Andrey Borodin

Andrey Fridrikhovich Borodin (Андре́й Фри́дрихович Бороди́н; born Moscow, 24 May 1967) is a Russian financial expert, economist and businessman who until 2011 was President of Bank of Moscow.

He and his first deputy Dmitri Akulinin were dismissed from office by the court for the period of the investigation due to the Premier Estate criminal case, charged with abuse of authority.

Borodin serviced in the KGB Border Troops from 1985–87.

Following his service, he enrolled at the Moscow Finance Institute.

From 1989 to 1990 while at the Moscow Finance Institute, he studied economics as a visiting student at the University of Passau, Germany, and then returned to Moscow and graduated with a degree in International Economics and Finance from the International Economics Department at the Moscow Finance Institute in 1991.

For two years, he worked for Dresdner Bank in Germany - which has deep ties to former members of the KGB and Stasi services - on an 18-month training course in Dortmund, then moved to Frankfurt and worked at the bank’s head office in the Financial Institutions Department.

He left Dresdner Bank in late 1993, moved to Moscow, and in March 1994, was introduced to the Mayor of Moscow, Yury Luzhkov by Lev Alaluev (Лев Алалуев), and started working for the Government of Moscow as an economics and finance adviser to the Luzhkov.

What became one of the biggest players in Russian banking began as a six-person operation founded in 1995 by the Moscow City Government, which originally held a 51% stake.

Under the political patronage of Luzhkov and the leadership of Borodin it weathered the crisis of 1998 and subsequently grew rapidly from a local bank largely serving the City Government to a national bank with a greatly enlarged client base and offering a broad range of services.

The bank became increasingly independent of the City Government, which in 2008 reduced its stake to 46.6%, with a corresponding reduction in the number of bank-appointed directors.

As the bank expanded, Borodin and his ally Lev Alaluev purchased significant stakes of their own – more than 20.32%.

There was no evidence on how Borodin and Alaluev got the necessary funding for such a big purchase.

The Andrei Borodin led Bank of Moscow was a large creditor of Krasny Oktyabr when it declared bankruptcy in 2009.

His relationships with Luzhkov, currently persona non grata in Russia since his dismissal by then-president Dmitry Medvedev in 2010, have been important for both his rise and current problems.

Bank of Moscow enjoyed the confidence of the international markets, with both Goldman Sachs and Credit Suisse acquiring small stakes in 2010 (3.88% and 2.77% respectively).

When Luzhkov was dismissed in September 2010, the new mayor Sergei Sobyanin announced the intention to sell the stake of the Moscow government in Bank of Moscow.

VTB, a state-controlled bank, stepped up as a buyer.

Other banks, such as Alfa Bank and Bank Austria, a subsidiary of UniCredit, also expressed interest.

In December 2010, before the sale of the City Government's stake took place, the Audit Chamber of the Russian Federation announced that it had launched an audit of Bank of Moscow at Sobyanin's request.

The investigation revealed a loan provided by the bank to Premier Estate Company.

In April 2011, the meeting of the bank's shareholders dismissed them.

Since April 2011, Borodin has lived in London, England, and since November 2011 until May 2016 has been on an Interpol Red Notice, wanted as a suspect in a 13-billion-rouble fraud committed in Bank of Moscow under his governance.

At the end of February 2011 VTB purchased the City Government's stake from Central Fuel Company.

The VTB deal was opposed by Borodin.

He resisted to attempts by VTB to acquire control of the bank, already being one of the main shareholders.

Borodin has contested the legality of this on a number of grounds, including that competitive tender ought to have been used to maximise the share price.

None of the protests were found correct or justified by court.

Borodin and his allies were dismissed and VTB's Chairman Andrey Kostin and first deputy Mikhail Kuzovlev became the Bank’s Chairman of the Board of Directors and President respectively.

In early April 2011 Borodin and Lev Alaluyev sold their 20.32% stake in Bank of Moscow.

Andrey Borodin sold his shares to Vitaly Yusufov, son of the former Russian Energy Minister Igor Yusufov.

Vitaly Yusufov had borrowed US$1.1 billion from Bank of Moscow for this acquisition.

Borodin was still in charge of the bank, when this decision was made.

In July 2011 Yusufov sold his stake to VTB, which in September 2012 controlled more than 95.50 percent of the shares of Bank of Moscow.

Yusufov claimed, that he acted on his own judgment.

That was the reason, why the price negotiations with VTB took so long.

Borodin claims that peculiarities during the takeover point to the centrality of political as opposed to commercial concerns.

For example, he made an offer on 22 March 2011, which lapsed 8 April 2011, to buy the stake from VTB as the same price they had, despite VTB's claims of the mess they had discovered.

In August 2012 he bought Park Place, a house near Henley-on-Thames.

He was granted political asylum in the UK in February 2013.

Andrey Akimov, as the interim manager of the plant, appointed the Ukrainian Dmitro Gerasimenko, who is the owner of Dieg-Impex LLC (ООО «Диег-Импэкс»), to be executive director of Krasny Oktyabr and who in November 2018 "sold" the plant to Pavel Krotov.