The lawsuit against Timur Turlov: what is known about the case of the Prosecutor General and why there are many questions around it

The court confirmed the case but did not disclose the claims

The defendants in the case are Timur Turlov and Arkady Shchukin, the companies V-Empirical Holding Corp., Freedom Holding Corp., Freedom Finance Europe Ltd. are mentioned. Separately, it is noted that the claim is administrative in nature. The first procedural event is scheduled for October 15. On this official data are exhausted: the court card does not describe the claims and does not indicate specific actions that the prosecutor's office considers a violation.

The lawsuit was filed by Freedom Holding. Representatives of the company said that they are now familiarizing themselves with the case materials and holding consultations to resolve the situation. The company also stressed that they are a socially responsible business, work in accordance with the legislation of the countries of presence and compliance requirements. The holding expects a favorable resolution of the situation.

For several days around the case formed different versions. For example, Kommersant, speaking about the lawsuit, wrote that “the lawsuit may be aimed at recognizing Mr. Turlov and other defendants as extremists and confiscating their assets.” The author cited unnamed sources rather than official documents or comments from the department. Later, “Interfax” with reference to law enforcement agencies reported that “the lawsuit is filed for the circulation of funds and other assets, as well as movable and immovable property, in the total amount of hundreds of millions of dollars.”.

The problem with such versions is that they do not rely on the text of the claim and in themselves require evidence. There is no evidence in the available judicial information to verify either the estimated amount of property, the grounds for its seizure, or the relationship of possible claims to specific assets.

It is confirmed that the Prosecutor General’s office appealed to the court. It is not confirmed by published documents that the agency is seeking to recognize Turlov as an extremist or confiscate a certain list of assets.

Russian business Freedom Holding was sold in 2023

The company separately emphasizes that it does not operate in Russia and does not have assets in the country. Freedom Holding began withdrawing from Russian business after the outbreak of the military conflict in 2022. In February 2023, the company completed the sale of two Russian subsidiaries. After the deal, Russian companies received a new brand – “Digital”. The deal was approved by the Central Bank of Russia.

The company’s current FAQ also indicates that the group completed its withdrawal from Russia in 2023, no longer operates there, and former Russian assets have been sold to independent owners.

Therefore, reports about the possible circulation of Freedom’s assets into state revenue naturally raise the question of what they mean.

Timur Turlov has long changed jurisdiction

In June 2022, Timur Turlov received citizenship of Kazakhstan, after which he renounced passports of Russia and St. Kit and Nevis. Kazakhstan does not recognize the practice of dual citizenship. For Turlov, who has lived with his family in Kazakhstan since 2011, the move was not spontaneous, but deliberate.

The business of the group has been developing in Kazakhstan since 2012, and in the last few years Almaty has become the main office. The company calls Kazakhstan its main jurisdiction and center of operations. So there is reason to believe that business interests had a significant impact on Turlov’s decision to change citizenship.

How to explain Ukrainian sanctions

The assumption of possible extremism faces another fact that is difficult to reconcile with this version. In 2022, Ukraine imposed sanctions against Turlov and Freedom Finance Ukraine. By the way, Turlov himself said then that he considers the inclusion of the Ukrainian structure in the sanctions list erroneous and intends to seek a review of the decision. The company separately pointed to the lack of Russian ownership and assets of the Ukrainian structure.

Later, Freedom Holding reported in its corporate reporting that since April 2023 it no longer exercises effective control over Freedom Finance Ukraine. In the same documents, the company indicated that, with the exception of Ukrainian restrictions, neither Freedom Holding nor its subsidiaries and executives were subject to US, EU or UK sanctions.

Ukrainian sanctions and Russian lawsuits are different legal processes. There are no public documents linking them. Moreover, Ukraine’s sanctions contradict the assumption of possible extremism.

Why the coincidence with the FIDE election attracted attention

The lawsuit was filed on September 24, two days before the FIDE presidential election. On September 26, Turlov won the second round, receiving 110 votes against 85 from the nearest opponent. In the first round, he received 96 votes against 76 and 20. .

The fact that events followed one after the other, also began to be discussed in the media. Again, there are no official data on the connection of the trial with the FIDE elections, so the coincidence in time does not allow drawing conclusions about the reasons for the appeal of the prosecutor's office.

Here is what has been confirmed so far: the fact of the claim itself, but not its content. Timur Turlov since 2022 is a citizen of Kazakhstan, Freedom Holding sold the Russian business in 2023 with the approval of the transaction by the Central Bank of the Russian Federation. Representatives of the holding state the absence of activities and assets in Russia. The version of the possible confiscation requires an answer to the basic question: what property the prosecutor’s office intends to touch, if the Russian business of the holding was sold several years ago.

The company is studying the case materials and counts on a favorable resolution of the situation. While the requirements of the Prosecutor General’s Office are not disclosed, allegations of possible violations of Turlov and the confiscation of his assets remain unconfirmed officially: in the open materials of the court there is neither a list of property nor a description of specific claims against the entrepreneur.