Russian ex-Economy Minister Ulyukayev found guilty in $2mn bribery case

Ulyukayev was detained in November 2016 on charges of allegedly receiving a $2 million bribe, in return for his ministry’s support of a positive assessment that would allow state oil company Rosneft to complete a deal to purchase the government’s stake in another Russian oil major, Bashneft.

The charges were based on the testimony of Rosneft CEO Igor Sechin, as well as a on the evidence of a sting operation, in which Sechin personally handed a bag containing $2 million in cash to Ulyukayev, the then-economy minister.

The proceeding caused controversy in Russia, as Sechin delivered his testimony in written form, rather than in person. He refused four times to testify in court, citing scheduling differences due to the taxing nature of his job.

The defense argued that he was dodging a personal appearance and violating due process, while critics accused him of being arrogant and considering his position to be above the law. The issue was raised at this week’s Q&A session with President Vladimir Putin, who refrained from criticizing Sechin for his conduct.

According to the court ruling, Ulyukayev extorted the bribe from Sechin, and in so-doing abused his position as member of the Russian cabinet. The felony carries a potential punishment of a heavy fine, a ban from offices of power for up to 15 years and a prison term between eight and 15 years.

In his remarks, the presiding judge said “Ulyukayev acted under a preconceived plan, motivated by personal gain and with full understanding that the process of the privatization of Bashneft depended on his decisions.”

Ulyukayev pleaded not guilty at the start of the trial and continued to maintain his innocence up until the verdict announcement on Friday. In his last address, he said a ‘not guilty’ verdict would be the only just outcome for his case.

His defense team argued that the money did change hands between Sechin and Ulyukayev, but that it was an entrapment on the part of the Rosneft head. The then-economy minister was not aware of the cash being inside the bag, his lawyers told the court.

In his final plea, the ex-minister reiterated his position. “The case contains no proof of my complicity in bribe-taking whatsoever. Moreover, it testifies that I am a victim of a monstrous provocation,” Ulyukayev said in court earlier this month.

“I am guilty of a different thing. I have served Russian citizens for many years, and I have managed to achieve something, but not enough. Only when I myself got into trouble I started to understand how hard people’s lives are. People, forgive me for this. I am guilty before you,” he added.

After his arrest in mid-November last year, Ulyukayev spent around two days in a pre-trial detention facility before being placed under house arrest at his apartment, located in an elite housing complex in Moscow.

Earlier in December, Russian prosecutors asked for a sentence of ten years in a penal colony for Ulyukayev. The custodial sentence would be in addition to a fine of about $8.5 million if he was found guilty of accepting the $2 million bribe, they said at the time.

Ulyukayev is the first government minister in Russia’s modern history to be found guilty of corruption by a court.