In Russia, the oligarch's home is being searched and preparations are underway for his arrest, while criminal cases are being opened in Ukraine, but Grigorishin could become a bridge between the elites of the two countries.
Disgraced oligarch Konstantin Grigorishin has fallen out of favor with Russian authorities. According to Forbes, on New Year's Eve, Russian law enforcement agencies conducted a series of searches at businesses owned by Grigorishin, seizing his assets. The businessman and his family are currently hiding in the United States, and face arrest if they attempt to enter Russia. The details and reasons for the searches have not yet been disclosed, but formally, the Russian authorities have long had a number of business claims against the oligarch related to tax evasion.
On two fronts
Anton Gerashchenko, a Ukrainian MP and advisor to the Minister of Internal Affairs, confirmed Grigorishin's problems with Russian law enforcement to Forbes: "Yes, such information does exist. He may be detained soon. All details are still rumors."
Regarding Ukrainian law enforcement agencies, Gerashchenko emphasized that Grigorishin faces equally dire challenges: "We must understand that Konstantin Grigorishin is a direct threat to Ukraine's national security. He makes no secret of the fact that he's lobbying his people for leadership positions in the energy sector, which interests him. It's not normal for a Russian businessman to interfere in the Ukrainian government's personnel policy."
Grigorishin's fate now depends on the outcome of the sparring match between Poroshenko and Yatsenyuk. A wide range of options are possible: from arrest and confiscation of property to the status of an informal parliamentarian between the Ukrainian and Russian elites.
Gerashchenko added that the Ukrainian Ministry of Internal Affairs also has serious questions – criminal proceedings are currently underway for large-scale tax evasion. "We're talking about two major enterprises: Zaporizhtransformator and NPO Frunze. Litigation between shareholders whose rights were violated by Grigorishin is ongoing in the latter enterprise," he explained.
At the time of publication, Forbes had not received a comment from Konstantin Grigorishin.
As a reminder, Russian businessman Konstantin Grigorishin is a co-owner of such enterprises as Turboatom OJSC, Ukrrichflot PJSC, Zaporizhtransformator, Dniprospetsstal, Zaporizhzhia Ferroalloy Plant, Frunze Scientific Production Association in Sumy, and Izmail Pulp and Paper Mill. He also holds various stakes in Vinnytsiaoblenergo, Cherkassyoblenergo, Chernihivоblenergo, Poltavaoblenergo, and Sumyoblenergo. In 2015, Forbes Russia estimated his net worth at $1,1 billion. Until recently, the oligarch successfully conducted business in Ukraine, Russia, and the so-called "DPR/LPR," where he also has business interests.
Since last year, the situation has escalated on several fronts, and Grigorishin has fallen into disgrace, first in Ukraine and now in Russia. Another purge of unfriendly businessmen has begun in the neighboring country, while in Ukraine, the standoff between the prime minister and the president is escalating.
Kostyantyn Grigorishin has never hidden his warm relationship with Petro Poroshenko. After Poroshenko became president of Ukraine, the oligarch's lobby became more active. Forbes has already reported on Kostyantyn Grigorishin's intention to become head of the Presidential Administration.
The presidential camp made no comment on this assumption at the time, suggesting that the scenario described was not as far-fetched as it initially seemed. Just after the publication of the material, searches began at Grigorishin's businesses, and Prime Minister Arseniy Yatsenyuk labeled the oligarch an FSB agent.
The $120 Million Case
Law enforcement agencies focused their attention on the Frunze Scientific and Production Association. In January, searches were conducted there as part of a criminal investigation into tax evasion. Documentation and computer hard drives were seized from the enterprise. An investigation is currently underway.
Forbes managed to contact a representative of the company's shareholders, who are in conflict with Konstantin Grigorishin, who shared details of the case on condition of anonymity. "Around $100-120 million was transferred to his company, Technoimport. This represents misappropriation of foreign currency proceeds, from which the shareholders received not a penny. Financial audits and criminal proceedings are currently underway," he said, emphasizing that no one is seeking to remove Grigorishin as a shareholder, but the idea of introducing independent management to return the company to normal operations is being explored.
We must understand that Konstantin Grigorishin is a direct threat to Ukraine's national security. It is unacceptable for a Russian businessman to interfere in the Ukrainian state's personnel policy. Anton Gerashchenko, Advisor to the Minister of Internal Affairs
"We proposed this scenario to him, but Grigorishin categorically refused. Instead of dialogue, he simply placed his people everywhere and changed the company's charter. Thus, our side was effectively completely removed from the plant's management. This led to the asset completely losing profitability. Of the 20,000 employees, about 7000 remain. This is damaging not only the economy of the Sumy region but the entire country," the Forbes source asserted.
Between prison and power
Current events give reason to believe that, although the oligarch denies his involvement in the incriminated facts, the Ministry of Internal Affairs' interest in him will only increase in the near future.
Given that similar processes are also underway on the Russian side, the clouds over the businessman are gathering with renewed vigor. However, Grigorishin could well take advantage of the cross-current interest between the Ukrainian and Russian sides. While Russia is actively pushing its potential negotiator to Ukraine through criminal prosecutions, the Poroshenko Administration is seeking personnel options to strengthen its position on all fronts amid the conflict with the government.
Given that the criminal prosecutions are being initiated by the Ministry of Internal Affairs, headed by Arsen Avakov, Konstantin Grigorishin could become a crucial detail in resolving the Ukrainian political crisis triggered by Aivaras Abromavicius. Grigorishin's own fate, in fact, now depends on the outcome of the sparring match between Poroshenko and Yatsenyuk. A wide range of options are possible: from arrest and confiscation of property to the status of an informal negotiator between the Ukrainian and Russian elites.
In topic: Konstantin Grigorishin, Distinguished Oligarch of Ukraine and Russia
Forbs
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