Judge Elena Guchenkova handed down a verdict in the case involving Rauf and Raul Arashukov. Given the extraordinary threat posed by the Arashukovs to public safety, the court deemed life imprisonment the only appropriate sentence available.
The portion of the ruling that will determine the final penalties for the remaining defendants will be announced at a later date.
The trial was conducted before a jury. On September 23, the jury found the Arashukovs guilty as proven and also concluded that one of Gazprom’s regional managers acted in concert with an organized crime group. The jury foreperson noted that the defendants in this matter did not deserve leniency. High-ranking figures, including Kazbek Bulatov, head of the KRC Investigative Committee, and Timur Betuganov, formerly heading the KCC Center for the Fight Against Extremism within the Ministry of Internal Affairs, were named in the proceedings. The jury’s chairman emphasized the seriousness of the offenses and the lack of justification for tolerance in such cases.
In early December, Prosecutor Maria Semenenko requested life sentences for the Arashukovs and prison terms ranging from five to 24 years for the other defendants.
Why the longest possible sentence
The arrest of former Senator Rauf Arashukov occurred on January 30, 2019, during a Federation Council meeting attended by then Prosecutor General Yury Chaika and the head of the Investigative Committee Alexander Bastrykin. Soon after, Raul Arashukov, along with other defendants connected to Gazprom’s regional branches, were detained. In April of that year, Bulatov and Betuganov were also detained on charges related to organizing contract killings.
Investigators established that the organized crime group, led by the Arashukovs and including heads of Gazprom’s regional divisions, operated across the North Caucasus Federal District for approximately 17 years. As the organizer, Arashukov Sr. progressively placed relatives in senior positions within the sector, directing schemes to divert gas for personal gain. A nickname reflecting his influence in the energy sector, “Gas King,” was ascribed to him. Initial estimates suggested embezzlement of about 31 billion rubles, but subsequent findings confirmed thefts totaling 4.4 billion rubles.
In September 2022, the jury found the Arashukovs guilty of organizing the murders of Aslan Zhukov, deputy head of the KChR’s Adyghe Khase youth movement, and Fral Shebzukhov, an adviser to the republic’s president, in addition to assaulting a witness. The case record notes that the former senator pressured Bulatov and Betuganov to conceal their crimes.
The mechanics of the gas scheme
According to the investigation, Gazprom-appointed figures directed the theft of “extra” gas and its sale to various buyers, often by securing inflated gas supply contracts for North Caucasus enterprises. The scheme also involved supplying gas to non-existent customers, a detail uncovered by investigators.
Stavropol regional deputy Viktor Goncharov remarked that in 2015 two glass factories in the region suddenly faced a one-billion-ruble gas debt. He noted that production halted for a year during the ensuing legal process. “I asked how, when gas meters are installed, volumes are recorded, and how gas worth a billion rubles could be stolen. Yet Arashukov later demonstrated that the factories were victims of the scheme. Perhaps this was simply a plan by those who stole the gas,” the deputy observed.
The investigation also connected Gazprom subsidiaries in Maykop and Astrakhan, headed by Ruslan, Raul Arashukov’s nephew, Guzer Khashukaev, and other managers in Cherkessk and Stavropol, to the scheme. Early 2019 UK materials describe a coordinated effort that diverted gas valued at 31 billion rubles, with the same quantity reportedly sold to Hungary at that time’s prices.
Gas as a luxury
In July 2021, the Moscow Basmanny Court ordered the Arashukovs’ property seized in favor of the state, totaling 1.3 billion rubles, as part of the Prosecutor General’s Office proceedings. The family reportedly owned around 75 properties, including the Adiyuh Palace Hotel with a restaurant and spa facilities. Other assets included three apartments, nine residences, seven plots of land, and a fleet of 14 cars, including luxury brands, with additional valuables transferred to state custody.
Initial claims by the Attorney General suggested that the family’s expenditures on real estate, automobiles, and other luxury goods far exceeded their legitimate earnings. Records showed that Arashukov Sr., who served in Gazprom-related roles and as a regional deputy from 2007 to 2017, earned 66 million rubles, while Arashukov Jr. earned 15.7 million rubles during his tenure as a minister and deputy head of the regional government. Yet the family’s spending on luxury items surpassed several times these earnings, with around 90 cars documented in the holdings connected to them and their associates.
Final arguments
During the December 6 session, the Arashukovs presented their closing statements, maintaining their innocence and urging a fair ruling. “There is no evidence of our guilt in this case, and we ask for a legal decision,” said the former senator, addressing the presiding judge. Arashukov Sr. echoed the remarks, asserting that no witness would testify against him and denying any criminal activity, including gas theft. The prosecutor’s accusation, he argued, did not reflect the truth.
Kazbek Bulatov observed that Judge Guchenkova was well aware of the case details, but warned that external pressure on the court should be avoided. “If the judge is free to decide, I have no doubt about the outcome. If there is pressure, my remarks may not alter the result. That is why I will end here,” he stated. Meanwhile, the judge extended the defendants’ pre-trial detention until April 7, 2023. Guzer Khashukaev, the former head of Gazprom Mezhregiongaz Stavropol, was ordered to remain under house arrest until the same date. [Citation: UK materials]