Pavel Fuks

Pavel Fuks
Павло Якович Фукс
Born (1971-10-27) 27 October 1971 (age 53)
Kharkiv, Ukrainian SSR, USSR
Alma materKharkiv State University
OccupationBusinessman
Years active1992–present

Pavel Yakovlevich Fuks (Ukrainian: Павло Якович Фукс, Russian: Павел Яковлевич Фукс (surname sometimes also spelled Fuchs); born 27 October 1971) is a Ukrainian oligarch[1] who is known for founding a construction company, Mos City Group which is not operational in Russia.[2][3] According to the FBI Fuks is a Russian intelligence asset.[4][5] Fuks has made most of his wealth through business ventures in Russia.[6] Fuks is a Ukrainian and Russian citizen, but claims that he surrendered his Russian passport in 2022.[7][8][9]

Early life

Pavel (Pavlo) Fuks was born in October 1971, in Kharkiv, Ukraine.[6] In 1994, he graduated from the Kharkiv State University after studying at its department of economic and social planning.[6][10] Between 1997 and 2003, Fuks continued his studies at the Plekhanov Russian University of Economics on the faculty of World Economy.

From 1995 to 1999, he was an adviser to the chairman of the board of JSCB Prominvestbank. In 1999–2000, Fuks served as the vice president of CJSC Foreign Economic Corporation.[10][11]

Career

Career in Russia

Fuks' career began when he moved to Russia after his graduation.[6]

In 2000, he invested in an oil company called Nefthold LLC, which is linked to Russian politicians and government officials.[6]

In 2002, he became involved in the construction business. Among his first projects was the construction of the shopping center "Kaluzhskii," which has operated since 2001.[10][11]

In June 2008, he negotiated with Donald Trump about the construction of Trump Tower in Moscow, but was unable to reach an agreement.[12][13][14][15] Bloomberg failed to verify the claim.[16]

In 2010, Pavel Fuks was the largest shareholder of Sovkombank, where he owned a 21.83 percent stake. In March 2015, he sold his shares, which were valued at US$80 million.[17] As per Ministry of Internal Affairs records, he was given a Russian nickname "Naemnik", which means mercenary in English.[6]

In March 2018, the London International Arbitration Court ordered the now defunct MosCityGroup (MCG) to pay $55 million to a division of BTA Bank. In 2009, MCG bought a stake in the Eurasia Tower (Moscow City) from the former owner of BTA Bank, fugitive and former Kazahh banker, Mukhtar Ablyazov. The new owner of the bank, Kenes Rakishev, stated that MCG did not pay the second tranche totaling 30$ million in a deal to buy a 50% stake in the Eurasia construction project. In addition, the BTA Bank spent 4.2£ million on legal fees. According to Rakishev, the lawyers had filed personal claims against Pavel Fuks.[18][19]

In 2019, an international arrest warrant was issued for the Fuks brothers, who are wanted in Russia and in Kazakhstan for allegedly embezzling millions of dollars from the Moscow-City project.[20]

In July 2023, an FBI whistleblower submitted a 22-page disclosure to the Senate Judiciary Committee. The disclosure reveals that the FBI assessed Fuks as a “co-opted asset” of Russian intelligence services, implicating Fuks as a tool used by Russian intelligence to further its objectives. The disclosure, while not specifying a particular Russian intelligence agency, indicates that Fuks was associated with the FSB, the modern successor to the KGB. The allegations extend to accusations of Fuks laundering money for Russian spies and staging provocations in Ukraine to support Russian President Vladimir Putin’s claim of “de-Nazification” as a pretext for the Russian invasion.[4][21]

Career in Ukraine

In 2017, Fuks hired Rudy Giuliani's law firm to help improve Kharkiv's public image.[22] According to reporting by Novoye Vremya, a Ukrainian magazine, Fuks had employed Giuliani’s expertise to establish an investment support office in the U.S. for Kharkiv. According to New York Times, Fuks claimed that Rudy Giuliani was hired by Fuks to be a lobbyist. Giuliani, however, refuted any awareness of such claims and denied engaging in lobbying activities for Fuks within the U.S.[23]

