Claims to 24.75% interest in PhosAgro dismissed

26/09/24

The Commercial Court (HHJ Pelling KC) has today dismissed in their entirety the claims brought by Alexander Gorbachev against Andrey Guriev to the effect that he was entitled to a 24.75% interest in Mr Guriev’s shares in PJSC PhosAgro, a large Russian fertiliser company, that is publicly quoted both in Moscow and on the LSE, following an IPO in 2011.

Mr Gorbachev had alleged that Mr Guriev created an express trust in relation to that interest by orally declaring himself to be the trustee in the course of conversations that took place during 2005 in a sauna and/or at the Audley public house in London, or thereafter at the Ritz hotel or the Wolseley restaurant (or outside of it), as well as conversations that took place between them in London in 2008, or alternatively on the basis of a common interest constructive trust or by the operation of a proprietary estoppel. In a careful and detailed review of the evidence, HHJ Pelling KC rejected each of these claims.

As Mr Guriev is a sanctioned individual, on 31 January 2024 ([2024] EWHC 247 (Comm)) HHJ Pelling KC acceded to the joint application of both parties that his evidence be given orally in Dubai before HHJ Pelling KC sitting as a special examiner. In today’s judgment, HHJ Pelling KC notes the clear benefit of Mr Guriev’s evidence having been given in that manner.

HHJ Pelling KC has today reserved judgment in relation to all matters consequential to the judgment.

The judgment can be found here.