ABRAMOVICH FIRM GOES BUMP

Last updated : 06 July 2004 By editor

This from The Times:

'Secrets of Mr Abramovich’s empire could be exposed by the forced opening of account books and disclosure of money transfers in an international hunt to recover the lost millions.

The bankruptcy comes as Mr Abramovich fights allegations of wrongdoing in his native Russia, where he has twice been reported to the Prosecutor General’s office.

It is the latest twist in a bitter struggle by the London-based European Bank for Reconstruction and Development (EBRD) to recover money lent to post-communist Russia by the West.

Two men handpicked by Mr Abramovich to run his English football club have been heavily involved in negotiations over the unpaid debt, owed to the EBRD by a Swiss-registered company, Runicom SA.

One is Eugene Tenenbaum, the Chelsea director seen as a ruthless executive after he is said to have broken the news to Claudio Ranieri, the manager, that he had been dismissed. The other is Eugene Shvidler, a US citizen who is often seen with Mr Abramovich at Stamford Bridge, the club’s ground in West London. He runs Mr Abramovich’s Russian oil corporation Sibneft and was briefly a Chelsea director.

Runicom’s shares are held by nominees, making ownership impossible to prove. But when Mr Abramovich’s closest aides told EBRD officials that "we are Runicom SA. You have to deal with us," the bank drew the obvious conclusion.'

With Abramovich sizing up moves for CSKA Moscow and a further club in Spain Chelsea's future looks far from secure.