,22,25 75:5,15
referring (7) 6:21 8:11 46:10 47:1,6,9,14 revise (1) 44:20 75:16 82:19,19
9:4 16:13 53:15 47:25 49:6 50:21 revocation (1) 102:18 85:11 86:14 88:8
61:23 88:13 51:17 53:6,16,22 revoked (7) 86:23 88:18 89:5,8 96:18
refers (1) 32:17 53:24 56:22,23 87:13 98:18,23 96:25 100:9 109:4
refinance (2) 107:18 58:23 60:10,14,16 103:7,19 105:8 114:24 116:2

Rynok (1) 58:22

S

salaries (4) 103:1 104:15 105:22 117:6

salary (1) 105:20 sale (3) 12:23 14:9

18:20

Samuel (1) 70:13

Sankt (3) 25:4 30:8

61:17

Sankt-Peterburga (1)

23:17 saturate (1) 41:21

Savelyev (4) 112:17 112:23 116:20 117:13

saw (6) 37:21,22 38:2 51:24 94:6 111:15 saying (14) 19:8 25:19

33:15 94:5 103:6 104:14 106:4 111:17 112:12 115:14 116:2 117:12 119:17 120:3

says (12) 17:12 29:19 30:1 31:12 32:13 36:6 52:15 58:2 65:19 66:21 68:23 90:5

Sberbank (1) 84:13

Scan (9) 101:15

102:11,19,22 103:23,25 105:11 106:18,18

Scan’s (2) 102:18

106:20

Scandinavia (11)

12:10,19,19,24 16:8,9,21 101:7,18 106:3 118:5

scare (1) 117:8 scenario (1) 10:22 sceptical (1) 22:14 schedule (2) 11:2,4 scheme (2) 4:7 95:17 school (1) 99:3 scratch (1) 86:2 screen (17) 1:10 23:23

39:4 52:13 61:1,7,7 64:21 68:20,21 70:6,7,19 74:10 88:24 89:9,10

screens (1) 61:6 script (1) 61:21 scroll (25) 22:8,21

25:12 28:7 29:2,24 38:24 39:2 43:21 46:20 50:23,25 51:10 52:8 56:9,14 58:3,19,25 59:25 63:6 65:17 70:9 89:8 116:5

scrolled (2) 23:21 64:23

Scythian (2) 26:18,20 Scythians (1) 26:16 search (3) 8:8,25 10:5 second (12) 41:5 43:7 49:17 50:5 52:16 52:17 61:13 65:25 70:12 77:3 87:8

101:20 secondly (2) 92:4

103:13 seconds (1) 29:9

secret (1) 34:11 secretary (2) 83:22,25 section (1) 22:9 sector (3) 40:24 79:19

80:12

securities (23) 66:11 66:20 78:9,13,19 79:11,13 80:1,5,21 80:24 82:3 87:9,23 88:5,10 95:16,18 95:22,23 97:4,6,17

security (4) 78:10,15 78:25 114:19

see (104) 2:8 14:5 22:9,22,25 23:1,4,7 24:15 26:24,25,25 27:19 28:3 29:18 29:21,22 30:25 31:9 34:9 35:5 38:2 38:2,4,7 39:1,6,9 39:12,13 42:18,19 43:8,22,25 44:10 46:19,21 47:7,11 49:4,10,11,24 50:6 50:9,10,24 51:3,11 51:15 52:19 54:20 55:3 56:15 58:6,21 59:1 60:6 61:13,15 61:16 62:6,9 63:4 64:23 65:6,8,11,16 65:18,21 66:3,23 70:17,18,20 74:11 75:8,9,13 76:21,24 77:2,2,3,5,11,13 78:19 89:16,17 90:20 92:2 96:19 103:18 109:8 111:13 115:4 116:16 117:8,20 126:16,24

seeing (1) 126:19 seemingly (1) 92:6 seen (1) 23:12 self-governing (1)