In January 2018, the English-language channel Al Jazeera published a 99-page report partly based on information from the nominal director of one of the Cypriot offshore companies associated with Pavel Fuks. The document showed that Pavel Fuks was negotiating the purchase of the Cypriot company, Quickpace Limited, which had assets of $160 million in the accounts controlled by the fourth President of Ukraine Viktor Yanukovych and sanctioned oligarch Serhiy Kurchenko. As a result, in September 2015, Fuks, together with Oleksandr Onyshchenko, acquired the frozen assets of Quickpace Limited for $30 million (in proportions of 33 percent and 67 percent) and a private jet.[24][25][26]

Fuks sold his business assets in Russia in 2011–2012. He completely moved to live in Ukraine in 2015. Pavel Fuks started to invest in Ukrainian assets in 2014.[27]

Fuks had Russian citizenship, but in June 2021, he indicated that he had renounced it.[8] Fuks claims that in 2017, he had handed over his Russian passport at the consular department of the Russian Embassy in Ukraine.[8] In 2024, the news agency Ukrainian News stated that Fuks does not have Russian citizenship, only Ukrainian.[28]

On July 19, 2022, Fuks won a lawsuit against American lobbyist Yuri Vanetik in the U.S., obliging him to return Fuks $200 thousand and interest due to dispute over Trump inauguration events Fuks wanted to attend. Vanetik said he planned to appeal the ruling.[29][30]

According to Rolling Stone, Fuks on the eve of Russia's full-scale invasion of Ukraine launched a false flag campaign to justify Russian invasion. According to the publication, Fuks paid local residents of the city of Kharkiv to paint swastikas on the walls of synagogues.[31][32] Fuks' spokesperson disputed the Rolling Stone report, and provided a statement from Fuks saying that it "has nothing to do with reality" and "contains a huge amount of untrue, far-fetched facts that are damaging to my honor and dignity."[33]

Golden Derrick

In 2015-2017, the Cypriot offshore company Hartlog Limited, whose beneficiary, according to the Russian Anti-Corruption Center, is Pavel Fuks,[34] bought 67 % of Golden Derrick shares from Eduard Stavytsky.[35] Subsequently, this company was renamed East Up Petroleum LLC. The National Joint Stock Company Nadra Ukrayiny owned a 33 % stake in the authorized capital. In 2017, the State Service of Geology and Subsoil of Ukraine (the owner of Nadra Ukrayiny) transferred 16 licenses for gas fields to East Up Petroleum. In an official statement, Nadra Ukrayiny emphasized that during the entire time of participation in Golden Derrick's share, and then in East Up Petroleum, the company did not receive any dividends and did not influence the activities."[36]

Public outcry was caused by the information about the complete transfer by Nadra Ukrayiny of its remaining share (33 % of the company) to Avant Trade Limited, which is also strongly associated with Pavel Fuks. In its statement, Nadra Ukrayiny stated that the sale price was UAH 12 million.[37] Fuks himself denied that he had bought Golden Derrick. However, according to him, he was interested in the company and "is still looking at its assets." "Yes, I am considering the acquisition of certain licenses and will most likely acquire some of them," he told reporters, adding that in 2019 he plans to buy "three or four licenses and will be guided by the conclusions of geologists."[38]

According to journalistic investigations, East Up Petroleum is controlled by Pavel Fuks, but indirectly, through a chain of shell companies. Thus, at the end of 2017, Golden Derrick founded a dozen and a half companies in Kyiv, which indicate exploratory drilling and production of hydrocarbons as their main activity. Subsequently, East Up Petroleum planned to transfer one or two gas production licenses to each of these companies with the further goal of a full sale of assets.[39]

According to a journalist's request, in November 2018, the Prosecutor General's Office of Ukraine transferred to the National Police a criminal proceeding on the fact of illegal issuance of special permits for the use of subsoil of Ukraine by the State Service of Geology and Mineral Resources. In April 2018, the court authorized the PGO to seize documents from East Up Petroleum. In addition, Arkona Gas Energy is involved in the proceedings.[40]

On June 18, 2021, the National Security and Defense Council imposed sanctions on Fuks for his involvement in Golden Derrick.

