Putin's former ally Pugachev sentenced for bank fraud
A Moscow court has sentenced Sergei Pugachev, a former banker with ties to the Kremlin and owner of Mezhprombank, in absentia for embezzlement. The sentence is 14 years in a high-security penal colony. He cannot be extradited due to his French citizenship.
Sergei Pugachev, once an influential senator and founder of Mezhprombank, was sentenced in absentia by a Moscow court on Tuesday, 13 May, to 14 years in a penal colony.
The verdict pertains to allegations of embezzlement and misappropriation of funds over a decade after the collapse of his bank and his subsequent departure from Russia, reports the "Moscow Times." He was found guilty of misappropriating 28.7 billion roubles (approximately €320 million).
Established in 1992, Mezhprombank was among the largest banks in Russia; however, in 2010 a court declared it bankrupt. It was determined that the primary cause was the issuance of unsecured loans.
The authorities accused Pugachev of misappropriating over £561 million from bailout funds provided by the Bank of Russia.
Life in exile
Pugachev has been a French citizen since 2009. He left Russia following a conflict with members of President Vladimir Putin's inner circle after the financial crisis of 2008. Since then, he has accused the Kremlin of seizing his assets without compensation and destroying his multi-billion-pound business empire.
Why is Pugachev referred to as "Putin's banker"? After Boris Yeltsin's resignation, he helped finance the election campaign of the former KGB agent. He was also among the leaders of his campaign team, as noted by gazeta.pl.
