Andrei Fridrichowitsch Borodin

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Andrei Borodin 2009

Andrei Fridrichowitsch Borodin ( Russian Андрей Фридрихович Бородин , also Andrey Borodin transcribed; born May 24, 1967 in Moscow ) is a Russian banker. Until 2011 he was President of the Bank of Moscow . After the Bank of Moscow was taken over by the Russian government-controlled VTB , Borodin was sacked as president. According to Borodin, the takeover was politically motivated and illegal. He currently lives in London. The Russian authorities accuse him of mismanagement during his responsibility for the Bank of Moscow.

Training and career entry

After military service, Borodin studied international economics and finance at the Moscow Financial Institute , where he graduated in 1990. In 1989/90 he studied at the University of Passau . For the Dresdner Bank he worked in an 18-month training course in Dortmund, after which he worked in the Frankfurt headquarters of the bank. He left Dresdner Bank at the end of 1993 and from March 1994 worked for the Moscow city ​​government as an economic and financial advisor to Mayor Yuri Luzhkov . His connection with Luzhkov, who has been a persona non grata in Russia since his dismissal as Moscow mayor by Dmitri Medvedev in 2010 , determined Borodin's rise and current problems.

Bank of Moscow

Founded as a six-person company in 1995 by the Moscow city council, the Bank of Moscow became one of the market leaders in Russia, in which Borodin originally held a 51% stake. Under the leadership of Borodin and with the political support of Luzhkov, the bank overcame the crisis of 1998 and subsequently grew quickly from a local bank for the city administration to a nationwide bank with a significantly enlarged customer base and a wide range of services.

The bank became more and more independent of the city administration, which reduced its stake to 46.6% in 2008 and accordingly had less influence on the composition of the board of directors. As the bank expanded, Borodin and his partner Lev Alualew acquired substantial shares. The Bank of Moscow enjoyed the confidence of international markets, with Goldman Sachs and Credit Suisse buying smaller shares in 2010 (3.88% and 2.77%, respectively).

takeover

After Luzhkov's dismissal in September 2010, the new city administration under Luzhkov's successor Sergei Sobyanin - and with it the Russian government of Medvedev, who installed him - soon turned against the Bank of Moscow. The city announced that it wanted to sell its stake, and VTB , a bank controlled by the Russian state, whose board of directors is made up of senior officials from the presidential administration, acted as the buyer. The VTB originally announced that it wanted to take over 100%, but scaled this target down, but still got full control. Other banks such as Alfa Bank and Bank Austria , a subsidiary of UniCredit , had also shown interest. Borodin had spoken out against the takeover by VTB.

In December 2010, before the sale of the municipal stake took place, the Audit Office of the Russian Federation announced a review at the instigation of Mayor Sobyanin. The resulting investigation into a loan in favor of the Premier Estate Company later became the basis of the criminal charges against Borodin. VTB acquired the municipal shares at the end of February 2011. Borodin questioned the legality of this purchase on several points, including the fact that the share price had been artificially increased. Borodin and his allies were dismissed, the chairman of the board of directors of VTB Andrei Kostin became chairman of the board of directors of the Bank of Moscow and his deputy chairman of the bank. Borodin asked that his outstanding salary be paid to a child charity he founded, which did not happen.

In April 2011, he announced that he and Lev Alaluyev had sold their 20.32% stake. Andrey Borodin sold his shares to Vitaly Yusufov, the son of the former Russian Energy Minister Igor Yusufov. Vitaly Yusufov financed the purchase with a $ 1.1 billion loan from the Bank of Moscow. Borodin said that he had been pressured to accept a sale price that was significantly below market value. In addition, Yusufov acted as a middleman for President Medvedev, who ordered the “politically” motivated takeover of the Bank of Moscow. In July 2011, Yusufov sold the shares to VTB, which in September 2011 controlled more than 80% of the shares in the Bank of Moscow.

Bailout loan and criminal charges

After the takeover, the VTB and Finance Minister Alexei Kudrin , who was also a member of the VTB's supervisory board during the takeover, announced that an investigation by the central bank had revealed that 150 of the 250 billion rubles in loans for which Borodin was responsible were lazy and are not secured. This accusation was clearly denied by Borodin. An indictment in Russia against Borodin cites a loan of 12.8 billion rubles made in 2009 to the Premier Estate Company controlled by Yelena Baturina, billionaire and wife of Yuri Luzhkov . In July 2011, the Russian central bank announced that the Bank of Moscow would receive a $ 14 billion state rescue loan.

