The Corrupt Angolan Russian Debt Deal Full Report

7/29/2019 The Corrupt Angolan Russian Debt Deal Full Report

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Associação Mãos LivresCorruption Watch UK

DECEPTION IN HIGH PLACES:The Corrupt Angola-Russia Debt Deal





Deception

in High Places:

The Corrupt

Angola–Russia

Debt Deal



Deception in HigH places: th crru a–Ru Db D2

I i



Deception in HigH places: th crru a–Ru Db D 3

“Quand on est banquier, il faut savoir avoir desoeillères. Et savoir se concentrer sur ce qui

concerne la banque”

“When you’re a banker, you have to know how to have blinkers on. And know how to focus on

what concerns the bank.”

Jean-Didier Mailleformer bank official, Paribas Bank,

testimony in the French Angolagate proceeding 1




Cpig © 2013 Cupin Wac UK an Assciaçã Mãs Livs. All igs sv.

N pa is publicain ma b puc, s in a ival ssm, ansmi in an m b an mans wiu pi pmissin publis.

ISBN: 978-0-9576260-0-3

PUBLIShed By

Cupin Wac UK an Assciaçã Mãs Livs

For More I NForMAtIoN CoNtACt

Anw [email protected]

Photo CredItS

Cv: rbin hammn l PansPags 2–3: Angla tain oil: AP P l Buc Sanl Pag 18: Imag ©2013 Cns l Sp Imag, digialGlb, Map aa ©2013 Ggl

Pag 24: Acai Gaamak: AP P l emili MnaiPag 25: Pi Falcn: AP P l Jacqus BinnPag 34: Vial Malkin l AP PPag 41: Js eua ds Sans l AP P/e BzPag 43: Jaquim dua da Csa davi l CC By-NC-SA 2.0 l Psincia l Gbin

Canaias l p://www.ick.cm/ps/psican/7414597862/in/psam/

deSIGN ANd LAyoUt

Jui Kvács l Cac

PrINted

Cac l Apil 2013



T a b l e o f c o n T e n T s 5

Table o Contents

List o Tables, Appendices and Exhibits .................................................. 7

Executive Summary ................................................................................ 9

tabl 1: Incmpl lis knwn sima cips m dbdal vaius paicipans ............................................................. 9

Figu 1: Abaln Invsmns L.: Pucas an Sal Ns 1–6(3 ocb 1997) .......................................................................... 15

Figu 2: Abaln Invsmns L.: Pucas an Sal N 7(8–15 Janua 1998) ..................................................................... 16

Figu 3: Abaln Invsmns L.: Pucas an Sal Ns 8–16(Augus 1999–Jul 2000) .............................................................. 17

Figu 4: Angla–russia db dal esima disibuins ........................ 18

Introduction ........................................................................................... 19

The Deal Phase I: Prudent Financing or Criminal Conspiracy? ................. 23

1. A dal is Bn ....................................................................................... 23

2. T Fis Agmn............................................................................... 24

3. en Abaln: “F u, al pic” ...................................................... 26

4. T 30 Ma 1997 Abaln–Snangl Agmn: “F u, ull pic” ..... 27

5. T rl Glnc ............................................................................. 28

6. T escw Agmns ......................................................................... 29

7. hw Muc Mn di Angla Pa an russia rciv in dal Pas I( UBS aangmn)?......................................................................... 30

8. db db: PrINs an IANs, Abaln’s Nw Wa Paing russia .... 31

9. en Vial Malkin ............................................................................... 33

10. T rl UBS .................................................................................... 35

11. T disibuin “Ps” in Pas I dal ............................... 38

12. Was dal a G dal? T Gnva Fz an eniquCsi-Pascal’s tsimn ........................................................................ 44

tabl 2: timlin Pas I db dal (Gnva/UBS): Angla Pmiss N pucass an sals b Abaln Invsmns L.

(2 ocb 1997 6 Jul 2000) ................................................... 47



Deception in HigH places: th crru a–Ru Db D6 DecepTion in HigH places: Th crrt a–R Dt D6

The Deal Phase II: Escape to Cyprus ........................................................ 51

1. Gaamak’s Psnal Sbinvs Accun ............................................... 52

2. T Scn db--db Mcanism: MinFins .................................. 53

3. Gaamak Gams Angla ...................................................................... 54

4. Pau tim Again ................................................................................ 57

5. Pamns Acai Gaamak an Inss Cls him .................... 58

The Deal Phase III: The Den o Thieves .................................................... 59

1. Fm Luxmbug Isal .................................................................... 60

2. T Swinl Swinl? ......................................................................... 63

Conclusion ............................................................................................. 65

Recommendations ................................................................................. 69

1. F Angla: ............................................................................................ 692. F Swizlan: ..................................................................................... 70

3. F eupan Unin an Mmb Sas: ........................................ 71

4. F Financial Sc Cmpanis:............................................................ 72

Appendices ............................................................................................ 73

Exhibits .................................................................................................. 87

Notes...................................................................................................... 151



l i s T o f T a b l e s , a p p e n D i c e s a n D e x H i b i T s 7

List o Tables, Appendicesand Exhibits

Tables

tabl 1: Incmpl lis knwn sima cips m db

dal vaius paicipans ............................................................... 9

tabl 2: timlin Pas I db dal (Gnva/UBS): Angla Pmiss N pucass an sals b Abaln Invsmns L.(2 ocb 1997 6 Jul 2000) ....................................................... 47

Appendices

Appnix 1: Pamns m Snangl Abaln Invsmns a UBS Bank ......... 73

Appnix 2: Pamns m Abaln Invsmns (UBS-SA) russianMinis Financ ........................................................................... 74

Appnix 3: Pamns m Abaln Invsmns (UBS-SA) Acai Gaamak ... 75

Appnix 4: Pamns m Abaln Invsmns (UBS-SA) Pi Falcn ...... 76

Appnix 5: Pamns m Abaln Invsmns (UBS-SA) BncInnainal ...................................................................................... 77

Appnix 6: Pamns m Abaln Invsmns (UBS-SA) Vial Malkin ...... 78

Appnix 7: Pamns bwn Abaln Invsmns (UBS-SA) an plum

as Glnc an Lk ta ....................................................... 79 Appnix 8: Pamns m Abaln Invsmns (UBS-SA) Jaquim davi

(Pnw L.) ................................................................................. 80

Appnix 9: Pamns m Abaln Invsmns (UBS-SA) UnknwnBnciais wi ncs w givn in Abalnaccun .............................................................................................. 81

Appnix 10: Pamns m Snangl Sbinvs, Cpus ................................. 82

Appnix 11: Pamns m Sbinvs Cpus Inpmbank ......................... 83

Appnix 12: Pamns m Sbinvs Cpus Unknwn Bnciais .............. 84




Appnix 13: Pamns m Sbinvs, Cpus Gaamak’s InvsmnFuns, Blinvs Financ SA, an Gaamak’s Isali law A. Zicni ........................................................................................ 86

Exhibits

NOTE: The ollowng selected Exhbts are appended to the publshed verson o ths

report. These and all other Exhbts reerred to n the report are avalable onlne

at www.cw-uk.org.

exibi 4: russia–Abaln Agmn 5 Mac 1997 ................................. 87

exibi 5: Angla Pmiss Ns 1–2..................................................... 96

exibi 8: Snangl–Abaln Agmn 30 Ma 1997 .............................. 97

exibi 10: Banqu Innainal à Luxmbug dclaain Bncialownsip 6 Apil 1998 ............................................................. 102

exibi 11: UBS Mm 22 Jun 1999 .......................................................... 103

exibi 13: UBS Mm 6 Spmb 1999 ................................................... 108

exibi 15: Gaamak-Malkin MoU 20 dcmb 1999 ............................ 116

exibi 21: Abaln Invsmns L. Scul UBS Bank Acivi 23 Ma 1997–31 dcmb 2000 .............................................. 121

exibi 24: Sbinvs Cpus Accun Scul Pamns Apil–Augus 2001 ..................................................................... 122

exibi 28: Sbinvs Flw Ca ................................................................ 123exibi 31: Plic rp Allain Guillux an os 12 Nvmb 2003 ... 124

exibi 38: dclaain rmianc an dbi rlas dclaain20 Jul 2004 ............................................................................... 132

exibi 41: russia–Angla Ming Minus 30 Spmb 2005 ................. 135

exibi 42: Swizlan–Angla Acc 1 Nvmb 2005 ........................... 137

exibi 43: Angla–Abaln Agmn 9 Nvmb 2005 .......................... 145



e x e c u T i v e s u m m a R y 9

Executive Summary

Tis p pvis a ail accun db dal bwn russia an Angla in1996, in wic an unncssa milman, Abalone Investments (a cmpan m b

Arcadi Gaydamak an Pierre Falcone), made hundreds o millions o dollars in prot

rom the transaction despite oering no discernible services or value, at the expense

o the Russian and Angolan treasuries. A numb russian an Anglan iniviuals,incluing Vitaly Malkin, ml ics mmb russia’s duma pi is

signain in 2013, bn m dal, an Swiss Bank Cpain (SBS), wicug mg la bcam UBS, acilitated it .

As a cnsqunc is dal, in wic Anglan gvnmn sug pa is b russia incu uing Anglan civil wa, a las $386 million in prots was paid

to the “middlemen”an a las ve known Angolan beneciaries. T mas, in is mssimpli m, is scking: Angla w russia $5 billin; ag, a ngiain, pa $1.5 billin. T pai $1.39 billin a amun via milman AbalnInvsmns, an piva iniviuals incluing Gaamak, Falcn an s, an v$386 millin—a las 27 p cn amun pai ug Abaln— ing alms

ning. M an $400 millin—30.37 p cn uns pai Abaln—wn suspc insis sill unknwn bnciais.

Table 1 Incomplete list o known or estimated receipts rom the Debt Deal to various participants

Name Role n the Debt Deal Transacton Amount US$

Arcadi GAYDAMAK 37½% owner o Abalone Investments; architect o the Debt Deal 138,037,3032

Pierre FALCONE 37½% owner o Abalone Investments; architect o the Debt Deal 124,963,6803

Vitaly MALKiN 25% owner o Abalone Investments 48,834,0004

José Eduardo dos SANTOS President o Angola 36,250,0005

Elísio de FiGUEiREDO Angolan Ambassador without portolio to France 17,557,0006

Joaquim Duarte da Costa DAViD Director General o Sonangol until 1998; thereater Minister o Industry 13,250,0007

José PAIVA da COSTA CASTRO Director General o Sonangol UK 4,465,0008

José LEiTÃO da COSTA e SiLVA Minister in the Ofce o the Angolan Presidency 3,358,0009

Total $386,714,983




In 1996, Angla w russia $5 billin vaius lans gan b USSr Anglan gvnmn, l b uling MPLA pa. Tis was a cippling amun: in aa, Angla’s Gss dmsic Puc was jus v $7.5 billin, making b qual w is Angla’s ni annual cnmic upu.

In Apil 1996, Anglan gvnmn auis Acai Gaamak an Pi Falcn -ngia ms is b n is bal. Gaamak an Falcn w cls

Anglan fcials, aving pla k ls in scuing wapn MPLA m russia via Fanc. B Falcn an Gaamak w la cnvic n vaius cags in Fanc i ls in wapns ansacin, cmmnl knwn as “Anglaga” scanal,b bing acqui n sm cags in an Apil 2011 appal jugmn.

B Ma 1996, Gaamak an Falcn a lp ngia ulins a bngiain plan. Un is ms, Angla’s b russia wul b uc m $5billin $1.5 billin. Angla wul civ a v-a gac pi, a wic i wulav 15 as -pa b an accu ins in 31 insalmns. T ansacinwul b acilia b issuanc Pmiss Ns b Anglan Cnal Bank. T

al wul b malis in Nvmb 1996.

T gvnmn russian Fain issu a c n 30 ocb 1996 pmiing Minis Financ sll Pmiss Ns n pn mak. Lss an wwks la, in Nvmb 1996, Gaamak an Falcn m Abaln Invsmns in Isl Man. Abalone Investments, a shell company with no material assets whatsoever,

was ormed solely to become a party to the debt repayment arrangement . Tis iming sngl suggss a Abaln’s invlvmn in uu b ansacin was anicipapi an mal agmn bing sign, an a all pais, incluing russian an Anglan gvnmns, w cllusiv in is cus acin.

on 20 Nvmb 1996, russian Fis Vic-Minis Financ, An P. Vavilv,sign an agmn pviing a Angla’s b russia wul b uc b 70 pcn m $5 billin $1.5 billin. A a v-a gac pi, Angla wul pa back amun in 31 insalmns. Angla wul als b liabl ins alling $1.39billin ($457,160,000 accu ug Jun 2001 an $939,437,000 m Jun 2001 Jun 2016). In lig wak nancial cniin b russia an Angla a im,suc a sp ucin in amun b b pai ma wll av bn asnabl b pais. Angla, a las, cul av pciv sucuing aangmn as a v g al isl.

T mcanics dal w saigwa. Angla’s cnal bank wul issu 31Pmiss Ns, ac in amun $48,387,096.77, ba. russia, in un,wul issu 31 rpamn Cicas cspning 31 Pmiss Ns. Angla gav Pmiss Ns russia. ev im Angla pai $48,387,096.77, russia wulpvi i wi Angla’s iginall issu Pmiss N as wll as cspning rpamn Cica. ov cus 15 as pamns, Angla wul us pa $1.5 billin, a igl iscun pais iginal $5 billin in b.

on 5 Mac 1997, Abaln Invsmns sign an agmn wi russian gvnmn pucas Pmiss Ns in six spaa “ancs” (wi ac “anc” bunling

v six Ns g). T plan was Abaln bu n anc a a im n 30



E x E c u t i v E S u m m a r y 11

Nvmb, in as 1997, 1998, 2000, 2002, 2003 an 2004. T pamns wul bma via an scw agmn, an, in un, Abaln wul civ b Pmiss Ns an rpamn Cicas issu as pa db dal.

Ciicall, Abaln ag pucas Ns a hal their ace value. Abaln wulus pa $750 million to purchase $1.5 billion in Promissory Notes and corresponding

Repayment Certicates. (I Abaln pucas 70 p cn Ns b 31 dcmb

2004, main pamns cul b dcmb 2006.) Abalnwas gan is ig pucas a al Ns’ ac valu spi unaking zcmmcial isk an incuing n bligains— w n ‘c’ pucas Ns. Abaln ml a ig ‘s usal’ ( an pin) pucas Ns.T nl cs Abaln was a $4.5 millin pamn russian tasu—a acin wa Abaln wul an m s N pucas in dal. Abaln was gansuc avuabl uns wil ing ning subsanial valu.

Abaln’s pabili was assu wn sign an agmn wi Snangl, Angla’ssa il puc, n 30 Ma 1997. (rcall a Abaln was ca sll pups

sving as milman in is al.) Snangl cmmi pucasing all Pmiss Ns m Abaln b dcmb 2006 a i ull ace value, vn ug Abaln wul av pucas Ns m russia a hal their ace value. Wi sw agmns in plac, Abalone was due to make a total “prot” o just under $750

million n ansacins spi ing lil, i aning, in un. As a mi imag is aangmn wi russia, Abaln’s aangmn wi Snangl acc cmpan ig qui Snangl pucas an Ns Abaln psn Snangl aan im, an Snangl wul simpl av pa up; bu Abaln a n cspning bligain an Ns a all Snangl, vn i Snangl si pucas.Snangl cul n qui Abaln sll Ns i.

T ni agmn was b acilia b mans cmplmna escw Agmnsa Abaln sign wi russia an Angla spcivl. T escw Agmns sipula Swiss Bank Cpain (SBS) as escw Bank, wic la bcam, via mg,Unin Bank Suiss (UBS), lags bank in Swizlan. Using SBS as scw nsua ac pa wul pa up b an mnis Pmiss Ns w isibu.

dcumns sw a Glencore, cnvsial il aing cmpan, inuc SBS pais. Glnc a a “p-nancing” agmn wi Snangl a us pspcivil livis as cllaal s a Snangl cul bw uns n ansnwas Abaln, in m Ns. Glnc als appas b cnnc

an cmpan a civ pamns m Abaln, Lk ta SA. Bank csals inica a Glencore’s UK afliate, Glencore International London, paid the

bank charges levied against Abalone or establishing the Escrow agreement in 1997

($75,000) and its annual bank charge in late 1997 ($20,000). Abaln i n vn pa iginal bank cags n dal, again pining w lil valu i bug ansacin. F asns a a n cla, Glnc’s Swiss pan als ma a pamn Abaln in Ma 1998 in amun $577,352.15.

SBS, an la UBS, xcu anss u Abaln accun l a bank inGnva. I s n appa a s anss w subjc subsanial innal viw,

p auiis, spi bvius ciminal isks aac. Fm cumns




availabl, i appas a UBS lgal avis Alain Zbinn, Abaln accun manag yvs Lu, an a M. Flu, w appv man all pamns m Abalnaccun, w UBS psnnl ms amilia wi Abaln ansacins. UBS should

be urther investigated or their involvement in these transactions.

Bwn ocb 1997 an Jul 2000, Snangl ans $774,193,548.32 Abaln’sUBS accun in Gnva. Tis amun cv pucas 16 Ns m Abaln.

Abaln us “ps” m is ansacin ans uns ( a insucin) pincipal mmbs dal, Gaamak, Falcn an Malkin, an sni Anglan fcials, as ail in tabl 1.

Invsigains b Fnc an Swiss auiis val a signicant sums o money were

transerred to ve powerul Angolan politicians w, in i fcial uncins, wulav i vsn wis inunc db dal. T ms pminn recipient uns was Angolan President José Eduardo dos Santos. In al, s Sans civ$36.25 million m Abaln via n cmpanis. T scn lags ans uns—abu $17,557,000—was ans, via n cmpanis, to Elísio de Figueiredo, a

pwul Anglan pliician w ac as Anglan Ambassa wiu Pli inFanc. tw pminn fcials wiin Snangl als civ uns. Joaquim David ,w sv as Director General o Sonangol unil 1998 an is nw Minister o Industry ,civ $13.25 million, wil José Paiva da Costa Castro, Director General Snangl UK uain db dal, civ $4.465 million m dbdal. Finall, José Leitão da Costa, Minister in the Ofce o the Angolan Presidency,

received $3.558 million. T millin llas uns Jsé Liã a Csa wpai m Abaln’s UBS accun icl in a Swiss bank accun baing is nam,aising qusin w UBS i n ag p is bviusl suspicius pamn.

Alug mcanics ansacin w saigwa, i ncun a numb bsacls an was amn n numus ccasins bwn 1997 an 2000. Impanl,s amnmns ma dal progressively more lucrative or Abalone. Accing an amnmn in Augus 1999, Abaln wul cas ans uns icl russian Minis Financ pa Pmiss Ns. Insa, Abalone would

transer Russian debt instruments (known by their acronyms as PRINs and IANs) to

the Russian Ministry o Finance to pay or the Notes. T w b xcang n a $1:$1 basis, as c in ac valus insumns; a is, Abaln wul pa a $48 millin Pmiss N b ansing russian b insumns samnminal ac valu as Pmiss N.

hwv, PrINs an IANs w aing a acin i ac valu n pnmak. on 23 Augus 1999 ( a amnmn was sign), xampl, $100w PrINs was aing a a pal $10.54 n pn mak; IANs w aing a$14.42 $100. Bcaus mak ucuains, it is possible that Abalone could have

purchased $48 million ace value o PRINs/IANs or as little as $5 million i they got

the best deal, giving them a massive $43 million prot on each $48 million Promissory

Note bought rom Russia and sold to Angola. (A n, bas n makpics, i is ifcul s w Abaln cul av pai m an $17 millin ac$48 millin Pmiss N.) I is uncla w russia ag accp PrINs/IANsm Abaln, pbabl knwing a i wul cs Abaln a acin i iginal

cmmimn, an givn u pjuic russian scus as a sul.



E x E c u t i v E S u m m a r y 13

In ocb 1999, russia p mina is escw Agmn wi UBS, an wa l asking UBS un Ns in is pssssin russia. Tis, i appas, wasnv n. Insa using UBS as escw Bank, Abaln was ic ans PrINs/IANs russia’s nmina bank, Sberinvest Moscow . UBS, wv, spi nic a i sul n lng sv as scw Ns, cninu civ pamnsm Snangl, mak pamns m Abaln accun, an las Pmiss Nsan rpamn Cicas Snangl, unil Jul 2000.

rugl a is im, Vial Malkin bcam a pan in npis. On 20 December

1999, Malkin purchased 25 per cent o Abalone directly rom Arcadi Gaydamak or

$60 million. Malkin us bcam invlv in cmpan a v im i was likl ap is lags ps. In n pucas agmns bwn Malkin an Gaamak,Malkin was as a “psnaiv r K Bank,” wic psumabl s rssiski Ki Bank . Malkin was c-wn rssiski Ki Bank wi is llw ligac, Bis Ivanisvilli (nw Pim Minis Ggia).

In la 2000 an al 2001, dal ac is lags bsacl. Gaamak an Falcn

w bing invsiga in Fanc i ls in Anglaga scanal, laing Fancissuing waans i as. Swizlan was unning is wn paalll invsigainan, in Fbua 2001, accuns laing dal w zn in Gnva. T Abalnaccun was nl unzn in 2004 n Gnva cus.

F dal cninu, pincipals n cang juisicin. In 2001, Gaamak pn a nw accun in nam Sberinvest a russian Cmmcial Bank, inCpus. T cic nam was insing: Sberinvest Moscow was russia’s banking agn dal. La vinc suggss a Gaamak p call Cpus accunSberinvest l Anglan gvnmn in bliving a uns ans accun w acuall ging icl Sbinvs Bank (russia’s appin agn ansacin), insa in Gaamak’s pck.

rmakabl, Gaamak unk is us wiu knwlg i Falcn Malkin. B Falcn an Malkin wul la su Gaamak, claiming a acivl cu m u dal m is pin nwas, allgl ling n a ubius Abaln Pw An cumn sign b Gaamak’s pincipal nancialaminisa, Joelle Mamane.

Bwn Mac an Augus 2001, Snangl ans $618,235,483.25 SbinvsCpus Accun. tg wi i ali ans uns Abaln Gnva

accun, is sul av nil xinguis Angla’s bs. hwv, unbknwns Angla, Gaamak ans b insumns russia nl sufcin pucas a pin Pmiss Ns an rpamn Cicas m russia.

Gaamak acivl pm us a b a bn pai. In 2004, w Angla a all ncssa uns a bn civ m Angla, an a b russia a us bn sl. hwv, in ali, russia a ail civ pamn nal ig Pmiss Ns sill in is pssssin.

Tis swinl was nl ull uncv, blal, in 2005 uing a ming bwn Anglan

an russian fcials. Wn Anglan fcials sa a a cmpll sl




b, russia claim sill b w ig Pmiss Ns an accu ins.T ma was slv, nall, in Nvmb 2005 wn Angla ag pa ull acvalu maining ig Ns (w $387 millin) russia. Gaamak, manwil,was pa back $206 millin a civ m Angla bu ail pa russia.

I is uncla i Gaamak v pai $206 millin back Angla. I i n, n Angola would have paid $1.779 billion to settle a debt o only $1.5 billion. I he did,

Angola still paid a net amount o $1.573 billion—$73 million more than had beenstipulated in Angola’s 1997 agreement with Abalone.

In i vn, dal sill ma lil sns i cun. I Angla a pai uns icl russia n sam ms as Abaln was abl bu Ns m Angla, i would have saved at least $823 million, an mab vn as muc as $1.029billin: m an 13 p cn cun’s ni GdP in 1996.

Similal, i Russia a al wi Angla an icl civ all uns a w paib Angla Abaln, i cul av ma an additional $750 million. In i scnai,

n asuis was signicanl pjuic b insin Abaln Invsmnsin dal.

T scanal s n n . Fm pcs is Cpus avnu, an impanpa wic was swinl u Angla, Gaamak ma imsl a billinai. Using is ps m Cpus pas dal, Gaamak invs in a sis invsmnuns valu as muc as $325 millin. B 2005, s invsmns w pl w $1.25 billin. Pierre Falcone and Malkin both litigated against Gaydamak in Isali cus in 2008, claiming a w u i ai sa is p. T ail win i cas.

Wn Gaamak i cas in uns, was amsung b Luxmbug an Isalifcials, w w cncn abu mn launing. As a sul Luxmbug invsigain, cnsiabl uns blnging Gaamak w zn in Luxmbug. Accing Luxmbug pss ps, was nl abl av uns las isaccuns in Cpus in dcmb 2005 a allgl claiming a uns blng a caiabl us call Dorset Foundation.

t unak ni Cpus pain, Gaamak li n svics is cnanan nancial aminisa, Jll Maman an usban Ga Bukbza. Maman aals pla a ciical l ali pas db dal, sving as managing ic

Abaln m Mac 1999. Gaamak als cam bliv a Maman an Bukbza w lss an usw. In Spmb 2012, Gaamak was pl liigaing againsMaman an Bukbza in Luxmbug. Gaamak claims a us i ucia pws sal €600 millin Gaamak’s ps m is Cpus avnu. T cuis ac a vic.

T cmplx cas caacs an mulipl ansacins la is dal n busca cnal pin: a numb iniviuals ma vas ps pamn b a xpns ciizns Angla an russia alik. T manipulain nancial sc nabl ic an pwul lil, an muc, an caus massiv

am ina ppl b cunis.





DecepTion in HigH places: Th crrt a–R Dt D16

Figure 2 Abalone Investments Ltd.: Purchase and Sale o Note 7 (8–15 January 1998)

A b a l o n

e p u r c h a s e s N o t e 7 f r o m R

u s s i a f o r

a b o u t O N E - T H I R D o

f f a c e v a l u e ,

$ 1 6 , 7

5 2 , 4

0 7

A b a l o n e s e l l s N o t e 7 t o A n g o l a f o r

F U L L

f a c e v a l u e ,

$

4 8 , 3

8 7 , 0

9 6

8 - 1 5 J a n u a r y

1 9 9 8

G L E N C O R E

$ 4 8 , 3

8 7 , 0 9 6

$ 4 8 , 3

8 7 , 0

9 6

$ 1 6 , 0

0 0 , 0

0 0

$ 7 , 8

9 2 , 0

3 4

$ 7 , 7

4 1 , 9

8 5

B A N K S

U B S A c c o u n t C O - 1 0 1 ’ 4 3 6

U B S G e n e v a A c c o u n t C O - 6 3 9 ’ 3 0 7

f / a / o A R C A D I G A Y D A M A K

B a n q u e I n d o s u e z L u x e m b o u r g A c c o u n

t 2 5 7 8 5

f / a / o P e k e y R é f . L i s b o n n e

f / a / o B a n q u e R o t h s c h i l d

f / a / o E n i r e p

f / a / o B r e n c o T r a d i n g L t d .

( P I E R

R E F A L C O N E )

B a n q u e R o t h s c h i l d

f / a / o I n t e r s u l

( J O S É E D U A R D O

D O S S A N T O S )

V a r i o u s B a n k s

f / a / o U N K N O

W N

B E N E F I C I A R I E S

U N I C O M B A N K

f / a / o R U S S I A N

M I N I S T R Y O F F I N A N C E

$ 1 6 , 7

5 2 , 4

0 7

B a n q u e R o t h s c h i l d

f / a / o B r a c e w e l l

( E L Í S I O D E

F I G U E I R E D O )

A B A L O N E

f / a / o

f / a / o S O N A N G O L

f / a / o A N G O L A

U B S

C O M P A N Y

G O V E R N M E N T

B A N K

O I L ( o r p r o m i s e o f o i l )

C A S H F L O W

B O R R O W E D C A S H

P R O M I S S O R Y N O T E S

I N D I V I D U A L

G O V E R N M E N T

O F F I C I A L



e x e c u T i v e s u m m a R y 17

Figure 3 Abalone Investments Ltd.: Purchase and Sale o Notes 8–16 (August 1999–July 2000)

A b a l o n e p u

r c h a s e s N o t e s 8 - 1 6 f r o m R

u s s i a f o r

a b o u t O N

E -

Q U A R T E R o f f a c e v a l u e ,

$ 1 0 2 , 1

9 3 , 5

4 7 *

A b a l o n e s e l l s N o t e s 8 - 1 6 t o A n g o l a f o

r

F U L L f a c e v a l u e ,

$

4 3 5 , 4

8 3 , 8

7 2

A u g u s t 1 9 9 9 -

J u l y 2 0 0 0

G L E N C O R E

$ 4 3 5 , 4

8 3 , 8

7 2

$ 4 3 5 , 4

8 3 , 8

7 2

$ 8 , 0

0 0 , 0

0 0 $

1 5 , 0

0 0 , 0

0 0

$ 4 8 , 8

3 4 , 0

0 0

$ 4 7 , 0

0 0 , 0

0 0

$ 2 7 4 , 2

1 3 , 2

6 3

B A N K S

$ 1 0 , 0

0 0 , 0

0 0

U B S A c c o u n t C O - 1 0 1 ’ 4 3 6

B O N D M A R K E T

P R I N S / I A N S :

$ 1 0 2 , 1

9 3 , 5

4 7 *

F A C E V A L U E : $ 4 3 5 , 4

8 3 , 8

7 2

B a n k L e u m i L e ’ I s r a e l G e n e v a

f / a / o P e n w o r t h L t d .

( J O A Q U I M

D A V I D )

D i s c o u n t B a n k & T r u s t G e n e v a

f / a / o R e a l T r a d e L t d .

( P I E R R E F A L C O N E )

U n k n o w n B a n k

f / a / o S o l I n v e s t m e n t

( E L Í S I O D E

F I G U E I R E D O )

$ 7 1 9 , 0

0 0

D i s c o u n t B a n k & T r u s t G e n e v a

f / a / o B r e n c o T r a d i n g L t d .

