Support The Moscow Times!

Potanin Sues Prokhorov Over Office

Potanin is seeking $29 million from Prokhorov for not buying this building. Vladimir Filonov
Vladimir Potanin has sued former business partner Mikhail Prokhorov for $29 million in a Moscow court over a property disagreement, according to court documents.

Potanin's Interros Estate sued Kraus-M, affiliated with Prokhorov's businesses, for 963.5 million rubles ($29.2 million) over an office building at 32 Ulitsa Shchepkina, the documents said. Interros' press service confirmed that the lawsuit was filed but declined to comment. A source at the holding said the dispute was over an unfulfilled contract to purchase the building.

The building, valued at $50 million at the end of 2007, was on KM Invest's balance sheets. During their asset split, Potanin and Prokhorov transferred it, along with other assets they still shared, to a 50-50 trust called Folletina Trading.

"Units of Prokhorov's business decided to buy the property, signed a purchase agreement and made an advance payment," the Interros source said. "They were supposed finish paying in December 2008, but they never transferred the money."

Kraus-M paid the advance but later decided not to buy the building and agreed with Interros on a termination of the contract, a spokesman for Prokhorov's Onexim holding company said.

Interros was not able to comment on whether there had been an agreement.

Denis Shorin, senior lawyer at Sameta, said he thought that Interros Estate could expect to receive compensation in any event. If the agreement was not canceled, the seller may demand full compliance; if it was dissolved, the seller would get compensation for damages.

The building on Ulitsa Shchepkina is just one of the many disagreements between the former partners, who have been trying to divide the assets held by Folletina Trading for half a year. Interros says Prokhorov owes the trust $640 million. Onexim claims the trust's value is lower than it should be, saying its assets should be worth more than $2 billion instead of the current $530 million.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more