Four senior executives at Gazprombank in Luxembourg earned more than 9 million euros after Western sanctions caused Russian bond prices to collapse in 2022, an investigation by the Financial Times revealed on August 26.
The four managers named in the report are Dmitry Derkach, Sergei Nekrasov, Sergei Belousov, and Pavel Bolshakov. According to the investigation, the executives obtained multi-million euro personal loans from Gazprombank Luxembourg to purchase heavily discounted foreign currency bonds issued by parent company Gazprom, before exchanging them in Russia for rouble bonds at full face value.
The Financial Times identified more than 50 separate transactions carried out by the managers, which generated a combined profit exceeding 9 million euros.
Gazprom Bond Trading Scheme
Following Russia's full-scale invasion of Ukraine in 2022, Western sanctions disrupted international payment processing for Russian financial assets. As a result, European holdings of Gazprom foreign currency bonds suffered sharp price declines, with several securities trading at roughly half of their nominal face value.
To support domestic holders of these assets, the Kremlin established a mechanism permitting investors to exchange European-held debt for new rouble-denominated bonds in Russia at 100 percent of face value. The substantial price difference between discounted European market purchases and full-value Russian conversions created a highly profitable trading opportunity.
Gazprombank Luxembourg operates as the European subsidiary of Gazprombank, the financial arm of Russian state gas entity Gazprom. The institution remains the last major Russian lender maintaining operations within Europe.
Regulator Findings and Executive Positions
Luxembourg's financial regulator investigated the activity and identified violations of internal bank rules regarding the opening of personal accounts for employees. However, the regulatory authority did not impose sanctions on the institution or individuals involved.
Gazprombank Luxembourg and Derkach both denied any violations of rules or regulations. All four managers have since departed from their positions at the Luxembourg bank.
Derkach stated that he now leads a private life in Luxembourg. Belousov and Bolshakov currently manage B&B Capital Partners, an investment firm based in Luxembourg. Nekrasov returned to Russia, where he manages the Moscow football club Spartak Moscow.
Broader European Union Sanction Measures
The revelations come as European authorities continue expanding economic restrictions against Russian entities. On July 23, the Council of the European Union published details of its 21st sanctions package against Russia, representing one of its largest enforcement actions since 2022.
The 21st package targeted 48 individuals, 170 legal entities including companies and banking institutions, and more than 40 vessels involved in supporting Russian operations.
According to reporting by Bloomberg, the European Union is preparing further sanctions targeting over 1,600 companies alleged to be aiding Russia's military efforts. The targeted firms account for a combined annual turnover exceeding $20 billion and employ more than 265,000 workers.
