Stop the Untouchables. Justice for Sergei Magnitsky.

Magnitsky libel case ‘may be backed by the Kremlin’

Daily Telegraph

The Kremlin has been accused of abusing the British justice system to wage a politically motivated campaign against UK hedge fund boss Bill Browder after libel proceedings were launched against the millionaire in the High Court.

Pavel Karpov, an unemployed former Russian police officer, is suing Mr Browder and his UK-based fund Hermitage Capital for saying he was complicit in the “torture and murder” of anti-corruption whistleblower Sergei Magnitsky four years ago.

Mr Karpov strongly denies the allegations, along with suggestions he was involved in fraud and kidnapping, and is seeking to clear his name.

However, in a pre-trial hearing, Antony White QC for Mr Browder demanded the case be thrown out for “abuse of process” as Mr Karpov had “no connection with England and no reputation to protect here”. He added that the case was politically motivated and possibly funded by the Kremlin.

Mr White drew attention to Mr Karpov’s admission that he does not have the means to pay for litigation, which could come to £6m, as well as the “highly political dimension” of the case. Mr Magnitsky has become an anti-corruption martyr in Russia, and Mr Browder’s relentless campaigning a diplomatic headache for President Vladimir Putin.

According to Mr Karpov’s witness statement, the cost of his libel claim is being covered by a loan from Transnational Bank in Russia and backed by a wealthy entrepreneur friend who has agreed “to stand as a personal guarantor”.

Mr White told the court that if the case went to trial, the costs would be “£3m to £4m on our side alone”. Under UK libel law, Mr Karpov can seek up to a maximum of £240,000 in damages. Even if he wins, lawyers said, his damages would be unlikely to cover his costs.