86:10

sell (7) 13:5 14:8 15:20 16:1,17,20 48:5

selling (4) 16:15 48:2 97:18,19

sense (6) 6:6 25:15 47:11 75:17 94:4 117:10

sent (4) 104:21 110:9 111:16 112:11

sentence (1) 5:5 separate (7) 16:20

41:23 47:2,5 84:15 99:17,20

September (5) 2:24 20:10 68:14,22 114:11

September/October…

105:7

Sergei (2) 68:6 69:4 series (1) 14:1 serious (1) 91:14 service (4) 20:23 41:6

41:8 88:4 services (4) 41:7,13

89:19 107:16 set (3) 55:16 100:17

112:22

settle (1) 113:16 settlement (1) 107:11 settlements (1) 21:12 seven (1) 112:13 seventh (1) 77:5

Sevzapalians (12)

24:17 51:8,14,22 52:2,5,24 53:1,6 68:2 70:23 71:1

shape (1) 126:24 share (12) 20:16

24:15 27:3,5 48:5 49:16 51:3,4,12 62:23 65:24 66:14

shared (3) 62:25 63:17 86:18

shareholder (28) 20:1 20:10,15 22:25 23:14 24:16 30:6,7 39:10,11,14,17,17 42:21 43:2 45:8 49:7 53:14 62:6 63:16 66:6,11 67:4 67:6 70:23 71:1 76:2 87:3

shareholders (26) 5:2 22:23 25:14,14 26:21,24 27:1,6 29:1 32:12 33:7,20 34:12 36:7,10 39:7 43:1,7 49:3 58:21 59:24 66:16,17 67:2 75:23 77:16

shareholding (9) 21:1 25:17 51:13 65:23 65:24 66:1 68:1 76:5,18

shares (17) 4:8 11:13 20:13 42:9 51:16 51:21 52:2,5,16,20 60:6 62:13 65:22 66:3 67:2 87:2 97:13

shell (3) 22:17 26:2 48:18

shift (1) 91:8

shop (2) 67:23 68:25 shop’ (1) 69:11 short (6) 11:6 30:20

48:14 74:20 95:9 120:13

shorten (2) 54:21 55:7 shortly (1) 92:19 show (4) 9:20 39:7

77:15 93:25 showed (5) 13:14

17:16 36:10 52:21 52:24

showing (2) 27:9 52:7 shown (2) 51:19,25 shows (1) 52:1

side (1) 109:16 sight (1) 14:20 similar (2) 7:1 44:15 simple (1) 113:7 simply (13) 9:5 15:13

23:11 29:7 37:21 46:8 52:5,6 79:10 95:13 103:15 113:6 113:18

single (5) 13:25 66:14 69:9 82:10 108:24

Sinopskaya (2) 58:8

58:16

siphoned (1) 118:21 sir (17) 18:5,9,12,18 27:9 38:2 49:23

57:23 61:23 76:9 78:15 80:15,22 103:6 109:8 110:25 118:15

sit (3) 107:14 119:19 119:21

sitting (1) 9:19 situation (15) 39:23

Opus 2 International transcripts@opus2.com
Official Court Reporters +44 (0)20 3008 5900

136
March 7, 2016 Day 23 Redacted

45:23 48:4,9,24 Solo (8) 12:23 27:2 stage (5) 4:10 5:17 submission (2) 35:19 39:6,15 49:24 50:5 46:14,16 47:2,5,18 78:11 105:21