Partnership with Kolomoisky and Khomutynnik

Together with Ihor Kolomoyskyi and Vitaliy Khomutynnik, Pavel Fuks is a co-owner (18%) of Ukrnaftoburinnya, one of Ukraine's largest gas producers worth $500 million.

On 7 April 2023, the Pecherskyi District Court of Kyiv seized the corporate rights of Ukrnaftoburinnya, a gas production company. On 11 April, the same court ruled that the company's assets were transferred to the Asset Recovery and Management Agency. The company appealed this decision in court.[41][42]

Prominvestbank

Fuks was called one of the most likely buyers of Prominvestbank, controlled by Russia's Vnesheconombank.[43] The Antimonopoly Committee of Ukraine received a request from Fuchs to acquire more than 25% of the bank.[44] However, the businessman failed to obtain approval from the NBU.[45]

Sanctions

On 1 November 2018, Russian sanctions were imposed against 322 citizens of Ukraine, including Fuks.[46][why?]

In 2019, he was charged in absentia for embezzlement of funds.[47]

On 18 June 2021, the National Security and Defense Council of Ukraine imposed sanctions against Fuks.[48] Fuks announced he would challenge it in court.[49][50]

In May 2023, the SBU (Security Service of Ukraine) issued an indictment of Fuks accusing him of large-scale financial manipulations with strategic enterprises in Ukraine and systematic tax evasion.[51] According to the SBU, Fuks using proxy managers and shell companies illegally took over assets of Ukrainian companies worth over UAH 100 billion. in 2018.[52]

Wealth

Pavel Fuks has repeatedly been included in the rating of billionaires of the magazine, Finance. In 2011, he took 150th place in the ranking of Russian billionaires, and a capital estimate of $740 million.[53]

As per Focus, Fuks had a fortune of $270 million and took the 24th position in the 2017 ranking of the 100 richest people in Ukraine.[54]

Philanthropy

Fuks has regularly aided his native city of Kharkiv, having taken part in the restoration of the Kharkiv regional philharmonic and construction of the Church of the Holy Queen Tamara and a monument to the mythical founder of Kharkiv, cossack Kharko.[55]

He has supported athletes, including giving Ukrainian freestyle skier Oleksandr Abramenko and his mentor and senior coach of the Ukrainian national team, Enver Ablaev, certificates for 50 thousand dollars each for their achievements in Pyeongchang at the XXIII Olympic Winter Games.[56][57]

Babi Yar Holocaust Memorial Center

Main article: Babi Yar Holocaust Memorial Center

Fuks was the co-organizer of the construction of the Babyn Yar Holocaust Memorial Center, which was projected to cost an estimated US$50 to 100 million.[58] According to Fuks, the structure of the memorial will include educational programs, a research center and a museum.[59]

On 19 March 2017, the Supervisory Board of the Memorial Center for the Holocaust "Babi Yar" was established, and included Pavel Fuks, the Mayor of Kyiv Vitali Klitschko and his brother, the professional boxer Wladimir Klitschko. The board also included the shareholders of the consortium "Alfa Group" Mikhail Fridman and German Khan, among others.[60][61][62]

Critics of the project, such as Ukrainian Jewish dissident, leader and president of Association of Jewish Communities of Ukraine, Yosyf Zisels, characterized the project as a Russian Trojan Horse.[63][64] In 2021, after the levying of sanctions by the National Security Council of Ukraine against Pavel Fuks for his role in illegally obtaining licenses for the extraction of minerals from Ukraine,[65] the Babi Yar Supervisory Council announced that he had temporarily left the supervisory board with plans to return if the sanctions get lifted.[66]

Controversy

Fuks, a well-connected person in Kharkov, was made the Honorary Citizen of Kharkov in 2014 by Gennady Kernes.[6][67] As a result, a controversy was created and the following day the honor was revoked.[6]

Awards

For help in the fight against Russian aggression, he has a number of awards.

