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| Boris Berezovsky and Roman Abramovich case: Q and A | Boris Berezovsky and Roman Abramovich case: Q and A |
| (7 months later) | |
| What is the case about? | What is the case about? |
| The case between Boris Berezovsky and Roman Abramovich is the biggest private litigation battle in history. Berezovsky, the oligarch turned Kremlin critic, claims that Abramovich cheated him out of more than $5bn (£3.2bn). Abramovich, the owner of Chelsea FC, vehemently denies this. | The case between Boris Berezovsky and Roman Abramovich is the biggest private litigation battle in history. Berezovsky, the oligarch turned Kremlin critic, claims that Abramovich cheated him out of more than $5bn (£3.2bn). Abramovich, the owner of Chelsea FC, vehemently denies this. |
| Their dispute arises from when both men made their fortunes in the murky Russia of the 1990s. Berezovsky says he was a partner with Abramovich in the Russian oil giant Sibneft. According to Berezovsky Abramovich later forced him to sell his interest in the company at a "gross undervalue", exploiting Berezovsky's falling-out in 2000 with Vladimir Putin. | Their dispute arises from when both men made their fortunes in the murky Russia of the 1990s. Berezovsky says he was a partner with Abramovich in the Russian oil giant Sibneft. According to Berezovsky Abramovich later forced him to sell his interest in the company at a "gross undervalue", exploiting Berezovsky's falling-out in 2000 with Vladimir Putin. |
| Abramovich disputes this. He says he merely hired Berezovsky as a top-level Kremlin fixer and consultant because of his connections with Russia's then president Boris Yeltsin. In return for his political services, Abramovich says he funded Berezovsky's lavish lifestyle – | Abramovich disputes this. He says he merely hired Berezovsky as a top-level Kremlin fixer and consultant because of his connections with Russia's then president Boris Yeltsin. In return for his political services, Abramovich says he funded Berezovsky's lavish lifestyle – |
| paying him "more than $2.5bn", and buying him yachts, planes and real estate in France. | paying him "more than $2.5bn", and buying him yachts, planes and real estate in France. |
| Berezovsky claims he was forced to sell his stake in Sibneft for $1.5bn when it was really worth at least $7bn. He now wants $5bn in damages from Abramovich, as well as £564m in compensation for another deal involving the Russian aluminium giant Rusal. Abramovich rejects Berezovsky's "fantastic" claims and says he doesn't owe him anything. | Berezovsky claims he was forced to sell his stake in Sibneft for $1.5bn when it was really worth at least $7bn. He now wants $5bn in damages from Abramovich, as well as £564m in compensation for another deal involving the Russian aluminium giant Rusal. Abramovich rejects Berezovsky's "fantastic" claims and says he doesn't owe him anything. |
| What did we learn? | What did we learn? |
| The case has been heard in the commercial court in London's new Rolls building. It has been, arguably, the best free show in town. Both men were in court for much of the 12-week hearing, accompanied by bodyguards in dark shades, friends, PR consultants and blond Russian women. The two rival oligarchs also hired the best lawyers money could buy: Jonathan Sumption QC, now a UK supreme court justice, acted for Abramovich. Sumption's fee was rumoured to be over £1m. Berezovsky's lead barrister is Laurence Rabinowitz QC. | The case has been heard in the commercial court in London's new Rolls building. It has been, arguably, the best free show in town. Both men were in court for much of the 12-week hearing, accompanied by bodyguards in dark shades, friends, PR consultants and blond Russian women. The two rival oligarchs also hired the best lawyers money could buy: Jonathan Sumption QC, now a UK supreme court justice, acted for Abramovich. Sumption's fee was rumoured to be over £1m. Berezovsky's lead barrister is Laurence Rabinowitz QC. |
| Both oligarchs faced hours of gruelling cross-examination, and accusations that they have lied about – or conveniently forgotten – | Both oligarchs faced hours of gruelling cross-examination, and accusations that they have lied about – or conveniently forgotten – |
| how they made their first billions. Berezovsky gave evidence in florid and sometimes ungrammatical English; Abramovich testified in Russian, with the court listening into a translation via headphones. Despite his Chelsea FC connection, Abramovich says he doesn't speak "fluent English". | how they made their first billions. Berezovsky gave evidence in florid and sometimes ungrammatical English; Abramovich testified in Russian, with the court listening into a translation via headphones. Despite his Chelsea FC connection, Abramovich says he doesn't speak "fluent English". |