( P I E R R E

F A L C O N E ) B

a n q u e F e r r i e r L u l l i n & C i e G e n e v a

f / a / o P I E R R E F A L C O N E

$ 5 , 7

2 5 , 0

0 0

B a n k L e u m i L e - I s r a e l G e n e v a

f / a / o P I E R R E F A L C O N E

$ 3 2 , 0

0 0 , 0

0 0

U B S G e n

e v a

f / a / o P I E

R R E F A L C O N E

V a r i o u s B a n k s

f / a / o U N K N O W

N

B E N E F I C I A R

I E S

$ 3 , 0

0 0 , 0

0 0

H S B C G u y e r z e l l e r G e n e v a

f / a / o J O S É L E I T Ã O D A C O S T A

U B S G e n e v a

f / a / o V I T A L Y M

A L K I N

U n k n o w n

A B A L O N E

E N T I T Y

S B E R I N V E S T

f / a / o R U S S I A N

M I N I S T R Y O F F I N A N C E

A B A L O N E

f / a / o

* B a s e d o n h y p o t h e t i c a l e s t i m

a t e d m a r k e t v a l u e s f o r P R I N / I A N p u r c

h a s e s b y A b a l o n e

f / a / o S O N A N G O L

f / a / o A N G O L A

U B S

P R I N S / I A N S

C O M P A N Y

G O V E R N M E N T

B A N K

O I L ( o r p r o m i s e o f o i l )

C A S H F L O W

B O R R O W E D C A S H

P R O M I S S O R Y N O T E S

I N D I V I D U A L

G O V E R N M E N T

O F F I C I A L




Figure 4 Angola–Russia Debt Deal Estimated Distributions

ANGOLA-RUSSIA DEBT DEAL ESTIMATED DISTRIBUTIONS

TOTAL AMOUNT $1,392,428,031

$138,037,303 ARCADI GAYDAMAK

$124,963,680PIERRE FALCONE

$48,834,000VITALY MALKIN

$36,250,000JOSÉ EDUARDO DOS SANTOS

$13,250,000JOAQUIM DAVID

$4,465,000

JOSÉ PAIVA DACOSTA CASTRO

$3,358,000

JOSÉ LEITÃO DA COSTA

ELÍSIO DE FIGUEIREDO $17,557,000

INCOMPLETE ESTIMATE OF “PROFIT” DISTRIBUTIONS TO ABALONE PRINCIPALS AND ANGOLAN OFFICIALS

UNKNOWN BENEFICIARIES $558,885,871

40.1%

$311,834,983 ABALONE PRINCIPALS 22.4%

RUSSIA$422,507,244* 30.3%

Imagery ©2013 Cnes/Spot Image, DigitalGlobe, Map data ©2013 Google

TOTAL PAID BY ANGOLA (SONANGOL) TO ABALONE: $1,392,428,031TOTAL PAID BY ABALONE TO ABALONE PRINCIPALS and ANGOLAN OFFICIALS: $ 386,714,983

DISTRIBUTIONS OF PAYMENTS MADE BY SONANGOL TO ABALONE

* Based on hypothetical estimated market values for PRIN/IAN and MIN/FIN purchases by Abalone



i n T R o D u c T i o n 19

Introduction

Tis p xpss s an ms unsain g s spnsibl managing Angla’s suc wal.I als illusas w s nancial ssm can bus b isns pliicians an businssmn suin scc ansacins buil n massiv ivsin a

nain’s wal, paiculal wn cun is suc-ic bu vlpmnall p, ga isavanag ina ciizns.

T Angla-russia db dal is a scking cas cian cpin b sni pliicians, fcials an ubiusbusinssppl, ai b innainal nancial insiuins, b i wn ciizns psnal gain. I xmplis ps malasanc wic iniviuals in psiins pw an aui can sp as wll as cnall a glbal nancial insiuins can pla—wug nglignc aciv cmplici—in nabling wlsal pluning nainal wal m sm ps ppl in wl.

Angla w russia billins llas, muc i incub Psin Jsé eua s Sans’ Mvimn Ppula Libaçã Angla (MPLA) uing Angla’s civil wa.T sums invlv—$5 billin—w ug, an iming al was ciical. T al pa b was signin 1996: civil wa was sill in ull w (i i n n

unil 2002), an russia’s nancs w in p sap—iwas aul n is wn b w as la in 1998.

In 1996 russia ci Angla wul n b abl pa wl $5 billin a an im sn, s vlunail ag accp 30 p cn a amun ($1.5 billin a a 6p cn ins a). Un ngia sucuing,wv, Angla wul n av pai vn ull$1.5 billin (plus ins) unil 2016. russia wis bpai n a as im-am. I is n an uncmmn pcu in wl b

aling ci ngag, n asnabl cmmcial ms, a nanciall puabl

Angola: Extremes o poverty and wealth

Angola ranks 148th on the United Nations’

Human Development Index: the typical

Angolan will live to the age o 51 and, ilucky, will attend our years o sub-standard

schooling. Lie or the vast majority o

Angolans is marked by poverty, deprivation

and a daily struggle or survival. And yet the

country sits on vast mineral resources, most

notably oil, but also including rich deposits o

diamonds, gold, and other resource wealth.

In 2010 the country was reported to have

earned $48.6 billion rom the sale o roughly

2 million barrels o oil a day. Angola’s GDP

has risen rom under $10 billion a year in

the early 1990s to a remarkable $84 billion

in 2010. The obvious question is, thereore,

why its citizens have seen so little benet.

One particularly heinous reason or this is the

large-scale misappropriation o public unds

or private benet. The IMF has reported

vast sums simply disappearing rom state

coers, which it described as “unexplained

residual[s]”—an estimated “US$32 billion(25 per cent o GDP) rom 2007 to 2010”

(Country Report 11/346 Dec. 2011). Angola

languishes at 157th place (out o 176

countries) on Transparency International’s

Corruption Perception Index.




milman inmia ak n isk bm a nanciall wak b. In is wa ci canb cain iving a las sm b, laving milman un isk aul, an aving casa b mslvs.

Tis is wa russia i— appas a s glanc

av n. Bu Anglan db dal was n nmalansacin, an csn inmia was n ina nancial insiuin. T inmia ins in alwas a cmpan b nam Abaln Invsmns: anIsl Man cmpan wi n asss an wic was mnil paicipa in dal. Abaln was wn b w nius businssmn, b wm a a is making mn ug sa alings wi Angla: AcaiGaamak an Pi Falcn.

Man b inmiais mak a un b paaking inb pamn plans, as i Abaln. Bu was nk inc: Abaln k abslul n isk, cmmcial wis, an a z asss a wul allw i miiga isks i Angla russia. Abaln nl k n ac pin b ater a bn paib Anglans.

Fum, russians, insa sling iginall ag 30 p cn valu al b,accp a lss an a in pacic, laving vn m in ans milman. T saga aks u wissla as n businssmn s swinl is pans,w bliv, an n li Anglans abu mn a ail pa russia.

T supuus insin in pamn sam aninmia wiu asss an wi n paicula nancialskill, allw millins llas w in piva bank accuns, incluing a cnsiabl amun mn awas ans gvnmn fcials (msl, i appas,

Anglans, bu alms cainl russians as wll). I Angla a pai is b icl russian xcqu n sam scul as i i, i culav sav a las $823 millin, alms 11 p cn is 1996 GdP.

In Swizlan, a las, a ai amun as bn publis abu db dal, spciall millins llas Anglan il pcs spii awa b masmins dal, Acai Gaamak an Pi Falcn, an i la pan, Vial Malkin. Tas bn, in paicula, xnsiv cvag Gnva pscu’s usal unaka sius invsigain, spi subsanial cumn vinc igl suspiciuspamns bn sni Anglan pliical las, incluing Psin s Sans

imsl. A dcmb 2006 dénonciation l n bal six Anglan ciizns an a Jul

Angolagate

Arcadi Gaydamak and Pierre Falcone have

a history o questionable deals involving

Angola. In October 2009, France witnessed

a remarkable trial in which a court ound a

rat o French politicians and internationalbusinessmen guilty o numerous oences

relating to what was dubbed “Angolagate”:

a $790 million arms deal involving Angola,

Russia and France (undertaken at the

time o a UN arms embargo in place

against Angola), organised largely by

Falcone and Gaydamak, that corrupted

French and Angolan politics. Among

the more than 40 high-prole notables

caught up in Angolagate were the ormerInterior Minister, Charles Pasqua, and

Jean-Christophe Mitterrand, the son o

ormer President François Mitterrand. The

trial ended in 36 convictions, mostly on

nancial crimes.

In 2011, many o the convictions were

overturned by the appeals court when

it ound that the illicit arms tracking

—though in violation o French law—

constituted sovereign acts o the Angolangovernment that could not be prosecuted

in French courts. Two key gures, however,

were still to serve sentences or related

crimes, albeit o reduced length: Falcone

and Gaydamak (though Gaydamak,

as a ugitive rom justice, has avoided

imprisonment so ar).



I n t roduc t I on 21

2007 supping lgal mmanum sking pss Gnva pscu danil Zapplli viv a mibun invsigain ail cnsiabl vinc malasanc in dala was availabl a a im, bu nv ull psn jugmn b a Swiss cu.

T psn p ivulgs xnsiv aiinal vinc aus av uncv,valing ails sucu an implmnain db dal, wic sv iglig n Swiss auiis pn an invsigain. Pviusl unp

inmain inclus llwing:

• Evidence indicating that Abalone’s involvement in the Debt Deal was almost

cainl plann m bginning iv as muc as $750 millin Angla gvnmn b pamns in ans Abaln pincipals an sni Anglan fcials.

• CopiesoftheactualagreementswhichmakeclearthatAbalone—ashellcompany

wi n asss, n spcial accss ci an n xpis in l svignb—i n vn pn ak n an cmmcial isk in db dal. Ts

agmns als sw w Abaln an russia pal cang ms i al pvi vn ga pins Angla’s b pamns Abaln,a xpns russia.

• Crucialnewinformationabouttheevidenceofthenancialexpertwhosetestimony

l minain a ciminal invsigain in al in Swizlan in2004. W nw knw a i was laws Vial Malkin an Pi Falcn, la an accus in invsigain, w iginall appac xp anpai qus is simn. T xp imsl acknwlgs aFalcn’s laws nl pvi im limi inmain viw ma; amuc was ging n in backgun wic was n pvi accss; a was likl cupin in dal; an a ciizns Angla an russia w isavanag.

• Extensive additional corroboration of the insalubrious nature of Gaydamak’s

businss pacics, vivil mnsa b a sis subsqun swinls allgl ppa n is businss pans an ling Anglan gvnmnabu w muc a bn pai russia, suling in m an $70 millinaiinal css Angla.

• InadditiontothepreviouslyknownmillionsofdollarsofAngolanoilproceeds

isibu inmiais as wll as a las u Anglan fcials incluing Psin s Sans an sm is asscias, w av nw ini a numb aiinal likl bnciais db dal, b iniviuals an cmpanis.

• On18October1999,RussianotiedUBSthatitshouldnolongerserveasescrow

agn db dal, an a Ns sul b un russia. UBSnnlss cninu l Ns, acing as scw unil Ns wzn un cu in Fbua 2001, b wic im Snangl a pai in Abaln’s accun v $435 millin in aiinal uns, alms all wic wasisbus a insucin Abaln insis, incluing millins

llas Anglan fcials.




T p as main scins. Te Deal Phase I: Prudent Financing or Criminal

Conspiracy? ails w db dal was cnciv an w i pa in is sincanain. Te Deal Phase II: Escape to Cyprus vals w dal an inifculis, incluing mulinainal ciminal invsigains a mpail ail i.Ts invsigains w, in un, si-spp an db dal cnclu, in a manna sul in aiinal pjuic Anglan xcqu. T nal scin, Te Deal

Phase III: Den o Tieves, xplains w vaius pans in dal ba an

css ac wn i cam spliing pcs dal, caing a uvla inigu an scanal.

eac lmn is cmplx ansacin incs jus w cup dal was, a acking scm glbal scal, bning milmn an lis in Angla an almscainl russia, wi ai a maj Swiss bank.



T H e D e a l p H a s e i : p r d t f r c r c r ?

The Deal Phase I:Prudent Financing orCriminal Conspiracy?

1. A Deal is Bornon 24 Apil 1996, Anglan Minis ecnm an Financ, Augus a Silva tmás, issu a mal mana signaing Pi Falcn an Acai Gaamak as agnsmpw ac n Angla’s bal in is s sl $5 billin Svi-a b wb wa-avag Anglan sa russia.10

T Mana sa:

t afm in law an n bal Gvnmn rpublic Angla, w sablis is man-a Msss. Pi J. Falcn an Acai Ga-amak, assisanc Anglan Auiis in sablismn bilaal ngiains wi russian Auiis spcing Angla’s b russia an sucuing a pgamm an apppianancial mcanisms a will allw xcuin ingvnmnal agmns suling ms ngiains. Cmpnsain agns i svics, wiin amwk is man-a, will b ag n la an spaal. Tis

auisain is vali a pi 90 (nin) as.

Ma in Luana, 24 Apil 1996 Augus dA SILVA toMÁS, Minis ecnm an Financ 11

Wiin wks, n 14 Ma, w “mandataires ”wk u wi russians basic ulins a ail saigwa al sucu Anglan b: pincipal wul b uc m $5 billin $1.5 billin; Angla wul civ a v-a gac pi, a wic i

wul av an xn 15-a pi -pa pincipalan accu ins in 31 insalmns.12

23

Russan and Angolan lnks

Russia and Angola have had a long

relationship. Ater Angolans threw o their

Portuguese colonial rulers, the countrydissolved into warring actions, two o which

would contest or power late into the 2000s.

The ultimate winner in these struggles was

the MPLA, which has occupied the country’s

capital, Luanda, since the late 1970s. The

MPLA turned mainly to Russia or military

and other aid in its attempt to wipe out its

largest opponent, Jonas Savimbi’s União

Nacional para a Independência Total de

Angola (UNITA).

The prevailing MPLA had racked up a debt

that was potentially crippling to Angola’s

then ragile economy: by 1996, the debt

amounted to at least $5 billion – a massive

amount or a country plagued by decades o

civil war. In that year, or example, Angola’s

GDP was reported as being just over $7.5

billion. The debt to Russia was thus two

thirds o Angola’s annual economic output.




on 30 ocb 1996, gvnmn russianFain issu dc N. 1287, wic “insuc anauis” Minis Financ isps nspsning Anglan b n scna mak.13 hwv, ns in dc N. 1287 wuln b n an auis unil 20 Nvmb, an wul n b issu unil Janua 1997.

twlv as a pmulgain dc N. 1287,Falcn an Gaamak incpa Abaln InvsmnsL. as an Isl Man sll cmpan.14 S a as vincb cumns availabl, Abaln’s nl businss wulb is miain in db dal. As i b clckwk, ninas la n 20 Nvmb 1996, nal ails db dal w amm u an ag n b russia an Angla.

2. The First Agreement

T 20 Nvmb 1996 Ingvnmnal Agmn ap-pas av bn sign n russian si b An P. Vavilv (russia’s Fis Vic-Minis Financ); signau Anglan si is n lgibl.15 du “isicall inl lains sablis bwn rus-sian Fain an rpublic Angla, an cm-plx cnmic siuain in rpublic Angla,”16 i was

ag a b wul b uc b 70 p cn: An-gla wul n pa $1.5 billin insa $5 billin sl all is bs russia. Angla wul b givn a v-a gac pi (paps ag upn in anicipain a

mn wul w m l llwing cnclusin wa). N pamns wulb u uing gac pi, bu ins wul accu wic ac a, a a 6p cn p annum. Accu Ins wul b a pincipal amun (“capial-is”) v six mns up Jun 2001, a wic a accumula ins (cming $457,160,000) wul b a iniial pincipal, suling in a nw pincipal amun $1,959,160,000. Fm Jun 2001, smi-annual pamns wul cmmnc nx15 as, wi las pamn u in Jun 2016. (An aiinal 2 p cn aul pnal ins wul b lvi n an usaning insalmn unpai wn u.)17

As vinc pamn insalmns, Angla wul issu 31 US lla-nminaPmiss Ns Gvnmn russia. T Pmiss Ns pvi pamn v six mns pincipal in amun $63,134,000 plus ins accuug ac pamn a. B nal pamn a, Angla was av pai a alamun $2,896,596,000 (bing sum iniial $1.5 billin uc b pincipal,plus $457,160,000 ins accu up Jun 2001, plus $939,437,000 u insaccu up Jun 2016).

Arcad Gaydamak, the key player in

the Angola–Russia debt transaction, was

born in 1952 in Moscow. At the age o

20, he emigrated to Israel, ater which he

relocated to France, where he initiated his

rst business. In 1993, Gaydamak, along

with his partner, Pierre Falcone, helped

to arrange a large arms deal that saw the

Angolan government purchase $790 million

in weaponry rom Russia and France. In

2009, French courts convicted Gaydamak or

various crimes related to the deal – known

as Angolagate – although some convictions

were overturned and his six-year sentence

was reduced by hal on appeal in 2011. He

has never served time in jail as he reused

to travel back to France, opting instead to

remain in Israel.



T H e D e a l p H a s e i : p r d t f r c r c r ? 25

T aangmn was un simpl. A “liabl insiuin,” suc as a bank ing scw svics, was b signa b b pais. Angla wul mak a pamn insiuin, wic wul wa s uns n russia. Simulanusl, insiuinwul un ac Pmiss N back Angla, alng wi a rpamn Cicaissu b russia a cnm a Pmiss N a bn nu. Impanl,ac rpamn Cica c an amun $161,290,322.57. As w 31Pmiss Ns an rpamn Cicas, cmplin ni ansacin

wul s Angla an rpamn Cicas cing a al amun $5 billin($161,290,322.57 X 31), us xinguising is ni b russia, wil Angla wulnl n pa russia uc pincipal an ins iscuss abv. Tus, b using is simpl mcanism, b $5 billin Angla w russia cul b xinguis,an ac pa wul av aiinal sa an inpnn i-pa bank mniing ansacin an lasing uns an Ns nl upn ullmn vaius ms da.18

on 17 Janua 1997, Banc Nacinal Angla issu a sis 31 Pmiss Ns. As a la agmn cnms, s Ns w issu “pusuan ” Nvmb 1996

Ingvnmnal Agmn.19

T Ns pvi pamn v sam scul su in Nvmb 1996 Ingvnmnal Agmn,wi s N u 15 Jun 2001, an las n u15 Jun 2016. Cuiusl, wv, caull ailcalculains ins pamns cnain in Scul Ingvnmnal Agmn a mi. Als,a an pviing ac N a sa pincipal amunu (“ac valu”) $63,134,000 (as was cnmpla b Nvmb 1996 Ingvnmnal Agmn), ac Ns sw a sa pincipal amun u nl $48,387,096.77. owis, Ns w nil cnsisn wi Nvmb 1996 unsanings.20

Tug w n av cpis m, 31 cspning rpamn Cicas w, appanl, issu simulan-usl b russian Minis Financ, baing samnc numbs as Ns. T rpamn Cicasinica pamn “cspning iginal inb-nss amun u al iginal aggga amun USd 5,000,000,000”.21 Ta is sa, alug Angla wul civ back a rpamn Cica ac $48

millin N i pai, ac s 31 pamn ci-cas wul vinc “pamn” $161,290,322.57.

I is supising a Ns n mnin insbligains, as suc insumns nmall wul. Tissilnc ma cncivabl b bcaus cumnainpsuppss a unpai ins wul als b paabl nac pamn a alng wi sa pincipal amun(“ac valu”) N, as s u in Ingvnmnal Agmn.

Perre Falcone was born in Algeria in

1954. When he was aged eight, Falcone’s

parents moved to France, ollowing Algeria’s

declaration o independence. In his early

twenties Falcone moved to Brazil, where he

started his business lie as an agricultural

entrepreneur. Together with his Bolivian wie,

Falcone established himsel as a signicant

socialite in the US in the 1990s. In 2009

Falcone was convicted o various crimesrelating to Angolagate, receiving a six-

year sentence. He had attempted to claim

diplomatic immunity as he was then the

Angolan ambassador to UNESCO – a position

that conrmed his closeness to the Angolan

political elite. Some o his convictions were

overturned and his sentence was reduced on

appeal in 2011. He remains active in Angola.




hwv, i is m likl a Ns w issu in Janua in anicipain ala m (bu n lgall appv) plans subsqun ans Ns Abaln, an aangmn a wul incpa russia’s agmn giv bligainsgaing ins pamn all g. N nl Ns mak n mnin inspamns; als n c “capialis” ins pamns accu piup Jun 2001 a Ingvnmnal Agmn a cnmpla wul incasac N’s pincipal ac amun b sm $13,746,903. Tus, Ns w issu wi

ac amuns $48,387,096.77 ac, alling jus s $1.5 billin sucupincipal amun b.22

3. Enter Abalone: “For you, hal price”

T 24 Apil 1996 Mana, i sul b mmb, a l unsl aangmns “[c]mpnsain agns i svics wiin amwk [] mana.”I is as imagin a savv businssmn suc as Falcn an Gaamak wul avbn wking u i gnus “cmpnsain” (via Abaln) ig alng wi

ails b sucuing ngiains in wic w acing Anglangvnmn. Tis suggss a Gaamak was bing ms in an inviw lagav Gnva nwspap Le emps, in wic scib is cnibuin cain db dal as ml “aminisaiv,” insising a Nvmb 1996

agmn a bn “ngia b w sas, n b m Pi Falcn. Bu I plaa aciliaing l, bcaus a im russia lack aminisaiv sucus”.23

Nvlss, iming an cicumsancs sngl suggs a lucaiv insin Abaln in ansacin was buil in planning b sucuing m bginning ( sl a), an cai u wi supp lmns wiin

russian an Anglan gvnmns.

In Mac 1997, Falcn an Gaamak’s cmpan, Abaln Invsmns, n inan agmn wi russian gvnmn a unamnall vis laivl saigwa bilaal aangmn ag bwn russia an Angla in Nvmb1996. T 5 Mac 1997 russia-Abaln Agmn sablis a sucu a wulins Abaln as a milman bwn russian an Anglan gvnmns. Tagmn cnmpla a Abaln wul pucas Pmiss Ns m russia in six spaa ancs, labll “A” “F.” tanc A cmpis six Ns, ac wi a sa “Pamn Valu” (as iscuss abv) $48,387,096.77, an aggga saPamn Valu $290,322.580.62; tancs B F ac cnain v simila Ns wiaggga sa Pamn Valu ac anc $241,935,483.85.

eac anc wul b paabl n b is spciv “tans da,” spcivl 30 Nvmb as 1997, 1998, 2000, 2002, 2003 an 2004. T alsa Pamn Valu psn b 31 Ns was $1.5 billin. Abaln wul pa n ins n Ns i pucas, bu wul acqui wi pucas Ns all“unling igs an inbnss nw an a cv b (incluing, wiuan limiain, all accu an accuing ins, cspning iginal inbnssamun an all igs Gvnmn russian Fain [sic] un [20 Nvmb1996 Ingvnmnal Agmn].”



T h e D e a l P h a s e I : P r u d n t F i n n c i n g o r C r i m i n C o n p i r c y ? 27

In laman’s ms, is man a ins a russia was cag, accing isiginal calculains, was n lng b lvi b russia agains Angla. In pincipl, Abaln wul av a ig lv is ins as wn Angla’s b. In an vn, Abaln i n, an Angla was n c pa an ins as s cnmplab 1996 agmn bwn i an russia.

Pamn n ac pamn a was b ma simulanusl wi liv

cspning Ns, g wi cspning rpamn Cicas.24

tw ciical aus is agmn sul b iglig. Ms impanl, i was ag a Abalone would purchase the Promissory Notes rom Russia at hal their

ace value. In ws, Abaln wul pa nl $24 millin bu an AnglanPmiss N wi a sa ac valu $48 millin.25 Tus ni $1.5 billin b (incluing ig civ ins n is b) wul b availabl Abaln pucas a $750 millin.

Mv, Abalone made no binding commitment to purchase any of the Notes from

Russia . T agmn ml gan Abaln an pin—“ s an xclusiv right o frst reusal acqui spciv tancs dcumns an unling inbnss an igs.”26 excp a ms pin , Abaln isk ning.Cspningl, russia civ n guns cm a i wul b abl sll Ns n accla scul i was psumabl bagaining .

W russia ag waiv subsanial amuns ins i was u in un anagmn a i n a guaan pamn, is uncla, an, n ac i,igl unusual. Similal, ac a russia i n s v avuabl msicl Angla, a an a cnl-m inmia, is unxplain. Tis isvn sang, as w pin u in m ail blw, bcaus Abaln li nil npamns m Angla mak s pamns n an avanc scul, again suggsing a al cul av bn icl Angla a an an inmia ing lil b wa isk abamn, guaans pnial accss innainalnancing mcanisms.

T agmn a w nw pvisins. Fis, in cnsiain pinbain un agmn, Abaln ag pa russia a nn-unabl qual 0.3 p cn $1.5 billin pincipal amun Ns, a is $4.5 millin.27

Finall, i Abaln succ in pucasing a las 70 p cn aggga Pamn

Valus b 31 dcmb 2004, pamn maining unpai bligains cul bxn v w aiinal as, unil 31 dcmb 2006.28

4. The 30 May 1997 Abalone-Sonangol Agreement:“For you, ull price”

Abaln pu in plac a ciical i agmn n 30 Ma 1997. on a a, Abalnan Snangl, Anglan sa il puc, sign an agmn pviing a up

31 dcmb 2006, Abaln “ppss sll Snangl an Snangl unaks an




accps pucas m [Abaln] up all Ns an Cicas,” suc pucass b ma a full face value Ns.29 Snangl wul b paing jus v$48 millin ac N, wil Abaln wul nl b paing russians al a. Abaln wul b making a al “p” $750 millin.

Wil is Abaln-Snangl pucas agmn isl is vagu as pcis iming pucass, an asscia agmn sam a maks cla a Snangl must

mak pamn n an Ns n b Abaln, wiin 21 businss as nic b Abaln inn liv.30 Ta is, as a mi imag pin agmn (ig bu) Abaln a bain m russia, Abaln nw pu in plac a “pu” (ig sll) wi Snangl. Abaln—bu n Snangl—cul iniia a sal a an im up minain agmn in dcmb 2006, an “i” Abaln i s, Snanglwul av pa. Snangl was n k, bu Abaln cul walk awa an claa an im.

5. The Role o Glencore

t nsu a Snangl wul av uns availabl pucas Ns wn call upn s, Glnc UK L. k l aanging p-nancing Anglan il pucassm cmmcial banks, pbabl ug sm kin mcanism scuing psn casbwings wi uu il pucin. Tug w n av cumnain n isciical aspc db dal, is sng asn suspc Glnc ma subsanialps m is l sving as a maj suc nancing dal, a pabl businssin isl. (Glnc was n pscu in Fnc Anglaga cas, bu pla a bal simila l, wi Banqu Paibas, in aanging il-back nancing ug wic Fnc ams al was pai.)

I was Glnc a a s “psn ansacin UBS SA in Fbua 1997,” juspi lincpin 5 Mac 1997 russia-Abaln Agmn.31 Fm all appaancs,Glnc sms cls bing an ganis db dal an a m ail nancialsvics pvi. I ma wll av wn m an n a in ansacins, an wbliv i mis u xaminain.32 T llwing innal UBS mmanum xplainsw Glnc inuc pais db dal SBS:

[SBS/UBS’s] accpanc [is] l as “scw agn” was miva b aca Glnc UK L. is wn b Glnc Innainal AG, an, lik Snangl,is a v impan clin lng knwn b u bank…. Glnc Innainal AG…cnm in wiing m SBS is ull knwlg all ms an pais is pucas Anglan bligains, pais an ms “scw agmn,” is inic invlvmn in is pain an is nancial ins.Mv, bsis pamn “scw s,” Glnc Innainal AGguaans m SBS imbus i all css an s i paisa cul b incu b [ scw bank] in cas liigains laing implmnain [] “scw agmn” a sall n av bn pviusl sl b Abaln.33




Gaamak as allu is Abaln’s paicipain in il pucass an sals navuabl ms as a c aspc is wn ins in db dal, an aa ansacin wic Glnc, wi is p xpinc an cnacs in bking maks, culav pvi subsanial assisanc. F xampl, wn ask in 2002 wa bns apsnall akn u db dal, Gaamak l Le emps :

Abaln sign a cnac wi Angla, wic allw m bu an sll il

pai wi pmiss ns. T was a p magin, pning n il pics,wic w v ig a a im, an is magin cam back m an PiFalcn.34

Mv, in a dcmb 1999 Mmanum Unsaning bwn Gaamak anis sn--b businss pan Vial Malkin,35 “cumns” a n “ms cnacual lainsip” amng Abaln sals a ini as “inbnss agmn bwn russian Fain an rpublic Angla, agmn bwn russian Minis Financ an Cmpan, agmnbwn Snangl an Cmpan an il Ns agmn bwn Snangl

an Cmpan.” T xisnc las im, “il Ns agmn” wi Snangl,suggss a Gaamak was abl wav in db dal n m las il-gna ps a av s lig a: an Glnc wul sm likl av bn k s aangmns.36 Tis sumis is u bls b aicl 4 a cain Financial Agmn, als m dcmb 1999, bwn Gaamak an Malkin,in wic pais sipula a a $6 millin lan m Gaamak Malkin “will bpaabl a cmplin scn il cnac”.37

Agmns w nw in plac nsu a russia an Angla w ac ba maling icl wi ac ( an i pa an Abaln isl), wil Abaln a cic w mak pucass an sals—an pck a 100 pcn mak-up n ac N— w walk awa wiu u bligain.38

6. The Escrow Agreements

T db dal was b acilia an cmn b mans w scw agmns.

on 11 Apil 1997, Abaln (as “Bu”) n in an scw agmn wi Mscw’sUnicmbank (psning russian Minis Financ), an Swiss Bank Cpain ( Sciéé Banqu Suiss, SBS), as “escw Bank.” SBS—wic wulla bcm Swiss bank UBS SA a SBS an Unin Bank Swizlan mgin 1998—wul cnuc anss uns an Ns. t nsu a n si waspniall l wn b nn-ullmn, i was ag a SBS/UBS wul sv as scw agn wi spc Abaln accun. Abaln wul ans uns inn pucas Pmiss Ns scw, an bank wul n ni Unicmbank a i a civ mn an was ling i unil las Pmiss Nsan rpamn Cicas. russia wul n ans Ns an rpamnCicas scw bank, w i aunici cul b inspc b bank fcials, Abaln, an psnaivs Anglan gvnmn.39 (In ac, as n blw, iappas a Unicmbank liv all Ns an rpamn Cicas scw

bank a na incpin db dal.) tw businss as a aunici a




bn cnm, mn w russia wul b las b scw bank anans an accun Unicmbank’s csing.40

A paalll agmn was als sign bwn Abaln, SBS an Snangl, cmpling aangmn an—n a supcial a—lcking pais in an incla agmnmni b a puabl innainal bank, n lags in wl.41

7. How Much Money Did Angola Pay and RussiaReceive in Deal Phase I (the UBS arrangement)?

T dal pc apac m ocb 1997. on 2 ocb, Snangl ma is spamn Abaln a UBS valu a $290,322,580.62. I was s a al v pamns ma m Snangl Abaln v a pi as, alling $774,193,548.32. Ta $774,198,548.32 sum psn ull pamn s 16Pmiss Ns, wic w ansac in Pas I dal, ug UBS scw

accun in Gnva. (S Appnix 1.)

