Russia confiscates major marine fuel firm linked to Putin-era oligarch

A Moscow court has ordered the nationalization of Grupo Transbunker, a leading Russian company specializing in fuel supply for ships. The firm was owned by Sergei Pugachev, a Russian oligarch who described himself as close to President Vladimir Putin before and during his early presidency. The seizure, based on a demand from the General Prosecutor's Office, took immediate effect.

The prosecution argued that the companies, deemed strategic, were under foreign control, specifically Cypriot, with funds being transferred abroad. According to the Prosecutor's Office, 19.3 billion rubles (approximately $253 million) were moved from the company to foreign accounts between 2020 and the present. Pugachev's defense contested the strategic nature of most Transbunker entities and stated that the company's relocation was supervised by the prosecution itself.

Transbunker is a key player in Russia's marine fuel market, supplying ports nationwide and operating vessels, oil depots, and refineries. The nationalization comes at a critical time, coinciding with a nationwide fuel supply crisis exacerbated by ongoing Ukrainian attacks on Russian oil infrastructure. This move also fits within a pattern of asset expropriation by Russian authorities following the 2022 invasion of Ukraine, channeling significant funds into state coffers for the war effort.

This action follows a previous legal judgment against Pugachev, who was sentenced in absentia last year to 14 years in prison for corruption. Investigations into his personal affairs revealed a corrupt scheme involving his bank, Mezhprombank, between 2008 and 2009, through which he allegedly misappropriated approximately $1 billion. Russian authorities contend that Pugachev deliberately bankrupted his own bank in 2010 to evade obligations to creditors.