Kyrgyzstan has put the owner of the development company Capital Group Pavel Tyo on the wanted list

Kommersant figured out the consequences of the Kyrgyz authorities putting the main owner of Capital Group, Pavel Tyo, on the wanted list. According to local media reports, he is suspected of providing “financial assistance” to criminals. According to lawyers interviewed by Kommersant, putting him on the wanted list does not pose any direct risks to the businessman’s Russian assets, but accusations from the Kyrgyz authorities could negatively affect the company’s reputation and undermine investor confidence in it. In addition, the situation may attract the attention of Russian regulators to the group’s activities and serve as a reason for inspections. Pavel Tyo himself is unlikely to face extradition: lawyers say that neither domestic Russian legislation nor international agreements allow the extradition of a Russian citizen to another state, even if he commits a crime on the territory of the latter.

The main owner of the development Capital Group, Pavel Tyo, has been put on the wanted list by the State National Security Committee (SNC) of Kyrgyzstan, local media reported on March 12. As the publication writes Tazabek with reference to the data of the State Committee, the businessman “in order to obtain support and patronage on the territory of the republic and conduct joint business, established contact with representatives of criminals, in particular with the so-called thief in law Kamchi Asanbek.”

Kyrgyz authorities believe that Pavel Tyo, “knowing and realizing the criminal status of Kamchi Asanbek,” provided him with financial assistance in the construction of real estate in Kyrgyzstan. The State Security Service did not provide other details.

Capital Group did not respond to Kommersant’s request. For market participants interviewed by Kommersant, Mr. Tyo’s projects in the Kyrgyz real estate market came as a surprise. “At least until recently, the markets of Central Asian countries, due to their small capacity, were of little interest to Russian developers,” says one of Kommersant’s interlocutors.

If a request is received from the competent authority of Kyrgyzstan for criminal prosecution against a Russian citizen when he commits a crime on the territory of a foreign state, it will be considered by the Prosecutor General’s Office of the Russian Federation, explains the chairman of the presidium of the Intellect Alliance Bar Association, Yuri Novikov. However, lawyers are confident that the businessman will not be handed over to the Kyrgyz authorities.

According to Art. 61 of the Constitution of the Russian Federation, “a citizen of the Russian Federation cannot be expelled from the Russian Federation or extradited to another state,” emphasizes Andrey Yakovlev, managing partner of the Yakovlev and Partners legal group.

The ban on extraditing a Russian citizen to a foreign state is also contained in Art. 464 of the Criminal Procedure Code of the Russian Federation (CPC), adds Mr. Novikov. In addition, Mr. Novikov clarifies, Art. 89 of the Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal Matters of 2002, which is applied by Russia (since 28 June 2023), Azerbaijan, Armenia, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan.

As for the consequences for the assets of a businessman in the Russian Federation, according to Yuri Novikov, the mere declaration of Pavel Tyo as wanted by a foreign state “does not entail direct risks for the Russian companies owned and headed by him,” since criminal prosecution is carried out only against an individual . “A legal entity is not the subject of a crime, criminal liability or punishment,” adds Mr. Novikov.

Nevertheless, being put on the wanted list in Kyrgyzstan may have a number of consequences for the work of Russian companies managed by Pavel Tyo, warns Andrei Yakovlev.

“Firstly, this can affect the company’s reputation and trust in it from partners and investors,” believes Mr. Yakovlev. “Information about problems with the law of one of the key managers can negatively affect business relations.”

In addition, the lawyer argues, in the future, “depending on the reaction of Russian law enforcement agencies and international institutions, direct legal obstacles to the company’s activities may arise, such as freezing assets, a ban on cross-border transactions, etc.”

However, Andrey Yakovlev continues, “if a company has a clear corporate structure and risk management policy, as well as transparent management, this can mitigate the potential negative effect.” In any case, he warns, “companies associated with Pavel Tyo should be prepared for increased regulatory attention and possible inspections.”

Anna Zanina, Daria Andrianova