I is n as as, ununal, ac pcis valu pamns a Abaln ma russia in is s pi, ug Jul 2000. W knw a $774,193,548.32 paib Snangl, cas pamns alling $161,913,697.59 w pai b Abaln russianMinis Financ. Tis was ma up w pamns; a ans $145,161,290.31n 3 ocb 1997 ( a llwing s ans in Abaln m Snangl) an a u ans $16,752,407.28 n 8 Janua 1998 ( sam a as a $48,387,096.77ans was civ m Snangl). (S Appnix 2.)

T s ans $145,161,290.31 russian Minis Financ was sufcin Abaln pucas six Ns m russia (a al i ac valu).

on 6 Janua 1998, russia, Abaln an UBS n in a supplmnal scw agmn. Alug w a n in pssssin a cp, a aing cnuc b Gnva cus in ocb 2003 (iscuss in m ail la in p) cnma supplmnal scw agmn sipula a Abaln cul pucas a singlPmiss N a 33 p cn is ac valu. Abaln cmpl is pucas b ansing $16,752,407.28 russian Minis Financ n 8 Janua 1998.42 Tus, w anss lis in Appnix 2 w sufcin pucas svn Pmiss Ns.43

A Augus 1999, Abaln cninu pucas Ns m russia, bu pai mb xcang russian b scuiis call PrINs an IANs agains Anglan Ns sam ac valus. As xplain blw, is cang ca Abaln ppuni nanc is “ps” m db dal vn m, b allwing i xcang lw-valurussian bns subsaniall ig-valu Anglan Ns. Bcaus s b--bxcangs w n ansac ug UBS accun, w n knw pcisl w muc valu Abaln was paing pucass Ns 8-16, bu w cnsvaivl sima a Abaln wul n av pai m an $103 millin in cas valu pucas las nin Ns, an avag $11.44 millin ac $48 millin Anglan Pmiss Ns.




Aing is $103 millin gu $161.9 millin cas pai Ns 1-7, w cnclua at most, Abalone would probably have paid something in the neighbourhood o

$264.9 million or the 16 Notes they sold on to Angola or $774.19 million.

8. Debt or Debt: PRINs and IANs, Abalone’s New

Way o Paying Russia Abaln’s bank cumns inica a n u ic anss uns w mam Abaln’s UBS accun russian Minis Financ a 8 Janua 1998pamn. Iniiall, is was pbabl bcaus clin in il pics, wic mpail spp cas w availabl Snangl’s pamns Abaln. Tn, in Augus 1999, acicu dal unwn maj visin, igg in pa b bankupc Unicmbank, wic a psn russian Minis Financ a a.

on 23 Augus 1999, russian Minis Financ an Abaln sign a i supplmnal

agmn. Tis sa a russia a ci “vk agnc mana cn Unicmbank an plac la wi Sbinvs, Mscw, russian Fain(Sbinvs)”.44 N muc la, russia w UBS n 18 ocb 1999 minaing is scw agmn wi bank, an qusing a maining Pmiss Nsl b UBS in scw russian Minis Financ b ans Sbinvs,Mscw. F unknwn asns, UBS ail ans Ns Sbinvs.45

A m unamnal cang was als nvisin. Accing 23 Augus 1999Supplmnal Agmn, Abaln a inica a i p pucas all maining 24 Ns m russian Minis Financ b ocb 1999. Ts w bpucas in six ancs, ac cmpising u Ns. Ms impanl, Abaln wuln pucas Ns b mans cas anss. Insa, i wul pa b living russian Minis Financ russian b insumns a sam nminal ac valu as nminal ac valu Anglan Pmiss Ns i pucas. Abaln wulacqui russian b insumns n pn mak sam ac valu AnglanPmiss Ns an ans s russia, us ucing russia’s wn xnal b n innainal mak. russia wul n an v Anglan b Pmiss Ns Abaln.

In simpl ms, Abaln wul bu a Pmiss N m russia a is ull ac valu($48 millin) b ansing russian b insumns a als a a ull ac valu $48

millin. B implicain, i Abaln was abl bu russian b insumns a a muclw pic an is ull ac valu, i cul mak vn m subsanial ps an i wasu accing is 1997 agmns wi russia an Angla.

Abaln was ans w ps russian b scuiis russian Minis Financ in a spcic ppin: 85 p cn w b in m Pincipal Ns(PrINs) an 15 p cn w b in m Ins Aas Ns (IANs). B s scuiis w iginall issu in 1997 b Vnscnmbank.46 T scuiisw issu llwing ngiains wi s-call Lnn Club cis, w wls Svi-a b. T al valu bns was $29 billin; $22.2 billin in

m PrINs an $6.8 billin in m IANs.47

.




I is n cla w russia p mv was PrINs an IANs mpin m.tansing n s b insumns an at the same dollar value s maksns. I allw russia pa a pin is b n innainal mak wiuaving isbus an uns, insa ‘paing’ is ucin in b b wiing bw i b Angla, wic i was nl civing al ac valu anwa. Bu i isals pssibl a apin is ssm cul nail signican aiinal pjuic russian tasu.

t min w suc pjuic ccu, w sa b xamining mak valus PrINs an IANs a im 23 Augus 1999 agmn was sign an ug pi wn is pamn m was mpl. on mig xpc acual makvalu w PrINs an IANs b a ugl 50 p cn i nminal acvalu. I is was cas, Abaln cul pucas n pn mak PrINs an IANswi a sa ac valu $1.16 billin (24 maining Ns X $48,387,096) b paing 50p cn a ac valu, i.e ., $508 millin. Abaln wul n ans s russianb insumns russian Minis Financ in pamn maining 24Pmiss Ns, wic i a ag pa al ac valu.

I is was cas, n basic aangmn iginall n bwn Abaln anrussia wul main in plac; naml, a ansacin wul nl cs Abaln $24millin p Anglan Pmiss N. I, wv, Abaln was abl g a b aln russian b insumns an 50 p cn ac valu, i wul mak vnm p an iginall nvisin b iniial 1997 agmn bwn Abaln anrussia. Cnvsl, i russia was g maximum valu in dal, n wul imagina i wul cs a russian b insumn ws mak valu was aun 50 p cn is ac valu, ask m russian b insumns p Anglan Pmiss N. I i i n, i was civl slling Anglan Pmiss Ns Abaln a a pic awas vn m iscun an b.

examinain acual mak valus PrINs an IANs pi uing wic PrINs/IANs mcanism pa (appximal Augus 1999 20 Jun2000) vals, wv, a s insumns w valu a signicanl lss an 50p cn ac valu a wul psv psiin b sis.48 Invss psumabl i n av a ga al ai a russia wul n aul n m. Wa was paicula w invss was a scuiis, issu b Vnscnmbank, w nsvign insumns guaan b russian sa. I Vnscnmbank w clabankupc, wis aul n insumns, ls PrINs an IANs cul bl wiu m.49 Mv, as Augus 1999, wn PrINs/IANs mcanism

was inuc in db dal, russia a ala aul n PrINs an IANs; m in dcmb 1998 an la in Jun 1999.50

Ts auls an avs inicas kp mak valus PrINs an IANs lw,nsuing a nw pamn m wul b xa-pabl Abaln. Lking a pic mvmns m Augus 1999 Jun 2000, w can s a n 23 Augus 1999, a nw pamn scm wn in c, PrINs a a valu jus 10.5376p cn ac valu; an n ac a lw 8.5417 n 15 ocb 1999, bmaking a gaual cv, ging 30.8125 n 20 Jun 2000. Similal, n 23 Augus1999, IANs w aing a jus 14.4138 p cn ac valu. T ipp a lw 10.5563 n 15 ocb 1999, an n bgan a slw cv, acing 31.2188 n 20 Jun 2000.




W a n in psiin cnm pcisl w wll Abaln was abl pla PrINs/IANs mak, ug givn Gaamak’s knwlg an cnacs, w wul xpc a Abaln was savv in iming is PrINs an IANs pucass. Bas n pic aa pi, Abaln cul av bn buing $48 millin Ns as lil as $4 5 millinw PrINs/IANs. In an vn, i is a s w Abaln cul av bn paing an m an abu $17 millin ( 35 p cn ac valu) ac $48 millin N. As swn n tabl 2 (pag 47), the authors estimate that in the period 23 August 1999

to 20 June 2000, when the PRINs/IANs mechanism was in eect, Abalone purchased nine Notes or a sum no greater than $103 million, averaging about $11.4 million or

each Note, or about 23.7 per cent o ace value.

I, as aus cnclu, Abaln cam awa m s 16 N pucass wi a n amun in xcss al a billin llas, n russia’s agmn accp PrINs/IANs cs russian ppl an aiinal $123 millin bn 50 p cn aicu russians a ala accp wn bug Abaln in pamn sam.51

onc again, i is n cla w russian Minis Financ wul ag aiinal

millins in pic ucin cs ac N, allwing Abaln mak vn lag“ps” an dal a ala pmis. hwv, i s sm a pan inwic russia was willing cninuall ngia ws ms isl. rcall a in 1998russia a cnmpla slling wa main Pmiss Ns 24 p cn i ac valu; a 50 p cn iscun n a Abaln a ag in is 1997agmns. Tug a paicula aangmn i n cm uiin, scacl a ala russia wa wul wk u ugl sam pbabl b ms Abaln, ug PrINs/IANs mcanism.

9. Enter Vitaly Malkin Wil Abaln a ag apin PrINs/IANs mcanism in Augus 1999,i was, a s, i appas, unsuccssul in pucasing aiinal Ns. In, Abalnwas nl abl pucas u aiinal Pmiss Ns in dcmb 1999; an n,in sligl sang cicumsancs, as i was cningn upn slling a 25 p cn sak in Abaln Vial Malkin in dcmb 1999.

Malkin, i appas, was allw pucas a 25 p cn sak in Abaln (wic wasviuall guaan making sup ps) in un pviing a spcic svic. Accing la nings Gnva Public Pscu, danil Zapplli, Malkinwas abl pucas a sak in cmpan a lping Abaln ngia apin PrINs/IANs mcanism. As Zapplli n, “Tis nancing nabling russian bscuiis b acqui was aciv ug invnin a russian bank, Vial MALKIN, w in un bcam a sal in Abaln.”52

Malkin was an mains a nabl gu in russia’s cnmic an pliical li. Fllwing all cmmunism, ma a psnal un via is businss pansip wiBizina (Bis) Ivanisvili, uu Pim Minis Ggia. tg, w mrssiski Ki Bank, wic bcam n russia’s lags banks.53 Malkin ma a cam appaanc in Fnc Anglaga jugmn, w is nam appas n a lis

banks an npiss smingl link Anglaga ansacins a was siz




b Fnc plic m Pais fc Pi Falcn’sBnc Fanc.54

on 20 dcmb 1999, Vial Malkin an AcaiGaamak n in a Financial Agmn, a Pucas Agmn an a Mmanum Unsaning, alllaing Malkin’s pucas sas in Abaln. Accing

20 dcmb 1999 agmns, Gaamak ag sll Malkin 25 p cn sas in Abaln, wicw valu a $60 millin.55 In Mmanum Unsaning, Malkin was as a “psnaiv r K Bank,” wic psumabl s rssiski Ki Bank, bank wic Malkin wn wi is llw ligac, Bis Ivanisvili (nw Pim Minis Ggia).

T sa pucas aangmn was cmplica, bu, inc, i appas a Gaamak ag sll 25 p cn

sas in Abaln Vial Malkin in un accss u Pmiss Ns l b Malkin.56 hw sNs cam in Malkin’s pssssin mains a ms, bucul b cnsi igula givn xisn agmnsbwn Abaln an russian Minis Financ.

A u supplmnal agmn sign bwn Abalnan russia n 28 dcmb 1999 cnm a uaiinal Pmiss Ns a bn pucas b aa.57 I is likl a s w u Ns in Gaamak-Malkin Mmanum Unsaning.B 28 dcmb 1999, , Abaln a cmpl pucas a al 11 Ns m russianMinis Financ.

T 28 dcmb 1999 Abaln-russia agmn usipula a Abaln wul pucas maining 20

Pmiss Ns in v ancs b 15 Apil 2000.58 t cmn al Abaln wasqui pvi cllaal in m PrINs ac valu $22 millin russian Minis Financ. I maining 20 Pmiss Ns w pucas b 15 Apil 2000, cllaal wul n b uc m u amun. I maining

Ns w n pucas b 15 Apil, cllaal wul b i.59

Abaln was unabl cmpl pucas maining 20 Pmiss Ns b aa. Bu n 11 Ma 2000, russia an Abaln sign an supplmnal agmnwic cnm a, as signing a, Abaln a cmpl pucas a u u Ns, binging al numb Ns pucas 15.60 T agmnwas sign b Mikail Kasanv, Minis Financ russian Fain.

As a sul ailu pucas all Ns b 15 Apil, Abaln i cllaal ia psi. W n knw w muc i cs Abaln acqui $22 millin ac

valu PrINs, bu i w pucas n 28 dcmb 1999, wn agmn

Vtaly Malkn, now aged 58, was estimated

to be worth around $1bn according to

Forbes’ “World Billionaires” 2008 eature.

His ortune could not have hurt his rise to

the position o senator in the upper house

o the Russian Parliament in 2004. Malkin

joined orces with Boris Ivanisvhili in 1990 to

orm a host o banks in the newly democratic

Russia, at the same time purchasing an

array o Russia’s newly privatised mineral

assets. The extent o their business acumen

was revealed in 2004–05 when they sold

their combined metallurgical assets or an

estimated $2.2 billion. In 2012, Malkin’s

ocial tax returns showed that he was the

richest member o the Russian upper house

o Parliament, earning $33.6 million in 2011

alone. He resigned rom Parliament in 2013ater allegations emerged that he unlawully

held dual Israeli and Russian citizenship and

substantial assets in Canada.




was sign, wul av bn slling a abu 16.3438p cn ac valu,61 s a ls cllaal wul avcs Abaln abu $3.6 mllin.

Nwisaning lss cllaal, nx suppl-mnal agmn, a 11 Ma 2000, allw Abaln pucas n u Pmiss N via PrINs/

IANs mcanism b 20 Jun 2000.62 In aings b Gnva cu in 2003, i was cnm a is paina bn cmpl, binging al numb Pmis-s Ns pucas b Abaln, as Jun 2000, 16,63 cncluing s (Gnva/UBS) pas db dal.Cmpling igusl is cmmimns, Snangl ul pucas s 16 Ns a ull ac valu $48 mil-lin ac as c in cumulaiv al Snanglpamns in Abaln’s UBS accun as 6 Jul 2000:$ 774,193,548.32 (= 16 X $48,387,096.77). Wi gas

maining 15 Ns, i was ag a b paiswul cninu ngia unil 30 Spmb 2000 sl ms i pucas an ans.64

10. The Role o UBS

T cangs c b 23 Augus 1999 Supplmnal Agmn bwn russia an Abaln65 pcipia sm sul sacing a UBS. T bank’s Lgal dpamn Assisandic, Alain Zbinn, w is cllagu, accun manag yvs Lu,66 a acul bu

clal ubl mm67 llwing Zbinn’s 1 Spmb 1999 ming wi Gaamak an Falcn, in wic cangs suling m Augus agmn w psn aniscuss. Zbinn bug impan insiuinal mm is lng iscussin,aving bn n w fcs m Swiss Bank Cpain (SBS) a asign iginal 11 Apil 1997 scw agmn wi Abaln an Unicmbank. (Fm cumns availabl, i appas a Zbinn, Lu an a M. Flu, w appvman all pamns m Abaln accun, w UBS psnnl msamilia wi Abaln accun.68)

Zbinn xplain main cangs cnmpla b Abaln an russian Minis Financ— subsiuin cas PrINs/IANs an subsiuin Sbinvs Unicmbank. T mm als iscuss llw-n cangs scw aangmna wul sul m 23 Augus 1999 Supplmnal Agmn, incluing ncssa amnmns n nl iginal Apil 1997 scw agmn (cangs, Zbinnn, a wul qui cnsn all invlv pais), bu asscia agmnsSBS/UBS a n in wi Abaln an Snangl, an wi Abaln aln.

Zbinn lis vaius auising an aunicaing cumns, paiculal mSbinvs, a UBS wul n bain, an wn ug mas a wulb canging, incluing ac a, unlik pi aangmn, UBS wul n bciving cas bu nl a claain m Sbinvs asing Sbinvs’s cip

PrINs/IANs (ws nminal valus UBS wul nnlss av vi). h

Born in 1957, Mkhal Kasyanov has

been a major player in Russian politics and

administration, deeply involved in resolving

the country’s Soviet era debt problems. In

1993, Kasyanov was appointed the Head

o the Department o Foreign Credits and

External Debt at the Russian Finance Ministry.

Two years later, he was appointed Deputy

Minister o Finance, a position he held until

1999, when he was promoted by Boris

Yeltsin to Minister o Finance. In this role,

Kasyanov served as Russia’s chie negotiator

on restructuring the country’s Soviet-era

debt with international creditors. In 2000, he

was selected as the country’s Prime Minister,

serving under President Putin. Ater being

ousted by Putin in 2004, Kasyanov ormedthe People’s Democratic Union in 2006, o

which he was elected party leader. In 2010

he helped to co-ound the People’s Freedom

Party.




abu api imabl sug implmnain nw aangmns—a ma as—wic was simpl impssibl (“hallucinant” ). h als n ubling cncnsgaing 23 Augus 1999 Supplmnal Agmn, wic, bsv, b nfcial sal m russian Minis Financ, ws psnaiv’s signau a,mv, n bn nais.

Zbinn p a “[]is las pin caus m lk in a pssibl isk puain.”

h cnas “ail sabl” nancial an pliical siuain in russia in Fbua 1997,wn Glnc a s psn ansacin n SBS, wi subsqunnancial cisis in russia an numus succssiv cangs in gvnmn allw, making i “m ifcul b cain a u’ aling wi pp fcialMinis Financ psnaiv w is xpssing gvnmn’s u wiss nin suc a spcic an cmplx ansacin as n laiv s Gvnmn Bnsan rpamn Cicas.” h wn n pin u a “is pliical an nancialinsabili as gna, mab ppsi, incas anin m Wsn lgalauiis, paiculal m Swizlan an Gnva, wic as sul in ull-scalciminal invsigains bing pn…. t b su,” a:

T mivs, sucus, nancing an cnacual pais bin ansacinscncning s scuiis issu b Banc Nacinal Angla in avu russia a ning wi nancial mas a av appa in nws las sval wks.... Nvlss, is ansacin is la wcunis a av bcm m lica an unsabl, russia an Angla, anan pssibl mnin n psnaivs i pais sucas Abaln, SBerINVeSt Minis Financ in a nws aicl, vn i la min b unun, i n slanus, wul sill iniiall caus a Swiss jug, an abv all a Gnva jug, ak an ins in iniviuals inqusin.69

Zbinn cul av bn ing cnl p cupin allgains invlving Mabx Gup an Bis Bzvsk.70 evn i n icl invlving Abaln pincipals,is nvinmn russia-la inigu in Swizlan sul av miva a caulviw substance Abaln ansacins, an n ml misgivings abu isappaanc. (I is pssibl a Zbinn was n aln in is sul-sacing. N six wksa is mm, russia ni UBS a i was minaing is scw lain wi bank, an ask un Ns.)

Bwn Mac an Jul 2000, Abaln accun was qui aciv, incluing cip

pamns m Snangl aling $435,483,870.93 an 22 pamns u. o la, n pamns, aling $96,848,633 w ma wiin lss an w wks las $96,774,193 pamn in m Snangl. eig s pamns u, aling $62,979,200, ccu v sam a (6 Jul 2000) as a i Snangl pamn,an inclu $3 millin pai icl Jsé Liã a Csa Silva, inunial minisin ofc Psinc Psin s Sans.71 Ts isbusmns uns aiscuss in m ail blw.

In cnx a cmplx ansacin i wi cnics ins an manisl pjuicial w pais (Angla an russia), muli-millin-lla ans

Liã a Csa, in paicula—ma icl a sni Anglan “Pliicall exps




Psn”72 in is wn nam, n sam a as a $96.7 millin pamn in m Anglan il paasaal, an llwing isqui aicula in Spmb 1999 mm, minain n-al scw aangmn sablis in 1997, an ailu N wn iv Ns —sul sul av ais alam.

In Ma 2000, Swizlan’s Bib Fign Public ofcials Law a cm in c,ling culpabl “[a]n psn w s, pmiss givs a mmb a juicial

aui, a public fcial, an fciall appin xp, ansla inp, anabia, a mmb am cs w is acing a ign sa innainalganisain an avanag wic is n u im, givs suc an avanag a ipa, in a psn cais u ails ca u an ac in cnncin wi isfcial aciviis wic is cna is uis pnn n is iscin.”73

Un Swizlan’s 1990 ciminal pvisins agains mn launing an insufcinilignc in nancial ansacins, nancial inmia w xcus ans a bib ma als b subjc sancin mn launing. Aicl 305bis napplicabl Swiss Ciminal C ls as culpabl mn launing “[a]n psn w

cais u an ac a is aim a usaing inicain igin, acing iu asss wic knws mus assum igina m a ln.” Mv,“[] n is als liabl ging pnalis [vn] w main nc wascmmi aba, pvi suc an nc is als liabl pscuin a plac cmmissin.”74

T 1990 pvisins als sancin “[a]n psn w as pa is pssin accps,ls n psi, assiss in invsing ansing usi asss an ails ascain ini bncial wn asss wi ca a is qui in cicmsancs.”75

In, Swiss Fal Banking Cmmissin a w as ali issu is CFBCicula 98/1 n Mn Launing, in wic Cmmissin wan banks an “nancial inmiais” in ail gaing spcial isks aling wi sni igngvnmn fcials:

Financial inmiais sul n accp mn wic knw mus assumcms m cupin misapppiain public uns. T n scuinis wi spcial anin i wan n in businss lainsips,accp an ain asss wn, icl inicl b psns xcising impanpublic uncins a ign sa iniviuals an cmpanis, cgnisabl cls

m.76

Cicula 98/1 u spci a:

I, a claicain, nancial inmia knws assums, bas n wll-un suspicins, a asss av a ciminal igin… mus inm wiula Mn Launing rping ofc [ Swizlan], pusuan insucins a b spcing m an cnn cmmunicain….77

A v minimum, cicumsancs pamn Jsé Liã a Csa Silva

sul av caus UBS -cnsi ni ansacin an l n m




suspicius aciviis ps Mn Launing rping ofc Swizlan(MroS), pusuan Cicula 98/1. I UBS ail ais an alam auiis, aailu spaks aningl lu abu laiv piiis a bank bwn basic ani-mn launing pcauins an businss as usual. W n knw cain wUBS v l suc a p, bu i is v pbabl i i n. I appas a s fcialping m an bank un s gulains gaing Falcn’s nancial alings ma n av appn unil v mns a Jul 2000 pamns m Abaln, an

nl in wak pss ps abu Anglaga in Fanc, as a Gnva cu ning (iscuss in m ail blw) as:

In dcmb 2000 an Janua 2001, Fal Jusic ofcial … inm Gnva Cu a was ni b lcal banks a w allgains mn launing….T [Fal Jusic ofcial] inica a, accing sm aicls publis in innainal pss, a psn nam Falcn an cmpan Bnc w subjc a ciminal invsigain in Fanc.78

T m “lcal banks,” as us in Swiss cnx, suggss a s ps i n

cm m a ug innainal insiuin suc as UBS, bu a m small nainall paing banks. I UBS a in ac l a p MroS, i sms a bliva Gnva ciminal cu pinin qu abv wul av mi mnin i.

Gaamak appanl cs is s bank wll. UBS was wn n giv sw “guaan[ing] lgal valii agmn an lgali ansacin,an i was pai ing is”.79 ha Fnc invsigain n si up was, nn mig v av knwn abu Angla/russia alings a UBS.

11. The Distribution o “Profts” in Phase I o the Deal

Arcadi Gaydamak

T “ps” an b Abaln uing s pas db dal w isibuwil. Accing a c Abaln’s UBS bank acivi,80 Arcadi Gaydamak received

a total of $60.5 million in four payments to accounts in his name starting in October

1997 and ending in 1998. (S Appnix 3.)

Pierre Falcone

Pi Falcn, , was picabl a maj bncia mnis wing m AbalnInvsmns. Abu $57.6 millin was ans m Abaln in v pamns accuns baing Falcn’s nam bwn 1997 an 2000. (S Appnix 4.)

Tis s n sm b nl mn a Falcn an m Abaln’s alings upunil n 2000, wv. T u pamns—alling jus v $30 millin—w ans accuns in nam Bnc taing L. an an appan aflia,Bnc Gup. (S Appnix 5.) Falcn as lng bn acknwlg b a




Bnc taing, wic au pminnl uing iginal Fnc Anglagascanal.81 Aing in pamns Bnc bings Falcn’s cips $87.9 millin.

An n is n u pamn a appanl bn Pi Falcn; an i wasa subsanial n. Abaln’s bank acivi sws a $47 millin ans n 12 Apil 2000 an accun baing nc “ral ta L. discun Bank & tus C Gnva Acc.45,865.” ral ta appas in Fnc Anglaga jugmn liv in 2009, wic

un a ral ta L. was bnciall wn b Falcn.82 As iscuss blw, $10millin is las ans pbabl wn n smn ls, leaving Falcone with an

apparent net total just short o $125 million.

Vitaly Malkin

An subsanial bncia was Abaln’s i pincipal, Vial Malkin. As a sul pucasing 25 p cn Abaln’s sas in dcmb 1999, Malkin received two

payments totalling almost $49 million in March and April 2000. (S Appnix 6.)

Loke Trade SA (Apparent Glencore Afliate)

Jus un $40 millin, manwil, sms av bn pai u w plum an ilas in 1997 an 1998. I is unknwn wa svics s as pvi, an lil isknwn a all abu n m, AB Plum SA. T aing cmpan, wv,Lk ta SA, appas b a pssibl aflia gian aing cmpan Glnc. Accing cmpan lings Lk ta SA, cmpan’s main acivi was“innainal a in aw maials all kins, as wll as pp, w iswn accun an i pais”.83 I appas av bn clsl cnnc Glnc.tw ics Lk ta w Wn Mz an Cisian Mnn, w w alsics a cmpan b nam Cavann ta SA, gis in Baa, Swizlan,in Fbua 1998. Cavann ta was gis sam ass (Baamasass3, 6340 Baa) as a numb Glnc cmpanis, incluing Glnc (Fa eas) AG;Glnc Innainal plc, S hli, Baa Banc; an Glnc hling AG.84 Cavannta vn sa is businss lpn numb wi Glnc hling AG. 85 Lk taciv $24,992,285 m Abaln in pamns a w, sangl, all ma sam a, 3 ocb 1997.

Sm mn als w m Glnc in Abaln. T pamns alling $672,352

w ma Abaln b Glnc Innainal Lnn Glnc Innainal in1997 an 1998. As iscuss abv, Glnc a ag cv cs scw s db dal, an i appas a sm all s pamns w la a cmmimn.86 Assuming a Lk ta was a Glnc aflia, an ning pamns b Glnc Abaln, w s a n payment by Abalone to Glencore and

afliate o $24,319,933. (S Appnix 7.)




Payments to Angolan Ofcials

José Leitão da Costa e Silva

t wav xn sm ainalisains mig b ma-sall jusi ging pamns, igl suspicius nau db dal is wn in sapsli b cnsiabl amun mn—alms $75millin—a was pai u Anglan fcials w canav a n lgiima claim n uns. As iscussabv, n s pamns was makabl saig-wa. on 6 Jul 2000, a pamn $3 millin was mam Abaln’s accuns icl in Swiss hSBC Gu-zll accun Jsé Liã a Csa Silva.87 h asv as Minis in Anglan Psinc sinc 1992(an wul cninu unil 2004)—uing viuall ni li db dal.

Tis pamn sans u n bcaus i was ma an fcial s cls Psinc,bu bcaus is anspanc. Numus sni Anglan fcials als p m db dal, incluing elísi Figui, a cls cnan s Sans an m Anglan ambassa Fanc; an n lss an Psin imsl, Jsé euas Sans.

T pamns s iniviuals w a m cicuius an pamn Liã a Csa. Bu vn , i sms, ma av cv is pamn ail sm xn ug us sll cmpanis an inmia bank accuns.

In Nvmb 2005, Swizlan an Angla cnclu an agmn (“Acc”) spcing ispsiin $21,216,450 a a bn l in Swiss bank accuns blnging Anglan fcials, an a bn siz in cnncin wi invsigain P/16972/2000in db dal—an, i wul appa, a bn pai u via Abaln accun wis in cnncin wi dal.88 (T Acc s u guilins paiain s uns an i applicain umaniaian pupss in Angla.) T annx Acc vals ails u spcic ac accuns an i bncial wns: JséLiã a Csa Silva, Jaquim davi, elísi Figui, an Jsé Paiva. T Accannx vals a Jsé Liã a Csa’s accun a hSBC Guzll a $3,358,000 as 30 Spmb 2004, suggsing a ma av civ an aiinal $358,000 bn

Jul 2000 ic pamn m Abaln, paps via a bank ans an inmia sll cmpan.

onl w u accuns lis in Acc annx sw up n scul Abaln accun acivi (an vn av ga balancs an ic pamns m Abaln wul accun ), wic suggss pssibl us inmia bank anssug sll cmpanis cv ail sm all pamns civ.In cass Jsé eua s Sans an elísi Figui, Fnc Anglagainvsigain xps igl spisica mann in wic suc inmia anssw us sil s iniviuals’ pamns m iscv.

Born in 1951, José Letão da Costa e Slvahas held a number o powerul positions

within Angola’s ruling MPLA party, at all

times remaining very close to the President o

the party and later the country, José Eduardo

dos Santos. From 1992 to 2004, during the

time o the Debt Deal and at the time he

received the $3m payment rom Abalone,

da Costa e Silva served in one o the most

powerul positions in Angola: Minister in

the Oce o the Presidency. Since 2005 da

Costa e Silva has served on the board o the

company Grupo Gema, which controls stakes

in a number o protable ventures, including

an oil exploration deal with Sonangol.




