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Recently, a Russian billionaire, under sanctions, initiated bankruptcy proceedings in London against a former colleague over a legal scuffle involving a stake potentially valued at hundreds of millions in a leading global fertilizer company. Andrey Guryev has taken legal measures against Alexander Gorbachev. Gorbachev had previously taken Guryev to court, claiming that Guryev had backed out of a verbal agreement—allegedly brokered in part during casual conversations in a sauna and outside a pub—to grant him a significant interest in PhosAgro.
Gorbachev, who shares no relation with the late Soviet leader Mikhail Gorbachev, was unsuccessful in his lawsuit. Last September, a High Court judge dismissed his claims due to “unexplained and unexplainable inconsistencies.”
Following the court’s decision, Gorbachev was charged with covering Guryev’s legal expenses, which amounted to £12 million. Gorbachev had secured litigation insurance worth £10 million, but this left a gap of £2 million, as noted in an October court order. The same order required Guryev to seek a license from the Office of Financial Sanctions Implementation, a branch of the UK Treasury, to receive these payments.
Documents show Guryev filed for bankruptcy at the High Court in December against Gorbachev, who was present at an initial hearing in central London this week. Daniel Cashman, who represents Guryev, told the court that Gorbachev’s failed legal challenge left him owing “millions.” On the other side, James Culverwell, representing Gorbachev, asserted that they were challenging the bankruptcy petition, and the proceedings were subsequently postponed.
The tussle over PhosAgro’s stake marks just one in a series of legal battles among Russian business figures in London’s courts over ownership disputes following the Soviet Union’s demise. Gorbachev, once a senior PhosAgro manager, sought asylum in the UK in 2004 after leaving Russia, claiming a rightful 25% of Guryev’s shares in the company, valued at several hundred million.
Gorbachev backed his lawsuit with stories of alleged discussions with Guryev in various London locations, adding color to his claims with narratives from saunas to pub outings. In contrast, Guryev denied these assertions, accusing Gorbachev of conducting a meritless “shakedown.”
The case unfolded over a six-week trial last year, during which Judge Mark Pelling KC traveled to Dubai to hear Guryev’s testimony, given the sanctions on the billionaire. Ultimately, the judge ruled against Gorbachev, highlighting the numerous “unexplained and unexplainable inconsistencies and inherent implausibilities” in his case, a decision Gorbachev called “extremely disappointing.”