In addition to the obvious connection with the political fate of Luzhkov and the entanglement of Kudrin, Borodin claims that oddities in the sale suggest that the takeover was made for political reasons against economic concerns. For example, on March 22, 2011, he made an offer valid until April 8 to take over the VTB share at the same price that it paid. Despite the losses that VTB wanted to have discovered in the meantime, it did not accept this offer.

Web links

Individual evidence

  1. ↑ Andrei Borodin . Forbes. Retrieved August 14, 2011.
  2. ↑ a b Official website . Andrey Borodin. Retrieved April 17, 2012.
  3. ^ Europe - Russian arrest warrant for bank chief . In: Financial Times , Ft.com, May 4, 2011. Retrieved August 14, 2011. 
  4. ↑ Official website . Andrey Borodin. Retrieved April 17, 2012.
  5. ↑ Clifford J. Levy: Russia's President Fires Moscow's Mayor . NYTimes.com. September 28, 2010. Retrieved August 14, 2011.
  6. ↑ Will Stewart: Moscow banker Borodin flees to London over 'politically motivated' police probe into loan . In: Daily Mail , Dailymail.co.uk, June 4, 2011. Retrieved August 14, 2011. 
  7. ^ Goldman Sachs, CS buy stakes in Bank of Moscow . Reuters. July 27, 2010. Retrieved August 14, 2011.
  8. ↑ Alfa-Bank intents to buy 100% stake in the Bank of Moscow . Alfabank.com. January 24, 2011. Archived from the original on August 12, 2011. Info: The archive link was automatically inserted and not yet checked. Please check the original and archive link according to the instructions and then remove this notice. Retrieved August 14, 2011. @1@ 2Template: Webachiv / IABot / alfabank.com
  9. ^ Bank Austria Bids for Bank of Moscow , FriedlNews. January 14, 2011. Retrieved May 2, 2012. 
  10. ↑ Bank of Moscow in embezzlement sample . In: Financial Times , December 21, 2010. Retrieved April 27, 2012. 
  11. ↑ Sergei Piatakow: Borodin sells Bank of Moscow stake at knock-down price - Vedomosti , RIA Novosti. March 4, 2011. Retrieved May 8, 2012. 
  12. ↑ Marina Sysoyeva: Bank of Moscow Stakes Sold to Vitaly Yusufov, Vedomosti Says , Bloomberg. April 11, 2011. Retrieved May 8, 2012. 
  13. ↑ Bank of Moscow taken over on Medvedev's instructions- former president . RIA Novosti. November 21, 2011. Archived from the original on September 27, 2013. Info: The archive link has been inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. Retrieved May 8, 2012. @1@ 2Template: Webachiv / IABot / rianovosti.com
  14. ↑ Yusufov to sell his Bank of Moscow stake to VTB , Reuters. July 27, 2011. Retrieved May 21, 2012. 
  15. ↑ Russia's VTB buys 81 pct in BoM, ends long battle , Reuters. September 29, 2011. Retrieved May 17, 2012. 
  16. ^ Company of ex-Moscow Mayor Yuri Luzhkov's wife raided , BBC News. February 17, 2011. Retrieved August 14, 2011. 
  17. ↑ Bank of Moscow Gets Record Bailout | Business . The Moscow Times. July 4, 2011. Retrieved August 14, 2011.
  18. ↑ Douglas BUSVINE: Accusations fly as Bank of Moscow gets record bailout . Reuters. July 1, 2011. Retrieved August 14, 2011.
  19. ↑ Bank of Moscow ex-CEO calls VTB takeover political . Reuters. July 1, 2011. Retrieved August 14, 2011.
personal data
SURNAME Borodin, Andrei Fridrichowitsch
ALTERNATIVE NAMES Borodin, Andrey; Бородин, Андрей Фридрихович (Russian spelling)
BRIEF DESCRIPTION Russian banker
DATE OF BIRTH May 24, 1967
PLACE OF BIRTH Moscow , USSR