José Eduardo dos Santos and Elísio de Figueiredo

T pamns s Sans an Figui w ma in a cnsiabl m cnvlumann an s ma Jsé Liã da Csa Silva, an w nl unavll b Fnc Financial Cims Uni in Nvmb 2003.89

Accing Fnc invsigas wking n Anglaga ma, cnsiabl unsw pai u s Sans an Figui in ocb 1997— v mn in wic s uns w pai Abaln m Angla’s il puc, Snangl. Invsigascnclu a ugl $48 millin was ans m Abaln accun anaccun l un nam enip a Banqu Gsin emn d rscil inLuxmbug.90 Pi Falcn was bncial wn enip accun.91 In ocban Nvmb 1997, mn was ans m enip accuns w uaccuns, naml, Insul ($36.25 millin) an Bacwll Managmn ($7.38 millin).92 Fnc invsigas cnclu a s Sans was bncial wn Insul, wil Figui was un b bncial wn Bacwll Managmn.93

I appas a subsanial ingnui was appli suing cus s pamns. on ocb 3,1997—n a a s pamn m Snangl— Abaln ans $34 millin m is UBS accun an accun a Banqu Insuz Luxmbug, bn “Pk ré. Lisbnn” (Lisbn). As Fnc invsigascnclu a xamining accuns a BanquCéi Agicl Insuz in Luxmbug:94

T accun “PeKey” was a ansi accun in nam BANQUe PrIVÉe edMoNdde rothSChILd pn a BanquCrÉdIt AGrICoLe INdoSUeZ pupss civing m banks uns ulimal inn clins Banqu rothSChILd….T accun pn a BANQUe PrIVÉeedMoNd de rothSChILd in Luxmbug,un n. 8749 “eNIreP” a bn pn in nam a cmpan call BreNCo trAdINGL. in Augus 1997….I was psn vis-à-vis

BANQUe de GeStIoN edMoNd derothSChILd b M. Falcn, sl signa an bncial wn. T main accun, pnun n. 8749, uncin un psunm“eNIreP.” examinain accun samnsan cumns cnm a ansswic suppli is accun pass ug CrÉdIt AGrICoLe INdoSUeZ inLuxmbug, wi ncs “PeKey” an“LISBoNNe.”95

Born in 1942, José Eduardo dos Santoshas served as the President o Angola since

1979. At the time the country was still split

by a civil war between dos Santos’ MPLA and

the opposition rebel group, UNITA. MPLA

controlled Luanda and was widely regarded

as the de acto Angolan government. Only

Jonas Savimbi’s death in 2002, however,

eectively ended the war. During his time

as President o Angola, dos Santos and his

amily have amassed a substantial personal

ortune. His daughter, Isabel, used her

ather’s infuence to jump-start her businesscareer at age 24, according to Forbes

magazine, which put her at the top o its

list o “Arica’s Richest Women” in 2011 and

in 2013 dubbed her “Arica’s First Woman

Billionaire,” highlighting her substantial

business interests in Portugal, including

major holdings in two Portuguese banks,

Banco Espírito Santo and Banco Português de

Investimento.




Abaln ma w u anss in Janua 1998 sam “Pk ré. Lisbnn” accun a BanquInsuz Luxmbug: $6,000,016.99 n 8 Janua an$1,892,017.03 n 15 Janua. I sms asnabl supps man s uns wul als av un iwa s Sans, Figui an/ Falcn.

In Mac 1998, uns in Insul an BacwllManagmn accuns a b lca in a panic. on4 Mac, unknwn asns, Banqu Gsn drscil man a Falcn cls is enip banking insumns l a bank (incluing Insul anBacwll Managmn accuns a ll wiin enip’saccun sucu). Falcn spn b insucing an bank— Banqu Innainal à Luxmbug (BIL)— m cmpanis in Panama wi nams damal, Campaal an tual.96 Fnc invsigas

cnclu a Campaal was bnciall wn b s Sans, wil tual blng Figui, an damal blng Falcn.97 (ds Sans’ wnsip Campaal wascnm b BIL in 1998.98) A sam im, Falcn insuc Banqu Gsin rscil ans all uns in enip accun gup (wic inclu Insulan Bacwll) in an accun call Ciibank N.A. a BIL. Fm is Ciibank N.A.accun a BIL, Falcn isibu uns back s Sans an Figui.Tus, n 14 Apil, an amun $37,112,567.46 was ans in accun Campaal l a BIL (bnciall wn b s Sans), wil a u $7,331,199.53was ans in accun tual, als l a BIL (an bnciall wn b elísi Figui).99

Ts pamns w c ug sval sam banking vicls a auin Anglaga al. Accing Fnc invsigas, enip accun blnging Falcn a Banqu Gsin emn rscil a als civ a nablpamn m an suc: $42 millin in Nvmb 1997 m accun ZtS-oss l a Paibas Bank in Fanc. ZtS-oss was Slvakian cmpan a asign man wapns als wi Angla a m ba Anglaga al.100 Fnc pscus bliv a a las a pin uns us pa Figui’stual a acuall bn awn m is $42 millin pamn m ZtS-oss, aan iginaing nil m Abaln accun.101 ei wa, us enip civ an ans uns smming m b db dal an Anglaga al

cnms cls inlinking w als.

o pamns uncv b invsigas appa av un i wa m dbdal elísi Figui. As n abv, 2009 Anglaga jugmn cnmsa cmpan ral ta L. was bnciall wn b Pi Falcn. on 12 Apil2000, ral ta civ a pamn $47 millin icl m Abaln. T v nxa—accing Anglaga jugmn—$10 millin was ans m ral taL. a cmpan nam Sl Invsmn.102 T Paisian cu u spci a aninvsigain b tacn— ani-mn launing “nancial inllignc uni” wiin Fnc Minis Financ—a min a Figui was bncial

wn Sl Invsmn.103

Elíso de Fgueredo is an Angolan

diplomatic stalwart. In 1976 he was

appointed independent Angola’s rst ever

ambassador to the United Nations, a position

he held until 1988. Thereater, he served in

a number o diplomatic postings. During the

early 1990s – the period in which Angolagate

and the Debt Deal were conceived and

executed – de Figueiredo served as Angola’s

Ambassador without portolio in Paris.

During the now notorious Angolagate deal,

de Figueiredo was allegedly appointed by

José Eduardo dos Santos as Angola’s envoy

to key contacts in France.




Finall, 2005 Swizlan-Angla Acc sws a Figui a an db dal-link accun,a Unin Bancai Pivé, wic, i appas, a civ€143,450, psumabl via an unknwn inmia accun.104

Joaquim Duarte da Costa David

An Anglan bncia w civ uns m Abaln was Jaquim davi (nw Angla’s Minis Inus), w a sv as dic Gnal Snangl m 1989 1998— la pi vlapping wi db dal. Accing Swizlan-Angla Acc annx, Jaquim davi was bncial wn a cmpan nam Pnw L.105 T cmpan’s bank accun, numb 709 006, l a Bank Lumi l-Isal in

Gnva, was sam accun a civ pamns $5 millin an $3 millin m Abaln n 12 Apil an6 Jul 2000. (S Appnix 8.) T Acc annx swsa Pnw accun a, b 30 Spmb 2004,gwn $13.25 millin, suggsing a davi civ anaiinal $5.25 millin inicl, n p $8 millinic pamn m Abaln.

José Carlos de Castro Paiva

y an sni Anglan fcial w appas avciv uns m Abaln is Jsé Cals Cas Paiva.In sam Acc annx a val accuns Liã a Csa, Figui an davi, w als n ann accun N. 92956 a Lmba, oi, dai& hnsc in Gnva, wi a 30 Spmb 2004 balanc $4.465 millin.106 T accun was l in nam Mias. T Acc annx inis al cnmicbncia Mias accun as Jsé Cals CasPaiva, w, sinc 1987, as sv as dic Gnal

Snangl UK.

I is nil pssibl a aiinal uns bn s -scib w cupl ic was insi bnciais,incluing sni fcials m Angla russia. In,m 1997 dcmb 2000 jus v $290 millin wasans m Abaln’s accun a UBS-SA accunsws bnciais main uncain. (S Appnix 9.)

José Carlos de Castro Pava remains

an infuential orce in Angolan politics. In

1975 de Castro Paiva began his career in

banking. A year later, he joined the Ministry

o Petroleum and Energy, rising to the heado its marketing department. In 1987, de

Paiva Castro was appointed to the position

o Director General o Sonangol UK Ltd.,

a position he still holds. He also serves as

chair o the board o Banco Angolano de

Investimentos (BAI), which was ormed in

1996 as Angola’s rst private bank. The

largest shareholder o BAI is the state oil

producer Sonangol.

Joaqum Duarte da Costa Davd was

born in 1951 and has long been considered

a political ally o the Angolan President, José

Eduardo dos Santos. David began his career

as an oil engineer in the late 1970s, working

or Petrangol and Texaco. In 1982 he was

appointed a divisional chie o Angola’s state

oil producer, Sonangol. He was promoted to

the position o director general o Sonangol

in 1989, a position he held until 1998. David

was thus director general o Sonangol during

the earliest phases o the Angola-Russia

Debt Deal. Ater resigning rom Sonangol,

David served as Minister o Finance until

2000, ater which he served as the Minister

o Industry. In 2010, David ‘s Ministry was

expanded to include Geology and Mines

—a position he still holds.




T Swiss an Fnc invsigains in pamns m Abaln accuns cusslagl n Anglan cipins, msl bcaus i pamn nwk was bas inSwizlan an us asi ac. N simila amp was ma pb an pamns russian bnciais (an i pniall m cmplica nancial sucus in russia,easn eup an Cpus). T, i mains uncla w russian iniviuals inaiin Gaamak an Malkin civ uns. Givn viws nancial xp,Csi-Pascal (s blw), an sucs, w bliv i igl likl a w als

russian fcials w bn inapppial ug aangmns simila s inplac Anglan bnciais.

12. Was the Deal a Good Deal? The Geneva Freezeand Enrique Cosio-Pascal’s Testimony

In 2000, Swiss auiis launc an invsigain in db dal (P/16972/2000).I was cuss n suspicins mn launing an cims la dal.

on k acins unakn was siz asss la ansacin, us“zing” 15 Pmiss Ns a UBS sill a in is pssssin (an wic Abalnwas pa ). rcall a, a v bginning dal, russia an v allPmiss Ns an rpamn Cicas UBS, psumabl sakping. Wilrussia man a Ns b ans Sbinvs in 1999, is s n sm av appn.

t unz Ns, russia piin Swiss cus, aguing a i a su npjuic an a b als suc as is w pical innainal nanc. Angla i n invn in pcings wi cu impling a a Angla cnsiisl inju, i wul av l cu. Tus, in ocb 2003, Swiss cu, in a uling in spc invsigain P/16972/2000, upl ciu db dal an Ns b unzn.107 (F asns a main uncla, P/16972/2000invsigain wul main pn, ug lagl inaciv, unil 29 Nvmb 2010.108)

In 2004, a scn, clsl la Swiss invsigain (P/171//2002, wic was alsxamining db dal), was mina, lagl llwing m cisin Swisscu in 2003, an 26 Apil 2004 simn d. eniqu Csi-Pascal, an xp inpublic nancs w agu in avu dal b invsigaing Jug.109

Csi-Pascal, w cunl sis in Nw yk, is a public nanc managmn xp

cusing n aas vlpmn uning an b. h wk v 20 as a UN,w sv as Ci db an dvlpmn Financ Banc.110 Subsqun a cnsul bis incluing Wl Bank, IMF an Asian dvlpmnBank.111

Csi-Pascal was psn cu un auspics Vial Malkin, w imsl was a winss (bu n cnsi an accus) in invsigains.112 As Csi-Pascalcnm in cmmunicains wi n aus is p, w nw knw a iwas n jus Malkin, bu als laws Pi Falcn, an accus in invsigain,w a appac an pai Csi-Pascal pvi an xp pinin jug.

Falcn was bing accus mn launing an cupin cims aming




Anglan an russian public ins.113 Malkin, n an, a n bncag wi an cim in i pcing, ug i appa as a winss in P/16972/2000 invsigain (an UBS accun w kp is sa Abalnbusinss pcs was zn unil Jul 2004).114 Wil an “xp” i b a nanmig n av s muc cibili, an xp w was ain b a “winss” in casmig lk b. S wil Csi-Pascal bliv a a bn i b b Malkin’san Falcn’s laws, cu uns a was xp Malkin aln.115

Wil is n pibiin n a ciminal nan m ping simn is wn pival ain xp, Gnva cu’s viuall cmpl lianc n simn Csi-Pascal min w Abaln macinains cnsiug nanc a ciminal cus cnuc was xml unusual. Suc a pucasxp simn is al givn muc psuasiv wig in Swiss pcings. ha iscmplx nancial cas bn anl m gulal, as pvi in n applicablGnva Pnal Pcu C:116

• Itwouldhavebeenthejudge—notadefendantorawitness—whowouldhave

appin xp , paps m likl in suc a cmplx ma, experts ;

• Tejudgewouldhavecommunicatedtheexpert’sidentitytotheparties,notthe

vs;

• Tejudgewouldhavebeenobligedtoensurethatallnecessaryevidencewasmade

availabl xp(s), a an laving is lica ask a igl inspa pcing, a pa’s laws;

• Apartytotheproceeding,andhislawyers,wouldhavebeenprohibitedfromhaving

an cnac wi xp xcp uing aing;

• Tefeeoftheexpertwouldhavebeensetandpaidbythejudgeorthecourt,not

nan’s ( a winss’s) laws.

As summais b Gnva Public Pscu danil Zapplli, Csi-Pascal cnsi a insin Abaln in sucuing aangmns

a c, sl, nabling russian Fain cllc 50 p cn sucu amun b b u a, wil is mak valuwas 30 p cn, an scnl, nabling Angla b givn canc

pucasing is b cun accu ins wic i was liabl. M.Csi-Pascal us cnclu a sluin b Abaln’s invninwas avanagus b russian Fain an Angla, wi sole entity taking a real commercial risk being Abalone .117

Bu is xplanain was mislaing. Abaln nv avanc an uns is wn pucas Ns m russia. Abaln cul nl a pa russian Minis Financ i an wn i civ pamns m Angla. Abaln, wi assisanc Glnc’sp-nancing mcanism, ca a cnacual sucu nsu a pamns m Angla wul b in an wn n pa russia. As iginall inn an xpss

in UBS scw aangmn, Abaln ganiz mas s a ull ac valu




ac anc Ns pucas wul b civ simulanusl wi Abaln’s pamn russia sam Ns. Tis bcam unwkabl, i appas, wn pic ilclin svl in 1998–1999, making il-back Glnc nancing uncnmic.Tus m Janua 1998 unil Mac 2000, Snangl ma n pamns Abaln.

T pssibili is kin il pic-ivn mpa al dal cann, wv,in an nmal sns b cnsi a “cmmcial isk.” I dal a simpl n n

ocb 3, 1997, a Snangl’s s pamn, Abaln wul av walk awa win bligain an pa, an an accumula aning m an $145 millin—wiis sl invsmn aving bn $4.5 millin pin pai pusuan is 5 Mac1997 agmn wi russia. (Abaln in’ vn pa scw s UBS, wic wcv b Glnc!)

An sam asn, acual bak in dal’s pain a ccu in 1998–1999 cann b cnsi a “cmmcial lss” Abaln, wic b Janua 1998 aala accumula a “p” $176 millin m Snangl’s pamns. Wi suc a lus iniial cusin m is 100 p cn mak-up n Ns, Abaln wul nv b

in a psiin w i wul av avanc uns pucas Ns m russia wiuaving s civ subsaniall m an n m Snangl.

In ac, a asnabl, cnsvaiv sima cas ws an m Abaln in iniial (Gnva/UBS) pas dal (cmpising pucas 16 31 Ns)suggss a cas civ b Abaln m Snangl was nv lss an $144 millinin xcss an amuns i n pa russia Ns. (S tabl 2. ) onl in is wl russian ligacs, innainal ams as an psins--licul pspc cuping “nl” $176 millin wiu an maningul invsmnb caaciz as a “cmmcial isk.”

Abaln us li nil n Anglan uns s is si al ug. In, b Jul 2000, Snangl a ans $774 millin in Abaln’s accun. I Abaln was pa russia al, is was nl bcaus Angla a pai Abaln al, an gnusl.Lgic suggss a i russia was s cncn abu civing uns pmpl, Angla sul ml av pai $774 millin i pai Abaln icl russian Minis Financ, us sling b an cncluing al as aa scul.

As xplain abv, 5 Mac 1997 russia-Abaln Agmn was ml an pin, b wic Abaln bain a “ig”—but incurred no obligation— pucas ancs b. T nl mn Abaln a a isk was $4.5 millin pin (in cnx, a

ul nminal xpns a wul b cup v ims v upn mpin sN). T agmn’s minain claus is cla a (asi m $4.5 millin pin) nn-pmanc nail n liabili wasv n pa Abaln:

I Bu s n pa an amun u un wiin wn as a tans da b a spci in Scin 2.3 [laing $4.5 millin], as cas ma b [sic]. In suc vn, ni pa sall av an liabili , an [ russian Minis Financ] sall b nil ain all [db] cumns cncn.118




Table 2 Timeline o Phase I o the Debt Deal (Geneva/UBS): Angola Promissory Note purchases andsales by Abalone Investments Ltd. (2 October 1997 to 6 July 2000)

Date NotesPurchased

Payment bySonangol

to Abalone(US$)

Payment by Abalone to

Russa(US$)

Abalone’sCumulatve

“Prot” (US$)

Comments

2–3 Oct 1997 # 1–6 290,322,580 (145,161,290) 145,161,290 Cash payments by Sonangol and by Abalone.

8–15 Jan 1998 # 7 48,387,096 (16,752,407) 76,795,979 Cash payments by Sonangol and by Abalone.

23 Aug 1999 ADOPTiON OF PRiNS/iANS PAYMENT MECHANiSM

Some tmebetween23 Aug and28 Dec 1999

# 8–11 ( 32,322,580) 144,473,399 Abalone gives Russia PRINs/IANs with acevalue o $193,548,387 or equal ace valueo Promissory Notes. We apply the 30 Dec1999 IAN price o 16.7%. Cash payment byAbalone per Note: 16.7% X $48,387,096= $8,080,645. Total cash cost to Abalone:$32,322,580.

18 Oct 2000 TERMiNATiON OF UBS ESCROW BY RUSSiA

9 Mar 2000 # 8–9 96,774,193 241,247,592 Cash payment by Sonangol.

12 Apr 2000 # 10–14 241,935,483 483,183,075 Cash payment by Sonangol.

Some tmebetween12 Apr and11 May 2000

# 12–15 (54,774,193) 428,408,882 Abalone gives Russia PRINs/IANs with acevalue o $193,548,387 or equal ace valueo Promissory Notes. We apply the 12 Apr2000 IAN price o 28.3%. Cash payment byAbalone per Note: 28.3% X $48,387,096 =$13,693,548. Total cash cost to Abalone:$54,774,193.

Some tmebetween11 May and20 June 2000

# 16 (15,096,774) 413,312,108 Abalone gives Russia PRINs/IANs with acevalue o $48,387,096 or equal ace valueo Promissory Notes. We apply the 20 June2000 IAN price o 31.2%. Cash payment byAbalone per Note: 31.2% X $48,387,096 =

$15,096,774. Total cash cost to Abalone isthe same.

6 Jul 2000 # 15–16 96,774,193 510,086,302 Net Abalone Earnings rom Phase I o theDebt Deal.

TOTALS # 1–16 774,193,548 264,107,244 510,086,302

Note: In abv imlin, g a ug sns w muc Abaln ma av pai n mak PrINs an IANs a i xcangwi russia Pmiss Ns, w sima lla valus pai b Abaln cnsvaivl, b assuming Abaln pucas insumns a igs ail mak pic a pi wn Angla Pmiss N(s) w pucas. TPrINs an IANs w vlail an a a in pics, bu gnall IANs w pic smwa ig an PrINs.F mamaical simplici w valu PrINs/IANs pucass b assuming a b insumns w pucas a samig IAN pic, a igs pic IAN a in lvan pi. In ac, Abaln was alms cainl abl bain s

insumns a pics a lw.




In an cas, vn i russia Angla a a ccasin sk cv amags m Abaln, la was lil m an an Isl Man sll a cul bas n aing is an n asss. I is ifcul bliv a b Angla an russia w unawa is incnvnin ac—an, i w n, i suggss ail cnuc a ms basiccmplianc xcis.

W Csi-Pascal, in cncluing a Abaln unk gnuin “cmmcial

isk,” a availabl im all maial cumns sablising dal is uncla.Paiculal lvan wul av bn 24 Apil 1996 appinmn Gaamak anFalcn as Angla’s agns russian b ngiain; 20 Nvmb 1997 russia- Angla Ingvnmnal Agmn; 5 Mac 1997 russia-Abaln Agmn ansubsqun amnmns, wic s u “ig s usal” (pucas pin) sucu aangmn wi russia; an 30 Ma 1997 Snangl-Abaln Agmn, b wic Abaln lck in is $48 millin-p-N “pu” (sals pin) wi Snangl.

In cmmunicain wi n aus is p, Csi-Pascal claim a, n basis limi inmain a a bn givn accss b Malkin’s an Falcn’s

laws (w pai is in amun s b Csi-Pascal), l dal was a gn gvnmns. hwv, ami, a qusins m au an givncin v im, a was “a l ging n in backgun” a a naccss . h als cncu a i was likl a sm mn was bing iv “sni ppl.” Wn ask w ciizns w cunis mig av bnisavanag b dal, givn likl cupin, answ, “Abslul.” hsa a is sul b al wi b i aui cus, wic ami, wv,was unlikl. h als acknwlg a invlvmn in ansacins is s inmiais suc as Falcn, Gaamak an Malkin was xcpinal.

As painsakingl cnsuc b Gaamak an Falcn, cumnain dbdal a all appings a spisica cmmcial aangmn, ngia a am’slng muual bn b knwlgabl inpnn pais. An in caing is imag upignss, Gaamak mpl UBS’s invlvmn cas an ical sn upn ialings. Gaamak was quick sss is viw as clansing, alms alcmical,pw UBS’s invlvmn:

UBS ac as lgal abi in all s ansacins. Tis bank sui ansacin u mns; i appv al, an civ a cmmissin n acpmiss n. T russian Minis Financ psi ns wi UBSbcaus bank guaan lgal valii agmn an lgali

ansacin, an i was pai ing is. UBS sn mn russia ani pai Abaln. I’s amazing a a Swiss jug a can sa a is ansacinis impp!119

Bu dal was ulimal v simpl: Abaln wul b aning an as $750 millin bing lil m an a n samp.

T unamnal qusin is: i Angla was willing ag accla pamns Ns russia, w suln’ i av ma sam al wi russia a Abalni? russia civ n b pcin pamn b aving Abaln in mil.

russia wul av n wic as wll in al b miing Abaln m pamns.




Alnaivl, Angla an russia mig av bn abl ac sm muuall bncialacc sa aiinal $750 millin bing iv Abaln, bning ppl b cunis..

A llw-n qusin mig b pcisl wa i Anglans knw abu all is? I Anglan sni lasip m Psin s Sans n wn was unawa 50 pcn pmium Angla was paing Abaln, is suggss a bs a scking lack ca

an anin us uns millins llas Anglan il wal. hwv is g asn bliv a sni fcials i knw, cs n knw. Psins Sans an s civ millins llas m Abaln accun—an accunug wic, s a as cumns val, n incm was civ xcp mansacins laing db dal. I fcials w unawa suc anasns pamns w civing, i is a imagin wul n inqui.

Anglans bviusl knw a russia was slling Ns Abaln. I wul bsupising i w unins in pic Abaln was paing russia. Angla/Snangl a n bligain n in 30 Ma 1997 agmn wi Abaln, b

wic cmmi pa ull ac valu Ns sl Snangl b Abaln, a Abaln’s p iming: sul, i ansacins a an am’s lng isanc, Angla a subsanial lvag insis upn ull isclsu b Abaln, an likl pss a bak in Angla’s pucas pic.120 Bu, cus, is was aning bu an am’s lngal; i was a swa aangmn ngin i wn bn b Angla’s signapsnaivs, Gaamak an Falcn, iniviuals w a unakn uis lal Angla in aging ngia n Angla’s bal a sluin russian b, nms— Anglans a v ig xpc—as avuabl as pacicabl Angla.

Insingl, a k assin Csi-Pascal in is Gnva cu simn is a sucu Anglan b russia a a “mak valu… 30 p cn [ ac valu].”I is pssibl a Csi-Pascal is ml cnus: $1.5 billin sucub psn pcisl 30 p cn iginal $5 billin b, an i sms aCsi-Pascal ma simpl av misaknl cllaps w pass ansacin (iniial bilaal Angla-russia unsaning, an subsqun ilaal Angla-russia- Abaln aangmn). hwv, i is simn was cc, n Angla cul—asasil as Csi-Pascal—av ascain u valu is b bligains an us ainmain ac is wn cmmcial jugmn abu w i n pa 100 pcn ac valu Abaln, w a lw gu wul b m apppia.

Similal, russian fcials can nl av psum a Abaln wul b making sm

p m dal. I is, again, a imagin a russian psnaivs, i paing in g ai n bal i cun, an wi minimum cmpnc, wuln av inqui in ails Anglan si dal. T Anglans an russians wul av a v incniv cmmunica wi ac icl inga s mas. Signicanl, wn russia an Angla i n u in 2005 aGaamak a civ uns millins llas m Angla a a nv uni wa russia, an a Gaamak a auulnl psn Anglans a a “sl” m ig Ns a un u nv av wn, Anglans an russians cmplain abu a las swinl, bu appanl ma n inqui abu basic ms unling dal, wi is 100 p cn pic mak-up n ac N sl

Angla.121





T H e D e a l p H a s e i i : e t c r 51

The Deal Phase II:Escape to Cyprus

T vaius alings Pi Falcn an Acai Gaamak in Fanc, russia an Angla sa aac anin m a las la 1990s nwas. As iscuss abv, b 2000s i aciviis a cm un ull gla innainal ciminal invsigas

w w, a im, pbing Anglaga al a l Falcn’s an Gaamak’scnvicins in Fanc in 2009. tacing vaius mn ws a ma up mn’salings l invsigas xamin accuns Abaln Invsmns an dbdal as a wl.

B bginning 2001 man ppl an insumns invlv in dal wn immbil. on 11 dcmb 2000, Pi Falcn was as b Fnc plicllwing i invsigain in Anglaga scanal. on mn la—n 11 Janua 2001—Fanc issu an innainal as waan Acai Gaamak. Unlik Falcn,wv, Gaamak us acquisc an avi Fanc, spliing is im insa

bwn russia an wa wul bcm is uu mlan, Isal.

Sn Abaln Invsmns l cs s cl wins cang. In sam mna Fanc issu is as waan Gaamak, lgal auiis in Gnva iniia aninvsigain in suspc mn launing b Gaamak an Falcn in Swizlan.122 on 5 Fbua 2001, Swiss plic scn upn Abaln’s bank cic, UBS SA,sizing 15 Pmiss Ns n sill blnging russia a a bn s in bank’s vauls.123 Jus v a mn la Swiss xamining magisas sizu all asss an banking cumns blnging Pi Falcn a UBS an discunBank an tus.124

T vaius invsigains an sizus—paiculal zing Ns—macninuing db dal in is iginal incanain incncivabl. All russia’sPmiss Ns w zn, maning a i cul n sll m Abaln vn i iwan . Abaln’s accuns, manwil, w als su wn an cul n b uswil vaius zs w plac n asss Falcn an s.




1. Gaydamak’s Personal Sberinvest Account

t cninu dal, cannls w n. Gaamak cs Cpus an auaciusl s in min a nw cain vns. Accing liigain la l agains im b b Malkin an Falcn, Gaamak insuc Anglan fcials a dal wulcninu, bu a wul nw b making pamn icl Sbinvs, banking

agn csn b russia db dal in 1999, as iscuss abv. Bu Gaamak was wking wi a in “Sbinvs” m a nmina b russian Minis Financ. T accun sipula b Gaamak a nam Sbinvs, bu waslca in Cpus, a russian Cmmcial Bank.125 T russian Minis Financ’sSbinvs, wv, was gis in Mscw. Accing liabl sucs, Gaamak i n vn m a cmpan— simpl pn an accun in Cpus un is nam, wic was bncial wn.

Fum, Gaamak mi inm Angla a is Sbinvs accun was a in an spaa ni Sbinvs Mscw. N i avis Malkin Falcn cisin av uns sn Cpi Sbinvs. Ms impanl, a las

Falcn an Malkin, Gaamak wul kp is pans in ak abu ac a Angla, v a numb as, wul b ansing jus v $618 millin Gaamak’sCpi sll.

Tis l Malkin an Falcn l a lawsui in Mac 2009 in Isal, in wic, sucssa, claim a an pamns an m Sbinvs Cpus accun vila agmns amng Abaln sals as wll as agmns amng Abaln,russia an Angla. As Isali pap Haaretz la p, Malkin an Falcn allga:

Gaamak m 15 ns wi lp m invss. In m main, claims sui, Gaamak ask Angla’s psin ans $618millin a Cpi bank accun. T psin i s, bu Gaamak nm nl ig m ns, an kp al mn insa, sas sui.

Malkin an Falcn claim a Gaamak clan u Abaln’s asss, laving is sas valulss an ning m i sa m ansacin.126

(T aus is p cnclu, bas n cumnain availabl m, a isassin as numbs sligl wng: Gaamak m 16 Pmiss Ns in s pas dal, an n m svn aiinal Pmiss Ns, as scibblw.)

Banking cumns in u pssssin—incluing s Snangl’s accuns a LlsBank—cnm a jus v $618 millin was ans in Sbinvs Cpusaccun b Angla’s sa il puc. (S Appnix 10.) Tis wul av pviGaamak wi ampl uns sl wav main Angla’s b russia.hwv, nl a acin valu s pamns appa av ac russian Minis Financ— xac amun ans is uncla.




2. The Second Debt-or-Debt Mechanism: MinFins

on 6 Apil 2001, Jll Maman, a ic AbalnInvsmns an k cnan Gaamak, assa l Vlaimi Cnukin ( Cnukin), n dpu Minis Financ russian Fain.

Accing l Abaln inn ans rus-sian b scuiis wi a ac valu $241,936,000 Vnscnmbank Mscw—Vnscnmbank was bank a l PrINs an IANs a Abaln aus pa russian Minis Financ un 23 Augus 1999 russia-Abaln agmn. T nw asssw russian b bligains call MinFin 5 ( wic Abaln wul b pviing a ac valu $131,966,000)an MinFin 7 (wi a ac valu $109,970,000). T -al ac valu $241,936,000 wul b sufcin ac-qui v m Anglan Ns (5 X $48,387,096). “T

liv will b c n Mna 9 Apil, 2001 m accun N. 1140 Inpm Bank, Mscw,” lcnclu.127

As wi PrINs/IANs mcanism, i is likl aGaamak pai subsaniall lss an ac valu pucas MinFin 5 an MinFin 7scuiis. Pic inmain availabl suggss a Gaamak pbabl i b wi PrINs/IANs an wi MinFins, wv.128

Sbinvs’s bank acivi sws a uns alling $131.5

millin w ans a bncia a Inpmbank,in pi 26 Mac 2001 29 Augus 2001. (S Appnix 11.) o a sum, a al $111,500,320 wasans in pi pi 6 Apil ( anss n26 Mac, 2 Apil an 5 Apil 2001).

