Chelsea owner Roman Abramovich and Boris Berezovsky find out who wins battle of the oligarchs today

 
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31 August 2012

The High Court battle between Boris Berezovsky and Roman Abramovich centred on deals done in Russia following the break-up of the Soviet Union two decades ago.

Both men "rose to enormous wealth and influence" in Russia in the 1990s as state-owned firms were privatised in the wake of the collapse of communism, the court heard.

But Mr Berezovsky fled Russia, never to return, in late 2000, after falling out with president Vladimir Putin.

He travelled initially to France, then settled in England, later claiming that he had been betrayed by his former friend and business partner.

Laurence Rabinowitz QC, for Mr Berezovsky, told the trial that both men had worked together to acquire Russian oil company Sibneft - and became friends.

Mr Berezovsky claimed that in 1995 he, a colleague and Mr Abramovich agreed to "work together" to bring Sibneft under their control.

They had persuaded then Russian president Boris Yeltsin to "bring about the privatisation of Sibneft and its disposal into their hands," Mr Rabinowitz told the court.

But Mr Abramovich had intimidated Mr Berezovsky and his colleague into selling their ownership interest in Sibneft at a "massive undervalue" and put Mr Berezovsky "in fear for the life of his friend and the risk that his property might be expropriated", added Mr Rabinowitz.

Mr Abramovich offered a different version of events.

Jonathan Sumption QC, for Mr Abramovich, said Mr Berezovsky was paid millions of pounds by businesses controlled by Mr Abramovich for his services as a "political godfather".

But Mr Sumption said Mr Berezovsky had not "contributed a single cent" to acquiring or building up Sibneft, nor made any managerial contribution.

He said Mr Berezovsky's contribution had been "important, indeed ... indispensable" but "almost entirely political".

Mr Rabinowitz told the judge that, at a meeting at the Dorchester Hotel in London in 2003, Mr Abramovich had agreed to hold half of a 50% stake in aluminium giant RusAl on trust for Mr Berezovsky and a colleague of Mr Berezovsky's.

But Mr Berezovsky claimed that in 2003, Mr Abramovich had sold half of the stake to another Russian oligarch, Oleg Deripaska, Mr Rabinowitz added.

Mr Sumption said Mr Abramovich disputed the RusAl claim.

Both Mr Berezovsky and Mr Abramovich gave evidence at the trial.

Mr Rabinowitz told the court that Mr Abramovich produced a "performance" which was a "cynical and deceitful manipulation of the trial process", showed an "apparent willingness and ability to manufacture evidence to suit his case" and "colluded" with witnesses to put forward a case directed solely at defeating Mr Berezovsky's claim "without regard to the truth".

Mr Sumption told the judge that Mr Berezovsky had been "persistently and deliberately untruthful".

And he said Mr Berezovsky had "made up the facts" on "many occasions".

Mr Sumption, who is now a Supreme Court judge, told the trial that lawyers were debating events in a Russian state where there had been "no rule of law".

He said quite extraordinary conditions had existed in a country where police were "corrupt" and courts open to "manipulation", and told the judge that it was not easy for UK lawyers to assess the behaviour of people who lived in "such a world".

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