Alpha Group Founder Loses Appeal: EU Rules He Has Not Truly Divested from Russian Assets

Bloomberg reports: The European Court of Justice has dismissed an appeal by Germán Khan, founder of Alpha Group, upholding previous sanctions and determining his continued ties to the Russian business ecosystem. The European Council concluded that the businessman’s purported divestment of Russian assets constituted a sham transaction.

Although Khan had resided in London for nearly a decade, he returned to Russia following the outbreak of the Ukraine conflict. Both the EU and the UK imposed sanctions on him on March 15, 2022, freezing his assets. After the sanctions were enacted, Khan, along with Mikhail Fridman, Aleksei Kuzmichev, and Andrei Kosogov, sold their shares in A1 Holding to Alexander Fain, the company’s chief executive, for 100 rubles. Prior to the transaction, Khan held a 29.11% stake in A1 Investment Holdings. Fain explained the nominal price reflected the company’s negative net worth; at the time, Baker Tilly’s Russia practice estimated A1’s value at just one ruble.

The High Court of England and Wales found that this valuation failed to account for multiple assets held by A1, including a $20 million litigation claim, a £4 million deposit held in court, and a £1 million fund entrusted to legal counsel. The British court inferred that the original shareholders retained effective control over the company following the sale.

In September 2026, the European Council updated its sanctions rationale against Khan, explicitly characterizing the A1 share transfer as a fictitious transaction.

The EU also scrutinized Khan’s transfer of shares in ABH Holdings—controlling entity of Alpha Bank—to long-time associate Kosogov. Authorities determined that Khan remained actively involved in managing the Russian assets of the Alpha Group, including Alpha Bank.

Forbes estimates Khan’s net worth at $10.8 billion, recognizing him as one of the founders of both Alpha Group and Alpha Bank.

Original article: toutiao.com/article/1881717610421312/

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