I Gaamak us $111,500,320 pucas scuiis pmis in l Cnukin, an pucas was ma n 6 Apil 2001, MinFin 5s culav bn availabl a a pic 44.7876 p cn acvalu, an MinFin 7s cul av bn availabl a 43.9p cn. (Pucass ali an 6 Apil wul av gainGaamak vn lw pics.) on s assumpins,Gaamak wul av pai $59,104,404 MinFin5s an $48,276,830 MinFin 7s, wi a al cas ula $107,381,234.

In ali pas dal, Abaln wul av pai 50 p cn ac valu v Anglan Pmiss Ns, a is $120,967,741. Using MinFins, wv,in is pical bu plausibl xampl, Gaamak mig av sav an aiinal$13,586,766 n pucas m russia v Ns.

Joelle Mamane, now in her late 50s, is an

accountant by proession who worked or

the Discount Bank in Luxembourg during

the 1980s and early 1990s, where she roseto the position o Deputy CEO. Thereater,

she set up an independent nancial advisory

service specialising in oshore nancing

vehicles—skills she allegedly used to create

a vast array o oshore companies intended

to disguise Gaydamak’s real assets. She was

the critical nancial engineer, adviser, and

business alter ego or Gaydamak. It was she,

sources say, who had originally incorporated

Abalone or Gaydamak and had served as

its managing director, and requently as

signatory. Mamane is currently active in the

Jewish philanthropic sector.

Vladmr Chernukhn has made his namein the world o Russian banking, like several

o the Russian players in the Debt Deal. In the

late 1990s he worked or Vnesheconombank,

eectively the Russian development bank.

As Chairman o Vnesheconombank between

2002 and 2004, Chernukhin was reported

to be intimately involved in restructuring

Russia’s debt with the London Club group o

creditors. Chernukhin was appointed Deputy

Finance Minister by Vladimir Putin in May

2000.




tw m N pucass wul b cnclu in is Cpus pas dal. Accing a l sn b Abaln ( au is uncla as nl an illgibl signau was appn) Vlaimi Cnukin n 14 dcmb 2001, Abaln a, b a a, ulll isbligains gaing ans b insumns sufcin pucas svnPmiss Ns in is scn pas:129 v Ns wic w subjc 6

Apil 2001 l Cnukin, plus w aiinal Ns pucas pi 14dcmb 2001 l. Tus, b dcmb 2001, Abaln a, in all, cmpl pucas

23 Ns.

I w un cnsvaivl an assum a Gaamak pai appximal $110 millincas quivaln (in MinFins) s v Ns in Cpus pas dal, ann cnsvaivl assum a pai cas quivaln (in MinFins) qual a ull 50 pcn ac valu six an svn Ns (appximal $48.4 millin w), a wul suggs pai a al svn Ns pucas in Cpus pas dal n m an abu $158.4 millin in pi Apil-dcmb 2001—Ns w $338,709,677 wn sl Snangl.130

3. Gaydamak Games Angola

rmakabl, cnsiing avuabl ms was ala civing, Gaamak amp scu an vn lag cunk uns wing m Snangl in is accun. hi is b ailing pa russia las ig Pmiss Ns usaning, manwilinming Anglan gvnmn a a n s an a, as a sul, db dala bn succssull cnclu.

Ta Gaamak was wilull mislaing Anglan gvnmn was cnm in

w makabl cumns cmps n Abaln Invsmn sain an sign b Gaamak n 20 Jul 2004. T s, nil “dclaain rmianc,” “cnm[]”a Abaln a, v cus ni db dal, civ $1.391 billin m Angla an a Angla’s b russia a b bn sl in ull:

Abaln Invsmns Limi cnms a i as civ m Gvnmn rpublic Angla, ug Snangl, amun 1.391.000.000,00US dllas (is amun suls m claus 2.b.4 Agmn a 28 Ma 1997 an claus 2.b.2 Supplmnal Agmn N. 1 a 26 Ma 2000,131 wic pvi a al pamn Gvnmn rpublic Angla, i.. wic pvi a al pamn Gvnmn rpublic Angla, i.. b Ma 30 a las 80% al Pamn Valu,sul sul in a iscun abu 7.3% ag b pamn valu USd 1,5 billin), cncning acquisiin, b Gvnmn rpublic Angla, 31 Pmiss Ns an rlvan rpamn Cicas,la slmn Anglan b russian Fain bas n Ingvnmnal Agmn a 20 Nvmb 1996 bwn Gvnmn russian Fain an Gvnmn rpublic Angla n rsucuing db rpublic Angla russian Fain,suling m Sa an Cmmcial Cis guaan b m USSr rpublic Angla.




T pcss cnclusin all la cumnain is bing ppaan will b liv [sic] Gvnmn Angla in u cus.132

T scn cumn, nil “dbi [sic] rlas dclaain,” cnm a mn a bn civ m Snangl an a b a us bn pai in ull anxinguis, laving Abaln wi “n ig claim an [u] pamn in spc Anglan las b.”133

T cumns w auuln. T dbi rlas cumn “cla” Angla a b a subsanial pin wic—ig Ns, a pincipal valu $387,096,774—Abalnull knw a n bn pai russia.

I s n c wll n i russian Anglannanc minisis a s lis w nl ull iscva a a Gaamak a sign w mislaing cumns. T Anglan an russian minisis nl iscuss acs in la Jul 2005 uing a ming

bwn russian an Anglan fcials wn, appanl, russians w l a Anglans a pai a al $1.391 billin Abaln -pucas an m allNs—wil russians, i pa, w sill ling ig unm Ns. Gaamak a, i un u,pck $387 millin a Snangl a sn im pucas las ig Ns.

I k w u mns mas mv slwl was a sluin. on 30 Spmb 2005 a ming k plac in Mscw bwn Alxi Kuin (russianMinis Financ), Jsé P Mais J. (AnglanMinis Financ) an Acai Gaamak. T minusclal cun w b russian an Anglan sisa bn psisnl misl b Gaamak, wi sul a Angla was nw liabl a wi ang ins an ancilla s v an abv iginal b amun:

T russian Pa inm a russian Fain mains wn 8pmiss ns ac a nminal valu $48.39 millins US llas issub Nainal Bank Angla in accanc wi Agmn Nvmb20, 1996. Ts pmiss ns a u m dcmb 2005 Jun 2009

g wi la amuns capializ ins an wi amuns ins an la ins accuing in accanc wi ms Agmn Nvmb 20, 1996. Ta maks al usaning inbnss rpublic Angla un agmn Nvmb 20, 1996 qual $641 millin USllas (xcluing la ins) as a Spmb 30, 2005, u wic 136 millin US llas ins ala in aas.134

Angla, manwil, sa a i was un impssin a i a ala sl all is usaning b russia:

Born in 1960, Alexe Kudrn is a

powerhouse o Russian politics. In 1996 he

was made Deputy Chie o Boris Yeltsin’s

presidential administration. In 2000 he

was appointed Finance Minister, a positionhe held until September 2011, making

him the longest-serving post-Communist

Russian Finance Minister. Kudrin has been

credited with driving the policy o settling

the majority o the country’s oreign debts.

Kudrin resigned in 2011 ater a public

alling-out with Vladimir Putin and Dmitry

Medvedev. Kudrin was reported to be

disinterested in a return to politics “in the

nearest uture”, instead ocusing on creating

a group to support civic initiatives.




T Anglan Pa ia a as Jul 2001 rpublic Angla asulll is bligains un Agmn Nvmb 20, 1996 b cing pamns in avu Abaln alling 1,397 billins US llas pucasing all 31 pmiss ns issu b Nainal Bank Angla in accancwi Agmn Nvmb 20, 1996. T Anglan Pa inm a iciv an fcial cnmain m Abaln a la a acqui all igs wnsip s ns m Gvnmn russian Fain as

Ma 2000 in accanc wi Supplmnal Agmn N. 4 sign bwn Abaln an Minis Financ russian Fain n Ma 15, 2000.15

Cnsiing a Angla an russia a jus iscva n b m a bn au u uns millins llas an b cainl misl,i spns Gaamak was makabl cial. Inac, spi Gaamak’s psisn cpins gaing al, i was cnclu a “ Pais av ag a russian Fain an Abaln will xn i bs

s cm a nw agmn gaing pucasb Abaln maining 8 pmiss ns. Tpsnaiv Abaln acknwlg is cisin ancmmis ngia wi russian Pa an pucas maining pmiss ns unil ocb 30, 2005.”136

Finall, n 9 Nvmb 2005, Abaln an Anglangvnmn cam a nw agmn: an unsaning

a, a lng las, cnclu db dal. Accing agmn, sign b Gaamak an Manul hc Viia dias J (n bal Angla), Abaln was lasm an bligains aising m dal. In paicula, i was ag a Abaln wuln b liabl slmn an usaning b bwn russia an Angla (sipula a $387 millin, suggsing a russia a ag wi Angla un spaacv waiv claims ins). Angla ag sl usaning amun wirussia. hwv, Abaln was qui pa back $206 millin Angla, wic wassai cv las ig Pmiss Ns a Abaln a sa a pucasbu v wic russia sill claim wnsip. Angla ma n las gnus cncssin,pmising a Abaln wul n b l spnsibl an maining cmmimnsaising m cmpan’s pvius invlvmn in db dal:

Gvnmn rpublic Angla sall ak spnsibili

acquisiin, m Minis Financ russian Fain, 8maining Pmiss Ns an lvan rpamn Cicas aving alnminal amun 387.096.774,16 US dllas, sall ans is spnsibili Scia Nacinal Cmbusivis Angla (“SoNANGoL”) an ni b signa ac n is bal;

Abaln Invsmns Limi mus un Gvnmn rpublic Angla, al nminal amun cncning maining 8 Pmiss Nsan lvan rpamn Cicas a was n liv p agmn n isma, sning back immial amun USd 206.000.000,00....

Born in December 1955, José Pedro deMoras Jr has held positions within the

Angolan administration since dos Santos’

presidential inauguration in the 1970s.

He has served as a director within the

Ministries o Industry and External Relations.

Most notably, he served as Minister oFinance between 2002 and 2008. He

has also made a name or himsel in the

world o international nance, serving as

Angola’s alternate Executive Director at the

International Monetary Fund.



T h e D e a l P h a s e I I : e c p t o C y p r u 57

Abaln Invsmns Limi will b xmp m all cmmimns an allpssibl spnsibili bas upn is pvius invlvmn in lains bwn russian Fain an rpublic Angla cncning slmn db rpublic Angla russian Fain.137

Bu vn is agmn inclu n nal u pjuic su b Anglangvnmn. Gaamak was qui pa back nl $206 millin, cv al

cs ig Pmiss Ns, wn Angla a pai im $387 millin. Tus, alugGaamak a misl all pais invlv, was sill l mak a p $181millin n las 8 Pmiss Ns: al a g al Gvnmn ciizns Angla. I is n knwn w Angla v civ pmis $206 millin mGaamak: Falcn an Malkin, a an a, i n bliv a i, claiming aGaamak “as ca cag, bu kp mn”.138

T cnclusin db dal in a mann a sill manag accu a p Gaamak nl svs cnm ubius nau ni dal an, in paicula, maj css su b Anglan sa an is ppl. In al Angla a vsn

ans $1,779,525,805139

Abaln an russian Minis Financ in sl a b $1.5 billin. I w accp a Gaamak i pa $206 millin pmisin 9 Nvmb 2005 agmn, Angla pai a n amun $1,573,525,805 pa b, $73,525,805 m an i a cnac pa.

Ms impanl, is was n spi ac a russia was, in ali, willing accpnl $750 millin sl ni b. Angla a, b is calculain, pai at least $823 million—an paps as muc as $1.029 billin– m an i wul av i i asl b icl wi russia.

t pu i simpl: Anglan public pus was swinl u wa amun alas 10.98 p cn—an paps as muc as 13.7 p cn— Angla’s ni GdP in1996,140 a db dal was suck. An al bnciais, man wm wsupps b wking g Anglan ppl, a cla: Acai Gaamak,Pi Falcn, Vial Malkin, Jsé eua s Sans, elísi Figui, Jsé Liã a Csa Silva, Jsé Paiva, Jaquim davi, UBS, Glnc, nancial insiuins in a numb juisicins an a a bnciais ws iniis a b uncv.

4. Payout Time Again

Wi avuabl ms gan b us MinFins, an is ailu pa las ig Pmiss Ns, w subsanial uns isbus u SbinvsCpus accun. An, muc lik iginal incanain db dal, uns wans a ang bnciais, incluing m an $105 millin bnciaisws iniis main unknwn. (S Appnix 12.)

on iniguing pamn ma n 27 Apil 2001 was a ans $2,760,160 Asia Bank Luxmbug accun diusin Financial Gup. Alug asn isans an ulima bncia ansacin main uncain, ics diusin mak insing aing. Cpa cumnain inicas a diusin’s

w ics w Vlaimi Vingav an Mikail Glbg.141 Vingav was




cnsi n russia’s s ligacs as a un cun’s s piva bank,Inkmbank. h was ank russia’s 12 ics psn in 1996,142 alug sumaj lsss llwing russia’s nancial cisis in la 1990s. Insingl, Vingav appas av a pi businss links Vial Malkin. Cis hucins, in is bigap Vlaimi Puin, ps a, in dcmb 1995, Malkin, Vingav an MikailFiman amp pucas yuks in a jin bi—a bi a ail.143

5. Payments to Arcadi Gaydamak and InterestsClose to Him

Te bulk o the money paid out o the “Sberinvest” account—$441,917,640—can be

identied as being transerred to known Gaydamak vehicles or to interests believed

closely allied to him. (I sul b n a accun als appas av inclu$63,165,627 in aiin Snangl pamns.144) (S Appnix 13.)

on 15 Ma 2001, Sbinvs ans $5,000,160 Blinvs Financ SA. Incpain Nvmb 1999 in Luxmbug, wi an ass a 23 u Alingn, L-1118, cmpan’s scais inclu Jll Maman, w was als a 1 p cn sal.145

As w will s blw, i was Jll Maman w lp Gaamak sablis is wlwinwk cmpanis an slls, an vn ac as a signa Abaln isl. T 99 p cn sa in Blinvs Financ was l b a cmpan gis in Biis ViginIslans b nam Lnwal tla.146 In 2009 Anglaga jugmn in Fanc, cu un a Lnwal was n a numb cmpanis uilis b Gaamak anis law in Allain rg Guillux unak cain mn launing scms.147

on 4 Apil 2001, Sbinvs ans $5,400,160 “Zicni, (Bank discun Isal).”Tis is alms cainl Gaamak’s Isali law, Amnn Zicni,148 w, sucs sa,us mn pucas a us in upmak hzlia, na tl Aviv, in Isal.

M an $431 millin was ans m Sbinvs Cpus accun in upamns in Mac, Jun an Augus 2001, invsmn vicls bnciall wn b Gaamak, invsmns a allgl gw m an $1 billin. (S Appnix 17.)149



T H e D e a l p H a s e i i i : T h D T h 59

The Deal Phase III:The Den o Thieves

Acai Gaamak sms av a makabl abili un is n-im cllabas innmis. Tis was ma cla b w lgal aacks l agains im in 2005 an 2009. Ts, l in 2005, was iniia b n Pi Gz, manag numus invsmn

uns a Gaamak invs in wi pcs db dal. T scn, l in2009 in Isal, was iniia b w main wns Abaln Invsmns, Vial Malkin an Pi Falcn. tg w suis wv an al inigu ancpin wing m db dal.

I Malkin an Falcn a b bliv, ubl bgann 10 Ma 2000. on a a Jll Maman, managing ic150 Abaln an confdante Acai Gaamak, sign a cumn a gan Gaamak pw an psn cmpan “in mas cncning

acquisiin b Abaln Invsmns Limi mMinis Financ russian Fain cainpmiss ns issu b Banc Nacinal Angla n bal rpublic Angla.”151 Tis, sucs sa,Malkin an Falcn claim was n auulnl as ni m was ma awa cisin. Wi is pw an Gaamak n in a nw supplmnalagmn wi russia in Ma 2000, wic, wv, ilil cang maj subsanc db dal. A scn pw an issu n 1 Ma 2001, nc againsign b Maman, gav vn m pws Gaamak,

in paicula ( s i was appanl cnsu), incluing pw isbus uns m Abaln’s banking insumns.152 A nal pw, issu n 22 Nvmb 2005,cls lp n swinls, auising Gaamak ak ncssa masus implmn Nvmb 2005agmn wi Angla.153

Gaamak us s pws an impssiv c. As w n in scinabv, numus bnciais w pai u Sbinvs Cpus sll a Gaamak a m—auulnl— civ uns m Angla an cninu db dal.

B a lags sums w ans main bnciais: Glbal Alpa Sa

A ormer senior ocial in Mossad, the

Israeli intelligence service, Av Dagan

also appears in another Angola-related

Gaydamak scandal, involving not oil but

diamonds. In that matter, Gaydamak endedup suing another Israeli business associate,

Lev Leviev, or about $1 billion in a British

court, seeking (unsuccessully) to enorce an

alleged agreement with Leviev to share with

Gaydamak one hal o Leviev’s interest in the

Angolan diamond parastatal, ASCORP S.a.r.l.

Dagan, who tended to reer to Gaydamak in

emails as the “ather,” testied in support o

Gaydamak in that case, but was ound by the

court to be “not a straightorward witness,”

who provided testimony that “could not be

relied upon” and was, in part, “impossible to

believe.” (Gaydamak v. Leviev , EWHC 1740

(Ch), Case No. HC11C00192 (29 June 2012).)




L. a Alc Bank in Luxmbug ($90 millin pai n 21 Mac 2001), Mnsanataing a Cmmcial Bank in Cpus ($247 millin pai n 1 Jun 2001) an dxa Glbal Fun a Invsmn Bank in Luxmbug ($94 millin pai n 8 Augus2001).154 o mn pai Mnsana taing, sucs sa $180 paps $190millin was ans an invsmn vicl nam Pmium Fun L. in Luxmbug in Spmb 2001.155

T psn w manag s uns an pssibl s, , n bal Gaamak was Pi Gz. Appin b Gaamak in 2001, Gz was ansml muna is, civing (a las a wil) annual pamns qual 1 p cn valu all asss in uns plus 20 p cn all ps;156 an Gz was, i sms, wi: pl incas $360 millin un is cnl $1.25 billin m b 2005.157 Gaamak was aning a un m uns a auulnl acqui m

Angla, all wil kping is swil pans, Falcn an Malkin, cmpll u lp abu is nancial succss.

1. From Luxembourg to Israel

In al 2004 Gaamak allgl ci cls wn sm all is Luxmbug uns an ans asss Palim tus Svics L., a wll wn subsiia hapalim Bank in Isal. Tus, n 5 Fbua 2004 n Avi dagan w InvsmnBank Luxmbug (IBL) qus a all invsmns cnain in Glbal Alpa Sa L. un b sl an pcs ans tl Aviv banc haalimBank.158

on sam a a dagan qus a asss

Glbal Alpa Sa b ans hapalim Bank, nZv Zakain sn w u ls: n, wiing asic dxa Fun II L., Invsmn Bank Luxmbug, is im qusing mpin asss in dxa Fun II;159 an scn l, lagl simila in cnn an m w, is imwiing as ic Pmium Fun L., Banc i SanMain SpA, San Main, ug wic PmiumFun was l, qusing mpin PmiumFun asss. (T asss w acuall l, wv, aIBL.) Lik Avi dagan qus spcing Glbal Alpa Sa, s ls ask asss b ans sam accun Palim tus Svics L., a hapalimBank.160

All ls w accmpani b ls m w fcs Palim tus SvicsL., C. Sami an M. Fiman, in wic Palim tus Svics ini isl as “sal cmpanis, wic av subscib sas in” spciv un.

Ging uns u Luxmbug un u b a ifcul ask. Pusuan isani-mn launing bligains, IBL w back Zakain’s agns a Palim tus,

insising a inicain “sals” was n sufcin. (A sal

Zeev Zakharn, a non-commissioned Israelireserve ocer, had, like Dagan, acted as a

signatory to many o Gaydamak’s nancial

instruments. He had served as an Army

Commander or the Israeli Deence Force.

In the 1990s he had trained the presidential

guard or Zaire’s dictator, Mobutu Sese

Seko. He subsequently linked up with

Gaydamak, and then later broke relations

with Gaydamak. Zakharin now reportedly

runs arms in Angola.



T h e D e a l P h a s e I I I : T D n o f T i v 61

mig b jus a nmin, a saw man pu in plac i ini acual “bncial” wn uns. T “bncial wn” is al pa in ins.) In iscas, siling ini Gaamak sms av bn pcisl inn. As Luxmbug nwspap D’Lëtzebuerger Land cnclu sm as la, “Tis aangmnwas us i [Gaamak’s] ini wn was suggling wi Fnc cu in cus invsigain n ams sals Angla.”161

Wn IBL pli, n 18 Fbua 2004, dxa Fun II mpin qus, asking a Palim tus Svics “kinl cnm a Palim tus Svics L … is bncialwn sas in lvan cmpanis an via s cmpanis dxa Fun IIL.,”162 i appanl g n saisac spns.

on 27 Jul 2004, IBL again man a ulima bncial wns uns b iscls Bank. IBL w:

[I]n lain bncial wnsip inicain quimn, w a nawa clin aving v givn pp cnmain IBL al

bncial wnsip 3 Funs.

T, in pcss insucin m sas 3 Funs an ans n mpin pcs, w g insis n civing apppiainicain cumns n ulima bncial wns cmpanis wica sai b sals dxa Fun II Limi, Glbal Alpa Sa L.,Pmium Fun L.163

Tis psn a maj pblm Gaamak. In, i is iginal invsmnin uns a li n is nancial assisan, Jll Maman, ca a al 27s cmpanis—all, in n, bnciall blnging Gaamak—a wul acas subscibs in uns.

Ta Gaamak was al wn 27 cmpanis was cnm n 18 Fbua 2004 wn submi ails is nancial lings Palim tus Svics. Tcumn was sign b Gaamak un is nw Isali nam, Ai Ba Lv.164 Incluin is isclsu was an appnix in wic acknwlg a was “ igul wn twn Svn (27) BVI cmpanis,” all wic, sucs inica, a bn ca b Jll Maman an wic a subscib in dxa, Glbal Alpa Sa an PmiumFuns.165

Aiinal bsacls w ca b Isali ciminal invsigains, paiall laing db dal. T Isali invsigas w cnucing an invsigain Gaamak incnncin wi suspc mn launing a Palim tus, in Isal, an in cus a inqui Isali invsigas w al a Luxmbug invsigain in vaiussuspicius aciviis a IBL, wic was un suspicin bing us as a mn-launing cn a eupan ug cal. T Luxmbug auiis appn upn Gaamak’s invsmn uns, ac ling a subsanial amun mn, an in 2004 Isalis, aing is, qus u inmain m Luxmbug. t sp an u ciminal acivi, Luxmbug auiis z accuns unsa IBL, saing a wul unz accuns nl i al bncial wns

psn mslvs.166




Accing Isali invsigas, Gaamak i a a anspan us in an amp av uns ans Isal. on 20 ocb 2004 a Luxmbug an b nam Gasn Vgl appa a fc Luxmbug An Gnal ancla a an ni call “ds Funain” was bin uns.167 Vgl,wv, was quickl bu, accing Isalis. “[t] Luxmbug pscuspn Vgl a auiis w awa a uns in ac blng Gaamak a an ds Funain.”168 Vgl quickl pa, nl un

sl a baing an l “ning an cnncin bwn dsFunain an Gaamak.”

Iniguingl, Isali plic p a a, b viu a wi-ap n Gaamak’spn, c a cnvsain a a wi an unini suc in Mac 2004 inwic iscuss “ pssibili using a caiabl unain lp slv a ‘pblm’ Gaamak’s.”169 Isali invsigas sa a “Isal Plic suspc a Gaamak sug cncc a auuln caiabl ni as a n ug wic cul sk wiaw uns m IBL accuns.”170

hwv, civnss ani-mn launing ilignc pcus in Luxmbug appanl i n las. exacl w i was aciv mains uncla, bu a n dcmb 2005 uns w pl ans u Luxmbug in a nw s accuns a russian Cmmcial Bank (rCB) in Limassl, Cpus.171 “In Jul 2005,a cu bals,” accing Haaretz p yssi Mlman, “Gaamak, is laws,an is aviss, in paicula Jll Maman an Ga Bukbza, manag cnvinc a jug in Luxmbug li z.”172 I appas a Gaamak an is Luxmbug cs a psua auiis a ds Funain was in a ligiuscaiabl ganisain an u bncial wn.173

T al valu uns an asss ans Cpus was asnising. Fm Slla Bank in Luxmbug ( succss Invsmn Bank Luxmbug) scuiis valu $345 millin, in aiin $12.1 millin in liqui uns, w ans an accun un nam Iksan a rCB. Simulanusl, $7.5 millin in liquiasss was ans an accun un nam Casl, wic $7.1 millin wvnuall wa sam Iksan accun a civ $345 millin in scuiis.Fm Alc Bank, als in Luxmbug, $273 millin was ans an accun b nam dsbn, in aiin $10.2 millin in cas.174 All s cmpanis wbnciall wn b Gaamak, as ci in is 2004 claain Palim tusSvics in Isal.175 B 2007, a a sis in-accun anss, an iain Iksanaccun, nw us in a nw ling cmpan call An, was sai b in pssssin

asss v $700 millin.176 I is uncla wa appn uns subsqun a a.

Manwil, in wa is b nw a amilia pan, Gaamak appanl ca is ig-pming invsmn manag Pi Gz, ailing pa a signican pin an invsmn managmn s. Gz k lgal acin in 2005, suing Gaamak anis cmpanis in Luxmbug, Cpus, an Isal. h mainain a mn in Luxmbug accuns was “akn awa, smuggl, an cncal” an mv Cpus. A Luxmbug cu un a was w appximal $49 millin an n unaln, bu as pl a lil succss cllcing i.177



T h e D e a l P h a s e I I I : T D n o f T i v 63

In liigain bug agains Gaamak b Pi Falcn an Vial Malkin in Isal in2009, w plainis man subsanial nancial munain. ra an aack Gaamak ansing uns u Sbinvs Cpus is invsmn uns, Malkinan Falcn claim a w ac u a ai sa ps a Gaamak ama m invsing in Pmium, Glbal Alpa Sa an dxa uns. Cnsiing aMalkin was a 25 p cn sal an Falcn a 37.5 p cn sal in Abaln,ac bliv was nil spciv pcnag p ma b Gaamak.

Accing ms cn mia ps, Malkin an Falcn av n a muc succssin pusuing i liigain. Wil Gz a las wn is cas in Luxmbug cusin 2008, i was p in ocb 2011 a Malkin an Falcn’s cas a bn wnu b Jusalm Magisas Cu.178 T cu ismiss applicain n cnicalguns, wiu uling n acual accuac lgal mis Malkin’s an Falcn’scas.179 Iniguingl, Isali nwspap Haaretz als n a b is im Malkin aala mv is nam m cas. I is uncla w a ag s. In an vn, Gaamak was u scuin, again.

2. The Swindler Swindled?

In paps sangs cap s a in is sial swinl, las laug ma un u b n Gaamak, bu is “confdante ,” Jll Maman.

In 2006 an 2007, a al $249 millin in scuiis was ans m Gaamak’sdsbn sll Maanl Funain, an cmpan bas a rCB. A numb ansacins w cnclu n accun, incluing anss unknwn bnciaislca a banks. Bu, as mi-2000s, Maanl cmpan accuns w

un b in pssssin scuiis an sck w $173.4 millin an cas valu $9.6 millin.180 Sucs av suggs a s anss Maanl Funainw n wiu Gaamak’s sa-s an wiu bning Gaamak imsl. I wasclaim a ans scuiis Maanl was pa a scm au Gaamak m an $200 millin in asss. I is is cas, i wul inica a Gaamak a alln u wi is m cllabas an xs, Jll Maman an Ga Bukbza.In, cmpan cs laing Maanl sw n cnncin Gaamak. Accing is lings in Panamanian cmpan giss, w uning mmbs anpminn ics a Ga Bukbza an Jll Aal181—an alnaiv nam us b

Jll Maman. Tis is cnm b Maanl Funain wbsi, wic liss b asuns.182

T wbsi pvis llwing usiv x as an xplanain Funain’sssnc:

B giving w nw uslvs. W pu u ng lping gi-sickn innancial sais, mning livs sain b lss an n, claing up aknizns, asing nsins pssuing ail livs. B giving w giv uslvs, anb giving uslvs w ncuag s. W walk wi m an in an na sc a. F s a wil, ununal. tg wi all sw jin us isibu wa was givn. Paps b canc; su sa.




Wi p a a’s cipins will b mw’s ns an will pass n valu giving…an i n’, i scnans will. T Maanl Funainsas in is bauiul aiin a as m in cmmn wi isibuiv jusican wi almsgiving.183

T Maanl Funain as, sinc is main, bn aciv in (lagl ox) Jwis cmmuni in Isal an eup. Accing is wbsi, Funain

as bcm invlv (psumabl via uning) in zns cmmuni an uacpgamms, lagl lca in Isal bu als in Blgium, Mcc, Banglas, Fanc,Panama, Agnina, Cng an Ausia.184 Is public imag as als bn bs b inclusin n is ba ics rabbi Ain evn yisal Sinsalz, n six cipins Isal’s s Psin’s Piz in 2012. o cipins inclu hn Kissing an rasi Funain, la an uac ganisain cus n unpivilg u.185 Maanl is lis as a pan rasi Funain, as is ds Funain.186 (S abv.)

In a cu pcing in Luxmbug l in Spmb 2012, Gaamak is sking

-gain cnl sm €600 millin claims as bn akn m im b Maman anGa Bukbza. Accing D’Lëtzebuerger Land ,

T uns w ini in Luxmbug in al 2000s. A s zn n insucin cnmic cims pscuin fc in Luxmbug, uns wlas anks a scm invlving invnin a Luxmbug ucia,Gsman, an w is spnsibl sa, mai cupl Jll Maman anGu Bukbza, confdants Gaamak in Luxmbug. T igin uns, afm, was a ligius unain. hal snk b is , pscuin unblck uns, wic n wn wa Cpus an avll,in pa, muk ds Funain, wic in un mv mns Maanl Funain in Luxmbug. Tug a gam signaus an pxis sup i is ini, Gaamak nw claims av bn vnuall ispssss is uns, an accuss cupl Bukbza/Maman saling mn m im—wic cagicall n.187

Gaamak pl blams Maman an Bukbza as wll as banks a l uns, IBL an Alc (b wic av sinc bn liquia). I wul appa aMaman an Bukbza i suc a g jb in iing Gaamak’s links uns a cann nw pv is i “acual” (bncial) wn. t s, ns accss nancial an cumnain m spnns, bu appas mmn

smi b sic Luxmbug bank scc laws, wic n allw im accss vinc sks. As dcmb 2012, Gaamak’s las qus sms b unsuccssul.188



c o n c l u s i o n 65

Conclusion

Wn cnn wi a scanal n scal Anglan db dal, i ma b ifcul s bn m uagus lmns: ubl-aling, unaplgic ling, ubiqui g. hwv, s aus a a ubl-g sw. T unubl mak a g s, bu ma isac m b ssmaic nau aua as bn ppa agains Anglan an russian ppl an as wi wic

is was n wi aciliain nancial insiuins. T, w cnclu b mpasising sm ssmic aus dal an i glbal impac.