| The legal drama also opened a tantalising window into the secretive world of Russia's super-rich. The court heard details of off-shore bank accounts, luxury cruises in the Caribbean (the pair first met in December 1994 on a yacht) and business deals done in five-star hotels. | The legal drama also opened a tantalising window into the secretive world of Russia's super-rich. The court heard details of off-shore bank accounts, luxury cruises in the Caribbean (the pair first met in December 1994 on a yacht) and business deals done in five-star hotels. |
| The biggest challenge for Berezovsky has been to demonstrate that he and Abramovich were indeed business partners; he admits their original deal was an "oral agreement" not made in writing but usual for the time. | The biggest challenge for Berezovsky has been to demonstrate that he and Abramovich were indeed business partners; he admits their original deal was an "oral agreement" not made in writing but usual for the time. |
| What do they say about each other? | What do they say about each other? |
| Both speak of how their friendship and collaboration in the 1990s ended in mutual disillusionment and accusations of betrayal. During the hearing neither acknowledged the other, with Abramovich sitting at one end of the courtroom with his entourage, and Berezovsky nearest the door. There was no handshake. | Both speak of how their friendship and collaboration in the 1990s ended in mutual disillusionment and accusations of betrayal. During the hearing neither acknowledged the other, with Abramovich sitting at one end of the courtroom with his entourage, and Berezovsky nearest the door. There was no handshake. |
| In his witness statement, Berezovsky recalled how he originally had a "very favourable view" of Abramovich, then a "small-scale oil trader". | In his witness statement, Berezovsky recalled how he originally had a "very favourable view" of Abramovich, then a "small-scale oil trader". |
| He found him a "very charming person". Berezovsky attributed Abramovich's success in business not to "intellectual capacity" but to his knack of getting on with the rich and powerful: "He [Abramovich] | He found him a "very charming person". Berezovsky attributed Abramovich's success in business not to "intellectual capacity" but to his knack of getting on with the rich and powerful: "He [Abramovich] |
| is good at getting people to like him, and good at psychology in that way. He is good at appearing to be humble." | is good at getting people to like him, and good at psychology in that way. He is good at appearing to be humble." |
| By 2000 the situation had changed, with Abramovich a formidable Kremlin insider in his own right, and Berezovsky on his way out and at odds with Putin. During the oligarchs' final meeting at Paris's Le Bourget airport, Berezovsky told his former friend bitterly: "It's the last time I will meet you Roma." There was then no contact for seven years. Berezovsky served his writ on Abramovich after spotting him shopping in an Hermès boutique in London. | By 2000 the situation had changed, with Abramovich a formidable Kremlin insider in his own right, and Berezovsky on his way out and at odds with Putin. During the oligarchs' final meeting at Paris's Le Bourget airport, Berezovsky told his former friend bitterly: "It's the last time I will meet you Roma." There was then no contact for seven years. Berezovsky served his writ on Abramovich after spotting him shopping in an Hermès boutique in London. |
| Abramovich, as you might expect, is now scathing about Berezovsky. He says he originally "felt a strong emotional bond to him" and "previously always respected him". Berezovsky, he said, "did not regard me as an equal". As time went on, however, Abramovich said that Berezovsky became increasingly "detached from reality", adding that there was "something of a megalomaniac about him". | Abramovich, as you might expect, is now scathing about Berezovsky. He says he originally "felt a strong emotional bond to him" and "previously always respected him". Berezovsky, he said, "did not regard me as an equal". As time went on, however, Abramovich said that Berezovsky became increasingly "detached from reality", adding that there was "something of a megalomaniac about him". |
| What does "krysha" mean? | What does "krysha" mean? |
| The Russian word of the trial. Literally, it means "roof". But it carries a kaleidoscope of other associations: an arrangement; lobbying; political services; icebreaking; physical protection from murder by Chechen terrorists and bandits; fixing; and a long-term relationship with more or less regular payments. Abramovich's case is that he hired Berezovsky to give him krysha. It was Berezovsky krysha with Boris Yeltsin that allowed Abramovich's Sibneft to win a rigged auction in 1995 for an oil company and refinery. It was this that catapulted both men from successful multi-millionaires into the billionaire league. | The Russian word of the trial. Literally, it means "roof". But it carries a kaleidoscope of other associations: an arrangement; lobbying; political services; icebreaking; physical protection from murder by Chechen terrorists and bandits; fixing; and a long-term relationship with more or less regular payments. Abramovich's case is that he hired Berezovsky to give him krysha. It was Berezovsky krysha with Boris Yeltsin that allowed Abramovich's Sibneft to win a rigged auction in 1995 for an oil company and refinery. It was this that catapulted both men from successful multi-millionaires into the billionaire league. |
