The Seizure of Rolf and the Fate of Russian Businesses
In December 2023, Putin signed a decree transferring ownership of Rolf, Russia's largest car dealership, from a Cyprus-registered entity controlled by Sergei Petrov's family to the state property agency Rosimushchestvo. This move exemplifies the increasing trend of Putin's regime using the justice system to seize assets and reward loyalists.
Petrov, a dual Russian-Austrian citizen, believes his situation reflects a new normal in Russia. He claims the harassment by prosecutors is politically motivated due to his criticism of Putin's actions, including his non-participation in the 2014 vote to annex Crimea.
Russian authorities opened a criminal investigation into Petrov in 2019, accusing him of illegally transferring money abroad. Despite Petrov's claims of procedural shortfalls and obscure regulations, courts sentenced one of his managers to over eight years in prison.
Austria rejected an extradition request against Petrov, but a 2022 Russian civil verdict forced Rolf to transfer 20 billion rubles ($214 million) to the government. Petrov's lawyers have filed a claim with the UN Human Rights Committee and are exploring arbitration options.
Meanwhile, Umar Kremlev, head of the International Boxing Association, has been presented as Rolf's future owner. This appointment raises concerns, considering the boxing body's stripped Olympic rights and accusations against Kremlev.
Petrov worries that Rolf's future under state oversight will worsen the company's situation, already impacted by sanctions and the shift to Chinese brands and used cars.
This case highlights the growing trend of asset seizures in Russia, with at least 55 cases filed since the Ukraine invasion. This practice often violates laws requiring auctions for state-held companies, raising concerns about transparency and fairness.
The seizure of Rolf and the fate of other businesses under state control illustrate the increasing kleptocracy in Russia, where the justice system serves as a tool for political maneuvering and rewarding loyalty, rather than upholding the rule of law.