According to Bloomberg, Russian prosecutors are seeking the expropriation of KDV Group—one of the country’s largest snack producers founded by billionaire Denis Shtengelov. The entrepreneur’s fortune, as estimated by the Bloomberg Billionaires Index, exceeds $2.6 billion. Now a significant portion of that wealth may be at risk.
What the Claims Are About
As Interfax reports, the prosecutor’s lawsuit alleges that entities linked to Shtengelov supplied food to the Ukrainian armed forces. It is also claimed that the businessman’s father, Nikolai Shtengelov, “established a paramilitary formation on enemy territory,” and that KDV transferred income from its Russian operations to “unfriendly jurisdictions” without the required approvals. These assertions cannot currently be independently verified; the text of the suit is not publicly available, and KDV’s press office did not respond to calls or emailed inquiries.
A Trend Toward Asset Seizures
The KDV story fits a broader trend: since the war began, authorities have been more actively seizing assets from those deemed enemies of the state. By June, the combined value of confiscated property since 2022 had reached 3.9 trillion rubles (about $46.8 billion), according to Moscow law firm Nektorov, Saveliev & Partners, as cited by Bloomberg.
Earlier, a Moscow court ordered the nationalization of the Russian developer behind World of Tanks after its co-founders were designated “extremists”—a framing that now appears in the KDV case as well (Bloomberg).
“We can expect an increase in the number of big enterprise seizures where ‘extremism’ will be only a formal basis for appropriation,” said Kirill Gorlov, legal counsel at Transparency International Russia.
What’s Happening in Court
On September 23, a Moscow court plans to consider whether the state can proceed with taking over Shtengelov’s business. Before that, as TASS reported, the court banned any transactions involving the property and shares of more than 50 companies within KDV’s perimeter.
KDV earlier posted a statement on its website: “Our team sincerely hopes for a fair and balanced resolution to the current situation, as the company conscientiously fulfilled its obligations to the state, paid taxes, and invested in Russia, creating jobs, supporting regions, and numerous charitable projects.”
While “extremism” has rarely been used as a legal basis, assets worth roughly 200 billion rubles have already been appropriated on those grounds. That figure would more than triple if the state gains control of KDV: prosecutors value the group at around 500 billion rubles.
How the KDV Empire Was Built
Shtengelov began his business career in the 1990s after graduating from a Siberian university. According to Bloomberg, in the early years he bought sunflower seeds for elderly women in Tomsk who roasted and sold the popular snack, and he pressed oil from seeds that he bartered to cash-strapped confectioners for candy.
The key to growth was tight control over the supply chain—from dairy farms to factories producing chocolates, choux pastry, and cookies. Today, per research firm INFOLine, KDV is Russia’s fourth-largest producer of food and beverages. The company has more than 39,000 employees, 14 factories, and hundreds of SKUs—from crisps and snacks to baby food. According to the Spark-Interfax database, KDV’s 2024 revenue was 305 billion rubles.
In 2021, KDV acquired US-based Liberty Orchards Co. (maker of Aplets & Cotlets) and Dutch vegetable products supplier Hak; Shtengelov also holds a stake in Croatian confectioner Zvečevo, Forbes reported.
The Entrepreneur’s “Australian Trail”
State attention toward Shtengelov is not new. In 2018, a fire in a Siberian shopping mall he co-owned killed more than 60 people. In a rare interview at the time, he said he wasn’t involved in the mall’s operational management but paid 3 million rubles to the relatives of each victim. He also noted that he divided his time between Russia and Australia, where he owns a sports facility on the Gold Coast.
Since 2011, Shtengelov has been linked to KDV Sport Pty Ltd. In 2020, he stepped down as director, leaving Maria Karzhilova as the sole director. The company’s centerpiece is the KDV Sport complex in Carrara (a suburb of the Gold Coast, about 70 km south of Brisbane). The site includes 20 tennis courts (including clay), 18- and 9-hole golf courses, a driving range, padel and pickleball courts, a gym and fitness center, and a hotel with a day spa and restaurant.
Two other businesses are tied to KDV Sport in Australia: Elite Gold Coast, the hotel operating within the sports complex, and Eurofood Shop, a retailer of Russian and Polish groceries on the Gold Coast.
In Bloomberg’s view, the KDV case illustrates how the state is expanding asset seizures, invoking “extremism” and “unfriendly jurisdictions” as legal grounds. The court outcome for Denis Shtengelov’s company could become one of the most high-profile episodes yet: at stake is an asset valued at about 500 billion rubles—and, along with it, the credibility of a mechanism that is increasingly reshaping Russia’s corporate landscape.
This article was prepared based on materials published by Bloomberg. The author does not claim authorship of the original text but presents their interpretation of the content for informational purposes.
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