Neutral Citation Number: [2012] EWHC 2463 (Comm) Royal Courts of Justice Rolls Building, 7 Rolls Buildings, London EC4A 1NL Date: 31st August 2012 IN THE HIGH COURT OF JUSTICE Case No: 2007 Folio 942 QUEEN’S BENCH DIVISION COMMERCIAL COURT IN THE HIGH COURT OF JUSTICE Claim Nos: HC08C03549; HC09C00494; CHANCERY DIVISION HC09C00711 Before: MRS JUSTICE GLOSTER, DBE - - - - - - - - - - - - - - - - - - - - - Between: Boris Abramovich Berezovsky Claimant - and - Roman Arkadievich Abramovich Defendant Boris Abramovich Berezovsky Claimant - and - Hine & Others Defendants - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Laurence Rabinowitz Esq, QC, Richard Gillis Esq, QC, Roger Masefield Esq, Simon Colton Esq, Henry Forbes-Smith Esq, Sebastian Isaac Esq, Alexander Milner Esq, and Ms. Nehali Shah (instructed by Addleshaw Goddard LLP) for the Claimant Jonathan Sumption Esq, QC, Miss Helen Davies QC, Daniel Jowell Esq, QC, Andrew Henshaw Esq, Richard Eschwege Esq, Edward Harrison Esq and Craig Morrison Esq (instructed by Skadden, Arps, Slate, Meagher & Flom LLP) for the Defendant Ali Malek Esq, QC, Ms. Sonia Tolaney QC, and Ms. Anne Jeavons (instructed by Freshfields Bruckhaus Deringer LLP) appeared for the Anisimov Defendants to the Chancery Actions David Mumford Esq (instructed by Macfarlanes LLP) appeared for the Salford Defendants to the Chancery Actions Jonathan Adkin Esq and Watson Pringle Esq (instructed by Signature Litigation LLP) appeared for the Family Defendants to the Chancery Actions Hearing dates: 3rd – 7th October 2011; 10th – 13th October 2011; 17th – 19th October 2011; 24th & 28th October 2011; 31st October – 4th November 2011; 7th – 10th November 2011; 14th - 18th November 2011; 21st – 23 November 2011; 28th November – 2nd December 2011; 5th December 2011; 19th & 20th December 2011; 17th – 19th January 2012. Further written submissions: 26th January 2012; 1st February 2012; 2nd February 2012; 7th February 2012; 6th March 2012; 13th March 2012; - - - - - - - - - - - - - - - - - - - - - Approved Judgment I direct that pursuant to CPR PD 39A para 6.1 no official shorthand note shall be taken of this Judgment and that copies of this version as handed down may be treated as authentic. ............................. MRS JUSTICE GLOSTER, DBE MRS JUSTICE GLOSTER, DBE Berezovsky v Abramovich Approved Judgment Berezovsky v Hine & Others Section I - Introduction .........................................................................................................11 The Sibneft claim...........................................................................................................12 The RusAl claim ............................................................................................................14 Summary of Mr. Abramovich’s defence in relation to the Sibneft claim ...................16 Summary of Mr. Abramovich’s defence in relation to the RusAl claim .....................17 Connection between the two claims ..............................................................................18 Procedural chronology of the Commercial court action .............................................19 Section II - The issues which the court has to determine in the Commercial court action ..................................................................................................................................................20 Agreed List of Issues .....................................................................................................20 Liability issues only to be determined ...........................................................................20 The liability issues .........................................................................................................20 A. Sibneft...................................................................................................................20 B. RusAl ....................................................................................................................21 Section III - The Chancery actions.......................................................................................22 The claims made in the Chancery actions....................................................................22 The Overlap Issues ........................................................................................................24 Section IV - Representation ..................................................................................................26 Section V - Documentation and case materials ...................................................................26 Section VI - Factual background..........................................................................................27 Russian context..............................................................................................................27 Relevant events in Russia from late 1980s to May 2000 ..............................................28 Krysha ............................................................................................................................31 Mr. Berezovsky’s personal and business history up to 1994 - the relevant corporate entities and associates involved.....................................................................................34 Mr. Berezovsky’s personal background........................................................................34 LogoVAZ........................................................................................................................34 Anros and Forus............................................................................................................35 Consolidated Bank.........................................................................................................36 Andava ...........................................................................................................................37 Mr. Berezovsky’s political career..................................................................................37 Mr. Berezovsky’s business and political contacts ........................................................38 The LogoVAZ club ........................................................................................................39 ORT ................................................................................................................................40 Mr. Berezovsky’s public profile.....................................................................................41 The alleged joint venture between Mr. Berezovsky and Mr. Patarkatsishvili.............41 Additional relevant events in relation to Mr. Berezovsky and Mr. Patarkatsishvili not directly connected with the issues in the case...............................................................42 Section VII - Approach to the evidence ...............................................................................45 Significant features of the case.....................................................................................45 Credibility of the principal witnesses ............................................................................47 Mr. Berezovsky ..............................................................................................................47 The evidence of Mr. Berezovsky’s witnesses ................................................................55 Mr. Abramovich’s evidence...........................................................................................56 Mr. Abramovich’s witnesses..........................................................................................59 Allegations of non-disclosure........................................................................................60 The absence of certain witnesses ..................................................................................60 Mr. Anisimov .................................................................................................................60 Mr. Anisimov’s witnesses ..............................................................................................60 Executive Summary and conclusion on credibility......................................................61 MRS JUSTICE GLOSTER, DBE Berezovsky v Abramovich Approved Judgment Berezovsky v Hine & Others Section VIII - Determination of Issue A1 ............................................................................61 Were agreements made, in 1995 and 1996, between Mr. Abramovich on the one hand and Mr. Berezovsky and Mr. Patarkatsishvili on the other in regard to a 50:50 share in the interests of Sibneft?.............................................................................................61 Introduction ...................................................................................................................61 Common ground in relation to the 1995 arrangements, and areas of dispute ...........62 Executive summary of my conclusion on Issue A1......................................................63 Mr. Berezovsky’s pleaded case about the making of the alleged 1995 Agreement.....65 Mr. Berezovsky’s pleaded case about the making of the alleged 1996 Agreement.....66 Mr. Berezovsky’s evidence about the making of the alleged 1995 Agreement ...........68 The alleged partnership allegation ...............................................................................69 The alleged share of “the profits”.................................................................................71