Russia’s wealthiest individual, Vladimir Potanin, has lost a significant legal battle against his ex-wife, Natalia Potanina, allowing her to pursue a claim for a multibillion-dollar share of his mining assets. This development sets the stage for one of the most expensive divorce cases in history.
On Thursday, judges at the Court of Appeal in London ruled that Potanina has a “real and meaningful connection” with the UK, granting her permission to pursue a full-blown claim in an English court. At one point, her claim was valued at as much as $9 billion USD ($13.8 billion AUD).
The Legal Battle Unfolds
The case has been ongoing for nearly seven years, with Potanina initially filing her suit amidst accusations of “divorce tourism” by a lower court. The court suggested she was seeking to benefit from the more generous approach of English courts. Despite these accusations, the Court of Appeal’s recent decision marks a pivotal moment in the case.
Throughout their 31-year marriage, the couple resided in Russia, only for Potanina to purchase a home in Westminster in 2014. Previous Russian divorce proceedings awarded her what was described as a “paltry award,” considering Potanin’s estimated $31.7 billion USD ($48.7 billion AUD) fortune, primarily derived from MMC Norilsk Nickel PJSC, the world’s largest producer of palladium.
“She very much hopes that her case can now be resolved and can be concluded without further delay,” said Frances Hughes, Potanina’s lawyer, following the ruling.
Challenges and Implications
Despite the ruling, Potanina faces significant challenges in claiming assets due to Potanin’s wealth being largely held within Russia. This follows the relocation of his companies, including Interros, back to Russia amidst sanctions imposed by the US and UK after Russia’s invasion of Ukraine.
Nevertheless, the decision breathes new life into a high-profile claim and may encourage other spouses involved in international divorce cases. London’s courts have long been a favored venue for high-value divorce settlements, often resulting in more equitable asset distribution.
“As family lawyers, we often call London the ‘divorce capital of the world’ – and this ruling shows why,” commented Jake Mitchell, a lawyer at Freeths. “The courts won’t let unfair overseas settlements go unchallenged where there’s a genuine link to England.”
Historical Context and Future Outlook
The UK has seen significant divorce settlements in the past, with the largest publicly known award being £450 million ($927 million AUD) to the wife of billionaire Farkhad Akhmedov. However, the final settlement was less than one-third of that amount.
In Potanina’s case, the judges noted she is “fully entitled to a wide range” of financial awards. Her claim includes 50% of Potanin’s stake in Norilsk Nickel, dividends, and half the value of a Russian estate known as the Autumn House, which the couple reportedly spent $150 million USD on.
This landmark case not only highlights the complexities of international divorce proceedings but also underscores the potential for English courts to influence outcomes significantly. As the case progresses, it will be closely watched by legal experts and those involved in similar disputes worldwide.
