Ukraine officially nationalized a Russian oil and gas asset, who is the owner Eduard Khudaynatov?

Ukraine has just officially announced the nationalization of 500 million UAH (approximately 13.32 million USD) worth of oil and gas assets belonging to Russian oligarch Eduard Khudaynatov.

Ukraine chính thức quốc hữu hóa một tài sản dầu khí của Nga, chủ sở hữu Eduard Khudaynatov là ai?

The superyacht Scheherazade is worth $700 million. (Source: DailyMail)

The High Anti-Corruption Court of Ukraine (HACC) has approved a lawsuit filed by the country's Ministry of Justice concerning the nationalization of assets owned by Russian oligarch Eduard Khudaynatov – who was previously sanctioned.

The relevant statement was issued by the Ukrainian Security Service (SSU).

Accordingly, the HACC statement said, “100% of billionaire Khudaynatov’s shares in the Alliance-Ukraine Oil Company LLC’s authorized capital have been recovered for Ukraine, estimated at approximately 500 million UAH.”

According to investigative documents, Russian oligarch Khudaynatov controlled the Ukrainian oil trading company through a number of offshore companies ( companies registered in territories where they enjoy complete tax exemptions if the company operates with profits generated outside those territories) and other controlled entities.

Previously, by managing this asset, Russian oil billionaire Khudaynatov had hoped to prevent his oil and gas assets in Ukraine from being nationalized when Moscow launched its special military operation, while also generating significant profits from the energy market in the neighboring Eastern European country.

However, Ukrainian security agencies have identified the true owners and beneficiaries of the Ukrainian oil trading company Alliance-Ukraine Oil Company LLC.

The investigation also determined that billionaire Khudaynatov was one of President Putin's trusted representatives. He headed Russia's NNK-Group oil and gas company and was formerly a member of the board of directors of the oil giant Rosneft – a company largely owned by the Russian government .

According to the SSU, these companies are all major sponsors of the Kremlin's military campaign in Ukraine. Ukrainians accuse these businesses of continuously supplying fuel and oil to the Russian defense industry and military units. They transfer billions of rubles into Moscow's budget every month.

Therefore, an investigation is underway against the Russian oligarch, under criminal proceedings initiated by SSU investigators, specifically under Section 4 - Article 110-2 of the Ukrainian Criminal Code – concerning acts of financing aimed against Ukraine.

In February 2023, following a lawsuit filed by the SSU, Ukraine's High Anti-Corruption Court upheld the Justice Ministry's request to transfer businesses owned by another Russian billionaire, Oleg Deripaska, to Ukrainian state ownership. The total value of assets transferred to Ukraine was approximately over 10 billion UAH.

The name of Russian oil tycoon Eduard Khudainatov received less attention compared to other Russian oligarchs until 2022, when his name suddenly appeared in a lawsuit aimed at determining which Russian oligarch was the true owner of the $325 million superyacht Amadea, which the US claimed had been seized.

US officials accused billionaire Khudainatov of being a stand-in. They asserted that the Amadea yacht truly belonged to one of Russia's richest oligarchs – gold magnate Suleiman Kerimov, who is currently under Western sanctions.

Furthermore, the US has also questioned whether Khudainatov might be acting as a stand-in for the owner of another, more valuable superyacht – the $700 million Scheherazade, seized in Tuscany, Italy, after the Russia-Ukraine conflict erupted. The true owner of this vessel is also believed to be subject to Western sanctions.

US authorities acknowledged in an investigation report that Russian billionaire Khudainatov was also very wealthy, but there was "no basis" to believe he had the financial resources to purchase both the superyachts Amadea and Scheherazade.

Previously, tycoon Eduard Khudainatov had not been sanctioned by any country. However, he was later placed on the European Union's (EU) "blacklist" based on his alleged benefit from a leading Russian oil company. The EU accused the businessman, who is over 60 years old, of "benefiting from the Russian government" and having close ties to the Kremlin. He is also believed to be the "paper owner" of the two seized yachts.

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