63:12 73:23 94:22 30:7 34:11 43:25 8:23 61:3 107:17 92:16 50:10 52:1,16 60:3 49:5,14 50:8 51:4 totality (1) 16:25
96:4,13 102:15,22 44:2,3,7 stakeholder (1) 76:2 subsequent (1) 114:5 74:13 75:7 77:14 51:16,17 52:2 totally (4) 9:15,20,22
108:2 115:11,20 solution (3) 76:12 stakes (1) 75:24 subsequently (8) 4:9 107:15 108:7 53:16,20,22 59:7 63:24
situations (1) 45:24 114:2,25 stand (1) 32:13 12:18 13:1 16:7,22 take (11) 10:18 12:8 60:15 61:2,5 64:9 touch (2) 112:24
Sixteenth (1) 70:15 solutions (1) 113:10 standalone (4) 12:14 21:14 40:16 45:15 19:23,24 31:9 64:15 65:23 66:7,9 115:10
sixth (1) 77:9 soon (1) 97:1 27:23,23 41:11 subsidiary (1) 60:23 45:21 48:13 113:15 66:18 68:9 69:4,12 town (1) 1:21
SK58 (1) 20:18 sorry (23) 5:7 12:4 standards (1) 86:18 substance (1) 28:10 116:1 126:15,16 70:21 72:21 73:13 track (1) 26:8
SKIF (78) 2:5 4:18,21 14:25,25 15:4 stands (2) 25:10 44:10 substantial (1) 18:15 taken (9) 4:4 9:24 74:10,12 76:10,15 trade (1) 48:5
4:24 5:21 6:8 7:4 17:22 31:22 55:12 Star (9) 1:18 3:5,8,13 substitution (1) 34:5 10:20 11:16 47:20 80:22 81:1,2,14 trading (2) 40:5 70:21
7:10 8:20 9:1,17 56:14 57:7 61:20 4:9,11,11 5:3 6:2 successful (3) 12:17 57:15 78:20 103:14 83:1,3,8,19,21 trailblazer (1) 88:11
10:12 19:25 20:10 61:21 74:7 82:20 start (4) 54:17 57:7 84:21 88:3 104:7 86:25 87:11 88:18 training (1) 11:2
20:17,24 21:1,3,11 91:24 98:5,5 100:2 115:3 116:22 sued (1) 73:3 takeovers (1) 79:17 89:1 95:7,20 Trak (14) 3:4,8,13,23
21:15,19 23:12 108:10 116:13,22 started (8) 8:1 20:17 suffer (4) 104:10 takes (1) 48:19 101:20 102:21 4:14 5:3 6:2 44:10
24:4,6,20,21,25 118:15 120:10 20:24 40:8 53:13 106:14,14 107:1 talk (3) 7:19 47:18 103:22 105:7 107:9 44:13,16,17,19,23
25:20 26:13,14 sort (3) 35:20 86:10 91:4 97:14 116:12 sufficient (1) 35:19 111:18 108:3,18 110:4 44:25
27:21 28:23 29:1 116:5 starting (8) 3:6 14:13 suggest (9) 32:22 talked (1) 106:6 111:5 114:5 116:22 trample (1) 93:17
31:2,12,13 32:15 sound (1) 100:23 16:6 17:15 37:14 33:19 37:3 38:22 talking (4) 8:6 33:15 119:11,12,14 120:4 transaction (5) 9:15
33:7 45:16,25 46:2 sounds (1) 108:25 89:13 103:1 120:15 52:3 93:21 105:9 40:16 47:21 120:14 126:15 13:7 27:13 44:23
47:12,25 49:14 source (18) 14:22 state (6) 32:14 55:17 109:21 114:12 tall (1) 13:12 thinking (1) 111:13 54:9
50:22 51:4,16 52:7 15:7 27:8,21 28:13 85:13,25 86:25 suggested (4) 89:18 task (2) 5:21 13:4 third (7) 7:21 10:14 transactions (7) 14:1
52:9,15 53:13,18 32:13 34:1,5 35:1,8 87:3 90:4 92:24 94:11 Tatyana (1) 68:24 22:10 56:16 70:14 15:15 21:16 46:11
58:7,8,13 60:6,18 35:18 36:5,5 50:7 statement (15) 10:16 suggesting (5) 34:6,16 tax (2) 29:16 31:17 92:14 107:1 50:2 54:8 86:13
66:23 67:1,4,5,6,9 67:24 89:14,16,18 20:9 27:18 33:2,17 37:1 76:4 119:16 team (6) 73:6 82:7,12 thirdly (1) 36:8 transcripts (4) 37:24
69:7,17,23 71:13 sourced (1) 34:14 57:22 65:13 82:17 suggestion (1) 93:6 83:19,20 84:15 Thirteenth (1) 70:15 37:25 38:4,5
72:5 73:9 76:21,22 spa (2) 53:11,21 101:19 102:3 104:9 suggests (5) 34:25 teams (3) 72:23 74:4 thought (1) 6:3 transferred (12) 45:20
