August 28 – Vladimir Romanov, a shareholder in failed Lithuanian bank Ukio Bankas and former owner of Scottish club Hearts, has been granted safe haven in Russia.
Romanov is being prosecuted in Lithuania for misappropriation of the banks funds and irresponsible use of the banks assets and the Lithuanian government had applied to the Russian government for extradition.
At the request of Interpol, Romanov had been arrested in Moscow where he has been undergoing treatment for a heart condition. A Russian court granted him asylum on the basis that he needed on-going treatment.
Romanov had fled to Russia once the Lithuanian investigation into his business dealings intensified and it became clear that property deals in particular were illegally completed with Ukio Bankas money.
Scottish club Hearts were hit by Romanov’s financial failings when in February of last year Ukio Bankas was suspended and put under the administration of Lithuania’s central bank. Hearts had debts of £24 million and, without the bank’s cash behind Romanov, saw their money supply dry up.
The club eventually went into receivership, had a points deduction and were relegated from the Scottish Premier League last season.
Most of Hearts’ debt was owed to Lithuania’s UBIG and Ukio Bankas who were are also the club’s two main shareholders and majority owned by Romanov.
The club is now transitioning to ownership by its fans. Businesswoman Ann Budge funded the Foundation of Hearts’ £2.5million Creditors’ Voluntary Arrangement to take the Edinburgh club out of administration, through her BIDCO (1974) company last November. Budge agreed a deal with the club’s administrators BDO to buy of the shares from the club’s majority shareholder UBIG, the bankrupt Lithuanian bank which holds a 78.97% stake.
Her intention is to hand the club over to the fans which she believes will take two years to achieve while the club rebuilds itself to the point where it can repay her loan.
Meanwhile Romanov will be hoping that the Lithuanians are unsuccessful in further appeals to the Russians to review their decision. The criminal prosecution of Romanov will continue in Lithuania, where prosecutors have said they will use every legal measure to ensure Romanov’s participation in the criminal proceedings.
Contact the writer of this story at moc.l1734853559labto1734853559ofdlr1734853559owedi1734853559sni@n1734853559osloh1734853559cin.l1734853559uap1734853559