Deripaska Claims Cherney Bribed Politicians in London Lawsuit

United Co. Rusal (486) Chief Executive Officer Oleg Deripaska accused Michael Cherney, who is suing him for $4.3 billion, of making mysterious payments to politicians including Israel Deputy Prime Minister Avigdor Liberman.

The claims emerged at a London court hearing where Cherney’s lawyer said accusations made by Deripaska’s legal team were a “distraction.” The hearing indicates Deripaska, 44, will fight Cherney’s suit by painting him as someone who used his connections to extract protection payments from businessmen.

Claims that Cherney made “large, unexplained payments to politicians” including Liberman and a Bulgarian prime minister “don’t have any relationship to the facts of the case,” his attorney, Mark Howard said.

Cherney, now living in exile in Israel, filed a London lawsuit in 2006 claiming he was Deripaska’s partner and is owed a stake in Rusal. The trial, scheduled to begin in April, follows the three-month, $6.8 billion courtroom battle between Russian oligarchs Boris Berezovsky and Roman Abramovich.

“They say Mr. Cherney was the mastermind of the imposition of krysha payments,” on businessmen, Howard said, referring to a Russian word for protection. Cherney’s lawyers were seeking to prevent some of the claims being used in the trial.

Calls and e-mails to Liberman’s office weren’t returned. Deripaska’s spokeswoman, Idil Oyman in London, declined to immediately comment. Cherney’s spokeswoman Georgie Gibbs didn’t immediately respond to a request for comment.

Judge Andrew Smith said the April trial may be delayed until the parties were better prepared.

The case is Cherney v. Deripaska, High Court of Justice, Queen’s Bench Division, Commercial Court 06-1218.

To contact the reporter on this story: Kit Chellel in London at cchellel@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net

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