76:25 77:16,22 SPARK (32) 22:7 23:25 109:2 110:4 112:18 54:4 59:8 77:14 74:5 threat (1) 92:15 46:3,6 50:3 51:17
83:4 84:8,14 24:1,2,4,10,14,20 114:23 89:23 telecoms (1) 40:24 threatening (2) 117:4 53:4,22 54:1,3,5
117:23 27:8 29:16,20 31:5 states (1) 35:11 summary (2) 90:3 telephone (1) 62:18 117:12 60:20 68:2
SKIF’s (9) 6:23 7:1,15 31:6,15,15 32:1 statistics (1) 32:18 107:13 tell (3) 40:2 43:14 three (7) 29:8 31:1,2 transferring (1) 48:2
8:9 9:10 10:5 51:20 34:7,20 35:4,10,17 status (2) 25:3 97:10 summer (1) 102:23 69:5 51:10 97:8 105:18 transfers (2) 12:2 96:9
51:20 77:19 36:5,6,7,11 37:4 stay (1) 107:4 support (4) 53:21 telling (2) 105:10 111:15 translated (8) 5:6
skip (1) 77:5 38:21,23 42:20 stayed (1) 92:14 73:24 90:7 117:21 109:13 ties (1) 92:9 26:18 64:24 65:2
skipped (1) 78:19 46:18 56:7 61:2 stealing (1) 103:23 supporting (1) 7:7 tends (1) 31:6 tight (1) 92:21 78:8,20 92:22
Sklyarevsky (48) 1:6,8 speak (11) 7:20 8:14 step (1) 118:6 suppose (4) 28:22 tens (1) 86:19 time (69) 5:13 6:9,13 100:5
1:12 14:22 15:7 10:9 15:14 19:13 steps (1) 113:16 54:19 65:7 76:20 term (5) 67:25 75:17 6:13,21 8:18 9:19 translation (9) 20:20
24:14 28:13 29:6 41:5 60:18 75:15 stock (7) 86:12,18 supposed (1) 63:15 76:11,11 84:8 11:15 12:15 14:14 28:9 64:20,25 65:6
29:10,14,22 30:4 103:9 110:15 111:2 91:11 97:10 99:6,8 supposing (2) 59:14 Terminal (7) 1:25 14:16 19:3,17 78:16 89:1,2,12
30:13,15,23 32:19 speaking (7) 2:5 4:8 99:9 94:5 12:15 16:18 17:8 20:19 22:19 25:2 transpired (1) 12:11
35:7 36:3 37:1 4:21 12:5 52:18 stolen (4) 103:4,5,24 suppositions (1) 68:2 69:2 108:17 26:1 27:4 31:4,13 trial (3) 37:8 126:15
52:14 56:5 68:24 53:17 120:11 104:20 35:12 terminology (1) 76:10 34:14 38:12 41:14 126:25
69:17 71:17 72:15 special (1) 4:14 stop (7) 29:10,11 79:6 sure (25) 3:20,24 5:19 terms (7) 10:16,16 42:9,14,25 44:3,8 tribe (1) 26:17
75:7 76:4 77:14 speciality (1) 40:21 118:25 119:24 6:22 7:15,20 8:20 53:8 64:2 85:12 45:2 48:11,19 tried (5) 46:15 59:16
89:16 91:20 95:12 specific (3) 40:25 120:2,3 9:1,17 10:13 14:8 100:15 114:5 49:15 50:3 51:22 81:20 110:5,23
98:6,12 100:8 47:23 48:12 stopped (7) 37:12 22:4,17 34:15 44:4 terribly (1) 14:25 53:6,15,18 55:13 true (7) 33:22 64:18
102:16 105:9 specifying (1) 28:1 40:17 52:21 96:12 44:24 48:10 64:4 terrorism (1) 98:21 57:8 60:15 61:17 81:21 84:21 88:15
106:15 109:5 speed (2) 12:22 16:11 96:14 102:11 64:13 68:11 85:5 text (3) 61:22 63:5 62:7 65:15 67:7 90:10 105:10
111:19,25 112:3,25 speedy (1) 94:16 109:19 87:18 91:10 92:11 112:11 70:22,25 71:11 trust (3) 99:14,20,21
114:9 116:18 120:8 spend (2) 113:25 stories (1) 43:3 93:4 thank (7) 24:11 29:24 72:3,12 73:10,25 truthful (1) 107:8
120:24 121:1 128:3 114:1 story (2) 23:11 105:9 surely (1) 27:11 55:19,19,24 74:7 79:12 80:13,15 try (7) 9:10 55:8,9
sky (1) 108:25 spent (3) 1:24 12:15 strategies (1) 64:2 surprise (2) 63:19 79:12 81:4,17 88:16 64:4 110:8 112:2
slices (1) 55:3 72:3 strategy (1) 16:15 67:15 thanks (1) 15:4 92:15 99:11,16 115:15
