The UK high court has cleared the way for Russian shipowner Yuri Nikitin to pursue losses arising from the freezing of his bank accounts during the mammoth Sovcomflot (SCF) fraud case. The decision handed down on Friday by Justice Andrew Smith, who heard the original $800m trial in 2009 and 2010, grants an application by Nikitin, and certain other defendants associated with him, to launch an inquiry into the seizing of his assets in 2005 and 2007 by SCF, under the Fiona Maritime name. The application was first made in February 2011, following Smith's verdict in the trial relating to allegedly fraudulent S&P and charter deals in December, 2010.
Russian shipowner Yuri Nikitin is understood to be claiming around $184m plus interest. The 2005 order froze $208.5m that was deposited as security along with undertakings regarding Nikitin’s property in the UK.
Russian shipowner Yuri Nikitin's legal team argues the frozen cash would otherwise have been available for investment purposes, living and legal expenses. Sovcomflot (SCF) has so far recovered more than $150m in a legal battle that has lasted nine years.
In the original trial, Russian shipowner Yuri Nikitin was found guilty on six charges and ordered to pay around $65m. Russian shipowner Yuri Nikitin was found to have acted dishonestly in his dealings with Sovcomflot's former London chief Yuri Privalov and certain shipbrokers, including Clarkson’s Richard Gale.
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