Russian oligarch is continuing to use law firm’s address without permission, company says
Scottish corporate law firm Burness Paull has claimed a Russian oligarch is continuing to use its address, without its permission.
The claims come after it emerged that Alexey Krapivin – who is accused of using a network of shell companies to channel billions of dollars out of Russia’s state-owned railway operator – is in control of an Edinburgh registered shell company based out of the same offices as commercial law firm Burness Paull.
The Scottish law firm said Krapivin, the son of former Russian Railways boss Andrei Krapivin, has continued to use its address after it shuttered its company mailbox service in 2018 in response to a multi-million-dollar bribery scandal.
The claims come as Krapivin continues to hold a controlling stake in a Scottish Limited Partnership, under the name Clover Consulting Partners, which is registered at Burness Paull’s 50 Lothian Road offices.
In 2014, a Reuters investigation claimed Krapivin played a major role in funneling millions out of Russia into a network of offshore firms.
Unlike other UK limited partnerships, SLPs have “legal personality” meaning they are able to own property, enter into contracts, and sue people. At the same time, SLPs offer their owners a certain level of anonymity, due to having few disclosure requirements. Critics of SLPs claim the shell companies have enabled criminals in carrying out various illicit activities.
According to Companies House, Clover Consulting Partners was first registered at the Edinburgh Offices in February 2005, after being formed by Isle of Man based company Orsettridge Resources Limited and British Virgin Islands registered company Tobiana Limited.
Burness Paull said Clover Consulting Partners had come to register itself at its Edinburgh offices after the firm started offering an office mailbox service through an arrangement with a third-party UK registration agent.
The law firm later closed its office registration service in 2018, after the President of Peru was accused of using an SLP registered at Burness Paull’s Edinburgh offices to hide nearly $6m (£4.6m) in bribes from Brazilian construction contractor Odebrecht. However, SLPs that previously registered at Burness Paull’s offices are continuing to use the Edinburgh address.
Burness Paull denied ever working with Alexey Krapivin and said it has never any provided advice to Clover Consulting Partners, as it said the shell company “is categorically not authorised to use” its Edinburgh address.
Krapivin first declared his stake in Clover Consulting Partners in June 2017, after Companies House introduced new rules requiring SLPs to disclose any persons with significant control in the Scottish shell companies.
Writing to City PM a Burness Paull spokesperson said: “The firm provided no advice to Cloverleaf Consulting Partners, its registered partners, nor the individual named as the Person of Significant Control at Companies House, Alexey Krapivin.
“We have not and do not represent them, nor have we provided any other services to them. Historically, legacy firm Burness (now known as Burness Paull), under an arrangement with a third-party UK registration agent, provided a registered office address service for a nominal amount.
“Following a review in 2018 the provision of accommodation services to all third-party registration agents was discontinued for commercial reasons.
“As a result, Cloverleaf Consulting Partners is categorically not authorised to use the firm’s address. The Person of Significant Control has recorded their service address as the firm’s address without our consent. We have raised this matter with Companies House.”