Support The Moscow Times!

Russia's Tinkoff Bank Shares Fall as Founder Indicted in U.S.

Oleg Tinkov. Sergei Karpukhin / TASS

Shares of Russian businessman Oleg Tinkov's credit card supplier TCS plummeted Friday after the U.S. Department of Justice charged its founder with fraud and demanded his extradition from Britain.

Shares of TCS (Tinkoff Credit Systems) group were showing a loss of more than 17%t on the London Stock Exchange and 24% on the Moscow Exchange at around 1510 GMT.

Tinkov stands accused of concealing $1 billion in assets and income from the U.S. tax authorities at the time when he renounced his U.S. citizenship in 2013, which required him to report his assets following a stock market flotation in London, the Department of Justice said Thursday.

"The indictment charges that Tinkov filed a false 2013 tax return" and he faces a possible six years in prison if convicted, it said.

A UK court issued a warrant for Tinkov's arrest in February, but he posted bail of some £20 million ($26 million) and is able to remain free in London abiding by restrictions, British and Russian media reported.

The next court hearing in the case initiated by US authorities is scheduled for April 27, Russia's state news agency TASS reported.

In a statement on Friday, Tinkov announced that he has been fighting leukaemia and had stepped back from day-to-day management of the business two years ago.

He said he has a legal team dealing with the "U.S. issues relating to my taxes from the past" and is focusing on his health.

Founded in 2006, Tinkoff bank has seen a meteoric rise. Today the lender has over 10 million customers.

Tinkov has a somewhat controversial image in Russia, clashing with critics on the internet and using vulgar language.

He is also a well-known figure in the world of professional cycling and owned a cycling team for several years.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more