slight (1) 22:3 sphere (1) 100:23 Street (4) 56:20 57:13 surprised (3) 63:11,18 theories (1) 117:1 100:1 101:22 trying (20) 14:4,11,13
slightly (5) 25:2 67:22 spoke (2) 69:9 83:14 57:24 104:3 112:19 theory (4) 114:6 107:23 108:12 30:4 34:17 53:19
75:16 76:24 119:20 spoken (1) 68:24 stress (1) 8:6 surprising (3) 46:5 117:2 118:12,14 109:10 111:1 62:4 63:12 72:12
slowly (1) 29:8 spot (1) 24:12 strewn (1) 104:5 67:16 88:16 thereabouts (4) 21:22 120:10,13 126:19 73:13,24 107:10
smack (1) 1:20 spotted (1) 76:20 strict (1) 85:19 suspecting (1) 117:15 38:19 119:13,21 times (7) 60:14 108:4 110:25
small (1) 61:21 spread (3) 82:15 Stroilov (36) 1:4,7,8 suspended (1) 101:8 thereof (1) 46:9 102:24 105:18,18 112:16 114:2,2
Smirnov (28) 4:15 84:19 97:24 5:6 12:5,7 15:6 Svyaz (1) 43:4 thing (7) 19:20 34:13 110:5 113:3,18 118:10,10 119:8
11:16,18,18,24 spring (3) 110:6,7 30:22 34:19 35:6 Svyaz-Bank (1) 21:10 34:21 48:12 72:1 tiny (1) 59:8 Tsennye (9) 78:8,13
12:15 13:1,9 14:11 114:11 35:22,25 36:23,25 Svyazinvest (2) 82:8 87:16 106:13 title (1) 68:11 78:15,19,24 79:6,8
15:10 16:7,16 19:8 Square (3) 78:25 54:15,19 55:7 56:3 84:11 things (11) 26:23 55:7 today (6) 9:19 55:8,22 79:9,10
19:12 58:2 59:21 83:11,17 56:5 75:1 92:18 Svyaztroiinvest (10) 55:12 91:12 94:6 92:15 119:12,24 Tuesday (1) 127:8
65:16 71:18 79:14 St (58) 1:18,20 3:11 93:5,7,15,21 94:10 38:14,16 39:16,18 94:17 99:12,13,23 told (14) 57:3,21 turned (2) 29:8 41:24
80:21,23 81:17 4:1 6:8 25:10 26:11 94:13,25 95:11 39:25 40:3,19 42:9 103:21 118:3 59:14 68:17 71:6 Twelfth (1) 70:15
82:22 98:9,11 27:2,14,25 30:6,24 119:11,18 120:4 42:20,24 think (119) 2:12 3:2 71:18,23 73:7,17 two (23) 2:20 8:17
101:11,11 102:6 33:3,5,20 38:9 126:14,18 127:2 switch (1) 15:1 3:10,12 4:16 5:6 101:21 107:9 108:5 13:4 27:2 35:14,17
Smirnov’s (3) 57:22 39:24 40:4,9,15 128:4 syndicated (1) 108:15 6:10 7:10,17 8:3,18 110:25 111:12 36:5 46:14 48:14
80:9 82:17 41:4,23 42:6,8 43:8 strong (1) 12:8 system (10) 24:8 8:23 10:9 12:15 tomorrow (3) 120:8,9 49:1 52:11 57:15
sold (21) 13:11,21 47:22 53:12 57:7 structure (4) 22:23 29:16 31:5,16 14:21 18:10 19:7 120:14 62:23 65:20,24
14:15 18:4,16 57:10,12,14,17,19 42:19 47:3 67:12 37:20,20 38:6 20:9 21:2,17 23:6 top (25) 22:9 23:22 74:24 75:12 91:25
19:21 20:25 21:5 58:7 65:19 66:4,13 structuring (2) 13:9 73:11 89:20 96:24 23:10,15,20 25:15 39:3,15 49:5 52:12 97:6 100:22 115:10
21:21 45:19 46:4,7 66:13 67:3 72:21 79:20 systems (1) 103:5 26:15,22 27:12 56:15 58:5 60:1 116:25 117:1
46:8,9 48:10 54:1,3 77:20,25 81:6,18 struggling (1) 61:22 28:18,20 29:2,8 75:8 78:7,10,11 type (2) 49:19,22
54:4,6,8 87:1 81:22,24,25 84:1 sub (9) 76:25 77:2,3 T 30:3 33:18 34:2,8 83:10 84:5 97:23
sole (1) 62:6 92:22 96:11 98:15 79:24 88:7,12 96:6 tab (4) 24:21 38:22 35:10,22,23 36:1 97:25 98:7,10,12 U
solicitors (4) 8:6,7,8 98:17 99:6,8,8 96:18 97:19 37:2,11,14 38:12 98:25 111:15,23 UK (1) 76:17
46:19 64:21
10:4 101:14 108:23 subject (3) 9:8 11:9 41:14 42:8 43:18 115:23 116:6
table (15) 32:12 39:1 Ukraine (1) 26:19
solid (1) 99:13 110:12 100:7 44:1,19 45:1,12,13 total (5) 9:21 21:17,21

