Billionaire Politician Under Fire: $50 Million Environmental Lawsuit Following Catastrophic Mining Disaster

Russian authorities have initiated a significant legal action against gold mining magnate and regional legislator Konstantin Strukov, demanding 4 billion rubles (approximately $50 million) as compensation for environmental harm associated with one of the nation’s most severe recent mining catastrophes.

The case, launched by the Prosecutor General’s Office, focuses on Strukov’s previous enterprise, Yuzhuralzoloto, which is recognized as Russia’s third-largest gold mining company and has recently been nationalized.

Prosecutors assert that during Strukov’s tenure, the company consistently breached environmental and safety regulations, culminating in a dam failure in 2024 that discharged hazardous waste into nearby water systems and agricultural land.

Court records reviewed by Kommersant reveal that the Prosecutor General’s Office contends Strukov neglected essential investments in infrastructure, safety protocols, and labor protections, leading to illegal practices and perilous incidents.

In April 2024, a dam at the Svetlinsky deposit in the Plastovsky District of the Chelyabinsk region collapsed, releasing industrial waste into the Baturovka and Sanarka rivers and contaminating 330,000 square meters of farmland with arsenic.

The environmental damage from this incident has been estimated at 3.9 billion rubles (around $48.75 million), which the prosecutors claim remains unpaid.

The lawsuit further alleges that Strukov, who holds the position of deputy chairman in the Chelyabinsk regional legislative assembly and is affiliated with the ruling United Russia party, gained control of Yuzhuralzoloto through the misuse of his political position and diverted the company’s profits via offshore accounts.

Other defendants in the case include high-ranking officials from Russia’s regulatory and investigative bodies, such as Alexei Kolbasin, head of the Chelyabinsk regional Investigative Committee, and two deputy heads of regional environmental oversight agencies, Yuri Shuvalov from Rostekhnadzor and Vladislav Potapov from Rosprirodnadzor.

The prosecutors allege that despite clear evidence of illegal construction and operation of the dam, these officials did not hold Strukov accountable due to “unofficial relationships.” Instead, they purportedly took measures to protect his business interests and continued to benefit from environmental exploitation.

Following the April spill, Yuzhuralzoloto received only a minor fine of 300,000 rubles ($3,750), and after a formal suspension of operations for 90 days, mining recommenced just two weeks later with regulatory approval.

In July, the Prosecutor General’s Office and the FSB conducted searches at the offices of Strukov and Yuzhuralzoloto, determining that safety infractions remained unaddressed and no environmental restoration had occurred.

The lawsuit also details how Strukov allegedly secured Kolbasin’s allegiance. Prosecutors claim that Strukov provided him with a luxury apartment of 121 square meters in Chelyabinsk, covering associated utility expenses, thereby compromising Kolbasin’s ability to execute his responsibilities impartially, which ultimately influenced the inquiry into the arsenic contamination matter.

The claim for 4 billion rubles has been submitted to the Plastsky city court, which has already undertaken precautionary measures including the seizure of Strukov’s remaining assets.

At 64 years old, Strukov is listed by Forbes as the 78th richest person in Russia, with an estimated net worth of $1.9 billion.