T s inlink aus is a db dal m a cnsiun pa a ba pan a as unmin Anglan pliics an vlpmn: gss abus public uns piva ns. Tis is cla in dal inasmuc as k Anglan fcials,incluing Psin Jsé eua s Sans, w cipins pamns wing m i—pamns a cul nl b ma i dal was sucu in suc a wa a AbalnInvsmns cul an a al p pjuic Anglan tasu. F alas las ca, Angla’s cnmic gw as bn pnmnal, is GdP gwing b ugl 800 p cn. Bu klpcaic pliics s Sans gvnmn asman a nl a acin is cnmic winall as v un is wa s inal n: Angla’s impvis ciizns. Wiu a cmmimn clan gvnanc anaccunabili Anglan lasip will cninu vs a nlss umaniaianag—a cun wi subsanial sucs an a in, xainail wal cliqu pliicians an i bllws w cann b b impv ail li maji i ciizns.

In is ga, w n a in ocb 2011 Manul davi Mns, a mmb ppsiin Pai Ppula, lai cags in Angla wing m db dal,allging cupin n pa s Sans an pais.189 In 2011, An

Gnal inm davi Mns a w insufcin guns pc wi aninvsigain. T scn au db dal is l innainal banking cmmuni in aciliaing ansacin an, i sms, a k pins, clsing is s isk ciminal ivsin uns. Ta UBS, xampl, was acing as an scw agn can inn wa xcus is ailu scuinis ciicall cipins uns m accun anin qusin lgic unling ansacins. Paiculal as gas sni Anglan gvnmn fcials niis cnll b m, bank a a u psuc ansacins apppia gula auiis unlss cmpll sais as

lgali pamns. Ms valing UBS banks’ laxnss was i appan




ailu l a p Swiss auiis gaing 6 Jul 2000 $3 millin pamn Jsé Liã a Csa Silva, n Minis in ofc Psinc—a pamnsn an accun in Liã’s wn nam a hSBC Guzll Bank Gnva, a ag asul av bn impssibl ign.

UBS was n aln, wv. o banks in vaius juisicins als appanl ailin i lgal an ucia uis b ailing p vaius an numus suspicius

ansacins a w m Anglan db dal; ansacins a, wi nl ms limi invsigain, wul b un pvi subsanial guns suspicin mn launing, au cims. Bn spcic pamns, wv, dalisl, pssinall pap b bs laws an banks, was a cim smingl inin plain sig. As xplain in is p, cnacs mslvs sw a Abalnpvi n valu Angla russia—qui cna—an i banks an lawsail s is, i was nl lack will. S db dal aiss sius qusins abu wiing unwiing cmplici banks in smingl ciminal cnuc an abu inaquac innal cnls an xnal gulain banks.

T db dal, in all is vaius pass, k plac acss a ba ang wa aknwn as “scc juisicins”: cunis a qui v limi isclsu m banks,iniviuals an cmpanis as bncial wns accuns an cmpanis an aismiabl bsacls las suc inmain, vn i accuns an cmpanisa bnciall wn b cunl sving ig-lvl public gus. Tis scc iliss gun innainal cupin, mn launing an nancial cims.

T scc juisicins us in db dal inclu n nl Swizlan, bu alsLuxmbug, Cpus, Isal, hllan, Biis Vigin Islans, Isl Man, anPanama. Pssibl UK ma als av bn uilis. Ts an simila lcains acucial pain innainal ciminali n a gan scal.

rms nancial ssm mak s juisicins m anspan wul av a maj impac in suggl agains cupin. In paicula, i is unnabl an unsiabl allw public fcials m an cun cnsuc psnal banking aangmnsa a n anspan ba ciizn , a v las, invsigaiv anpscuial auiis.

T nal lmn db dal a quis acknwlgmn is ali a nn pincipals an pssinals w assis m as ac pp sancin i l in aciliaing an/ ping m dal. on k asns

is sming impuni is a invsigaiv bis aling wi innainal cims acss mulipl juisicins a a an immia isavanag, aving cnn wi a wan buaucac an lgal insumns in a muliu in cunis. Tlack a cn, implmn innainal amwk saing inmainan invsigain maj nancial cims is a massiv isavanag a is cninuall xpli. on cunis ws wn las av bn invlv in malasanc blck an amp invsiga s acins: Angla—an pssibl russia—is a lvan xampl is cas. Suc a siuain as b ass b innainal agmns cupl wisng pliical will llw ug b sic ncmn ani-mn launing an ani-cupin laws in nainal juisicins. T Anglan db dal is jus n

inicaiv illusain malasanc a saus qu nabls, cs ciizns



ConC l u s i on 67

w can ill a misus public sucs a spal qui liv a cn li.

Gaamak an s lik im av pal g awa wi sm ms baznswinls u im, invlving uns millins i n billins llas, msl slnm sm ps ppl n a. onl Falcn as bn impisn, an nnl in cnncin wi Fnc Anglaga ansacins. An innainal banks,

laws, accunans an milmn an acilias w mak is all pssiblcninu pling i a as i ning a all nw a appn.

In 2010, Luxmbug junalis Véniqu Pujl w, wi spc ans Gaamak mn m Luxmbug Cpus:

Fiv as a acs, is cas cninus mak us wn abu asnsa av pvn jusic ssm in Luxmbug m pning a ppmsic mn launing inqui, n a cul av a immia c pvning suc a api mval m Luxmbug mn m Anglan

b an ams sals, an n a lng m cul av l a “al ial” illici mn an n jus a cu bal wi nl ing a sak bing mas big businss. In Swizlan, w ubius mn ws a [s] bnini, cas was als bui.190

In 2013, w knw m … w cninu wn.





R e c o m m e n D a T i o n s 69

Recommendations

Pniall culpabl acs clsl la db dal ansacins ccu in numus juisicins, incluing n nl Swizlan, bu als a las russia, Angla, Luxmbug,Cpus, Isal, hllan, Biis Vigin Islans, Isl Man, Panama, an pssibl UK. Auiis in all s juisicins sul, wiu la, iniia invsigainsin allg wnging wiin i juisicins an cpa wi juisicins

via muual lgal assisanc an wis nsu ull pscuin nss.

Mv, masus a call in spns sius issus mn launing an cupin ais b nings is p.

1. For Angola:

a) T An Gnal sul iniia ciminal invsigains agains ini Anglanpublic fcials, an an s w ma av unlawull bn psnall m

cup pamns la Fnc Anglaga ams pucass, Angla-russia db dal, an maj cupin scanals invlving sni Anglan fcials wav a n bn l accunabl, an pc wi ciminal pscuins wwaan

b) Juicial an plic auiis sul, in accanc wi applicabl law, wiu la,z asss s un invsigain, an b ppa cnsca pmannl an liquia asss ulll jugmns n

c) T Paliamn sul cnsiu an inpnn cmmissin inqui invsiga Fnc Anglaga ams pucass, Angla-russia db dal an niuscupin cass, ini an gaps in law, ncmn an/ aminisaiv

mismanagmn a allw cupin ccu, an mak is nings publicl availabl.

) All gvnmn fcials w av bn un b a cu law av paicipain ansacins invlving a sius abus public fc piva gain sul bmv m sving in public fc.

) Nn-Anglan ciizns sul als b subjc ass zing, in accanc wiapplicabl law, an, w i is n pssibl ajuica i cass msicall, juicialauiis sul cpa wi lvan juisicins pusu ull invsigain an,w pssibl, pscuin.




) T gvnmn sul cpa ull wi nainal an innainal invsigainsin Fnc Anglaga ams pucass, Angla-russia db dal an maj cupin scanals b making accuns Minis Financ, Snanglan Banc Nacinal Angla pn an ull accssibl.

g) T gvnmn sul nsu a Swiss-cnsca paia uns a us nvlpmn pjcs l b Angla, an m a muli-sakl cmmi

manag pcss cmps Paliamna psnaivs, juicial auiis,an inpnn civil sci psnaivs.

) Civil sci sul: (i) uiliz nainal public pbi laws l public fcials accun abus public fc piva gain; (ii) pss Anglan juicial an plicauiis an ign an innainal law ncmn ganizains nsua s invlv in is cas a l accunabl; (iii) paicipa in pcss paiaing Anglan uns wi gvnmn.

2. For Switzerland:

i) Fal pscus sul invsiga ull Angla-russia db dal, paing paicula nic nwl uncv inmain, an iniia invsigain in cnuc ini psns invlv in ansacin, as wll as an s wma av unlawull bn psnall m ansacins assis s inppain cims. W waan, suc psns sul b pscu.

j) t xn pcs ansacins a un wiin Swiss juisicin, assssul b zn pning ucms invsigains an pscuins. Illici assssul b siz in accanc wi applicabl law an paia Angla. Tpaiain mus b anspan an supvis b Anglan Paliamn an juicial

auiis wi aciv paicipain inpnn Anglan an Swiss civil sci mmbs.

k) Pscuing auiis sul assis ign juisicins in iniiaing invsigains xn pcs a n lng wiin Swiss juisicin, lvan ciminal nssw cmmi usi Swizlan.

l) T Swiss nancial gula sul sancin nancial inmiais w, aapppia invsigain, a un av vila isga i u iligncspnsibiliis; sancins sul b ma public.

m) Paliamn sul pass lgislain quiing public isclsu pamns gvnmns

ma b suc xacin cmpanis an cmmi aing cmpanis (incluing subsiiais an niis un i cnl), b inclu in an annualp, n a pjc-b-pjc basis. Suc lgislain sul pvi, a a minimum,a anspanc sana akin isclsu gulains ap b ap b US an eU. Givn Swizlan’s usaning mak psiin in cmmi aing, paiculal il aing, aing aciviis mus b cv b suc anspanc quimns.

n) Paliamn sul pass lgislain c an pvn illici nancial ws xcuan acilia b Swiss xacin an aing cmpanis. Was Swiss ciminal law pibis launing illici asss an p, spcial u ilignc pvisins s u



R ecommendat ions 71

in Swiss ani-mn-launing iciv cunl nl appl a limi class nancial inmiais an asscia nancial ws. Ts pvisins mus bamn mak suc uis als applicabl xacin an aing cmpanis.

) Paliamn sul pass lgislain a bligs Swiss xacin an aing cmpanis publicall iscls i sucu an bncial wnsip. T gvnmn sulxcis is wn u ilignc pcss gaing bncial wnsip v

cpa ni i cnucs businss wi an nsu a all gvnmn agnciscmpl wi gnal ani-mn launing uls.

3. For the European Union and Member States:

p) T eU sul nsu a Fu Ani-Mn Launing diciv as sng cnls, a (i) qui nainal lvl gisain all bncial wns cmpanisan uss, wi suc inmain b publicl availabl; (ii) mak ax cim a siuscim/aumaic pica nc mn launing cims, galss minimum

an maximum snncing guilins; an (iii) scu mana minimum sancins cmpanis an pssinals w ail implmn uls, in paicula nsuing a ns a la ps lss avi an a b a cibl n, ana sancins a nc an ma public. Fu, an al anspsiin alinan mmb sa cmmimn was quick anspsiin an ncmn sulb piiiz.

q) T eU sul sal is pliical agmn n Capial rquimns dicivIV an nsu a isclsu quimns banks, incluing ps, ax pamns, subsiis, unv an sa in ac cun in wic pa, a ull implmn b 2015.

) T eU’s Accuning diciv, a will qui cun-b-cun ping pamn gvnmns in xacivs an s scs, sul b xn inclu banking sc. I banking an scs (lcmmunicains ancnsucin) a kp u nal lgislain, n i inclusin ug viw pcss sul b xpl.

s) Mmb sas sul inpnnl pass lgislain an/ wis apppial painaliz eU icivs sam c. T sul als xpl w usngn i nainal lgislain, w eU laws n appl, supp a sngeU-lvl appac u ilignc an ax avns.

) Juicial auiis in mmb sas, paiculal incluing Luxmbug an Cpus,sul ak all masus iniia invsigains, z asss an mak inquiis,as ncssa, wi Swiss an ign auiis cpain, ncssa pscu an m mn launing wiin i juisicins.

u) Mmb sas sul cpa, in accanc wi innainal nms, sicmvmn inic nans in all suc invsigains.




4. For Financial Sector Companies:

v) Cpa ull, p-acivl an in g ai wi ciminal invsigains iniia inlain ciminal aciviis in wic an i mpls ics aflias agns ma asnabl b suspc invlvmn.

w) ensu ull, ilign implmnain ani-mn launing laws an “knw u

clin/cusm” quimns avi aciliaing illici ansacins, spciall w ags, suc as lag ansacin amuns, pvius ns, juisicins knwn inaqua ani-mn launing ncmn, an/ “pliicall xps psns”(sni gvnmn fcials an knwn amil mmbs asscias) a invlv.Suc implmnain sul inclu vlpmn aqual suc innalplicis, pcus, safng an aining.



A p p end i c e s 73

Appendices

Appendix 1

Payments made rom Sonangol to Abalone Investments at UBSBank 191

Date Reerence Refectng n Abalone Account Amount (US$)

02/10/1997 Sonangol SBS Geneva Acc CO101457 Escrow Agreement 3.06.97 299,322,580.62





Total 774,193,548.32




Appendix 2

Payments made rom Abalone Investments (UBS-SA) tothe Russian Ministry o Finance192


03/10/1997 Treasury Ministry o Finance Unicombank Moscow Acc 070004036 145,161,290.31

08/01/1998 Treasury Ministry o Finance Unicombank Moscow Acc 070004036 16,752,407.28

Total 161,913,697.59




Appendix 3

Payments rom Abalone Investments (UBS-SA) toArcadi Gaydamak 193


03/10/1997 Arcadi Gaydamak UBS Geneva Acc. C0-639,307 44,229,063.38



20/05/1998 Arcadi Gaydamak UBS Geneva Acc. C0-639,307 290,000.00

Total 60,519,063.38




Appendix 4

Payments rom Abalone Investments (UBS-SA) toPierre Falcone194


03/10/1997 Pierre Joseph Falcone Bank Leumi Le-Israel Geneva Acc. 45,865 18,229,664.00

12/04/2000 Pierre Joseph Falcone UBS Geneva CO-325,794 23,000,000.00

12/04/2000 Pierre Joseph Falcone Bank Leumi Le-Israel Geneva Acc. 45,865 6,725,000.00

06/07/2000 Pierre Joseph Falcone UBS Geneva CO-325,794 9,000,000.00

06/07/2000 Pierre Joseph Falcone Banque Ferrier Lullin & Cie Geneva Acc 1038915 719,000.00

Total 57,673,664.00




Appendix 5

Payments rom Abalone Investments (UBS-SA) toBrenco International195


03/10/1997 Brenco Trading Ltd. Banque Ferrier Lullin & Cie Geneva Acc. 1.038.814 15,000,000.00

20/05/1998 Brenco Trading Ltd. Banque Ferrier Lullin & Cie Geneva Acc. 1.038.814 290,016.98

06/07/2000 Brenco Group Discount Bank & Trust Co. Geneva Acc. 523 447 15,000,000.00

Total 30,290,016.98




Appendix 6

Payments rom Abalone Investments (UBS-SA) toVitaly Malkin196


09/03/2000 Vitaly Malkin UBS Geneva Acc. 587,877 26,700,000.00

12/04/2000 Vitaly Malkin UBS Geneva Acc. 587,877 22,134,000.00

Total 48,834,000.00




Appendix 7

Payments between Abalone Investments (UBS-SA) and petroleumtraders Glencore and Loke Trade197

Date Reerence Refectng n Abalone Account Amount pad to Abalone (US$)

Amount pad by Abalone (US$)

16/07/1997 Glencore International London CS Zurich 75,000.00(paid to Abalone by Glencore)

03/10/1997 Loke Trade SA UBS Fribourg Acc. 260-540’739 11,612,903.22(paid to Loke Trade rom Abalone)



24/11/1997 Glencore International London CS Zurich 20,000.00

(paid to Abalone by Glencore)

14/05/1998 Glencore International AG Baar 577,352.15(paid to Abalone by Glencore)

Sub-Totals 672,352.15(pad to Abalone by Glencore)

24,992,285.56(pad to Loke Trade by Abalone)

Net Total 24,319,933.41




Appendix 8

Payments rom Abalone Investments (UBS-SA)to Joaquim David (Penworth Ltd.)


12/04/2000 Penworth Ltd. Bank Leumi Le-Israel Geneva Acc. 709 006 5,000,000.00

06/07/2000 Penworth Ltd. Bank Leumi Le-Israel Geneva Acc. 709 006 3,000,000.00

Total 8,000,000.00




Appendix 9

Payments rom Abalone Investments (UBS-SA)to Unknown Benefciaries with the reerences they were given inthe Abalone account198


03/10/1997 AB Petroleum SA Luzemer Kantonbank Luzern Acc. 01-88-126279-03 8,709,677.42

08/01/1998 AB Petroleum SA Luzemer Kantonbank Luzern Acc. 01-88-126279-03 6,500,016.99

08/01/1998 AB Petroleum SA Luzemer Kantonbank Luzern Acc. 01-88-126279-03 241,952.47

08/01/1998 Technopromexport Intl. Moscow Bank Moscow 4050284050010002571 1,000,016.99

09/03/2000 Karos Bank Leumi Le-Israel Tel-Aviv Acc. 7939-12 70,000,000.00


12/04/2000 Bastwick Trading Inc. Abn Amro Bank Amsterdam Acc 56 70 29 484 3,000,000.00

12/04/2000 Antalia Ltd. Bank o Cyprus Ltd. Nicosia Acc. 0155 41 135720 06 10,000,000.00

12/04/2000 Malagas Financial Ltd. Abn Amro Bank Amsterdam Ac 51 48 52 852 38,693,548.39

12/04/2000 Nordson Financial Ltd. Abn Amro Bank Amsterdam Acc. 0155 41 079869 06 40,000,000.00


06/07/2000 Malagas Financial Ltd. Abn Amro Bank Amsterdam Ac 51 48 52 852 10,161,290.32

06/07/2000 Bastwick Trading Inc. Abn Amro Bank Amsterdam Acc 56 70 29 484 1,500,000.00

17/07/2000 Candlebrum Ltd. Alcor Bank SA (through Krediebank SA Luxembourg) 22,579,622.20

17/07/2000 Dynatron Ltd. Alcor Bank SA (through Kredietbank SA Luxembourg) 11,289,811.10

Sub-Totals AB Petroleum 15,451,646.88

Antalia 10,000,000.00

Bastwick Trading 4,500,000.00

Candlebrum 22,579,622.20

Dynatron 11,289,811.10

Karos 136,979,000.00

Malagas Financial 48,854,838.71

Nordson Financial 40,000,000.00

Technopromexport Intl. 1,000,016.99

Total 290,654,935.88




Appendix 10

Payments rom Sonangol to Sberinvest, Cyprus199


20/03/2001 TT Sberinvest 1088-1 96,774,193.54

22/03/2001 TT Sberinvest 1096-1 145,161,290.31

31/05/2001 TT Sberinvest 1227-1 246,804,338.40

07/08/2001 TT Sberinvest 1375-1 104,495,661.00

22/08/2001 TT Sberinvest 1409-1 25,000,000.00

Total 618,235,483.25




Appendix 11

Payments rom Sberinvest Cyprus to Interprombank 200


26/03/2001 Interprombank 50,000,160

02/04/2001 Interprombank 50,000,160

05/04/2001 Interprombank 11,500,000

08/08/2001 Interprombank 10,000,160

29/08/2001 Interprombank 10,000,160

Total 131,500,640




Appendix 12

Payments rom Sberinvest Cyprus to Unknown Benefciaries


15/03/2001 Rosbank 3,000,160

20/03/2001 Rosbank (PN) 2,500,160

23/03/2001 Yomil Securities SA 31,700,160

10/04/2001 Spade Business Ltd. (Bank o Cyprus) Boats or Angola 5,500,160

12/04/2001 Cli Associates (Portugal) Securities 2,000,160

27/04/2001 Mizuho International 2,000,160

27/04/2001 Sumatra Ltd. (Man-Financial) London 10,000,160

10/05/2001 Cli 2,000,160

25/05/2001 No Description 10,000,160

14/06/2001 41412L UEB (Geneve) 456,160

18/06/2001 Amestrios Trading (RCB) 1,050,000

26/06/2001 United European Bank (Geneve) 500,160

17/07/2001 A/C41412L UEB (Geneve) 2,203,938

26/07/2001 414212L UEB (Geneve) 2,579,533

14/08/2001 Mizuho 5,000,160


24/08/2001 Volfd Finance Ltd. 6,000,160

27/08/2001 Cli Associates (Portugal) Securities 980,160

29/08/2001 No Description 3,500,000

29/08/2001 No Description 350,000

04/09/2001 Rose City Limited 1,500,160

04/09/2001 Saranties and Single Trading 500,160

07/09/2001 No Description 2,000,000

07/09/2001 No Description 500,000


19/12/2001 SNP Boat Service –Payments or Boat 300,160


Sub-Totals Amestrios Trading (RCB) 1,050,000

Cli 2,000,160

Cli Associates (Portugal) Securities201 2,980,320

Mizuho 5,000,160

Mizuho International202 1,500,160

No Description 500,160





Sub-Totals (continued)

SNP Boat Service –Payments or Boat 300,160

Spade Business Ltd. (Bank o Cyprus) Boats or Angola 5,500,160

Sumatra Ltd. (Man-Financial) London 10,000,160

Volfd Finance Ltd. 6,000,160

Yomil Securities SA 31,700,160

A/C41412L UEB (Geneve) 5,239,631

United European Bank (Geneve)203 500,160

Total 105,222,671




Appendix 13

Payments rom Sberinvest, Cyprus to Gaydamak’s InvestmentFunds, to Belinvest Finance SA, and to Gaydamak’s Israeli lawyerA. Zichroni204


21/03/2001 Global Alpha Star Fund 90,000,160

04/05/2001 Zichroni, (Bank Discount Israel) 5,400,160

15/05/2001 Belinvest Finance SA (Republic Bank Moscow) 5,000,160

01/06/2001 Mensanat Trading (RCB) [For beneft o Premium Fund] 247,000,000

18/06/2001 Mensanat Trading (RCB) [For beneft o Premium Fund] 517,000

08/08/2001 Doxa Global Fund (Subscription in Fund) 94,000,160

Total 441,917,640



Exh i b i t s 87

Exhibits





Exh i b i t s 89

Exhibit 4

Russia–Abalone Agreement 5 March 1997




Exhibit 4 (continued)




Exh i b i t s 91










Exh i b i t s 93










Exh i b i t s 95










Exh i b i t s 97






Exhibit 5

Angola Promissory Notes 1–2



Exh i b i t s 99

Exhibit 8

Sonangol–Abalone Agreement 30 May 1997








Exh i b i t s 101










Exh i b i t s 103






Exhibit 10

Banque Internationale à Luxembourg Declaration o BenefcialOwnership 6 April 1998



Exh i b i t s 105

Exhibit 11

UBS Memo 22 June 1999








Exh i b i t s 107



UBS

Memorandum

Geneva, 22 June 1999

to: Andreas Kaegi, Legal Advisor, Legal Department, C363, Talstrasse, Zurich

from: Alain Zbinden, Legal Department & Compliance, CGXK, Les Cygnes, Geneva

re: “Risky Cases”

Dear Sir,

I refer to your e-mail dated 10 June 1999. Taking into account the criteria specified therein, I am

communicating to you the existence of the following file opened and remaining under the responsibility

of the Structured Trade and Commodity Finance (STCF) service in Geneva, the division of Warburg Dillon

Read up to 30 June 30 1999, at whose request our Legal Department, and primarily the undersigned,

have been sought out with respect to legal matters (contract review and assistance for due diligence).

After several months of negotiations, the STCF at the former SBS Geneva accepted, on 11 April 1997,

to act as "escrow agent" at the request of Glencore UK Ltd, as part of a repurchase transaction by

Angola of thirty-one government obligations [bonds], and corresponding repayment certificates, issued

by the Banco Nacional de Angola in Russia's favor.

The parties to this "escrow agreement" are the former SBS ("escrow agent"), Unicombank in Moscow(seller) acting in its own name but on behalf of the Russian Ministry of Finance, and Abalone

lnvestments Ltd (purchaser). This principal "escrow agreement" is supplemented by two "side

agreements" between, on the one hand, Abalone lnvestments Ltd., SBS and Sonangol and, on the other

hand, SBS and Abalone lnvestments Ltd.

The economic background and the operation of this "escrow agreement" are as follows.

Glencore UK Ltd obtains pre-financing of Angolan oil purchases from large, known first-rank

commercial banks. The proceeds of such pre-financing are transferred by Glencore UK Ltd on our books

available to Sonangol, the state-owned oil exporter of Angola, to enable it to fund the repurchase of the

obligations. Sonangol then transfers to the buyer, Abalone lnvestments Ltd., at our bank, [the buyer’s]remuneration for its role as intermediary in the Angolan debt repurchase transaction, and the price set

by the Russian Ministry of Finance for the debt repurchase. Then UBS transfers to Unicombank the

sum corresponding to the price of the obligations. In return, simultaneously, Abalone lnvestments Ltd.

Receives from UBS the repurchased obligations, and their repayment certificates, and delivers them to

Sonangol for account of Angola, which can in this manner gradually annul and erase its debt toward

Russia.






STCF’s acceptance of this role as "escrow agent" was motivated by the fact that Glencore UK Ltd. is

owned by Glencore International AG, and, like Sonangol, is a very important client long known by our

bank. As for Abalone Jnvestments Ltd, its economic principals [ayant-droit économiques], w ell-known

to the Glencore group, were also identified by the former SBS. Finally, with regard to Unicombank, it is a

bank known to SBC Warburg London with which [SBC Warburg London] has worked in the area of

syndicated financings of Russian debt repurchases.

Moreover, the Russian Ministry of Finance has confirmed in writing to the former SBS, on 11 April 1997,

its agreement to the terms of this "escrow agreement" and its representation by Unicombank as vendor,

party to this "escrow agreement", the thirty-one Angolan state obligations having been endorsed over

to Unicombank by the Russian Ministry of Finance.

Glencore International AG, on the same date, confirmed in writing to the former SB5 its full ·knowledge

of all terms and parties to this repurchase of the Angolan obligations, of the parties and terms of the

"escrow agreement", its indirect involvement in this operation and of its financial interest. Moreover,

besides the payment of the "escrows fees", Glencore International AG guarantees to the former SBS to

reimburse it all costs and fees of third parties that could be incurred by our bank in case of litigations

relating to the implementation of this “escrow agreement”, that shall not have been previously settled

by Abalone lnvestments Ltd, as [Abalone] has bound itself in a written commitment upon first request,

also dated 11 April 1997.

Financial risk in terms of credit does not exist for our bank in its function as "escrow agent ".

UBS AG, in its sole capacity as “escrow agent ", must ensure an accurate and meticulous execution of its

principal obligation, consisting, as in matters of documentary credits, in the surrender to the buyer of the Angolan state obligations, and their certificates of repayment, that it holds in safety under its sole

control, against simultaneous receipt by itself of the funds corresponding to the exact value of the

purchase price fixed for such obligations, redeemable individually or in tranches of six, each comprising

five bonds, except that the first had six, marked A to F.

Each installment bears a scheduled payment at year end, starting for the first 30 November 1997 and for

the last 31 December 2004.

The redemption price for each tranche of five bonds is USD 120'967'741,93 (or USD 24 '193 '548,39 per

bond and certificate of repayment).

It should be noted that all of Tranche A, and the first bond, and certificate of repayment, of Tranche B,

have already been re-purchased, in strict accordance with conditions laid down by this "escrow

agreement", respectively in early October and late December 1997, by Abalone lnvestments Ltd. by

means of pre-financings obtained by Glencore UK Ltd, as described above, and to the satisfaction of all

parties.

The next deadline to come, for the redemption of the four remaining obligations of Tranche B, and their

certificates of repayment, is scheduled for 30 November 1999.



Exh i b i t s 109



Mr Yves Lehur, director of STCF, has a complete knowledge and control of this file, and, given the parties

involved are well known to the bank, their importance and professional skills, the STCF estimates the

risks as minimum and controlled.

Both Mr Yves Lehur and I myself remain at your disposition for any further information you may need.

UBS SA

Legal Department

Alain Zbinden,

Assistant Director

Fälle



Deception in HigH places: th crru a–Ru Db D11 0

Exhibit 13

UBS Memo 6 September 1999



Exh i b i t s 111










Exh i b i t s 11 3








UBS

Memorandum

Geneva, September 6, 1999

to Yves Lehur – WRG9 CTF, Acacias

from Alain Zbinden - CGXK, Les Cygnes, (3rd)

regarding Abalone Investments Ltd.

This message is pursuant to the meeting held at the CAA on September 1 with Mr. Gedamak and Mr. Falcone during which they presented the changes desired by the Ministry of Finance

and Abalone regarding the terms currently governing the redemption of the Angolan debt vis-à-vis Russia and their effect on the Escrow Agreements to which UBS SA has been party since

the spring of 1997.

The primary change is that the Government Bonds and Repayment Certificates issued by Banco

Nacional de Angola in favor of Russia would no longer be redeemed, and thus nullified, by the

transfer of an amount of money in USD equivalent to the agreed-upon price, but by the returnto the Ministry of Finance of securities materializing the Russian debt in regards to its creditors

from the London Club (PRINs/IANs), securities whose values are registered on the stock exchange.

The other, non-voluntary, change is that Unicombank, acting on behalf of the Ministry of Finance, had its banking license revoked due to the difficulties it had encountered and was

placed under court-ordered administration, following the example of other Russian banks.

According to Mr. Falcone and Mr. Gedamak, the above-mentioned changes would considerablyalter the agreements signed in 1997 and would require the signing of new agreements, in particular the Escrow Agreement with UBS SA, Abalone and the new bank indirectly

representing the Ministry of Finance, SBERINVEST in Moscow.

Consequently, our Bank was asked if it was ready to agree to these new terms for theredemption of the Angolan debt vis-à-vis Russia, and to serve as the Escrow Bank for the

exchange of the aforementioned securities.

Whether UBS accepts or refuses, in either case the Escrow Agreement signed with Abalone and

Unicombank on April 11, 1997, and consequently the side agreements with Abalone andSonangol and with Abalone alone would moreover be amended, if not terminated early, since

the new terms would be too different than those from 1997.

