Sugar king, dollar billionaire Vadim Moshkovich arrested in Moscow

Russian authorities have detained Vadim Moshkovich, the founder of the Rusagro holding company, former senator from the Belgorod region, and dollar billionaire. Moshkovich had attempted to distance himself from Russian President Vladimir Putin following the start of the special military operation in Ukraine and the personal sanctions imposed against him.

Suspected of Large-Scale Fraud and Asset Seizure

According to preliminary reports, Moshkovich is suspected of large-scale fraud and seizing the assets of another major holding company. A criminal case has reportedly already been opened.

Investigative actions are being carried out against Moshkovich as part of a case under Part 4 of Article 159 of the Russian Criminal Code (fraud on an especially large scale). His legal status in the case has not yet been disclosed.

Additionally, searches and document seizures are taking place at Rusagro’s offices in Moscow, Belgorod, Tambov, and Saratov, where the company has branches.

Rusagro CEO Detained Also

Several other individuals have also been detained, according to Interfax sources. Among them is Rusagro's CEO, Timur Lipatov, who is being questioned alongside Moshkovich. The case was reportedly opened by the Investigative Department of the Russian Interior Ministry, concerning embezzlement in companies that had business dealings with Rusagro. Investigators may petition the court on March 27 to determine pre-trial detention measures for the suspects.

Ties to Solpro Group and Alleged Asset Seizure

A Telegram source (from the VChK-OGPU channel, recognized as a foreign agent in Russia) stated that the case is linked to the relationship between Rusagro, Moshkovich, and the Solpro Group, owned by Vladislav Burov.

According to Mash, one of the reasons for Moshkovich's detention is suspected asset seizure of a major oil and fat holding company, Solnechnye Produkty, worth over 1 billion rubles. Another possible accomplice is Maksim Basov, who was CEO of Rusagro until November 2021.

Additionally, a separate case has been initiated under Article 201, Part 2 of the Russian Criminal Code (abuse of power leading to grave consequences).

Rusagro Stocks Plummet After News of Moshkovich’s Arrest

Following the news of Moshkovich’s detention, Rusagro’s stock price on the Moscow Exchange dropped over 17%, falling to 187.4 rubles by 16:26 Moscow time.

Moshkovich’s Business Background: From Sugar to Agriculture

Vadim Moshkovich began his entrepreneurial career in the early 1990s, engaging in computer sales, construction, cigarette and alcohol imports, and stock trading. He could afford a new car every day with his stock market earnings if he wanted to, The Versiya newspaper once said. 

• In 1995, he founded Sugar Trading, which imported sugar for large confectionery factories. By 1999, his company was among Russia’s top three sugar processors, owning three sugar factories in Belgorod. This earned him the nickname "Sugar Oligarch."
• In 2003, he established Rusagro, which became one of Russia’s largest agribusiness holdings, operating in agriculture, sugar production, meat processing, and the oil and fat industry.

Political Career and Billionaire Status

From 2006 to 2014, Moshkovich served as a senator from Belgorod, though he resigned a year before his term ended.

In 2020, he ranked 57th in Forbes Russia’s list of wealthiest businessmen. By 2024, his fortune was estimated at $2.7 billion.

Sanctions and Legal Battle to Remove Them

On February 24, 2022, Moshkovich was among Russian businessmen who attended a meeting with Putin the day when the military operation in Ukraine began. Shortly after, he was sanctioned by the European Union and several Western countries.

The EU justified the sanctions by citing Moshkovich’s presence at the meeting with Putin, claiming he was part of Putin’s inner circle.

“The applicant [Moshkovich] argues that attending this meeting does not indicate a personal relationshipwith President Putin. He insists it was a formal event concerning domestic policy, not geopolitics. He also notes that the EU Council never defined what constitutes 'Putin’s inner circle' and that he does not engage in politics," European General Court said in its ruling from December 20, 2023.

In December 2022, the EU granted limited relief to Moshkovich and some other oligarchs. He later challenged the sanctions in court, claiming that he was not part of Putin’s inner circle and that Rusagro did not provide significant revenue to the Russian state budget. However, the European court rejected his appeal.

Cyprus revoked Moshkovich's Golden Passport

Vadim Moshkovich previously held a "golden passport" from Cyprus, but the country revoked it following the start of Russia's special military operation in Ukraine.

• In July 2024, Ros Agro PLC was added to the list of Russia's economically significant organizations. This designation allows Russian beneficiaries to legally obtain direct ownership of shares and stakes in such companies through court proceedings, bypassing foreign holding structures.
• As a result, the company initiated the process of re-registration in Russia. However, Rusagro shareholders opposed the redomiciliation from Cyprus to Russia, leading to the process becoming mandatory.
• In February 2025, after the company's legal relocation to Russia, Rusagro shares were re-admitted for trading on the Moscow Exchange.