Russia Seeks Millions in Assets from Russian-Israeli Citizens via Israeli Courts

Russian authorities have initiated 22 lawsuits in Israel targeting wealthy Russian-born individuals with Israeli citizenship, seeking to seize their assets totaling approximately 70 million shekels. The legal actions primarily aim to gain recognition in Israel for Russian bankruptcy proceedings, a mechanism allowed under Israel's 2018 Law on Insolvency and Economic Rehabilitation for cross-border cases. Once a foreign proceeding is recognized, a Russian-appointed administrator can seek asset-freezing measures in Israel.

Among the most prominent figures involved is Boris Shpigel, 73, founder of the pharmaceutical group Biotek and former member of Russia's Federation Council. In 2024, he was sentenced to 11 years in prison for bribery but was released on medical grounds and moved to Israel. His ex-wife, Evgenia Shpigel, received an 8.5-year sentence, and Russian proceedings declared her bankrupt, with claims against her reaching about 202 million rubles. Russia is now attempting to extend these proceedings to the family's villa in Savion, Israel.

Shpigel's attorney, Mark Knizhevsky, stated that an Israeli court has already restricted the ability to manage the property rights. Boris Shpigel himself claims the Russian prosecution is politically motivated and that his family plans to appeal to the High Court of Justice (Bagatz). Another individual named by Ynet is Eduard Kabakov, a former CEO of the Tatarstan-based insurance company NASKO, who resides in Bat Yam. Kabakov reported facing claims of around $9 million in Russia based on allegedly forged documents, though the Russian suit was dropped, the related Israeli proceedings continue, affecting his apartment.

A senior Israeli minister, whose name was withheld by Ynet, commented that Israel is the only Western country where such Russian procedures continue to be judicially recognized. Shpigel's lawyers are calling for a halt to the application of this mechanism for Russian cases until the legislation is reviewed. Israel's Ministries of Justice and Foreign Affairs did not respond to Ynet's inquiries.