Russia Pursues Assets of Wealthy Israelis Through Israeli Courts

Russian authorities are pursuing 22 legal cases against wealthy Israeli citizens who are immigrants from Russia, seeking to seize their assets located within Israel. The total value of these assets is estimated to be at least two billion rubles, approximately 70 million shekels. This situation stems from a bilateral agreement and Israeli bankruptcy law that allows Israeli courts to recognize foreign bankruptcy proceedings, including those initiated in Russia. A Russian-appointed administrator can then petition an Israeli court to freeze assets, gain certain powers, and potentially sell them to satisfy debts.

Sources indicate that Israel is unique among Western nations in continuing to cooperate with such Russian legal mechanisms. Following Russia's invasion of Ukraine in 2022, the United States and European Union countries largely ceased collaboration on similar Russian procedures. Israeli courts, however, reportedly continue to recognize Russian rulings, often with minimal scrutiny of the original case's circumstances, leading critics to label them a "rubber stamp" for Russian decisions.

Among the prominent figures involved is Boris Shpigel, a former Russian senator and businessman who was convicted in Russia for bribery and sentenced to 11 years in prison. He claims the charges were fabricated to seize his business. After his release from prison due to ill health, he returned to Israel. Russian authorities have already confiscated his assets in Russia, valued in the hundreds of millions of dollars, and are now targeting his villa in Savyon, Israel, with claims exceeding 202 million rubles. Shpigel's lawyer states that his client, despite being a third party in the case against his ex-wife, faces severe restrictions on his property rights.

Shpigel alleges that the pressure on him and other wealthy Russian immigrants intensified after the war in Ukraine began, suggesting their Jewish heritage is a motive. He has appealed to Israel's Ministry of Justice and is preparing to petition the High Court of Justice. Shpigel, who previously facilitated Israeli interests in Russia, now accuses Israel of aiding Moscow's pursuit of him on Israeli soil, stating, "The State of Israel has abandoned us and is cooperating with Russia... Israel has become an extension of the Russian persecution." Another individual, Eduard Kabakov, claims a Russian lawsuit against him was based on a forged signature, which he proved in a Russian court, yet a parallel Israeli proceeding continues to target his apartment.

A senior Israeli minister, whose identity was not revealed by Ynet, described Israel as the only Western nation still providing Russia with legal avenues for such actions. The minister warned that the current 22 cases might be just the beginning, as Russia has found a willing platform in Israel. Shpigel's lawyers are urging the Ministry of Justice to suspend the mechanism for recognizing Russian bankruptcy proceedings and halt new cases until legislation is reviewed.