HACC confiscates part of Russian billionaire Shelkov's assets in Ukraine

This was written by Inna Bohatykh, Head of the Sanctions Policy Department of the Ministry of Justice.

"The HACC refused to satisfy the claim of the Ministry of Justice to recover 100% of the corporate rights of Demurinsky Mining and Processing Plant LLC and other companies, which, in our opinion, are controlled by Russian billionaire Mikhail Shelkov," she writes.

Bohatykh noted that this decision was made because the HACC did not consider the evidence provided to be sufficient to maintain Shelkov's control over the plant. However, the Ministry of Justice provided such evidence:

75% of the corporate rights of the Cyprus company that owns 100% of the corporate rights of the Demurinsky Mining and Processing Plant were sold for 3,750 euros a few days before the start of the full-scale war;

At the time of the sale, Ukraine had already imposed sanctions on the seller and the Cypriot company;

Part of the management that worked for Shelkov continued to work for the Cypriot company and DemGOK after the so-called sale of 75% of the rights;

The debt of DemGOK (through the Cypriot company-owner) to VSMPO Avisma, which allows Shelkov to transfer the recovery to the assets of the Cypriot company and DemGOK in case of non-repayment of the debt.

At the same time, the HACC reports that the following property of Shelkov's was confiscated to the state:

• an apartment with a total area of 175.5 square meters in Odesa and an apartment with a total area of 68.5 square meters in Nikopol;

• A LEXUS car, four MITSUBISHI PAJER0 SPORT cars and a parking space in Odesa;

• A warehouse of stainless steel strip coils with a total area of 2,411.3 square meters and a complex in Nikopol;

• Cash on bank accounts and 100% share in the authorized capital of VSMPO TITAN Ukraine Limited Liability Company.

• A wheeled tractor and a trailer.

Mikhail Shelkov is a Russian oligarch who ranks 59th in the Forbes ranking of Russian oligarchs with a net worth of about $1.5 billion. He has been under Ukrainian sanctions since 2021.