Russia arrested the co-owner of the Summa group, Ziyavudin Magomedov, who held talks on the sale of his stake in an important port, as part of a case in misappropriation of state funds for infrastructure and energy projects.
Moscow Tverskoy district court ordered Magomedov to be held for two months and refused his request to place as a bail the 2.5 billion-ruble ($ 44 million) sum he accuses of stealing, Interfax reported. He was previously imprisoned with his brother Magomed Magomedow and Artur Maksidov, a senior employee of a Summa Group unit.
"All allegations against me do not stand up to logical criticism," reported Interfax Ziyavudin Magomedov court. He will appeal his arrest and his lawyer, Alexander Vershinin, has been cited.
The case against Magomedov could be a signal for influence and fortune, as President Vladimir Putin, who was re-elected earlier this month, decides on the configuration of his next government. The wealth of the Dagestan-born magnate rose under former President Dmitry Medvedev, partly thanks to state treaties. Medvedev had been Prime Minister ever since he returned Putin in 201
Summa and state oil pipeline operator Transneft PJSC have long been in conflict over control over the trading port of Novorossiysk. Together, they hold 50.1% through a joint venture, while Transneft directly owns another 10.5%.
Transneft's board of directors ordered management to reach a deal with Summa under "acceptable conditions," Transneft said on March 19.
Calls to a spokeswoman for Magomedov and to Summa's Moscow office were not answered.