MOSCOW, December 8 (RAPSI) - Russian investigators are examining the situation with regard to a subordinated loan agreement made between Corporate Finance Bank LLC and Cypriot company Netcore Solutions Ltd, representative of the bank’s shareholders Viktor Medvedev told RAPSI on Tuesday.

The case involves Alexey Golubovich, the beneficiary of Netcore Solutions Ltd.

Medvedev noted that investigators are currently investigating whether ex-shareholder of YUKOS Alexey Golubovich might have violated the law on Controlled Foreign Companies (CFC).

“This issue is being dealt with by law enforcement agencies. We are not handling direct evidence, as only law enforcement has the authority to do so. However, we also cannot deny facts. The law enforcement is investigating” said the representative of the CFB shareholder said.

He pointed out that currently there is a claim regarding this issue being reviewed at the arbitration court on the basis that the deal was a related party transaction.

“At the time when the loan agreement was made, Alexey Golubovich was an affiliate of Bank BKF LLC and owned a 20.00007% stake in the bank’s registered capital, as well as the ultimate beneficiary of Netcore Solutions Ltd, and the ultimate recipient of interest income under the subordinated loan agreement", Medvedev explained.

According to the Medvedev, non-observance of the procedure allowed Golubovich to withdraw more than $ 7 million from the bank, causing both the credit organization and those involved in it to suffer economic damages.

Medvedev pointed out that the first instance court had already established that Golubovich was a person related with Netcore Solutions Ltd, , and the plaintiffs proved that the defendant had an interest in the contested agreement. On June 17, 2020, the Moscow Arbitration Court ordered Netcore Solutions Ltd. (that is, Golubovich) to return almost 5 million US dollars as “funds unlawfully acquired under the subordinated loan agreement” with Bank CFB, as well as $1.5 million “as the interest on the use of other persons’ monetary assets.”

In 2009, a Cypriot company Netcore Solutions Ltd and BKF Bank LLC entered into a subordinated loan agreement in the amount of more than $11 million. At the time the deal was made, Golubovich was in fact the beneficiary owner of the lender company and, as such, had a possibility to receive interest income from the subordinated loan.

However, the credit institution became aware of Golubovich's interest in the contested agreement only in August 2019. In this regard, they applied to the Moscow Arbitration Court with a claim to invalidate the subordinated loan agreement. During summer of this year, the arbitration court declared the transaction invalid, but the appeal overturned the decision of the lower instance.

The CFC law, to which the plaintiff is appealing, is aimed at combating tax evasion through foreign jurisdictions. In accordance with the law, Golubovich was obliged to notify the tax authorities of the Russian Federation and the CFB board of directors of his control over Netcore Solutions Ltd.

So, Golubovich’s actions may be interpreted not only as large scale tax evasion, but also as unlawful withdrawal of funds from the Russian Federation to offshore jurisdictions, where Golubovich’s companies are registered, among them, Netcore Solutions. The first instance court established that Alexey Golubovich was the controlling shareholder of Netcore Solutions Ltd via a chain of offshore companies.

Medvedev stressed that the bank had reserved funds to be paid to Golubovich. Nevertheless, it intends to challenge the decision in the next instance of the court.

RAPSI could not get businessman’s commentaries as yet.