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137

March 7, 2016 Day 23 Redacted

ultimately (1) 93:6 uncommercial (1)
12:3

underlying (2) 113:6 116:3

undermine (1) 93:18 understand (36) 9:6,8 10:2,19 11:8 17:9 18:9,12,13 25:8

26:3,10 36:4 37:19 40:14 44:7 52:15 59:12,16 60:10 65:13 71:21 74:1 76:17 78:3 82:2 87:12 90:6,16 91:8 99:19 100:4 105:19 112:19 114:17 115:13

understanding (5)

11:22 16:22 17:5 67:17 92:19

understood (3) 11:17 94:15 113:13

undertake (1) 74:2 unfortunately (13) 6:5

18:18 24:2 31:6 33:10 41:2 42:14 49:21 82:14 96:21 100:25 104:17 106:14

Unified (3) 24:3,6 32:14

Union (1) 85:4 unit (1) 83:13 university (2) 100:21

103:20 unknown (2) 104:8

118:21

unprofessional (1)

90:8

unqualified (1) 105:13 unquotes (1) 69:11 unusual (1) 19:12 updated (1) 25:19 upgrading (1) 3:21 Upravleniyu (2) 57:1

71:4

Upravlyayushchaya …

56:6 62:21 83:9 upside (1) 54:10 urge (1) 93:13

use (8) 11:25 19:12 32:10 48:21 54:2 54:11 61:25 86:11

usual (1) 23:11

V

Valerevna (1) 39:13 Valeria (1) 82:25 valuation (1) 5:15 value (7) 3:15 6:2

13:25 14:2,3 15:19 15:20

vanished (1) 96:12 various (20) 40:12 41:22 43:3 44:17

60:6,6,14 84:6 87:13 90:21,22 91:2,9,11,14,17 94:17 97:10,19,23

variously (2) 71:18,24 Vasiliev (5) 110:10

111:9 114:14 115:16 116:12

Veary (1) 20:16

Ved (17) 20:21,22 21:9,9,10,23 22:11 23:7,9,13 26:13,25

46:12 49:11 50:14 83:4,6

Ved’s (1) 21:16 vehicle (2) 4:15 95:13 Vekselnaya (2) 25:4

30:8

venture (1) 67:13 verified (1) 8:10 verify (2) 91:10,16 versa (1) 19:23 version (19) 1:11

25:18,19 61:20,23 63:6 65:8,17 74:10 74:14,21,22,25 75:5,5 103:8 106:7 109:4 114:24

versions (2) 75:2,6 veterans (3) 83:15 93:25 99:14 viable (2) 5:20,22 vice (2) 19:23 81:17 view (10) 11:19 15:16 22:14 36:8 90:8,9

