State prosecutors initiated a civil lawsuit earlier this week against senior Dagestani official Magomed-Sultan Magomedov as part of an ongoing inquiry into alleged unlawful privatization activities.
Magomedov, who has held the position of Dagestan’s state secretary since 2021, was reportedly detained on Wednesday in Makhachkala following searches at numerous properties associated with him and his relatives. Telegram channels connected to Russian security services indicated that the investigation pertains to the purported illegal privatization of the petroleum distributor Dagnefteprodukt back in 2005.
According to Russia’s judicial database, the country’s deputy prosecutor lodged a civil lawsuit on Monday against Magomedov, along with five other individuals—four of whom share his patronymic—and two companies. Additionally, three other firms were identified as third parties in the proceedings.
The lawsuit did not clarify the specific legal basis or accusations involved.
Dagestan’s court press service informed state media that authorities are aiming to nationalize an oil refinery owned by the Magomedov family and transfer it, along with other assets, to the state.
Magomedov was the CEO of Dagnefteprodukt from 1991 to 2005. The company was restructured in 2021 and currently operates under the name Kaspetrolservis, which is mentioned as one of the third parties in the lawsuit.
Kaspetrolservis is a part of MSB Holding, which is led by Magomedov’s son, Magomed Magomedov, as reported by RBC news website. Both MSB Holding and the younger Magomedov are included among the eight defendants.
On Thursday, the Sovetsky District Court in Makhachkala favored the prosecutors, ruling to nationalize Kaspetrolservis.
A federal official familiar with the situation characterized Magomedov to RBC as one of the most powerful figures in Dagestan, noting that law enforcement had delayed action against him for years “for various reasons,” despite ongoing concerns.
The Kommersant business newspaper reported that Magomedov received a presidential commendation from Dagestan’s regional head, Sergei Melikov, on June 12, just under two weeks prior to his arrest. Melikov’s office stated on Wednesday that they are cooperating with law enforcement in the investigation.
Preliminary hearings for the civil case are set to take place on July 10 at the Sovetsky District Court.
