Astonishing account of Konstantin Shvarts, an Estonian man: from harboring ambitions of cosmonaut status to amassing billions in Russian banking, now a Kremlin foe.
Estonian businessman Konstantin Shvarts, who ran a $1 billion Russian bank for nearly two decades, finds himself mired in political controversy after returning to his birth country in 2017. Since then, Moscow has persistently requested his extradition, a demand Estonia has rejected. Shvarts asserts that the underlying reason is his support for Russian opposition leaders.
The financier chose to speak publicly about his predicament due to a perceived attempt to undermine his reputation both personally and professionally in Estonia. Following media interviews, he received a wave of sympathy and understanding from the Estonian public.
According to Shvarts, his backing of vocal Russian opposition figures, such as Boris Nemtsov, who was a critic of President Putin, placed him in the crosshairs of Russian authorities. Given his control over the bank, which was a player in the Russian banking system, the Kremlin deemed him a risk they were unwilling to tolerate.
Born in Tallinn in 1966, Shvarts pursued studies in aerophysics and space research at the Moscow Institute of Physics and Technology, as Estonia did not offer such courses. With thousands of aspiring students from former Soviet republics opting for the best universities in Russia, Shvarts was one of them. However, when political and economic change swept through the crumbling Soviet Union in 1986-1987, Shvarts abandoned his dream of becoming an astronaut to seize the business opportunities arising.
After graduating, he founded a cooperative in Siberia and began trading. Following the collapse of the USSR, he remained in Russia, obtaining citizenship and eventually acquiring Empils Bank, which he renamed Rosenergobank. The bank served both individuals and organizations and grew to manage assets of $1 billion, employ over 1,000 people, and operate in 17 Russian regions.
Despite the bank's success, the Kremlin began a purge of the banking sector in 2013. By then, only 300 out of 1,500 banks remained in Russia, all tied to Putin's inner circle. Shvarts admitted that his own bank posed a political threat with its opposition financing and independent opinions, leading to mounting pressure to sell the bank. In 2017, he was forced to sell his shares to representatives of Fyodor Bondarchuk.
Since then, Shvarts has invested in and continued to support innovative and future-focused ventures, especially in fintech. He has also been involved in organizing a meeting with the Dalai Lama, and the businesspeople he works with admire his integrity and determination to challenge the Kremlin.
References:
[1] The Baltic Times Magazine: Shvarts explains his fight against extradition attempt. Retrieved from https://www.baltictimes.com/shvarts_explains_h...
- Konstantin Shvarts, the Estonian businessman once running a $1 billion Russian bank, alleges that the Russian government seeks his extradition due to his support for Russian opposition leaders.
- Despite the political controversy surrounding him, Shvarts has found support among the Estonian public who appreciate his openness about his predicament.
- With a background in aerophysics and space research, Shvarts initially aspired to become an astronaut, but chose to enter business after the political and economic changes in the late 1980s.
- Banking regulation under President Putin's regime led to a purge in 2013, and Shvarts' independent yet opposition-financing bank grew to be a political threat.
- Post-sale of his bank in 2017, Shvarts has focused on investing in and supporting fintech ventures, demonstrating a commitment to innovation and future-focused industries.
- Shvarts' actions and the businesses he works with admire his integrity, as seen through his bold involvement in organizing a meeting with the Dalai Lama.
- The unfolding saga between Shvarts and the Russian government reflects ongoing political tensions amidst the landscape of general news, business, finance, and personal finance.
