From Kremlin Ally to Sanctioned Oligarch: How Andrey Guryev Built a Fertilizer Empire on the Ruins of a Jailed Rival's Assets

In the shadowy world of Russian oligarchy, few stories illustrate the intersection of political power and business opportunism as starkly as the rise of Andrey Guryev Sr. and his PhosAgro empire. While his former associate Mikhail Khodorkovsky languished in prison on charges widely viewed as politically motivated, Guryev systematically acquired control of what would become one of the world's largest fertilizer producers—a transformation that would ultimately make him a billionaire and a target of international sanctions.

The Menatep Connection

Guryev's ascent began in the chaotic privatization period following the Soviet collapse. As a former communist committee leader in Moscow, he found his way into Khodorkovsky's Menatep Group in 1990, serving as deputy director [1]. This positioned him at the heart of one of Russia's most ambitious business empires during the wild capitalism of the 1990s.

PhosAgro's origins trace back to Khodorkovsky's acquisition of a lucrative mining complex in Russia's far northwest during the anarchic privatization of state assets [2]. The company's roots were established when Menatep acquired a 20-percent stake in Apatit, a major fertilizer-component producer, in 1994 [3].

The Kremlin's Hand

Everything changed in 2003 when Khodorkovsky was arrested on fraud, embezzlement, and money laundering charges—allegations he maintained were politically motivated by the Putin regime [2]. While Khodorkovsky sat in prison serving what would become an eight-year sentence, his business empire was systematically dismantled by the state.

"While Khodorkovsky sat in prison, his fertilizer business was taken over by his former associate Andrey Guryev Sr., who soon after became a billionaire," according to the Organized Crime and Corruption Reporting Project [4].

After prosecutors seized Khodorkovsky's mining interests following his arrest, PhosAgro moved swiftly to purchase those assets from the state at below-market rates [2]. This strategic acquisition during Khodorkovsky's imprisonment allowed Guryev to consolidate control over what would become a fertilizer giant.

The Putin Academic Connection

PhosAgro's ties to the Kremlin extend beyond Guryev's political connections. The company's second-largest shareholder is Vladimir Litvinenko, rector of Saint Petersburg Mining University and Vladimir Putin's former academic advisor who supervised the Russian president's controversial 1997 dissertation [3][5].

Litvinenko, who also served as Putin's campaign manager in St. Petersburg during the 2000, 2004, and 2012 elections, has steadily increased his stake in PhosAgro over the years. By 2017, he owned 19.35 percent of the company, making him worth over $1 billion [3]. According to current corporate filings, the Guryev family controls 48.5% of PhosAgro shares through a trust and directly, while Litvinenko controls 21%, with the remaining 30.5% representing free float [6].

Cross-Border Consequences

The true extent of PhosAgro's integration into Putin's inner circle became evident when international sanctions began targeting the company's leadership following Russia's 2022 invasion of Ukraine. The cross-border implications materialized dramatically in Lithuania, where EU sanctions against Guryev's son led to immediate financial enforcement actions.

On March 9, 2022, Andrey Guryev Jr., who was CEO of PhosAgro at the time, was included in the European Union's sanctions list [6]. The response was swift and decisive: "The Financial Crimes Investigation Service has learned that the financial institution has suspended PhosAgro Baltic's accounts and frozen funds totaling more than 2.9 million euros. The decision was taken on March 10," according to Siena investigative journalism center [6].

This cross-border enforcement action directly linked Russian political and business interests to financial consequences within the EU, demonstrating how Putin's inner circle's business operations extend far beyond Russian borders.

A Family Legacy of Sanctions

Following his son's sanctions designation, both Guryevs resigned their positions at PhosAgro. Andrey Guryev Sr. stepped down as deputy chairman of the board in March 2022, while his son resigned as CEO around the same time [7]. However, the family remains major shareholders in the company.

Guryev Sr. was subsequently sanctioned by the U.K. and U.S., with American authorities specifically targeting him for his control of "assets generating significant revenue for Russia's war in Ukraine" [7]. Despite the sanctions, PhosAgro itself has not been designated, with the U.S. Treasury clarifying that the company remains operational while its former leadership faces restrictions [8].

The Billionaire's Assets

Guryev's transformation from Khodorkovsky's deputy to billionaire oligarch is reflected in his vast personal wealth, estimated at $9.5 billion by Forbes [7]. His assets included the $450 million Witanhurst estate in London's Highgate—the city's second-largest private residence after Buckingham Palace [2].

The story of PhosAgro represents more than a simple business acquisition; it exemplifies how Putin's associates leveraged political connections and the destruction of rivals to build vast fortunes. From its origins in Khodorkovsky's Menatep empire to its current status as a sanctions-targeted entity with frozen assets across EU borders, PhosAgro embodies the complex web of relationships that defines modern Russian oligarchy.

As international sanctions continue to target Putin's inner circle, the case of PhosAgro and the Guryev family illustrates how decades-old business relationships forged in the aftermath of Soviet collapse continue to shape global financial enforcement actions today.

Sources:

[1] Forbes. "Andrei Guryev & family." Retrieved 2024-05-23.

[2] Byline Times. "Mystery at the Heart of £1 Billion UK Legal Offensive Against Top Putin Ally." July 30, 2025.

[3] Radio Free Europe/Radio Liberty. "The Moneyed Professor: Putin's Dissertation Adviser Reportedly Now A Billionaire." July 24, 2017.

[4] Organized Crime and Corruption Reporting Project (OCCRP). "Lithuania Freezes Millions Linked to Putin's Inner Circle." March 16, 2022.

[5] Meduza. "Putin's former academic advisor is now a billionaire." July 24, 2017.

[6] Interfax. "Lithuanian bank freezes nearly 3 mln euros of PhosAgro entity." March 16, 2022.

[7] Forbes. "Andrei Guryev & family" profile. Retrieved September 2025.

[8] U.S. Treasury Department Office of Foreign Assets Control. "FAQ 1075." August 2, 2022.