  • Honorary badge "For assistance to the army" (order of the Commander-in-Chief of the Armed Forces of Ukraine Valerii Zaluzhnyi).[68]

References

  1. ^ Multiple sources:
    • Dean, Grace. "An oligarch bankrolled a scheme to paint swastikas in Ukraine to fuel Putin's unfounded claims about rampant Nazism, a report says". Business Insider.
    • "Oligarch, friend of Trump: Who is Pavel Fuchs?". Al Jazeera.
    • Bredderman, William (March 15, 2022). "Eric Adams' UN Man Linked to Sanctioned Ex-Moscow Mogul". The Daily Beast.
    • Hettena, Seth (March 24, 2022). "Exclusive: Sources Say Oligarch Funded Scheme to Paint Swastikas in Ukraine". Rolling Stone.
    • Siegal, Tobias. "Jewish businessman paid for Nazi graffiti in Ukraine before Russia invaded – report". Times of Israel.
  2. ^ Oleksiy Sorokin (7 November 2018). "List of people and companies sanctioned by Kremlin on Nov. 1, full English text". KyivPost. Retrieved 2023-09-13.
  3. ^ "Фукс Павло Якович – досьє ЄДНІСТЬ – ЗГАДУВАННЯ – УСІ НОВИНИ – Є!". Ednist.info. Retrieved 9 September 2017.
  4. ^ a b David Corn. "A new Rudy scandal: FBI agent says Giuliani was co-opted by Russian intelligence". Mother Jones. Retrieved 2024-01-18.
  5. ^ David D. Kirkpatrick (2023-08-14). "Is the F.B.I. Truly Biased Against Trump?". The New Yorker. Retrieved 2024-01-18.
  6. ^ a b c d e f g h "Oligarch, friend of Trump: Who is Pavel Fuchs?".
  7. ^ Бізнесмен Павло Фукс повідомив про відмову від російського громадянства
  8. ^ a b c "Фукс заявив, що вийшов з громадянства Росії". Ukrainska Pravda (in Ukrainian). Retrieved 2022-10-14.
  9. ^ Commander of “Azov” Denys “Redys” Prokopenko awarded Pavlo Fuks a certificate of honor
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  19. ^ "Не достроивший башню в "Москва-Сити" бизнесмен должен $55 млн БТА-банку". RIA Novosti. 2018-03-12. Archived from the original on 2022-05-12. Retrieved 2019-11-14.
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  26. ^ "Курченко продал Онищенко и Фуксу права на "деньги Януковича" расследование". Ukrainska Pravda (in Russian). 2018-01-07. Retrieved 2019-07-26.
  27. ^ Dmytro Riasnyi, Roman Kravets (2019-11-06). "Павло Фукс: Я ходив до Тимошенко за боргами Пінчука, Коломойського та Ахметова" (in Russian). Ekonomichna Pravda. Retrieved 2023-04-04.
  28. ^ Commander of “Azov” Denys “Redys” Prokopenko awarded Pavlo Fuks a certificate of honor
  29. ^ "Ukrainian businessman Pavel Fuks won in the USA a lawsuit against lobbyist Yuri Vanetik". Interfax-Ukraine. 2022-07-26. Retrieved 2022-08-03.
  30. ^ "Ukrainian Oligarch Wins U.S. Lawsuit Against Russian-American Lobbyist Over Trump Inauguration Tickets". Radio Free Europe/Radio Liberty. 2022-07-21. Retrieved 2022-08-03.
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  33. ^ "Ukraine wants the US to sanction Pavel Fuks, the Kremlin-linked oligarch behind the effort to build a Trump Tower in Moscow. So far, the answer is no.", Business Insider, retrieved 2024-04-03
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  38. ^ "Фукс: "Голден Деррік" я не купував ніколи. Це брехня та плітки". gordonua.com. Retrieved 2024-10-06.
  39. ^ "Дигери в краватках, або Як Гройсман і Яценюк борються за нафтогазові гроші". Економічна правда. Retrieved 2024-10-06.
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  41. ^ "Третя пішла. Держава забирає у Коломойського та партнерів черговий актив вартістю $500 млн. Що потрібно знати про справу навколо «Укрнафтобуріння»". 20 April 2023. Retrieved 2024-05-09.
