A sanctioned Russian billionaire, Andrey Guryev, emerged victorious on Thursday in a lawsuit filed by a former acquaintance, Alexander Gorbachev, who sought a significant stake in one of the world’s largest fertilizer producers. The case was heard in London’s High Court.
Guryev, who resigned as CEO of Phosagro in 2022 following sanctions by both the United States and Britain due to his association with President Vladimir Putin in the wake of Russia’s invasion of Ukraine, was accused by Gorbachev of withholding a 24.75% interest in Phosagro shares. This stake would presently be valued at approximately $1 billion.
Gorbachev based his claim on alleged oral agreements between the two, including a purported conversation outside a London pub in the mid-2000s, which he asserted Guryev reneged on. Meanwhile, Guryev described the lawsuit as a “shakedown” and maintained that Gorbachev had liquidated any interest he had in the business nearly two decades prior.
Judge Mark Pelling dismissed Gorbachev’s case, citing “unexplained and unexplainable inconsistencies and inherent implausibilities” in the claimant’s allegations over time.
In response to the ruling, Gorbachev expressed his disappointment and indicated that he would review the decision and consider further options. Guryev’s spokesperson did not provide an immediate comment.
The 2022 sanctions on Guryev by Britain and the United States labeled him as a “close associate” of Putin and targeted him as part of a broader effort against “Kremlin-connected elites.” A spokesperson for Guryev previously stated that there was no “proper or legitimate basis” for the sanctions, as reported by the BBC.
The crux of Gorbachev’s lawsuit centered on differing recollections of conversations about Phosagro that took place nearly two decades ago at various London locations, including pubs, hotels, restaurants, and a sauna. Gorbachev alleged that Guryev had agreed to hold an interest in Phosagro on his behalf, particularly after Gorbachev fled Russia in 2003 and sought asylum in Britain.
Guryev, whose family’s wealth is estimated at $9.3 billion by Forbes magazine, contended that the lawsuit was Gorbachev’s latest effort to claim an interest in Phosagro. The judge concluded that it was “inherently improbable” that Guryev had ever promised to hold an interest on Gorbachev’s behalf.