| The word krysha also features in the WikiLeaks documents released in 2010. In a cable describing corruption in Moscow, US diplomats note that Russia's FSB spy agency – former boss Vladimir Putin – offers the best krysha of all, extending its protective arm to Moscow's biggest mafia gang. | The word krysha also features in the WikiLeaks documents released in 2010. In a cable describing corruption in Moscow, US diplomats note that Russia's FSB spy agency – former boss Vladimir Putin – offers the best krysha of all, extending its protective arm to Moscow's biggest mafia gang. |
| Why is the case taking place in London? | Why is the case taking place in London? |
| The international reputation of British justice as an impartial arbiter of business differences has encouraged scores of Russian oligarchs and Middle Eastern businessmen to bring their disputes to company courts in London for resolution. In May, the justice secretary, Ken Clarke, spent a week in Russia urging local firms to use British arbitration and mediation services, promoting the "UK as a centre of legal excellence". | The international reputation of British justice as an impartial arbiter of business differences has encouraged scores of Russian oligarchs and Middle Eastern businessmen to bring their disputes to company courts in London for resolution. In May, the justice secretary, Ken Clarke, spent a week in Russia urging local firms to use British arbitration and mediation services, promoting the "UK as a centre of legal excellence". |
| Additionally, rich Russians don't trust their own legal system. It is famously susceptible to political influence – as the recent verdict against the Russian punk band Pussy Riot demonstrates. Plus, the Kremlin has pledged to arrest Berezovsky the second he sets foot on Russian soil. English law by contrast is predictable, independent and straightforward, with reasonable costs compared to New York, and a pool of willing City lawyers and experts. | Additionally, rich Russians don't trust their own legal system. It is famously susceptible to political influence – as the recent verdict against the Russian punk band Pussy Riot demonstrates. Plus, the Kremlin has pledged to arrest Berezovsky the second he sets foot on Russian soil. English law by contrast is predictable, independent and straightforward, with reasonable costs compared to New York, and a pool of willing City lawyers and experts. |
| How has the case gone down in Russia? | How has the case gone down in Russia? |
| Russians have followed the case avidly. They have been enthralled by its exotic setting – London – and by the spectacular leaking of gossip from Boris Yeltsin's former court. Russians are familiar with the details of the 1990s, and the corrupt privatisation of Russia's once state-owned industries. But the case has offered an unprecedented insider insight into what really happened from those who were there, and a compelling oral history lesson. | Russians have followed the case avidly. They have been enthralled by its exotic setting – London – and by the spectacular leaking of gossip from Boris Yeltsin's former court. Russians are familiar with the details of the 1990s, and the corrupt privatisation of Russia's once state-owned industries. But the case has offered an unprecedented insider insight into what really happened from those who were there, and a compelling oral history lesson. |
| Russian journalists were in court throughout the trial, staying long after their English counterparts lost interest and drifted off. The liberal opposition title Novaya Gazeta likened the trial to Russia's version of WikiLeaks, and the country's leading newspapers – | Russian journalists were in court throughout the trial, staying long after their English counterparts lost interest and drifted off. The liberal opposition title Novaya Gazeta likened the trial to Russia's version of WikiLeaks, and the country's leading newspapers – |
| Vedomosti, Kommersant, online portal Gazeta.ru – live-blogged each day. Kommersant illustrated its coverage with a cartoon, showing Berezovsky, Abramovich and the judge underneath Big Ben and the Houses of Parliament; Abramovich looks like a bearded geography teacher. | Vedomosti, Kommersant, online portal Gazeta.ru – live-blogged each day. Kommersant illustrated its coverage with a cartoon, showing Berezovsky, Abramovich and the judge underneath Big Ben and the Houses of Parliament; Abramovich looks like a bearded geography teacher. |
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