Private Equity Firm TPG Wins Legal Battle Against Jailed Businessman Ziyavudin Magomedov’s $14 Billion Lawsuit.
A London High Court ruling on Friday has sided with private equity firm TPG, alongside Russian state-owned companies Rosatom and Transneft, blocking jailed businessman Ziyavudin Magomedov’s $14 billion lawsuit. The suit alleged a conspiracy to seize his assets, a claim the defendants vehemently denied.
Magomedov, who was arrested in 2018 on embezzlement charges, filed the lawsuit asserting that his arrest was part of a state-backed effort to seize his interests in valuable port operations. His legal team contended that TPG, Rosatom, and Transneft were involved in this alleged conspiracy. However, TPG’s legal representatives called the claims "absurd," arguing that Magomedov’s allegations were fabricated.
Judge Robert Bright ruled that the case would not proceed, stating there was "no significant issue to be tried" involving TPG or Transneft, and also dismissed any case against Rosatom in London.
Magomedov, who once ran Summa Group, a logistics operation tied to an oil and gas empire, has faced serious legal trouble in recent years. In 2022, he was sentenced to 19 years in prison for embezzlement and organised crime, charges he insists are baseless. Magomedov remains incarcerated in a penal colony in Kirov, 900 kilometres east of Moscow, following his unsuccessful attempts to challenge his conviction.
Ziyavudin Magomedov is a prominent Russian businessman and former owner of Summa Group, a large conglomerate involved in various sectors such as logistics, energy, and infrastructure. Born in Dagestan, Russia, Magomedov built his wealth through his involvement in key industries, most notably in port operations and logistics. He was known for his close ties to Russia’s political and business elite.
Magomedov's rise to prominence began through his work in the oil and gas industry, where he played a crucial role in the development of infrastructure for transporting oil and gas. His company, Summa Group, became a significant player in Russia’s logistics and port operations, holding important stakes in various transportation projects, including port terminals.
However, Magomedov's career took a downturn in 2018 when he was arrested on charges of embezzlement and organized crime, which led to a lengthy legal battle. He was accused of embezzling large sums of money from government contracts and various business ventures. In 2022, Magomedov was sentenced to 19 years in a Russian penal colony, a verdict that he claims is based on false accusations.
Magomedov has also been involved in a high-profile legal case in London, where he sought $14 billion in damages, alleging that state-backed entities, including private equity firm TPG and Russian state-owned companies Rosatom and Transneft, were part of a conspiracy to seize his assets. However, the London High Court ruled against him, dismissing the lawsuit.
Despite his legal troubles, Magomedov remains a controversial figure in Russia’s business landscape, with supporters arguing that the charges against him are politically motivated. His case is seen as part of a wider pattern of high-profile prosecutions of businessmen in Russia.
