Civil Action Launched Against Dagestans State Secretary Over Privatization Allegations

State prosecutors initiated a civil lawsuit earlier this week against Magomed-Sultan Magomedov, a high-ranking official from Dagestan, as part of an ongoing inquiry into suspected illegal privatization practices.

Magomedov, who has been serving as the state secretary of Dagestan since 2021, was allegedly detained in Makhachkala on Wednesday after searches were conducted at multiple properties associated with him and his family. Telegram channels tied to Russian security agencies stated that the probe involves the purported unlawful privatization of the oil distributor Dagnefteprodukt back in 2005.

As reported by Russia’s judicial database, the country’s deputy prosecutor lodged a civil complaint on Monday against Magomedov, five other individuals—four of whom share his patronymic—and two companies. Additionally, three more companies were mentioned as third parties in the lawsuit.

The lawsuit did not clarify the legal basis or the specific charges involved.

According to Dagestan’s court press service, authorities have expressed intentions to confiscate an oil refinery owned by the Magomedov family and transfer it, along with other assets, to the state.

Magomedov held the position of CEO at Dagnefteprodukt from 1991 until 2005. The company underwent restructuring in 2021 and is currently operating under the name Kaspetrolservis, which is identified as one of the third parties in the legal action.

Kaspetrolservis is a part of MSB Holding, a business led by Magomedov’s son, Magomed Magomedov, according to the RBC news outlet. Both MSB Holding and the younger Magomedov are included among the eight defendants in this case.

Later on Thursday, the Sovetsky District Court in Makhachkala ruled in favor of the prosecutors, deciding to nationalize Kaspetrolservis.

A federal official acquainted with the situation described Magomedov to RBC as one of Dagestan’s most powerful individuals, emphasizing that law enforcement had been hesitant to take action against him for years “for various reasons,” despite enduring concerns.

The Kommersant business newspaper noted 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 it was collaborating with law enforcement in this investigation.

Preliminary hearings for the civil lawsuit are set to take place on July 10 at the Sovetsky District Court.