Donetsk governor’s assets seized in Cyprus - report

© RIA Novosti

11:12 22/05/2014

MOSCOW, May 22 (RAPSI) – Part of the assets of Sergei Taruta, whom the de facto Ukrainian authorities appointed as the governor of the Donetsk Region, have been seized in Cyprus at the request of VTB Bank, Kommersant newspaper writes on Thursday.

In 2011, Taruta and a Russian businessman acted as the guarantors of a $30 million loan issued to a Siberian company. The loan has not been repaid, and VTB Bank lawyers filed a lawsuit against the guarantors, which led to the seizing of FC Metallurg and two offshore companies, Arrowcrest Ltd (100% owned by Taruta) and Dargamo Holdings Ltd.

Dargamo is an indirect shareholder of the Donbass Industrial Union (ISD), in which Taruta holds a minority stake.

“The court issued an injunction prohibiting the assignation, transfer, passing as a deed of gift, pledge or any other encumbrance of the assets and movable and non-movable property which Sergei Taruta holds directly or indirectly,” the statement reads.

The public relations officer of the Donetsk Region administration refused to comment because “the lawsuits most probably concern the governor’s personal business.”

Ukraine went through a regime change on February 22, when President Viktor Yanukovych fled the country and Western-backed ultranationalist activists rose to power in Kiev. The Verkhovna Rada changed the constitution and set an early presidential election for May 25.

Moscow has not acknowledged the legitimacy of the parliament’s decisions.

Crimea and the city of Sevastopol, refused to recognize the de facto Kiev authorities. They held a referendum that voted for independence and asked to be incorporated into Russia.

The appointment of Taruta as the Donetsk governor by acting President Oleksandr Turchynov led to public unrest. Over 1,500 people held a demonstration during which they claimed that Taruta’s appointment was illegal because the de facto Kiev authorities were illegal.