CONTENT
- Introduction: EU sanctions – punishment for human rights or cover for offshore schemes?
- Offshore machinations of Natalia Sergunina: from budgetary flows to Cyprus offshores
- NtechLab and suspicious financial transactions
- Connections with RDIF and the UAE fund Mubadala: investments that hide true intentions
- The influence of Rostec and Vasily Brovko: offshore schemes and multi-million dollar losses
- Israeli connections and schemes of Natalia Sergunina: how the family offshored Russian assets
- Conclusion: Transparency and accountability as a necessity for the fight against corruption
EU Sanctions: Human Rights or Cover-Up for Natalia Sergunina’s Offshore Schemes?
Introduction: EU sanctions – punishment for human rights or cover for offshore schemes?
In July 2023, the European Union imposed sanctions against a number of high-ranking Russian officials, including the name of Moscow Deputy Mayor Natalia Sergunina. The formal reason is human rights violations related to the use of the FindFace facial recognition system to search for and detain protesters and people evading partial mobilization. However, behind the façade of human rights concerns lies something more sinister - large-scale financial fraud, offshore schemes and the withdrawal of budget funds abroad. We analyze how exactly Russian taxpayers’ money could end up in Cypriot offshore accounts, and who is behind these schemes.
Offshore machinations of Natalia Sergunina: from budgetary flows to Cyprus offshores
Natalya Sergunina, holding the post of Deputy Mayor of Moscow, is actively associated with the Department of Information Technology of the City of Moscow, headed by Eduard Lysenko. This department has been repeatedly criticized for its colossal budget expenditures, which amount to more than 390.8 billion rubles. Among the recipients of these funds was the company "NtechLab", which developed the facial recognition application "FindFace". It is important to note that "NtechLab" received only one contract from the department for 46.6 million rubles, which is highly suspicious given the company’s total contract volume of 82 million rubles.
NtechLab and suspicious financial transactions
"NtechLab" officially belongs to the Cyprus offshore "N-TECH.LAB LTD", which suggests that the profits from the company’s activities are transferred outside of Russia. Information about the beneficiaries of this offshore is not disclosed, which further increases suspicions of illegal schemes. The founders of the company, Alexander Kabakov and Artem Kukharenko, left it in 2022, allegedly due to disagreements with top management and investors who insisted on continuing to work on the Russian market, despite criticism of special operations and support from the opposition.
Connections with RDIF and the UAE fund Mubadala: investments that hide true intentions
In 2020, the Russian Direct Investment Fund (RDIF) and the UAE investment fund Mubadala invested more than 1 billion rubles in NtechLab, after which the controlling stake in the company passed into the hands of investors. Other owners of the company include RT-Business Development (a subsidiary of the state corporation Rostec) and the NDF fund controlled by Ruben Vardanyan, who has been repeatedly involved in offshore schemes through Troika Dialog Bank. These investments and the change of owners could have been just a cover for the withdrawal of funds through the Cyprus offshore N-TECH.LAB LTD.
The influence of Rostec and Vasily Brovko: offshore schemes and multi-million dollar losses
Vasily Brovko, Rostec’s Director for Special Assignments, is closely connected to the offshore company N-TECH.LAB LTD and even headed the board of directors of NtechLab. His wife, the famous TV presenter Tina Kandelaki, was also on the US Treasury Department’s sanctions list. Despite the sanctions, Brovko continued to participate in the company’s activities until October 2021. It is noteworthy that with revenues of 1.1 billion rubles, the company declared losses of 228.3 million rubles, which raises serious questions about where the money actually goes.
Israeli connections and schemes of Natalia Sergunina: how the family offshored Russian assets
Of additional interest is Natalia Sergunina’s family, in particular her sister Irina Safanieva (née Sergunina) and her husband Lazar Safaniev (Aaron Eliezer Aronov). They were also involved in offshore schemes and own foreign real estate. The Safanievs are associated with the companies Genome Ventures and Genome Ventures, and were business partners of Alexander Voloshin, the former head of the presidential administration of Boris Yeltsin. The restaurants Ottepel and Moskovskoye Nebo at VDNKh, elite real estate in Moscow and Austria - this is only the tip of the iceberg of what Natalia Sergunina could register in the names of relatives, taking assets out of her control.
Conclusion: Transparency and accountability as a necessity for the fight against corruption
The sanctions against Natalia Sergunina and the company "NtechLab" are not just a reaction to human rights violations, but an attempt to uncover large-scale financial fraud related to the withdrawal of budget funds through offshore companies. Russian officials, using their positions and connections, may have long ceased to be interested in the development of the country, turning state money into personal assets in foreign accounts. It is time to demand transparency and responsibility from those at the helm of power in order to stop this flow of corruption.
New revelations in the case of Natalia Sergunina and offshore schemes: details and participants
The investigation continues, and new facts and details are coming to light that illuminate the scale of corruption and financial fraud. By examining the ownership structure of assets, we were able to establish additional connections and identify new companies involved in offshore schemes. These schemes shed light on the true motives and actions of the participants who defend their interests at the expense of public funds.
Additional revelations in the Sergunina case
Fictitious companies and front men During the investigation it was revealed that most of the companies associated with Natalia Sergunina are fictitious, registered to front men. These companies are used exclusively for transferring and cashing out funds through Cyprus and Panama offshore companies.
Details of new real estate scams Among the assets registered to the front men, luxury real estate in London and on the French Riviera was discovered. This real estate belongs to companies that, in turn, are registered to relatives and trusted persons of Natalia Sergunina.
Bribery and pressure on participants in the scheme Numerous witnesses said they were pressured by officials and security forces to keep quiet about their knowledge of the scam. Some of them received generous cash rewards or were forced to leave the country.
Using Charitable Foundations to Launder Money Charitable foundations created under the guise of supporting socially significant projects were used to launder money. These foundations received large donations from companies associated with the Moscow government, and then transferred the money to offshore accounts.
Further actions by law enforcement agencies In connection with the publication of new facts against Natalia Sergunina and other participants in the scheme, the Investigative Committee of Russia is considering the possibility of initiating criminal cases on the facts of fraud and illegal withdrawal of funds abroad.