The Oligarch's Gambit: How Western Financiers Backed a Billion-Dollar Legal Assault on a Sanctioned Russian
A complex web of Western financial interests has emerged behind a failed billion-dollar lawsuit against sanctioned Russian oligarch Andrey Guriev, revealing how offshore companies, controversial football investors, and politically connected firms funded litigation targeting Putin-linked assets.
At the center of this financial maze is a legal battle that began with promises allegedly made in London pubs and saunas, escalated into international courtrooms, and ultimately exposed a shadowy network of litigation funders with questionable ties to Russian interests.
The Fertilizer Fortune at Stake
Andrey Guriev, worth approximately $9.5 billion, controls PhosAgro, one of the world's largest phosphate fertilizer producers [1]. The company, with holdings worth over $7.6 billion, has roots tracing back to the chaotic privatization of Soviet assets in the 1990s. Guriev was sanctioned by Western governments in 2022 for controlling assets that generate significant revenue for Russia's war in Ukraine [1].
The legal saga began when Alexander Gorbachev, Guriev's former associate and PhosAgro's one-time vice president, claimed he was promised a 24.75% stake in the company worth approximately £1 billion ($1.27 billion) today [2]. According to court documents, these alleged promises were made during conversations in London between 2005-08 at a pub, in a sauna, at a restaurant, and in a high-end hotel [1].
Guriev dismissed Gorbachev's claim as a "shakedown," and UK courts ultimately agreed, finding Gorbachev's evidence "was contradictory, lacked credibility, and, at times, was plainly false" [2].
The Funding Network Exposed
What makes this case extraordinary is not just the billion-dollar stakes, but the constellation of Western entities that financed Gorbachev's litigation against the sanctioned oligarch.
The funding trail leads to three primary sources:
Marholm Ltd and the Israeli Connection
First into the picture was Marholm Ltd, an offshore firm registered in the British Virgin Islands [1]. Court filings reveal the controlling interest behind Marholm belonged to Israeli businessman Levi Kushnir, known for his ill-fated stint as chairman of Portsmouth FC before its financial collapse in 2010 [1]. Kushnir's football connections included partnerships with individuals later convicted of fraud and implicated in financial scandals.
Hunnewell Partners: Georgia's Media Empire
The second major funder was Hunnewell Partners, a UK private equity group headquartered in Kensington and Chelsea [1]. The firm owns Georgia's largest broadcast network, Imedi TV, and maintains close business ties with Bidzina Ivanishvili, Georgia's ruling oligarch [1]. Critics have accused Hunnewell of using its media control to push state propaganda supporting Georgia's anti-Western, authoritarian policies.
Byline Times previously exposed how Hunnewell maintained a secret business relationship with sanctioned Russian oligarch Roman Abramovich for over a decade [1]. The firm funded Gorbachev's litigation through its Jersey-based litigation funding outfit, Park Street Litigation.
777 Partners: The Miami Wildcards
The third and most controversial funder was 777 Partners, a scandal-ridden Miami investment group that once owned stakes in seven football clubs worldwide [1]. Founded by Josh Wander, who received a 15-year probationary sentence in 2004 for receiving cocaine in the mail, the firm has been plagued by financial troubles and questionable business practices [1].
777's subsidiary, Sphinx Funding LLC, joined the litigation funding arrangement in March 2021, ultimately paying over £11 million ($13.9 million) for Gorbachev's litigation costs, insurance, and living expenses [2]. The firm's failed bid to acquire Everton FC and subsequent near-bankruptcy amid a US Department of Justice money laundering investigation underscore its troubled trajectory [1].
The Georgian-Miami Connection
The link between Hunnewell and 777 appears to run through Andres Blazquez, currently CEO of Genoa FC and a former 777 operating partner [1]. Blazquez's connection to Hunnewell's Georgian co-founder, Irakli Rukhadze, dates back to their time together in Georgia during the mid-2000s [1].
Both men became entangled in the estate battle following the death of Georgian billionaire Arkady Patarkatsishvili in 2008, with Hunnewell earning an estimated $260 million in bounty fees for tracking down and retrieving the oligarch's assets [1].
Financial Breakdown and Ongoing Mysteries
The funding arrangement ultimately collapsed in spectacular fashion. By July 2022, 777 was struggling to meet its financial commitments, with Gorbachev's lawyers chasing over $2 million in outstanding fees [1]. Wander's January 2024 testimony revealed a "dispute" had arisen between Gorbachev and his funders by March 2023, resulting in the Miami group stopping payments and the matter going into "confidential arbitration" [1].
After losing his case, Gorbachev now owes Guriev at least £12 million ($15.2 million) in court costs but claims he lacks the funds to pay [2]. He has been declared bankrupt, leaving Guriev pursuing discovery proceedings in Florida courts to uncover the true sources and motives behind the litigation funding [2].
The Billion-Dollar Question
Guriev's Florida legal action seeks to discover "information relevant to the identities and ultimate sources of the funds provided by the third-party funders who financed Mr. Gorbachev's failed, frivolous, and potentially fraudulent claims, as well as the true motives and objectives in bringing those claims" [2].
The case raises profound questions about the due diligence and motivations of Western entities willing to finance litigation connected to sanctioned Russian assets. It also highlights the complex web of offshore structures, politically connected firms, and controversial investors that can emerge in high-stakes international legal battles.
As Guriev's Florida proceedings continue, they may yet reveal whether additional, more powerful interests were ultimately pulling the strings behind this billion-dollar legal gambit.
Sources:
[1] Byline Times - "Mystery at the Heart of £1 Billion UK Legal Offensive Against Top Putin Ally"
[2] Bloomberg Law - "Russian Oligarch Wants Court Nemesis' Litigation Funding Details"
