Rosneft Chief Sechin Gives Testimony in $2mn Bribe Trial of Ex-Economy Minister

Corruption is Everywhere - Certainly in Russia

Igor Sechin, CEO, Chairman of the Management Board, Deputy Chairperson of the Board of Directors, Rosneft oil company © Michael Klimentyev / Sputnik

Rosneft CEO Igor Sechin has testified as a witness at a closed trial into an appeal filed by former Russian Economy Minister Aleksey Ulyukayev, who was sentenced to eight years in prison for receiving a $2 million bribe.

Rosneft is a state-controlled oil and gas company based in Moscow and is Russia's third largest company in terms of revenue.

Rosneft headquarters,

Sofiyskaya Embankment, Moscow

The Tuesday testimony was Sechin’s first personal appearance in court as part of Ulyukayev’s case. He turned down a court summons several times in 2017 during the initial trial, citing his busy schedule and foreign business trips as the reason for the decision. Back then, Sechin asked his attorneys to present the testimony he had given to investigators before the start of the hearings and confirmed that his position had not changed.

The defense argued that Sechin was dodging a personal appearance and violating due process, while critics accused him of being arrogant and considering his position to be above the law. The issue was even raised at an annual Q&A session with President Vladimir Putin, but the Russian leader refused to criticize Sechin’s behavior.

Sechin’s Tuesday testimony was closed to the press at the demand of prosecutors, who said that an open process could lead to leakage of commercial secrets belonging to the Bashneft oil company, the privatization of which was behind the initial trial. Prosecutors confirmed, however, that the court was looking into the purchase of Bashneft stock by Rosneft – the deal which, according to investigators, required Ulyukayev’s approval and for which the ex-minister demanded a $2 million bribe.

Aleksey Ulyukayev

On Thursday, Sechin said that he made a personal visit to the court as soon as he had the opportunity and added that he always felt personal responsibility for fighting corruption.

“I hoped that the first instance court would accept my written testimony, but unfortunately this has not happened. This is why I personally came to the court as soon as I had the opportunity to do this. This is a matter of principle for me, I want my testimony to be taken into account. I am the main witness, this is a matter of honor to me,” the Rosneft CEO was quoted as saying by TASS.

After the testimony was delivered, Ulyukayev’s defense team announced that the information disclosed would force them into changing their position in the process, but did not elaborate. Defense attorneys also asked for the court session to be adjourned until Monday to allow more time for preparation, although this request was refused.

When journalists asked presidential press secretary Dmitry Peskov to comment on Sechin’s appearance in court, the official answered that the issue “had no relation to the Kremlin.” He added that he possessed no information about the court process and could not answer questions about it.

Former Russian Economy Minister Ulyukayev was detained in November 2016 on charges of receiving a $2 million bribe in return for his ministry’s support for a deal that would allow state oil company Rosneft to purchase the government’s stake in another Russian oil giant, Bashneft.

The charges were based on testimony from Rosneft CEO Sechin, as well as evidence of a sting operation, in which Sechin personally handed a bag with marked dollar bills to Ulyukayev. The court concluded that “Ulyukayev acted under a preconceived plan, motivated by personal gain and with full understanding that the process of the privatization of Bashneft depended on his decisions,” and sentenced the ex-minister to eight years in prison as well as a fine of over $2.2 million.

Ulyukayev pleaded not guilty at the start of the trial and continues to maintain his innocence, claiming that the incident was “a monstrous provocation” set up by Sechin and his allies in the security services. The defense team has filed an appeal seeking full acquittal, but has not presented any new materials in the case, insisting that the court reconsider its ruling on the basis of the existing testimonies and records.

Ulyukayev also asked the court to allow his wife, Yulia Khryapina, to act as his defender in the appeals trial, but the request was denied as Khryapina is not a certified lawyer and has not studied the documents in the case.

On Thursday afternoon, the Moscow City Court ruled to leave Ulyukayev’s sentence of 8 years in prison unchanged, but excluded from it the part banning for life the ex-minister from assuming state posts.

Kind of like Brazil where they expect politicians to be crooked (3rd story on link) and happily vote them back into office, if they can stay out of prison long enough. How sad is that?

Russian Ex-economy Minister Ulyukayev Sentenced to 8 Years in Prison in $2mn Bribery Case

Corruption is Everywhere - Certainly in Russia

Former Russian economy minister Aleksey Ulyukayev has been found guilty on charges of taking a $2 million bribe and sentenced to eight years in prison. He is now the highest-ranking Russian official to have been convicted on corruption charges.

Ulyukayev was detained in November 2016 on charges of allegedly receiving a $2 million bribe, in return for his ministry’s support of a positive assessment that would allow state oil company Rosneft to complete a deal to purchase the government's stake in another Russian oil major, Bashneft.

The charges were based on the testimony of Rosneft CEO Igor Sechin, as well as a on the evidence of a sting operation, in which Sechin personally handed a bag containing $2 million in cash to Ulyukayev, the then-economy minister.

The proceeding caused controversy in Russia, as Sechin delivered his testimony in written form, rather than in person. He refused four times to testify in court, citing scheduling differences due to the taxing nature of his job.

The defense argued that he was dodging a personal appearance and violating due process, while critics accused him of being arrogant and considering his position to be above the law. The issue was raised at this week’s Q&A session with President Vladimir Putin, who refrained from criticizing Sechin for his conduct.

According to the court ruling, Ulyukayev extorted the bribe from Sechin, and in so-doing abused his position as member of the Russian cabinet. The felony carries a potential punishment of a heavy fine, a ban from offices of power for up to 15 years and a prison term between eight and 15 years.

In his remarks, the presiding judge said “Ulyukayev acted under a preconceived plan, motivated by personal gain and with full understanding that the process of the privatization of Bashneft depended on his decisions.”

The court later sentenced him to an eight-year prison term and a fine of over $2.2 million. He was arrested in the courtroom before the sentence hearing proceeded. Prosecutors asked for a sentence of ten years in a penal colony for Ulyukayev.

Ulyukayev pleaded not guilty at the start of the trial and continued to maintain his innocence up until the verdict announcement on Friday. In his last address, he said a ‘not guilty’ verdict would be the only just outcome for his case.

After hearing the sentence, Ulyukayev said he considered it unjust. His defense team confirmed that they would appeal the ruling.

Ulyukayev‘s defense argued that the money did change hands between Sechin and Ulyukayev, but that it was an entrapment on the part of the Rosneft head. The then-economy minister was not aware of the cash being inside the bag, his lawyers told the court.

In his final plea, the ex-minister reiterated his position. “The case contains no proof of my complicity in bribe-taking whatsoever. Moreover, it testifies that I am a victim of a monstrous provocation,” Ulyukayev said in court earlier this month.

“I am guilty of a different thing. I have served Russian citizens for many years, and I have managed to achieve something, but not enough. Only when I myself got into trouble I started to understand how hard people’s lives are. People, forgive me for this. I am guilty before you,” he added.

After his arrest in mid-November last year, Ulyukayev spent around two days in a pre-trial detention facility before being placed under house arrest at his apartment, located in an elite housing complex in Moscow.

Ulyukayev is the first government minister in Russia’s modern history to be found guilty of corruption by a court.