An amendment to this Escrow Agreement would require the consent of all the parties involved.

The prior termination of the Escrow Agreement of April 11, 1997 is governed by its Article 8.2,

which provides that an annulment can take place with written agreement, either betweenAbalone and Unicombank, or between the Ministry of Finance and Abalone, or in a third casewith Unicombank acting alone in the event that UBS SA does not receive the entire Payment

UBS SA

Post Office Box 2600

121 Geneva 2

Phone: +41-22-375 75 75

Legal & Compliance Department

Private & Corporate Clientele

Alain Zbinden

Office: rue de Lausanne 20

Phone : +41-22-375 92 55

Fax : +41-22-375 94 82

[email protected]



Exh i b i t s 11 5



UBS Abalone Page 2 of 4 Sept. 3, 1999

Value for a Batch on the Transfer Date and that this failure is not remedied within a defined period.

If this Escrow Agreement is terminated under any of the above scenarios, UBS SA must make theGovernment Bonds and Repayment Certificates that Abalone has not yet purchased available to

Unicombank and must return them to it according to the instructions from said Russian bank.

Therefore, to the extent that SBERINVEST replaces Unicombank to act on behalf of the Ministryof Finance, it would first be within the framework of the current agreement, i.e. the EscrowAgreement of April 11, 1997, particularly to terminate this agreement and the receive theGovernment Bonds and Repayment Certificates, and only then for signing a new escrowagreement with UBS SA and Abalone.

Consequently, the following documents must be obtained as concerns this substitution of the

Ministry of Finance's bank:

x Recent documents concerning SBERINVEST, and the bodies (and their signatures)authorized to bind it.

x Letter from Unicombank to UBS SA confirming the revocation of its banking license and itsinability to continue as party to the Escrow Agreement of April 11, 1997.

x Letter from SBERINVEST to UBS SA confirming having been designated by the Ministry of

Finance to fully replace Unicombank in all of its privileges and responsibilities within thecontext of the Escrow Agreement of 11 April 1997.

x Letter from the Ministry of Finance to UBS SA confirming that Unicombank is no longer authorized to act on behalf of the Ministry of Finance in the framework of the EscrowAgreement of April 11, 1997 and that SBERINVEST has replaced it in all of their rights andobligations undertaken with respect to the Escrow Agreement.

x Should UBS SA agree to enter into a new Escrow Agreement with Abalone and

SBERINVEST, letter from the Ministry of Finance to UBS SA confirming thatSBERINVEST is fully authorized to act on behalf of the Ministry of Finance in theframework of this new Escrow Agreement.

x Confirmation of the signature of the representative of the Ministry of Finance.

As for these new terms and conditions for the repayment of the Angolan debt in return for securities issued by the Russian government, the following comments must be made:

First, UBS SA must analyze the new transaction proposed with regards to its structure, financingand the opportunity to perfectly master the execution of the obligations it would assume as the

Escrow Bank.

Next, as concerns the contractual clauses of the Supplemental Agreement, I would note thefollowing:

ad 2: The equivalence of the nominal value of the Government Bonds and the IANs/PRINs is to be verified, as well as the proportions of 85% and 15%.

ad 3: The exercise period for Abalone set for October 20, 1999 to purchase the six blocks of shares seems to be quite close, taking into account the time required to analyze this

transaction, prepare a new Escrow Agreement, conduct due diligence, obtain confirmationand a guarantee from Glencore/Abalone, identical to those issued in April 1997, as for this







new transaction and its parties, for UBS SA, and to find the funds to acquire the IANs/PRINsand negotiate a sales price with their current holders for Abalone.

The Government Bonds and Repayment Certificates are effectively those that remain under our control. However, regarding the IANs/PRINs, if I have understood correctly, unlike thecurrent mechanism through which we should receive the amount in USD corresponding to the price of the Batch or a corresponding Government Bond, UBS SA should only receive a

Declaration of Remittance from SBERINVEST attesting to their receipt of the equivalentIANs/PRINs from Abalone, to release the Government Bonds and Repayment Certificates infavor of Abalone. UBS SA then only has to ensure that the price for these Government Bondsand Repayment Certificates has been previously paid by Abalone, since this verification fallswithin the framework of the agreements between Abalone and SBERINVEST to which UBS

SA is not a party).

ad 5: It is impossible that the Supplemental Escrow Agreement could take effect September 6,1999, knowing that the meeting during which these new modalities were presented took placeon September 1, 1999!

ad 6: In particular, it is expected that the Escrow Agreement of April 11, 1999 shall remain in effectfor all of the Government Bonds and Repayment Certificates not covered under thisSupplemental Agreement. This is strange and contradictory in the sense that the SupplementalAgreement covers all of the remaining securities!Does this mean that unless Abalone acquires the remaining twenty four Government Bonds andRepayment Certificates according to these new terms and conditions within the period from

October 20 to November 15, 1999, then the former agreements would once again take effect?

ad 8: This is the most delicate issue.In fact, in the context of the existing agreements, and in particular the Escrow Agreement of April 11, 1997, the very important question of the price that the Ministry of Finance accepted tosell the Government Bonds and Repayment Certificates to Abalone was settled when Glencore,on the one hand, presented UBS with the documents signed by the Ministry of Finance withAbalone, and, on the other hand, with official documents from the successive representatives of the Ministry of Finance itself.Moreover, in this case, it is simply stated that the Ministry of Finance accepts the sale of thesesecurities in return for IANs/PRINs without any other official confirmation issued by theMinistry of Finance and the Russian government authorizing the new transaction at that“price.”Finally, it should be noted that the Supplemental Agreement bears no official seal from the

Ministry of Finance and that the representative’s signature is not notarized.

This last point caused me to look into a possible risk to reputation.

When Glencore presented the transaction to UBS SA in February 1997, Russia’s financial and political situation was fairly stable and the international financial community was involved in agood number of transactions with this country's private and public organizations.

However, since the financial crisis that shook Russia and the numerous successive changes in thegovernment that followed, it is more difficult to be certain that you're dealing with the proper

official Ministry of Finance representative who is expressing the government’s true wishes to enter into such a specific and complex transaction as the one relative to these Government Bonds andRepayment Certificates.



Exh i b i t s 11 7




Ultimately, this political and financial instability has generated, or maybe the opposite, increasedattention from Western legal authorities, particularly from Switzerland and Geneva, which hasresulted in full scale criminal investigations being opened.

To be sure, the motives, structures, financing and contractual parties behind the transactionsconcerning these securities issued by the Banco Nacional de Angola in favor of Russia had nothingto do with the financial matters that have appeared in the news for the last several weeks.

Nevertheless, this transaction is related to two countries that have become more delicate andunstable, Russia and Angola, and any possible mention of one of the representatives of either of the parties such as Abalone, SBERINVEST or the Ministry of Finance in a news article, even if later determined to be unfounded, if not slanderous, would still initially cause a Swiss judge, and aboveall a Geneva judge, to take an interest in the individuals in question.

Since then, if at the time of the significant changes to the transaction requested by the Ministry of Finance and Abalone, UBS SA could have the opportunity to definitively terminate its role as theEscrow Agent, which would be turned over to another bank, a hypothetical situation that Mr.Gedamak and Mr. Falcone themselves brought up, and that is so wishes in light of the above, therewould be good reason to examine the advantages and disadvantages of the decision to be made.

Regardless of the position taken by UBS SA, these new terms presented by Abalone must besubmitted to Mr. Bernard Verdier to review and make a decision in terms of its transactional andcommercial nature.

In terms of the risks to reputation, apart from reiterating the issues mentioned above, the RomandieLegal and Compliance Department does not have the authority to determine if UBS SA assumesthese risks.

Sincerely,

UBS SALegal Department

Alain ZbindenAssistant Director




Exhibit 15

Gaydamak–Malkin MOU 20 December 1999



Exh i b i t s 11 9










Exh i b i t s 121










Exh i b i t s 12 3

Exhibit 21

Abalone Investments Ltd. Schedule o UBS Bank Activity23 May 1997–31 December 2000




Exhibit 24

Sberinvest Cypus Account Schedule o PaymentsApril–August 2001



Exh i b i t s 125

Exhibit 28

Sberinvest Flow Chart




Exhibit 31

Police Report Allain Guilloux and Others 12 November 2003



Exh i b i t s 12 7










Exh i b i t s 129








[Page 1 of 4]

REPUBLIC OF FRANCE

MINISTRY OF THE INTERIOR

NATIONAL POLICE

HEADQUARTERS

_________

Financial Crime Unit

122 Rue du Château des Rentiers

75013 Paris

01 55 75 20 99 – 01 55 75 27 53

_________

POLICE REPORT

Rep. No.

CASE:Allain Guilloux and others

PURPOSE:

FINDINGS

Camparal,

Tutoral and Dramal accounts

at B.I.L. [International Bank of

Luxembourg]

/seal.

Police Prefecture

Judicial Police Headquarters

/signature/

The year two thousand three [illegible] D6622/1

The twelfth of November

Yves Marie L’Helias

Police Chief

On duty at the Financial Crime Unit of the Paris Police Prefecture,

Executing the letters rogatory,

Have examined the documents provided by the judicial authorities of

the Grand Duchy of Luxembourg and placed under seal No. 661, 662 and 663

corresponding for the most part to the statements and documents related to

the accounts of the Panama companies Dramal, Camparal and Tutural, openedat Dexia BIL.

In light of the documents used to open the accounts, attached to the

statements, the identities of the account beneficiaries of these companies are

as follows:

Dramal: Pierre Joseph Falcone

Tutoral: Elisio de Figueiredo

Camparal: José Eduardo Dos Santos with Mr. Elisio De Figueiredo as

representative

These three companies were incorporated on the same date, March

30, 1998, via the Luxembourg bank Dexia BIL (at the relevant time, Banque

Internationale in Luxembourg) and include among their contacts within the

bank Mr. Jo ost Rieter and Mr. Roland Suleau.

These three accounts first recorded payments on April 10, 1998 (value

date April 14). None of them include information on the origin except for the

note “a client,” with the following amounts:

Camparal (Mr. Dos Santos): USD 37,112,576.46

Tutoral (Mr. De Figueiredo): USD 7,331,199.53

Dramal (Mr. Falcone)……………USD 1,814,973.53

For these three transactions, which make up the initial deposit for

each of the three accounts, the counterpart debited in the books of BIL is an

account in the name of Citibank N.A.

The use of these funds shall be described in separate findings as the

purpose of this document is to determine the origin of the aforementionedamounts.

A new examination of the documents provided by the Grand Duchy of

Luxembourg Prosecutor’s Office under seal No. 679 provides details about the

chronology of the closing of the “ENREP” accounts in the name of Brenco

Trading Limited and several other accounts of Mr. Falcone’s “friends”.



Exh i b i t s 131



[Page 2 of 4]

JUDICIAL POLICE HEADQUARTERS

FINANCIAL CRIME UNIT

122-126 Rue du Château des

Rentiers

75013 Paris

/seal.

Police Prefecture


/signature/

We refer to our prior findings regarding the “ENIREP” account at

Banque de Gestion Edmond De Rothschild in Luxembourg which concerned

the use by B.T.L of excessive amounts such as USD 11.6 M from Bank Leumi

Geneva, USD 45 M from the account “Abalone” at UBS Geneva and USD 42

M from ZTS OSOS at the Bank Paribas, transactions recorded between the

months of August and November 1997.

At that time, an examination of the uses of the USD 98 M revealed

that Banque de Gestion Edmond De Rothschild held several other accounts

in the names of entities whose account beneficiaries were Mr. Falcone or

certain of his “friends” according the terms employed in the internalmemos of this bank. This related to the following accounts:

No. 8749, 87490 and 8781 corresponding to B.T.L and Mr. Falcone

No. 8793, 87930 corresponding to the company “Bracewell

Management”

No. 8798 and 87980 corresponding to the company “Intersul”.

These same findings showed the information provided by Olivier

d’Auriol, who had a power of attorney at the time, according to which one

of the two entities “Bracewell Management” or “Intersul” corresponded to

“M. FI, of Angolan nationality”, a friend of Mr. Falcone.

The findings relating to the accounts “ENIREP” at Banque de

Gestion Edmond De Rothschild showed that the accounts of Mr. Falcone’s“friends” had been credited with the funds from ENIREP, as follows:

“Bracewell Management” accounts: USD 7.38 M in October and

November 1997.

“Intersul” accounts……………………………USD 36.25 M in October

1997.

The banking documents of Banque de Gestion Edmond De

Rothschild under seal 679 showed that for reasons not put in writing, the

Bank’s executive board, on March 4, 1998, by phone and in a letter,

notified the holder of the “ENIREP” accounts that the bank would close out

the accounts, giving him until March 31 to provide the name of the new

establishment to transfer the funds.

After a reminder from the bank, “Mr. F” as Falcone, representingthe company ENIREP, told the establishment on March 18, 1998, that he

had taken steps to permanently close the “accounts of Group F within 15

days”.

Pursuant to this notice, on March 25, 1998, the bank proceeded to

close the accounts of “Group F” including accounts nos. 8749, 87490, 8781,

87810, 8793, 87930 (also including the two “Bracewell Management”

accounts), 9798 879[illegible]0 (the two “Intersul” accounts) and 8786.






[Page 3 of 4]




Rentiers

75013 Paris

/seal/

Police Prefecture


/signature/

As noted at the beginning of this document, on March 30, 1998,

the companies Dramal, Tutoral and Camparal had been created by Banque

Internationale in Luxembourg.

On April 6, 1998, Mr. Falcone provided Banque de Gestion Edmond

De Rothschild the banking information of the receiving bank prior to closing

the accounts, that is, for an account in the name of Citibank N.A. opened

with the Banque Internationale in Luxembourg, to the attention of Mr.

Suleau.

The last documents relating to withdrawals under seal 679 show

that the transfer was ordered by the Banque de Gestion Edmond De

Rothschild on April 9, 1998 and they refer to an amount as of 1[illegible]

April.

The aforementioned can be summarized, highlighting the

following:

“Closing of the “Enirep” accounts but also “Bracewell

Management” and “Intersul” at Banque de Gestion

Edmond De Rothschild coincides exactly with the opening

of the “Dramal”, “Tutoral” and “Camparal” accounts at the

Banque Internationale in Luxembourg. April 14,

199[illegible] corresponds on the one hand to the value

date of the closing entries and on the other hand to the

initial credits.

“The amounts transferred from the Banque Rothschild

were intended for Citibank NA at B I L to the attention of

Mr. Suleau, one of the contacts at Dramal, Tutoral and

Camparal. However, in the accounting records of B.I.L. the

offset recorded in the books benefiting Dramal, Tutoral and

Camparal is Citibank N.A.

The amount credited to Camparal of USD 37.11 M on

[illegible] April 1998 is very close to USD 36.25M received

by Intersul in October 1997. With regard to the USD 7.38

M received by Bracewell Management in 1997, it is also

very close to the USD 7.33 M credited to Tutoral in April

1998.

Everything shows that the “Camparal” account benefitting Mr. José

Eduardo Dos Santos followed and corresponded to the same interest

[appearing] as the “Intersul” account.

Similarly, the “Tutoral” account benefitting Mr. Figueiredo was

obviously the successor to the “Bracewell Management” account.

Under these conditions and given the origin of the amounts

deposited in the “Intersul” and “Bracewell Management” accounts,

determined in our prior findings on [il legible] “Enirep” account, it appears:



Exh i b i t s 133



[Page 4 of 4]




Rentiers

75013 Paris

- that the assets transferred from the “Intersul” account to the

“Camparal” account originated from the deposit used to open the “Enirep”

account in October 1997 with the USD 48 M originating in the “Abalone”

account at UBS Geneva, thus apparently related to the renegotiation of the

Angola debt to Russia.

- That the assets transferred from the “Bracewell Management”

account to the “Tutoral” account originated for the most part from the USD

4.8 M also originating from the USD [illegible] M received by “Enirep” from

the “Abalone” account. The other origin of the assets in the “Tutoral”

account corresponds to the USD 2.5 M paid by “Enirep” [illegible]

“Bracewell Management” from the USD 42 M originating in the ZTS OSOS

account at Paribas Bank in November 1997.

In witness whereof.

The Police Chief

/signature/

/seal/

Police Prefecture

No. 613





Exhibit 38

Declaration o Remittance and Debit Release Declaration20 July 2004



Exh i b i t s 135


Declaration o Remittance and Debit Release Declaration 20 July 2004





Declaration o Remittance and Debit Release Declaration 20 July 2004



Exh i b i t s 137

Exhibit 41

Russia–Angola Meeting Minutes 30 September 2005





Russia–Angola Meeting Minutes 30 September 2005



Exh i b i t s 139

Exhibit 42

Switzerland–Angola Accord 1 November 2005








Exh i b i t s 141










Exh i b i t s 143










Exh i b i t s 145










Exh i b i t s 147

Exhibit 43

Angola–Abalone Agreement 9 November 2005








Exh i b i t s 149










n o T e s 151n o T e s

Notes

1. JUGeMeNt. N° : 0019292016. rÉPUBLIQUe FrANÇAISe trIBUNAL de GrANdeINStANCe de PArIS 11èm camb—3èm scin (27 cb 2009), pag 345, availabl ap://pcniqus.blg.lmn./ls/2009/11/angla_.1258044908.p (aus’ anslain).M. Maill was cnvic paicipain in Anglaga ansacins an givn a suspn pisnsnnc w as an assss a n €375,000. Ibid. a pag 493. (T was n appal agains jugmn.)

2. T Gaamak gu inclus u pamns m Abaln alling $60,519,663 an accun innam Acai Gaamak; an six pamns alling $441,917,640 m Sbinvs Cpus Glbal Alpa Sa Fun, Gaamak’s law Zicni, Blinvs Financ SA, Mnsana taing an dxa Glbal Fun. T gu subacs m Gaamak’s sima gss aning an assum pamn b im an sima $158.4 millin MinFin 5s an MinFin 7s liv russia, as wll as a pamn $206 millin imbusmn Angla, wic ma n av ccu. N a Gaamak’sinvsmn manag, Pi Gz, allgs a Gaamak cup appximal $360 millin m db dal. S Véniqu Pujl, “L’incabl sin l’agn l’Anglaga,” D’Lëtzebuerger Land (16 Spmb 2010), availabl a p://www.lan.lu/2010/09/16/lincabl-sin--lagn--langlaga/ ($360 millin gw $1.4 billin accing invsmn manags); an Nuir, “Sui claims Gaamak au Anglans $365 millin,” Haaretz (13 Apil 2008), availabla p://www.aaz.cm/pin-iin/businss/sui-claims-gaamak-au-anglans--365-millin-1.243850.

3. T Falcn gu inclus v pamns alling $57,673,664 ma m Abaln an accun innam Pi Jsp Falcn; pamns alling $30,290,016 Bnc taing L. an BncGup; an n pamn $47,000,000 isibu ral ta L., lss $10 millin nwa-sn Sl Invsmn Gup, bliv wn b elísi Figui.

4. T Malkin gu inclus w pamns ma m Abaln an accun in nam Vial Malkin.

5. T s Sans gu psns $36,250,000 civ ug Banqu Insuz Luxmbug.

6. T Figui gu inclus $7,380,000 civ ug Banqu Insuz Luxmbug; alsinclus n $10,000,000 pamn civ b Sl Invsmn ug ral ta L., an €143,450bliv b link db dal an a appas in annx Nvmb 2005 Swizlan- Angla Acc (cnv $177,000, bas n 30 Spmb 2004 a $1.23305/€). S eXhIBIt42: Swizlan-Angla Acc 1 Nvmb 2005 (Annx).

7. T davi gu inclus w pamns alling $8,000,000 pai Pnw L., plus an aiinal$5,250,000 in sam accun, as appas in annx Nvmb 2005 Swizlan-Angla Acc.

8. T Paiva gu appas in an accun in nam Mias, ini as bnciall wn b JséCals Cas Paiva in annx Nvmb 2005 Swizlan-Angla Acc.

9. T Liã a Csa gu inclus n pamn $3 millin pai an accun in nam Jsé Liãa Csa Silva; an $358,000 bliv b link db dal an a appas in annx Nvmb 2005 Swizlan-Angla Acc.

10. T “Mana” s cam lig wn i was uncv a Pais fc Pi Falcn’s SciééBnc Fanc b Fnc invsigas sking vinc gaing Anglaga al.

11. JUGeMeNt. N° : 0019292016. rÉPUBLIQUe FrANÇAISe trIBUNAL de GrANde

INStANCe de PArIS 11èm camb—3èm scin (27 ocb 2009), pags 209-210, availabl ap://pcniqus.blg.lmn./ls/2009/11/angla_.1258044908.p (aus’ anslain).

http://prdchroniques.blog.lemonde.fr/files/2009/11/angolate_.1258044908.pdf

http://www.land.lu/2010/09/16/lincroyable-destin-de-largent-de-langolagate/


http://www.haaretz.com/print-edition/business/suit-claims-gaydamak-defrauded-angolans-of-365-million-1.243850












12. eXhIBIt 1: russia–Angla drAFt Ingvnmnal Agmn 14 Ma 1996. (T 14 Ma 1996cumn, ug cnaining russian an Anglan signaus, was nl a a wa wul b nal agmn, a 20 Nvmb 1996 (eXhIBIt 3: russia–Angla Ingvnmnal Agmn20 Nvmb 1996).

13 W n av a cp dc N. 1287, bu i is scib in eXhIBIt 4: russia–Abaln Agmn5 Mac 1997, paagap (d) “Inucin.”

14. eXhIBIt 2: Abaln Gnal rgis Isl Man 11 Nvmb 1996.

15 W can ini Vavilv’s signau bcaus i is s labl in eXhIBIt 1, 14 Ma 1996 “Plimina englis Vsin,” wic was sign vn ug appanl n inn as paiv. T 14 Ma 1996 “Plimina englis Vsin” is als sign b Augus a Silva tmás (Minis ecnm an Financ) Anglan si, bu Anglan signau n 20 Nvmb 1996 nalIngvnmnal Agmn appas in, an n lgibl.

16. eXhIBIt 3: russia–Angla Ingvnmnal Agmn 20 Nvmb 1996, aicl 2 (Pugusiginal wi aus’ englis anslain).

17. eXhIBIt 3: russia–Angla Ingvnmnal Agmn 20 Nvmb 1996, aicls 2 an 3.

18. eXhIBIt 3: russia–Angla Ingvnmnal Agmn 20 Nvmb 1996, aicl 4.

19. eXhIBIt 4: russia–Abaln Agmn 5 Mac 1997.

20. eac N sa a i was ansabl, upn pi nic an wi appval b, Banc Nacinal

Angla. Cpis Ns a a eXhIBIt 5.


22. S als eXhIBIt 40: danil Zapplli l 21 dcmb 2004 (ciing pinin public nancxp eniqu Csi-Pascal a invlvmn Abaln in al “nabl[] Angla b givn canc pucasing is b cun accu ins wic i was liabl”).

23. Slvain Bssn, “enquê su l’«Anglaga»: un inméiai impliqué én la égulaié l’péain,” Le emps (1 Jun 2002), availabl a p://www.lmps.c/Pag/Uui/a30c770-b00-11-b87c-1c3a55c/enquê_su_lAnglaga_un_inméiai_impliqué_én_la_égulaié__lpéain (aus’ anslain).


25. Ibid .26. eXhIBIt 4: russia–Abaln Agmn 5 Mac 1997, scin 2.3 (mpasis a).

27. Ibid .

28. eXhIBIt 4: russia–Abaln Agmn 5 Mac 1997, scin 2.5. Unpai pincipal wul bgin accu ins n a a a a a LIBor plus 3.45 p cn. (LIBor— Lnn Inbank o ra—is a wil us in-bank lning a bncmak.) A Supplmnal Agmn bwnrussia an Abaln, a 11 Apil 1997, cang tanc B tans da m 30 Nvmb1998 30 Nvmb 1999, an liv Abaln m aving pucas cmpl tancs g,allwing pucas n m Ns an Cicas, wi p aa ajusmns pamnms. T Apil 1997 Supplmnal Agmn als cnm a Unicmbank, Mscw, wul acn bal russian Minis Financ. eXhIBIt 6: russia-Abaln Supplmnal Agmn 11 Apil 1997.

29. eXhIBIt 8: Snangl–Abaln Agmn 30 Ma 1997, scins 1 an 3.

30. eXhIBIt 9: Snangl–Abaln-SBS escw Agmn 30 Ma 1997, scin 3.

31. eXhIBIt 13: UBS Mm 6 Spmb 1999 (aus’ anslain).

32. Paps cincinall, Jsé Filmn Susa s Sans (Znú), a sn Psin s Sans ann sn as pnial succss, spn im wking Glnc in Lnn, al in is slla businssca. T 34-a-l Znú was cnl appin as n ba mmbs in Angla’s smal svign wal un, $5 billin Fun Sban Angla. Luis rvs, “Angla: W’sw in palac?” Mail & Guardian (2 Nvmb 2012), availabl a p://mg.c.za/pin/2012-11-02-00-angla-ws-w-in--palac.

33. eXhIBIt 11: UBS Mm 22 Jun 1999.

http://www.letemps.ch/Page/Uuid/a30fc770-b0d0-11dd-b87c-1c3fffea55dc/Enqu%EA%B4%A5_sur_lAngolagate_un_interm%E9%A4%A9aire_impliqu%E9%9F%A4%E9%A6%A5nd_la_r%E9%A7%B5larit%E9%9F%A4e_lop%E9%B2%A1tion



http://mg.co.za/print/2012-11-02-00-angola-whos-who-in-the-palace









Not e s 153

34. Slvain Bssn, “enquê su l’«Anglaga»: un inméiai impliqué én la égulaié l’péain,” Le emps (1 Jun 2002), availabl a p://www.lmps.c/Pag/Uui/a30c770-b00-11-b87c-1c3a55c/enquê_su_lAnglaga_un_inméiai_impliqué_én_la_égulaié__lpéain (aus’ anslain). Tugu db dal, as scib blw, Gaamak wulmak sming a spcial in vising mcanisms p m gap bwn sa ac valuan uc mak valu b scuiis. T spcics wav aangmn Gaamak an/Falcn ma av a “bu[ing] an sll[ing] il pai wi pmiss ns” cann b glan m cumns in pssssin aus is p.

35. eXhIBIt 15: Gaamak-Malkin MoU 20 dcmb 1999, aicl 9.36. T aus bliv av ini an bain cpis s (bu n u) s

“agmns,” as in MoU: naml (i) eXhIBIt 3: russia–Angla Ingvnmnal Agmn 20 Nvmb 1996; (ii) eXhIBIt 4: russia-Abaln Agmn 5 Mac 1997 plus eXhIBIt 6: russia–Abaln Supplmnal Agmn 11 Apil 1997 plus eXhIBIt 12: russia– Abaln Supplmnal Agmn 23 Augus 1999; an (iii) eXhIBIt 8: Snangl-Abaln Agmn30 Ma 1997.

37. eXhIBIt 16: Gaamak-Malkin Financial Agmn 20 dcmb 1999, aicl 4.

38. Snangl wul b pucasing b ull ac-valu ac N aln, bu wiu pamn accu ins (as Abaln wul b pucasing Ns m russia, als wiu ins pamnbligain). eXhIBIt 8: Snangl-Abaln Agmn 30 Ma 1997, scin 4.

39. eXhIBIt 7: Unicmbank–Abaln-SBS escw Agmn 11 Apil 1997, scin 4.4. Smwasupisingl, is ig psnaivs gvnmn Angla viw b cumns iscnain in Unicmbank/Abaln scw agmn, bu is n -sa in Snangl/Abalnscw agmn.

40 Ibid.

41. eXhIBIt 9: Snangl–Abaln-SBS escw Agmn 30 Ma 1997.

42. eXhIBIt 30: Gnva Camb ’Accusain ruling 29 ocb 2003, pags 2–4 (aus’ anslain).T $16,752,407.28 acuall psns abu 34.6 p cn ac valu n Pmiss N.I is n cla w is appan xcss pamn was ma. T supplmnal scw agmn alspl allw pucas maining 24 Pmiss Ns m russian Minis Financ a 24 p cn i ac valu, sul pamns b ma b 30 Jun 1998. Wil isi n appn, i is siking a russian Minis Financ wul cnmpla a al a wul

uc vn u pcs i wul civ m Anglan b.43. eXhIBIt 12: russia–Abaln Supplmnal Agmn 23 Augus 1999.

44. Ibid ., paagap d.

45. W n av a cp is l bu l an subsqun ailu liv Ns ascib in eXhIBIt 30: Gnva Camb ’Accusain ruling 29 ocb 2003, pags 2–4.

46. A. Sans, “db Cisis in russia: T ra m daul Susainabili,” in d. own an d.rbinsn. (s.), Russia Rebounds, Innainal Mna Fun (2003), pag 176.

47. Ibid .

48. Pics as qu b Blmbg isical aing aabas.

49. International Capital Markets: Developments, Prospects and Key Policy Issues , 2000, Innainal Mna Fun: Wasingn, pag 139, availabl a p://www.im.g/xnal/pubs//icm/2000/01/ng/p/cap5.p .

50. Ibid .

51. Un iginal 5 Mac 1997 russia-Abaln Agmn, russia sul av civ 50 p cn $774,193,548 pai b Snangl s 16 Ns, $387,096,774. In ac, i aus’calculains a cc, russia wul av civ appximal $264,107,000, in cas plus PrINs/IANs, laving russians $122.9 millin s.

52. eXhIBIt 40: danil Zapplli l 21 dcmb 2004.

53. “Ivanisivili bgan builing is mpi in 1990 wn, wi pan Vial Malkin, s up rssisk Ki Bank.” “Wl Billinais,” Forbes (Mac 2012), availabl a p://www.bs.cm/pl/bis-ivanisvili/.




http://www.imf.org/external/pubs/ft/icm/2000/01/eng/pdf/chap5.pdf


http://www.forbes.com/profile/boris-ivanishvili/












54. Malkin’s nam appas n lis as “manag” nx rssiski Ki Bank, wic was n pincipal banks us b Anglaga ams vn, ZtS-oSoS. JUGeMeNt. N°: 0019292016.rÉPUBLIQUe FrANÇAISe trIBUNAL de GrANde INStANCe de PArIS 11èm camb—3èm scin (27 cb 2009), pags 148 an 243, availabl a p://pcniqus.blg.lmn./ls/2009/11/angla_.1258044908.p . N allgains wnging w ais in Anglaga jugmn agains Malkin bank.

55. eXhIBIt 14: Gaamak-Malkin Pucas Agmn 20 dcmb 1999; an eXhIBIt 16:Gaamak-Malkin Financial Agmn 20 dcmb 1999.