  42. ^ ""Укрнафтобуріння" оскаржує арешт і передачу до АРМА корпоративних прав компанії". 20 April 2023. Retrieved 2024-05-09.
  43. ^ "До Промінвестбанку "зайшли" куратори від Микитася та Фукса, – економіст Кушнірук". Retrieved 2024-05-09.
  44. ^ "«Дочке» ВЭБа сделали новое предложение". Коммерсантъ. Retrieved 2019-06-14.
  45. ^ "Росіяни закривають Промінвестбанк - ЗМІ". Archived from the original on 2018-08-22. Retrieved 2018-08-22.
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  47. ^ "Ukraine imposes sanctions on two business tycoons with ties to Rudy Giuliani". Occrp.org. Retrieved 2022-10-14.
  48. ^ (in Ukrainian) Ukraine imposes sanctions against Firtash and Fuks, Ukrayinska Pravda (18 June 2021)
  49. ^ Свобода, Радіо (2021-06-18). "NSDC sanctions: Pavel Fuks calls them "Danilov's revenge" and says he will appeal in court". Radio Liberty (in Ukrainian). Retrieved 2022-05-21.
  50. ^ "Fuks promises to sue the NSDC". Espreso TV (in Ukrainian). 2021-06-18. Retrieved 2022-05-21.
  51. ^ "SSU serves notice of suspicion to sanctioned oligarch Pavlo Fuks". 17 May 2023.
  52. ^ "СБУ повідомила про підозру підсанкційному бізнесмену Фуксу". РБК-Украина (in Ukrainian). Retrieved 2023-05-26.
  53. ^ "Рейтинг российских миллиардеров 2011". Archived from the original on 2012-06-05. Retrieved 2017-07-20.
  54. ^ "100 самых богатых людей Украины. Полный список". Focus. 2017-05-12. Archived from the original on 2018-08-31. Retrieved 2019-04-24.
  55. ^ "Павел Фукс заявил, что намерен продолжить работать в Украине". Vesti-ukr.com. March 30, 2017. Retrieved 9 September 2017.
  56. ^ "Olympic champion in freestyle skiing Oleksandr Abramenko and coach Enver Ablaev received NOC awards". National Olympic Committee of Ukraine (in Ukrainian). March 13, 2018. Retrieved 27 February 2019.
  57. ^ "Businessman Pavel Fuks handed the Olympic champion Oleksandr Abramenko and his coach 50 thousand dollars each". Interfax-Ukraine (in Russian). March 13, 2018. Retrieved 27 February 2019.
  58. ^ "Миллиардер Фукс рассказал о строительстве мемориала Бабьего Яра". Podrobnosti.ua. September 4, 2017. Retrieved 4 September 2017.
  59. ^ "Фукс: Если мы сосредоточимся на политике, то мемориал в Бабьем Яру вряд ли когда-нибудь построят". Gordonua.com. Retrieved 9 September 2017.
  60. ^ "The Supervisory Board of the Babi Yar Holocaust Memorial Center has been established". Babiyar.org. Archived from the original on September 4, 2017. Retrieved 9 September 2017.
  61. ^ "People of different views and nationalities are brought together by a common goal – to build the memorial in Babi Yar, – Pavel Fuks". Ukranews.com. 31 July 2017. Retrieved 9 September 2017.
  62. ^ Ayala, Christine (August 31, 2017). "In Ukraine, it's time for a Holocaust memorial at Babi Yar". Thehill.com. Retrieved 9 September 2017.
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  64. ^ "Putin's "Trojan horse" in Ukraine – Babyn Yar and Holocaust memorialization". Euromaidan Press. 2021-04-03. Retrieved 2022-09-25.
  65. ^ "Фукс выходит из набсовета мемориального центра "Бабий Яр"". Interfax-Ukraine. Retrieved 2022-09-25.
  66. ^ "Фукс из-за санкций уходит с Набсовета комплекса "Бабий Яр"". Ukrainska Pravda. Retrieved 2022-09-25.
  67. ^ "Определены почётные харьковчане 2014 года". Archived from the original on 2017-07-03. Retrieved 2017-07-19.
  68. ^ Павло Фукс заявив, що ніколи не отримував коштів із бюджету міста у статусі "почесного громадянина Харкова"
  69. ^ Определены почетные харьковчане 2014 года
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