92:12 118:12 119:3 126:13

virtually (4) 59:4,5,7 97:25

vis-a-vis (1) 14:19 vision (1) 115:11 visited (2) 113:5,17 visiting (1) 113:2 VLADIMIR (2) 1:6

128:3 voice (1) 15:1

Voloshin (1) 90:15 volumes (1) 88:20 voting (1) 65:22 VTB (1) 84:13 Vyborg (1) 53:12

W

Wales (1) 66:19 want (14) 9:5,5 28:10
36:14 48:25 60:2,3 64:13 66:9 75:4 89:12 93:17,19 119:24

wanted (7) 11:25 55:16,21 63:11 109:22 115:17 119:15

war (1) 116:3 warning (1) 126:21 wasn’t (15) 22:15

24:25 44:5 46:13 73:8,16 80:6,14 85:4,8,12 86:2,6 87:17,22

waste (1) 35:3 wasted (1) 92:16 water (2) 6:6 117:10 way (25) 4:3 15:25

17:13 23:10 32:24 35:1 37:13 39:6,8 41:17 42:13 52:4 55:10 73:12 91:7 94:14 96:17 105:3 111:3 112:22 114:3 114:6,17 119:5,8

we’re (1) 119:5 week (1) 113:3 weekend (4) 16:3

37:9 38:1 92:14 weeks (1) 48:14 weight (5) 86:8 94:25

95:3,3,5

went (8) 41:20 84:12 84:13,14,17,18

104:4 105:17 weren’t (1) 50:15 western (4) 68:2 69:2

108:16,17 whatsoever (1) 15:22 white (1) 74:16 widely (1) 89:24 willing (5) 6:23 7:14

8:5 12:13,25 wise (1) 15:24 wiser (1) 93:11 wish (1) 44:22 witness (20) 10:11

27:18 33:2 34:24 35:23 57:22 74:23 75:6 92:4,13 94:11 94:18 101:19 102:3 104:8 109:2 110:4 112:18 114:22 120:21

witness’s (2) 54:23

89:12

wonder (3) 28:15

30:12 74:19 wondering (2) 35:20

74:19 wonders (1) 35:13 word (4) 67:18,22

69:1 77:12 words (5) 5:11 13:21

89:13 95:21 117:22 work (20) 3:6 4:12

7:18 11:3 21:23 22:19 27:24 40:9 41:20 48:4,4 69:7 79:5 80:5 82:4,11 84:11 88:19 92:13 99:21

worked (18) 20:8 23:20 26:4 45:23 47:19,20 78:4 79:10,22 80:1,3 82:2 92:21 94:14 95:19,24 98:16 107:24

