Russian authorities have launched a sweeping crackdown on Anatoly Chubais—once celebrated as the architect of Russian democracy—as part of a high-profile investigation into alleged financial misconduct at the state-backed nanotechnology corporation Rosnano. Several of Chubais’s former colleagues at the company have already been arrested, while the exiled Kremlin insider, who now reportedly divides his time between Israel and the UK, stands accused of orchestrating large-scale fraud.
Putin and Mishustin on the Warpath
According to sources, the push for a criminal probe originated within the government of Prime Minister Mikhail Mishustin and quickly gained the backing of President Vladimir Putin. Officials claim that Rosnano, which has received over 404.6 billion rubles in state funding since its founding, has left behind a financial abyss.
By mid-2021, the company still owed 76.3 billion rubles in loans to banks such as Sovcombank, Bank Saint Petersburg, and Promsvyazbank, along with an additional 70.4 billion rubles in outstanding bonds.
Looming Bankruptcy Threat
Mishustin’s government initially explored the possibility of declaring Rosnano bankrupt. However, this course of action was opposed by Chubais, the Ministry of Finance, and the Presidential Administration. Instead, authorities opted for a different approach—one that did not involve formal insolvency but sought to address the company’s dire financial state through other means.
Current Rosnano leadership estimates losses under previous management at over 200 billion rubles. Auditors, including the Federal Treasury, claim to have discovered offshore fund transfers disguised as purchases of “dubious technologies” at highly inflated prices. Furthermore, state-owned shares were allegedly sold at suspiciously low valuations.
High-Profile Arrests
The investigation escalated this week with the arrests of Rosnano’s financial director Boris Podolsky and managing director for finance Arthur Galstyan. Authorities allege that in 2017, the duo manipulated the company’s financial statements to conceal its worsening performance.
Rosnano’s 2017 financial reports suggested that its improved asset valuations were, in part, a result of accounting policy adjustments. These reports were approved by the board of directors, then led by Arkady Dvorkovich, with Ilya Yuzhanov heading the audit committee. Other notable board members included influential figures such as Minister of Industry and Trade Denis Manturov and billionaire Viktor Vekselberg.
Billion-Ruble Blow
One key focus of the investigation is an additional 43 billion rubles in state aid allocated to Rosnano between 2022 and 2024. Analysts suggest that current Rosnano chief Sergei Kulikov, who retained Podolsky and Galstyan in their positions, may also come under scrutiny. Speculation is mounting that Kulikov himself could soon step down.
All Roads Lead to Chubais
As investigators unravel Rosnano’s financial web, many of the alleged fraudulent activities appear to trace back to Chubais. While he is currently considered only a witness in the case, any political protections he once enjoyed seem to have vanished following Russia’s military actions in Ukraine.
Kremlin insiders claim Chubais “actively provided advice to Western organizations” while in exile—a move perceived as a betrayal by Moscow. “Putin gave Chubais certain assurances,” one source disclosed, “but when he fled and failed to explain himself, those promises became irrelevant.”
For Russia’s former “democracy mastermind,” the walls are closing in—and this time, there may be no escape.
