Hogan Lovells litigation team brings new proceedings in a flagship international fraud court battle for National Bank Trust

London, Moscow, 23 September 2021 – Global Law firm Hogan Lovells has secured another major success in Cyprus for its client, National Bank Trust, in the case against Dmitry and Alexei Ananyev and their respective wives, Lyudmila and Daria Ananyev (for details of the first victory on this case see the following link.)

Working with Hogan Lovells and the Cypriot law firm Scordis, Papapetrou & Co LLC, National Bank Trust successfully served a claim of approx. EUR 315m on the Ananyevs and their wives in Cyprus and Austria. The brothers are the former owners and beneficiaries of the Russian banks Promsvyazbank PJSC and Avtovazbank JSC. National Bank Trust claims that the Ananyev embezzled funds from these banks for their own personal gain;  this second claim brings the total amount now claimed by National Bank Trust in the Cyprus courts to approx. EUR 586m.  

More particularly, National Bank Trust alleges that over a series of years the Ananyev brothers implemented fraudulent schemes by issuing unsecured (or materially undersecured) loans to shell company borrowers that were related to the Ananyevs and/ or secretly owned and controlled by them. As a result, hundreds of millions of dollars were siphoned off from Promsvyazbank leaving a black hole in its loan books. The bad loans were ultimately transferred to National Bank Trust in 2019 after Promsvyazbank collapsed and went into administration.

Separate criminal proceedings in Russia are pending against Dmitry and Alexei Ananyev in relation to various alleged counts of misappropriation of assets related to Promsvyazbank.

"We continue to identify new episodes of the embezzlement of funds in the case of the Ananyev brothers. Our task is to get to the bottom of all circumstances of what happened and recover the siphoned off assets. This new claim is in addition to the claim already filed by the bank in Cyprus against the Ananyev brothers and their wives for EUR 271m," said Alexander Sokolov, President and Chairman of the Management Board of National Bank Trust.

This follows a previous court victory from December 2020, when the Limassol District Court in Cyprus imposed a worldwide freezing order over the assets of the Ananyev brothers and their wives in support of the claims alleging that the brothers masterminded a series of fraudulent schemes to embezzle over USD 267m from their former bank, Promsvyazbank, in Russia. In addition to the freezing order, the judge imposed a freezing order over assets held by a third party, which is believed to have held part of the assets nominally on behalf of the Ananyev brothers.

International law firm Hogan Lovells is the leading counsel representing National Bank Trust in this matter. The Cypriot law firm Scordis, Papapetrou & Co LLC represents the National Bank Trust in the proceedings before the District Court of Limassol.

The Hogan Lovells team is led by partners Alexei Dudko (Moscow) and Alex Sciannaca (London) with support from Of Counsel Denis Almakaev (Moscow) and others.

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