working (11) 8:1 11:21 24:7 82:9,23 83:15 84:4,7 97:17 100:22 117:23

works (6) 39:13 47:4 63:1,18 69:5 118:15

world (2) 116:25 117:1

wouldn’t (10) 22:18 23:8 49:20 76:9 82:11 84:13 87:16 106:7,8 111:25

wrapping (1) 35:14 writes (1) 62:17 written (4) 19:1 94:21

111:19,22

wrong (6) 3:12 28:18 30:5 33:16 37:2 91:5

wrote (2) 69:12,12

X

Y

year (7) 25:6 65:4 80:23 85:7 87:1 98:20 103:19

years (12) 24:8 26:4 27:24 33:14 40:24 62:7 70:3 80:22 86:20 99:25 112:13 112:13

years’ (1) 100:22 Yedina (1) 81:13 yesterday (1) 24:4 Youth (1) 85:4

Z

Zaporozhye (2) 26:19

45:9

Zelenov (5) 57:3 71:6

71:19,24 73:8

0

0.01 (1) 43:8

1

1 (10) 13:3,5 51:15 52:19,20,25 65:8 76:20 128:3,4

1.00 (1) 54:19

1.05 (1) 61:15

1.2 (1) 2:6

1.4 (1) 3:3

1.40 (1) 54:17

1.45 (3) 55:5,11 56:2

1.5 (1) 9:23

10 (7) 26:4 93:10,12 95:7 97:15 98:11 99:25

10-minute (1) 30:17

10,000 (7) 26:7 27:5 49:16 50:2,11 54:7 54:14

10.30 (5) 1:2 120:15 120:16 127:4,7

10.30ish (1) 127:3

100 (7) 7:11 21:3 22:25 39:10,17 49:7 50:12

11.36 (1) 30:19

11.46 (1) 30:21

12 (7) 16:5 31:3,8 40:24 82:17,18,19

12.42 (1) 55:25

120 (1) 128:5

121 (1) 128:6

126 (1) 128:7

13 (3) 17:14,15 18:10

14 (2) 30:2 31:11

15 (10) 21:6 25:16 29:21 31:11 40:24 56:21 57:11,13,24 80:22

174 (3) 58:7,10,14

18 (1) 31:3

19 (4) 16:6 38:17 39:16 42:20

1990s (5) 79:3 84:25 85:6 88:10 96:20

1995 (1) 88:18

1996 (2) 78:4 99:8

1998 (1) 81:2

1999 (2) 80:23 87:1

19th (1) 114:22

2

2 (8) 1:19 2:24 3:7 4:22 5:12 65:11 75:8 76:21

20 (3) 24:8 65:22 92:9

2000 (3) 80:24 85:7 87:1

2000s (4) 79:3 84:22 88:13 96:20

2002/2003 (1) 81:2

2003 (7) 24:25 25:9 27:1 31:11,11,13 89:18

2004 (2) 44:1 88:18
2004/2005 (1) 81:8
2005 (4) 26:4 82:13
97:21 98:3
2005/2006 (1) 20:24
2006 (15) 25:23 27:22
30:2 33:6 40:8,16 42:1,10,12 50:10 78:4 82:13 98:3,5,7

2006/2007 (1) 53:15

2007 (17) 2:7 3:6 4:3 19:17 38:19 40:16 42:2 46:4,22,22 47:13 51:6,17 53:17 67:5,7 98:17

2007/2008 (1) 38:12

2008 (15) 20:10 21:10 40:16 42:2 46:5,22 47:13 51:15 52:19 52:20,25 53:24 98:1 101:17 107:18

2008/2009 (1) 57:9 2009 (35) 2:24 6:21

13:12 14:24 15:17 15:21 16:14,17 42:13 47:8,15 49:15 100:8 101:7 101:18,24 102:23 102:24 103:3,13 105:3,5,7 107:19 108:3 110:7,16,22 114:11 115:7 116:9 116:14 118:14,14 119:1

2010 (9) 13:12 15:17

19:17 22:12 31:3,4
42:21 43:4 75:8
2011 (8) 20:11,25
21:4 25:20 29:13
33:6 61:8 68:1
2012 (6) 65:4,5 67:7
67:13 68:14,22
2013 (3) 31:3,8 67:7
2014 (1) 21:21
2015 (1) 31:3
2016 (2) 1:1 127:8
217 (1) 64:22
2422 (1) 38:22
2424 (1) 42:17
25 (1) 29:13
2798 (1) 51:7
28 (1) 65:18
285 (1) 1:24
29 (3) 2:7 13:22 18:22

3

3 (4) 25:25 29:12,23 68:22
3.15 (1) 95:8

3.25 (1) 95:10

30 (1) 21:13

300 (1) 108:15

31 (1) 39:14

33 (2) 115:3,3

34 (2) 115:2,3

35 (4) 21:1,5 62:7 116:6

3717 (2) 24:20 50:22

4
4 (2) 65:16 89:8
4.28 (1) 127:6
4.30 (3) 119:24 120:2
120:4
4.45 (1) 120:1
400 (6) 13:17 17:19
82:9 84:4,19 98:13
420 (1) 18:23

5

5 (3) 64:16 77:1 93:10

5,000 (1) 95:19

5.30 (1) 119:21

50 (6) 20:10 21:18,20 24:16 39:10 77:6

50.1 (1) 51:4 50/50 (1) 46:14

500 (5) 13:12,18,22 17:20 98:13

50A (2) 58:8,16

55 (1) 29:21

6

60 (2) 21:17,21

64A (1) 40:5

7

7 (1) 1:1

8

8 (3) 31:8 76:16 127:8

80 (3) 90:10,11 108:20

89.7 (1) 66:3

9

9.15 (1) 120:15

92 (1) 88:8

97 (3) 18:16 109:3,7

9th (1) 120:10

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