56. eXhIBIt 15: Gaamak-Malkin MoU 20 dcmb 1999. Aicl 7 sas, “As sn as tansacinas bn xcu s u Ns an Cicas, M Gaamak will imbus US $60 millins M Malkin. A is pamn, M Malkin will las Ns an Cicas un is cnl.”

57. eXhIBIt 17: russia–Abaln Supplmnal Agmn 28 dcmb 1999.

58. Ibid .

59. Ibid .

60. eXhIBIt 20: russia–Abaln Supplmnal Agmn 11 Ma 2000.

61. Pic as qu b Blmbg isical aing aabas.

62. eXhIBIt 20: russia–Abaln Supplmnal Agmn 11 Ma 2000, scins 2 an 3.

63. eXhIBIt 30: Gnva Camb ’Accusain ruling 29 ocb 2003, paagap B(a).64. eXhIBIt 20: russia–Abaln Supplmnal Agmn 11 Ma 2000.

65. eXhIBIt 19: russia–Abaln Supplmnal Agmn 23 Augus 1999.

66. Lu as appanl pa as an inpnn cnsulan in Lnn sinc 2008. S is wbsi,p://lasscias.cm/.


68. eXhIBIt 18: Abaln Invsmns Vaius Wi tans Insucins 2000.


70. S, e.g., spcivl, eic hsli, Fai Mansu an einn dubuis, “L’nquê Cala dl Pnmn jusqu’à Bis elsin,” Le emps (26 Augus 1999), availabl a p://www.lmps.c/Pag/

Uui/58941c-b261-11-b87c-1c3a55c/Lnquê__Cala_dl_Pn_mn_jusquà_Bis_elsin; an Slvi Asv, “Bis Bzvski s psna gaa n Suiss,” Le emps (19 Augus1999), availabl a p://www.lmps.c/Pag/Uui/411b8-b260-11-b87c-1c3a55c/Bis_Bzvski_s_psna_gaa_n_Suiss.

71. eXhIBIt 21: Abaln Invsmns L. Scul UBS Bank Acivi 23 Ma 1997–31 dcmb2000.

72. “Pliicall exps Psn” (PeP) is gnall us m ini a sni ign public fcial a cls amil mmb asscia suc fcial. Bcaus isk a PePs cul b invlvin cupin, nancial inmiais a gnall qui xcis a ign u ilignc inaling wi m.

73. Swiss Ciminal C, aicl 322 spis, availabl a p://www.amin.c/c//s/311_0/a322spis.ml.

74. Swiss Ciminal C, aicl 305bis, availabl a p://www.amin.c/c//s/311_0/a305bis.ml (Swiss Cnain anslain; mpasis a). T Ciminal C als puniss “[a]n psn wwilull assiss an cmmi a ln a mismanu” un aicl 25, availabl a p://www.amin.c/c//s/311_0/a25.ml.

75. Swiss Ciminal C, aicl 305, availabl a p://www.amin.c/c//s/311_0/a305.ml.

76. Ciculai-CFB 98/1 Blancimn capiaux (26 Mac 1998), paagap 9 (aus’ anslain;mpasis a).

77. Ciculai-CFB 98/1 Blancimn capiaux (26 Mac 1998), paagap 26 (aus’ anslain).Paagap 24 quis a nancial inmiais w s inicia mn launing inicia aising suspicins as pssibl ciminal igin asss mus



http://ylhassociates.com/

http://www.letemps.ch/Page/Uuid/58f9e41c-b261-11dd-b87c-1c3fffea55dc/Lenqu%EA%B4%A5_de_Carla_Del_Ponte_remonte_jusqu%DF%82oris_Eltsine



http://www.letemps.ch/Page/Uuid/41fe1fb8-b260-11dd-b87c-1c3fffea55dc/Boris_Berezovski_est_persona_grata_en_Suisse


http://www.admin.ch/ch/e/rs/311_0/a322septies.html


http://www.admin.ch/ch/e/rs/311_0/a305bis.html

http://www.admin.ch/ch/e/rs/311_0/a25.html


http://www.admin.ch/ch/e/rs/311_0/a305ter.html

http://www.admin.ch/ch/e/rs/311_0/a305ter.html



http://www.admin.ch/ch/e/rs/311_0/a305bis.html








http://ylhassociates.com/





Not e s 155

bain inmain plausibili wic mus vi, a can allw m sufcin appciain cnmic backgun ansacins….t is n, nancial inmiais quim i cun-pais a win claain a a mmanum in wic c claains clin. Accing cicumsancs cas, inicains n llwing pins mus in pincipl b bain:a) pups an nau paicula ansacin;b) nancial siuain cun-pa, as applicabl bncial wn;c) cmmcial pssinal acivi cun-pa, as applicabl, bncial wn;) suc uns psi invs.

78. eXhIBIt 30: Gnva Camb ’Accusain ruling 29 ocb 2003, pags 4–5 (aus’ anslain).


80. eXhIBIt 21: Abaln Invsmns L. Scul UBS Bank Acivi 23 Ma 1997–31 dcmb 2000.

81. “Mian Sn Facs Cismas in Jail,” BBC Nws (22 dcmb 2008), availabl a p://nws.bbc.c.uk/2/i/aica/1081679.sm.

82. S, e.g., JUGeMeNt. N° : 0019292016. rÉPUBLIQUe FrANÇAISe trIBUNAL de GrANdeINStANCe de PArIS 11èm camb—3èm scin (27 cb 2009), pag 272 (aibuing

bncial wnsip ral ta L. Pi Falcn), availabl a p://pcniqus.blg.lmn./ls/2009/11/angla_.1258044908.p .

83. Accing inmain pvi b Swiss cmpan gis, Fibug.

84. Ibid. T ull lis cmpanis gis is ass is: rsauan Fnana; Bipl Inusis AG;Laui taing; Zaia hling AG; Glnc (Fa eas) AG; Glnc Innainal plc, S hli,Baa Banc; Glnc hling AG; St Sipping an tansp; L hling AG; Calin hling AG; Baas Cmmcial AG; Cavann ta SA; MtS Mining & tcnical Svics AG; Sasia AG;Minailux SA; talv Cmmcial SA; Slima hling AG; Piaia hling AG; Slla Cpain AG;Lin Invs AG; Alanic oils & Mals (A.o.M) SA; Linasn AG.

85. Cavann ta SA sill xiss an as sni Glnc fcials as is ics: Svn Fank Kalmin, Anas P hubmann, an Main William häing. S Cavann ta SA, rgis uCmmc u Cann Zug, availabl a p://www.azg.c/wbsvics/in/hrG/hrG.asmx/g

hrGPdF?cn=2170138650&am=170&BMi=0&valionl=0&lang=2&s=0.86. eXhIBIt 11: UBS Mm 22 Jun 1999. on il a, AB Plum, civ pamns

aling $15,452,546, n 3 ocb 1997 an 8 Janua 1998.W n knw w AB Plumwas similal aflia wi Glnc.


88. eXhIBIt 42: Swizlan–Angla Acc 1 Nvmb 2005, aicl 1.

89. eXhIBIt 31: Plic rp Allain Guillux an os 12 Nvmb 2003 (aus’ anslain).

90. tw emun rscil Gup banks pa in Luxmbug a is im, appanl wking clsl in anm. S wb pag Banqu Pivé emn rscil eup: “Unil Ma 31,1999 Banqu Pivé emn rscil Gup was pa in Luxmbug ug w banks,i.. a banc an a subsiia Banqu Pivé emn rscil SA Gnva. on Jun 1, 1999 Gup mg aciviis Banqu Pivé emn rscil SA, Luxmbug Banc, anBanqu Gsin emn rscil Luxmbug in n ni nam Banqu Pivé emn rscil Luxmbug.” Availabl, a p://www.mn--scil.u/iscv-us/u-bank/lcains-an-is.aspx .


92. Ibid.

93. Ibid.

94. T Abaln bank pamn nc Banqu Insuz Luxmbug an Fnc Anglaga jugmn nc Céi Agicl Insuz in Luxmbug a ncs sam ni. “In 1996,Banqu Insuz was acqui b Céi Agicl an nam Céi Agicl Insuz.” S Cmmcial

Banks Gui, availabl a p://www.cmmcialbanksgui.cm/ci+agicl+insuz/.




http://news.bbc.co.uk/2/hi/africa/1081679.stm




http://www.hrazg.ch/webservices/inet/HRG/HRG.asmx/getHRGPDF?chnr=2170138650&amt=170&toBeModified=0&validOnly=0&lang=2&sort=0


http://www.edmond-de-rothschild.eu/discover-us/our-bank/locations-and-history.aspx


http://www.commercialbanksguide.com/credit+agricole+indosuez/

http://www.commercialbanksguide.com/credit+agricole+indosuez/















95 JUGeMeNt. N° : 0019292016. rÉPUBLIQUe FrANÇAISe trIBUNAL de GrANdeINStANCe de PArIS 11èm camb—3èm scin (27 cb 2009), pags 224–225, availabl ap://pcniqus.blg.lmn./ls/2009/11/angla_.1258044908.p (aus’ anslain).

T Fnc cnclusin a $48 millin was ans in ocb 1997 enip via Banqu InsuzLuxmbug, i cc, sms impl a sm $14 millin a $48 millin wul av bnpass ug a las n inmia accun. T Abaln UBS accun bank inmainsws nl n ans, $34 millin, ma in ocb 1997 Banqu Insuz. eXhIBIt 21: Abaln Invsmns L. Scul UBS Bank Acivi 23 Ma 1997–31 dcmb 2000.

96 JUGeMeNt. N° : 0019292016. rÉPUBLIQUe FrANÇAISe trIBUNAL de GrANdeINStANCe de PArIS 11èm camb—3èm scin (27 cb 2009), pags 224-225, availabl ap://pcniqus.blg.lmn./ls/2009/11/angla_.1258044908.p .


98. eXhIBIt 10: Banqu Innainal à Luxmbug dclaain Bncial ownsip 6 Apil 1998.T la cumn, appanl sign b bank fcials, sas a “ bncial wn Panamanian Cmpan ‘Campaal Inc.’ wi accun numbs 275748 an 275903 is M. Jsé euas Sans—Luana, Angla.”

99. eXhIBIt:25: Plic rp Allain Guillux an os 12 Nvmb 2003.

100. S gnall All Te President’s Men: Director’s Cut , Glbal Winss (Mac 2002). www.glbalwinss.g/sis/aul/ls/imp/apm.x.

101. eXhIBIt 31: Plic rp Allain Guillux an os 12 Nvmb 2003.

102. JUGeMeNt. N° : 0019292016. rÉPUBLIQUe FrANÇAISe trIBUNAL de GrANdeINStANCe de PArIS 11èm camb—3èm scin (27 cb 2009), p. 272, availabl a p://pcniqus.blg.lmn./ls/2009/11/angla_.1258044908.p .

103. Ibid.

104. eXhIBIt 42: Swizlan–Angla Acc 1 Nvmb 2005 (Annx).

105. Ibid.

106. Ibid.

107. eXhIBIt 30: Gnva Camb ’Accusain ruling 29 ocb 2003, pag 11; eXhIBIt 37: Cisin

Jun l danil Zapplli 3 Jun 2004, pag 3 (aus’ anslain); eXhIBIt 40: danil Zappllil 21 dcmb 2004, paagaps 2–4.

108. Inmain m Gnva pscu’s fc.

109. eXhIBIt 40: danil Zapplli l 21 dcmb 2004.

110. Cuiculum Via: d. eniqu Csi-Pascal, www.publicbnanc.cm.

111. Ibid .

112. eXhIBIt 37: Cisin Jun l danil Zapplli 3 Jun 2004, pag 2; eXhIBIt 40: danilZapplli l 21 dcmb 2004, pag 3.

113. eXhIBIt 37: Cisin Jun l danil Zapplli 3 Jun 2004, pag 1 (aus’ anslain).

114. eXhIBIt 40: danil Zapplli l 21 dcmb 2004, paagap 4; eXhIBIt 37: Cisin Jun

l danil Zapplli 3 Jun 2004; eXhIBIt 36: Cisin Jun l J-F ducs 23 Fbua 2004.

115. eXhIBIt 37: Cisin Jun l danil Zapplli 3 Jun 2004, pag 2.

116. Gnva Pnal Pcu C (e 420), aicls 65, 67, 69 an 77.

117. eXhIBIt 40: danil Zapplli l 21 dcmb 2004 (mpasis a).

118. eXhIBIt 4: russia-Abaln Agmn 5 Mac 1997, scin 2.4




http://www.globalwitness.org/sites/default/files/import/atpm.txt




http://www.publicdebtfinance.com/







http://www.publicdebtfinance.com/









Not e s 157

120. In, as was sa n ac Ns, anss i pais w subjc pi nic anappval b Banc Nacinal Angla. eXhIBIt 5: Angla Pmiss Ns.

121. eXhIBIt 41: russia–Angla Ming Minus 30 Spmb 2005.

122. eXhIBIt 30: Gnva Camb ’Accusain ruling 29 ocb 2003, pags 4–5 (aus’ anslain).

123. Ibid.

124. Ibid.

125. eXhIBIt 28: Sbinvs Flw Ca.126. Nui r, “Gaamak bas civil sui v Angla b al,” Haaretz (26 ocb 2011), availabl a

p://www.aaz.cm/pin-iin/businss/gaamak-bas-civil-sui-v-angla-b-al-1.392 073. S als Nui r, “Sui claims Gaamak au Anglans $365 millin,” Haaretz (13 Apil2008), availabl a p://www.aaz.cm/pin-iin/businss/sui-claims-gaamak-au-anglans--365-millin-1.243850. T cas was ismiss in 2011 n juisicinal guns.

127. eXhIBIt 22: Abaln l re liv MIN FINs, 6 Apil 2001.

128. In pi bwn s an las Inpmbank anss m Sbinvs accun (26 Mac2001 29 Augus 2001), MinFin 5s ang m a lw 39.9375 p cn ac valu (27 Mac) up a ig 52.1875 p cn (14 Jun); an MinFin 7s ang m a lw 38.969 p cn (15 Augus2001) a ig 46.737 p cn (14 Jun). Wi suc vlail pics, caul iming wul av apampl wa vn n MinFins.

129. eXhIBIt 26: Abaln l re blck Pmiss Ns 14 dcmb 2001.

130. Knwlgabl sucs av ass a sm $66 millin aiinal ma av bn sn inicl m Sbinvs Inpmbank as pa a $247 millin pamn a Gaamak vicl iscussblw, Mnsana taing. Sm s uns ma av bn appli pucass MinFins mpin six an svn Ns. Ta pin ma av cv gap bwn a al $131,500,640 pai m Sbinvs icl Inpmbank (psumabl pucas MinFins)an u sima al pucas pic svn Ns $158.4 millin.

131. T aus n av cpis s agmns.

132 eXhIBIt 38: dclaain rmianc an dbi rlas dclaain 20 Jul 2004.

133. Ibid .

134. eXhIBIt 41: russia–Angla Ming Minus 30 Spmb 2005, paagap 1.



137. eXhIBIt 43: Angla–Abaln Agmn, 9 Nvmb 2005.

138. “Pscuin cumns: Gaamak Angla U.S.$206 millin,” Te Marker (Isal) (23 Mac 2009),availabl a p://www.mak.cm/law/1.525516 (aus’ anslain m hbw).

139. $774,193,548 pai UBS + 618,235,483 pai Sbinvs + $387,096,774 pai icl russia =$1,779,525,805.

140. $7.5 billin GdP 1996, p Wl Bank, p://aa.wlbank.g/inica/Ny.GdP.MKtP.Cd?pag=3/.

141. Accing inmain pvi b Luxmbug cmpan gis.

142. “Vlaimi Vingav: Pin Piva Banking in russia,” Te imes (UK) (6 Jul 2008). Vingav i a sk in 2008.

143. Cis hucins, Putin (2012), pags 109–110.

144. ou cumnain sws pamns ma m Sbinvs accun bwn Mac andcmb 2001 aling $681,401,110.78, sm $63 millin m an Snangl pai in. SeXhIBIt 24: Sbinvs Cpus Accun Scul Pamns Apil–Augus 2001.

145. Accing inmain pvi b Luxmbug cmpan gis.

146. Ibid.

http://www.haaretz.com/print-edition/business/gaydamak-beats-civil-suit-over-angola-debt-deal-1.392073




http://www.themarker.com/law/1.525516

http://data.worldbank.org/indicator/NY.GDP.MKTP.CD?page=3




http://www.themarker.com/law/1.525516








147. JUGeMeNt. N° : 0019292016. rÉPUBLIQUe FrANÇAISe trIBUNAL de GrANdeINStANCe de PArIS 11èm camb—3èm scin (27 cb 2009), pag 463 an pags 469–470, availabl a p://pcniqus.blg.lmn./ls/2009/11/angla_.1258044908.p .

148. S als Nui r, “Sui claims Gaamak au Anglans $365 millin,” Haaretz (13 Apil2008), availabl a p://www.aaz.cm/pin-iin/businss/sui-claims-gaamak-au-anglans--365-millin-1.243850.

149. eXhIBIt 24: Sbinvs Cpus Accun Scul Pamns Apil–Augus 2001. T pcisamun a was cla a xpnss cann b min, ug i asil appas av bnin uns millins llas. S Nui r, “Sui claims Gaamak au Anglans $365 millin,” Haaretz (13 Apil 2008), availabl a p://www.aaz.cm/pin-iin/businss/sui-claims-gaamak-au-anglans--365-millin-1.243850 (lawsui b Gaamak’s minvsmn un manags, suing unpai s, w ass a Gaamak’s invsmns gw m$365 millin $1.25 billin in u as).

150. eXhIBIt 15: Gaamak-Malkin MoU 20 dcmb 1999, pag 1.

151. eXhIBIt 19: Abaln Invsmns Pw An 10 Ma 2000 (sign b Jll Maman asdic).

152. eXhIBIt 23: Abaln Invsmns Pw An 1 Ma 2001 (pw “ ul psn ucmpan, in mas cncning acquisiin… cain pmiss ns issu b BancNacinal Angla….[incluing] cllc n bal Abaln Invsmns Limi abv

mnin pmiss ns”).153. eXhIBIt 44: Abaln Invsmns Pw An 22 Nvmb 2005 (pw “ ul psn

u cmpan in mas, cncning las [] Abaln Invsmns Limi m all malspnsibiliis (an ans s spnsibiliis Gvnmn rpublic Angla) civ 7 pmiss ns an lvan rpamn Cicas (ala pai b Abaln InvsmnsLimi) an cnclu acquisiin maining pmiss ns”).

154. eXhIBIt 24: Sbinvs Cpus Accun Scul Pamns Apil–Augus 2001, N a w appanl a numb Gaamak-link uns a Luxmbug banks, sm wic pssibl cnain Fnc Anglaga pcs as wll as db dal pcs. T appan xisnc a dxa Glbal Fun an a dxa Fun II, in paicula, mak i ifcul kp uns saig, bas n cumnain w av. S eXhIBIt 29: Isal Minis Jusic rqus Assisanc (n a),paagap 21. S als Véniqu Pujl, “L’incabl sin l’agn l’Anglaga,” D’Lëtzebuerger Land (16 Spmb 2010), availabl a p://www.lan.lu/2010/09/16/lincabl-sin--lagn--langlaga/.

155. T gu ma av bn cls $180 millin, i i is u a sm $66 millin was sn Inpmbank pucas MinFin scuiis, as inica abv. Tis sms pssibl cbab eXhIBIt 28: Sbinvs Flw Ca, wic sws a Spmb 2001 pamn m Sbinvs “PreMIUM FUNd L. +/– USd 180 Mi in Bns.” I s, sm uns ans ma avbn us pucas MinFins a w us pupss an db dal.

156. yssi Mlman, “Gaamak’s bank—Pi Gz: I n knw w mn cam m—buI knw w i was ans,” Haaretz (26 dcmb 2008), availabl a p://www.aaz.c.il/misc/1.1369918 (aus’ anslain).

157. Ibid. S als Véniqu Pujl, “L’incabl sin l’agn l’Anglaga ,” D’Lëtzebuerger Land ,(16 Spmb 2010) availabl a p://www.lan.lu/2010/09/16/lincabl-sin--lagn--

langlaga/. ($360 millin gw $1.4 billin accing invsmn manags, an $600millin accing a plic p). S als Nui r, “Sui claims Gaamak au Anglans $365 millin,” Haaretz (13 Apil 2008), availabl a p://www.aaz.cm/pin-iin/businss/sui-claims-gaamak-au-anglans--365-millin-1.243850 (lawsui b Gaamak’s minvsmn un manags, suing unpai s, w ass a Gaamak’s invsmns gw m$365 millin $1.25 billin in u as).

158. W n av a cp 5 Fbua 2004 mpin l m dagan, bu cspnncm sam pi cnms is xisnc an a i was dagan w sign. eXhIBIt 34:Cspnnc wi Invsmn Bank Luxmbug Glbal Alpa Sa L. Fbua 2004.

159. T dxa Fun II sms b a in Gaamak-link un m dxa Glbal Fun.

160. eXhIBIt 32: Cspnnc wi Invsmn Bank Luxmbug Pmium Fun L. Fbua 2004.

























Not e s 159

161. Véniqu Pujl, “ds puvs,” D’Lëtzebuerger Land (28 Spmb 2012), availabl a p://www.lan.lu/2012/09/28/s-puvs/ (aus’ anslain).

162. eXhIBIt 35: Cspnnc wi Invsmn Bank Luxmbug dxa Fun II L. Fbua 2004.

163. eXhIBIt 39: IBL L Ca Abgas rmpin rqus dxa Fun II, PmiumFun an Glbal Alpa Sa 27 Jul 2004.

164. eXhIBIt 33: Nw Clin Pl Palim tus Svics 18 Fbua 2004.

165. Ibid.

166. eXhIBIt 29: Isal Minis Jusic rqus Assisanc (n a), paagaps 30–33.

167. eXhIBIt 29: Isal Minis Jusic rqus Assisanc (n a), paagap 32.



170. eXhIBIt 29: Isal Minis Jusic rqus Assisanc (n a), Paagap 36.

171. Véniqu Pujl, “L’incabl sin l’agn l’Anglaga,” D’Lëtzebuerger Land (16 Spmb2010), availabl a p://www.lan.lu/2010/09/16/lincabl-sin--lagn--langlaga/.

172. yssi Mlman, “Gaamak’s bank—Pi Gz: I n knw w mn cam m—buI knw w i was ans,” Haaretz (26 dcmb 2008), availabl a p://www.aaz.c.il/

misc/1.1369918 (aus’ anslain).173. Véniqu Pujl, “L’incabl sin l’agn l’Anglaga,” D’Lëtzebuerger Land (16 Spmb

2010), availabl a p://www.lan.lu/2010/09/16/lincabl-sin--lagn--langlaga/ (“[t] invsigain s a as swn a [ds] unain was a sam inn civ cuabu suppsl x igin is mn. In ac, Acai Gaamak pull sings, an mn, nc u Luxmbug, cnibu lil caiabl wks (xcp Maanl Funain).I wn lagl Gaamak’s bank accun in Cpus, as a m Slla Bank manag si in juicial invsigain.”) (aus’ anslain).

174. S n 176.

175. eXhIBIt 36: Nw Clin Pl Palim tus Svics 18 Fbua 2001.

176. dcumnain suc b aus suggss llwing ansacins k plac bwn Jun

2006 an Ma 2007. on 6 Jun 2006, dsbn ans bns valu a a al $1m un acnms GMKN, rtKM, GAZP, SNGS, eeSr an ArG35 Iksan. on 13 Spmb 2006, Caslans bns valu a a al $7.1m un acnms GMKN, eeSr an SNGS Iksan.on sam a, dsbn ans bns valu a $241.3m un acnms GMKN, GAZP,SINGS, eeSr, PLZL, roSN an ArG35 Maanl. In ocb 2006, dsbn ans bns Maanl w $6.8m un acnms Gdr, PLZL, eIB07, IAB07 an totAL07. on 22Fbua 2007, dsbn ans an s bns Maanl w a al $1.2m un acnms eSP08, Ger10, dBh11, CAN08, SIeMeNS08 an VodAFoNe08. In s al 2007, manwil, Maanl ans bns un acnm GAZP accuns in Swizlan.In Janua 2007, GAZP bns valu $6,665,225 w ans m Maanl an accuna eFG Bank in Gnva, llw b a ans $5,947,500 w GAZP bns in Ma 2007 an accun a Banqu diamanai in Swizlan. S eXhIBIt 27: Gaamak niis ansacins—suc an a unknwn.

177. yssi Mlman, “Gaamak’s bank—Pi Gz: I n knw w mn cam m—buI knw w i was ans,” Haaretz (26 dcmb 2008), availabl a p://www.aaz.c.il/misc/1.1369918 (aus’ anslain). S als yssi Mlman, “T Sc tial Acai Gaamak,”Haaretz (27 Ma 2010), availabl a p://www.aaz.cm/misc/aicl-pin-pag/-sc-ial--acai-gaamak-1.292469?ailingPa=2.169%2C2.225%2C2.239%2C (“Gaamak can lax a biin Cpus. T cu is planning sn li z i imps n asss psi in russian Cmmc Bank . T z $47 millin l b Maanl Funain an wasissu a qus Luxmbug bank Pi Gz.”).

178. Nui r, “Gaamak Bas Civil Sui ov Angla db dal,” Haaretz (26 ocb 2011),availabl a p://www.aaz.cm/pin-iin/businss/gaamak-bas-civil-sui-v-angla-b-al-1.392073.

179. Ibid .

http://www.land.lu/2012/09/28/des-preuves/




http://www.haaretz.com/misc/article-print-page/the-secret-trial-of-arcadi-gaydamak-1.292469?trailingPath=2.169%2C2.225%2C2.239%2C















180. eXhIBIt 27: Gaamak niis ansacins—suc an a unknwn.

181. Maanl Funain, Cmpan Numb (Num Fic) 19012, rgis 22 Jun 2006,Panamanian Cmpan rgiss.

182. Maanl Funain wbsi, www.maanl.g/cnn/gvnanc.

183. “Abu Maanl,” www.maanl.g/cnn/maanl-unain.

184. “Lis Pas an Psn Pgams,” www.maanl.g/pas-psn-pgams.

185. “Fis-v Psin’s Piz ns Kissing,” Jerusalem Post (9 Fbua 2012), availabl a p://www. jps.cm/halins/Aicl.aspx?i=257114.

186. rasi Funain Pans, availabl a www.asi-unain.g.il/nglis/pansinx.aspx .

187. Véniqu Pujl, “ds puvs,” D’Lëtzebuerger Land (28 Spmb 2012), availabl a p://www.lan.lu/2012/09/28/s-puvs/ (aus’ anslain).

188. Véniqu Pujl, “L mag pap,” D’Lëtzebuerger Land (7 dcmb 2012), availabl a p://www.lan.lu/2012/12/07/l-mag--pap/ (aus’ anslain).

189. “A Quixa-cim qu davi Mns inps na PGr cna psin Angla a SAdC,” Canal Moz (16 Nvmb 2011), availabl a p://www.canalmz.c.mz/j/20722-a-quixa-cim-qu-avi-mns-inps-na-pg-cna--psin--angla--a-sac.ml.

190. Véniqu Pujl, “L’incabl sin l’agn l’Anglaga,” D’Lëtzebuerger Land (16 Spmb

2010), availabl a p://www.lan.lu/2010/09/16/lincabl-sin--lagn--langlaga/ (aus’ anslain).


192. Ibid .

193. Ibid .

194. Ibid.

195. Ibid .

196. Ibid.

197. Ibid .198. Ibid.

199. eXhIBIt 24: Sbinvs Cpus Accun Scul Pamns Apil–Augus 2001 Apil–Augus 2001;eXhIBIt 25: Snangl Accun Samns Mac–Augus 2001.

200. eXhIBIt 24: Sbinvs Cpus Accun Scul Pamns Apil–Augus 2001.

201. Pssibl sam accun as pcing n.



204. eXhIBIt 24: Sbinvs Cpus Accun Scul Pamns Apil–Augus 2001.

205. T ans n is pamn is n ini n eXhIBIt 24, bu i appas b “USd 90 Mi”ans swn wi a a “5/2001”n eXhIBIt 28: Sbinvs Flw Ca. T ans ma avgn ug an inmia accun b acing Glbal Alpa Sa Fun.

http://www.matanel.org/content/governance

http://www.matanel.org/content/matanel-foundation

http://www.matanel.org/past-present-programs

http://www.jpost.com/Headlines/Article.aspx?id=257114


http://www.rashi-foundation.org.il/english/partnersindex.aspx



http://www.canalmoz.co.mz/hoje/20722-a-queixa-crime-que-david-mendes-interpos-na-pgr-contra-o-presidente-de-angola-e-da-sadc.html








http://www.rashi-foundation.org.il/english/partnersindex.aspx



http://www.matanel.org/past-present-programs

http://www.matanel.org/content/matanel-foundation

http://www.matanel.org/content/governance



161

Assocação Mãos Lvres (ML) Assciaçã Mãs Livs (ML) is a uman igs ganizain cmpis laws, cain 2000. T ganizain is bas in Luana, Angla, wi fcs in Cabina an huamb.ML s lgal avic; ains lgal aviss (paalgals); cnibus cnic sluin;an issminas ucainal maials abu uman igs. T ganisain als liigasimpan cass in Anglan cu laing uman igs vilains an cupin.

Corrupton Watch UK

Cupin Wac is a Lnn-bas ani-cupin NGo un in 2009. Cupin

Wac ails an xpss impac bib an cupin n mcac, gvnancan vlpmn, b acking an mniing maj bib an cupin cass, pusing civ ncmn glbal an nainal ani-cupin gulain, an builing an innainal nwk ani-cupin pans an aciviss. T NGo als assisspscus, law ncmn agncis, NGos, junaliss, aciviss an lgislas in is g cupin.







This report provides a detailed account of a controversial Debt Dealbetween Russia and Angola which started in 1996, in which two men withsignificant involvement in the arms trade – Arcadi Gaydamak and PierreFalcone – diverted for their own benefit hundreds of millions of dollars byinserting an unnecessary middleman (a shell company named AbaloneInvestments) into Angola’s debt repayment to Russia, despite offering nodiscernible value. Powerful Angolan and Russian figures, including AngolanPresident José Eduardo dos Santos, and Vitaly Malkin, formerly the richestmember of Russia’s Duma prior to his resignation in 2013, benefited from

the Deal, which Swiss Bank Corporation (SBS) (later UBS, through merger)facilitated. Of the $1.39 billion paid by Angola to settle its debt to Russia,the middlemen and senior Angolan officials siphoned off over $386 million,at the expense of the Angolan and Russian people. More than $550 millionwent to suspected insiders or still unknown beneficiaries. The Angola Russia Debt Deal is a shocking case of deceit and deception by

Documents

The Corrupt Angolan Russian Debt Deal Full Report