Putin ally loses legal dispute with rival oligarch over business deal gone wrong

AN ally of Vladimir Putin who faced sanctions in the US and has been targeted by British intelligence has lost a multimillion-pound High Court battle with a rival Russian oligarch following claims he organised an “armed takeover” of a jointly owned business.

The legal battle between Oleg Deripaska, an aluminium tycoon, and Vladimir Chernukhin, a former minister for the Russian president, was fought in London’s commercial court between more than 40 lawyers.

The case centred on the ownership of the Trekhgornaya Manufaktura textile factory in central Moscow, a 22acre site with valuable development potential. The two oligarchs jointly invested in the business in 2001 but the deal went awry following the 2008 financial crash which said to have badly affected Mr Deripaska, who was head of the aluminium companies EN+ and Rusal until earlier last year.

In 2010, Mr Deripaska, 50, who once had links at the top of British politics, is said to have ordered gangsters to seize control of the factory.

Two days later, his representatives contacted London-based Mr Chernukhin, 49, whose wife is a donor to the Tory party, offering to buy him out.

Their relationship broke down, and in 2017 an arbitration tribunal ordered Mr Deripaska to pay Mr Chernukhin £74million. The ruling was rejected, meaning the case went to trial before Mr Justice Teare last year. The case was complicated by the involvement of Mr Chernukhin’s former girlfriend, Lolita Danilina, who claimed she was entitled to property, artwork, and supercars from their 16-year relationship.

Justice Teare rejected her claims, stating he had not been persuaded that they held joint assets.

In conclusion, the judge also dismissed Mr Deripaska’s challenge to the jurisdiction of the tribunal. “There was no serious irregularity,” he said.

British intelligence officials regard Mr Deripaska as a priority because of his alleged links to Russia’s security forces. “Mr Deripaska provides the Kremlin with financial backing and is also believed to have a close relationship with Russia’s intelligence services,” said a Whitehall official.