A Moscow Court Declares Galitsky and Almaz Capital an Extremist Organization

The Tverskoy District Court in Moscow upheld a lawsuit filed by the Prosecutor General’s Office and declared investor Alexander Galitsky and his fund Almaz Capital an “extremist organization.” The court also ordered the seizure of assets worth eight billion rubles (approximately over 85 million euros as of today).

Who is Alexander Galitsky?

Galitsky is considered one of the most important figures in the history of the Russian technology sector. He was a pioneer in software development (in the 1990s he developed technologies for wireless networks and VPNs) and one of the few who successfully transitioned from the Russian scientific environment to the very top of Silicon Valley. His fund, Almaz Capital, served for many years as a “bridge” between Eastern European talent and Western capital. Almaz Capital Partners is an international venture capital fund headquartered in Silicon Valley (California, USA).

What is he accused of?

According to the Prosecutor General’s Office, Galitsky’s fund supports Ukraine, finances Ukrainian companies that produce weapons, and provides material assistance to the Ukrainian armed forces. The businessman denies this. He claims that the fund invests only in civilian projects and that its charter explicitly prohibits investments in weapons production.

Galitsky’s lawyer stated that the entrepreneur had stepped down from managing the fund some time ago. Prosecutors, however, insisted that his resignation from leadership positions was merely formal and that he continues to effectively run the organization.

According to The Bell, after the annexation of Crimea in 2014, Almaz Capital stopped investing in Russian projects and shifted to Ukrainian ones. Until March 2022, Galitsky was also a member of the board of Alfa-Bank. He resigned after the EU imposed sanctions on Mikhail Fridman and Petr Aven.