Former deputy of Russian Olympic Committee faces criminal charges on embezzlement
Besides his activity on the Russian Olympic Committee, Bilalov
also headed another multi-billion-ruble project, the ‘North
Caucasus Resorts’ state-funded board tasked to create
world-class ski resorts in Russia’s south.
A check into the finances of North Caucasus Resorts by Russia’s
Audit Chamber revealed "multiple violations," prosecutors
said on Wednesday.
Bilalov has been accused of signing contracts in violation of
legal norms, failing to protect the company’s assets as well as
embezzling money for trips abroad.
"The inspection revealed... instances of unjustified spending
on the company management's trips to foreign countries which had
elements of luxury," the statement said.
Russian prosecutors suspect Bilalov of spending money on luxury
travel abroad, including $65,000 in hotel bills for his visit to
the London Olympics and more than $25,000 on transportation
At the same time, the state company records indicated it
simultaneously paid for his visits to the Russian cities of
Krasnodar, Saint Petersburg and the resort town of
It has been revealed that for Akhmed Bilalov’s trips to France, England and other countries the bill for charter flights was 80 million rubles (nearly $2,5mn). While on a visit to United Arab Emirates, a helicopter was ordered to deliver Bilalov from his hotel to the airport. These episodes have not been included into Wednesday’s statement.
Prosecution concluded that North Caucasus Resorts had spent more
money on its management instead of investing in the project and
launched a criminal case against Bilalov and his partner, director
of the company, Aleksey Nevsky.
If Ahmed Bilalov is found guilty, he may face up to four years
in prison, a maximum sentence for such a felony.
On March 5, Forbes reported that Akhmed Bilalov and his brother
and business partner Magomed Bilalov left Russia and are currently
residing in Germany’s Baden-Baden “for health
The investigation followed Bilalov’s dismissal from his
positions on the Russian Olympic Committee and North Caucasus
Resorts after President Vladimir Putin on February 6 slammed delays in
construction of Sochi Olympics projects [LINK]. Putin also
criticized the costs of the projects soaring seven-fold: from 1.2
billion rubles to almost 8 billion (up to $265 million). North
Caucasus Resorts, a private construction company, was in charge of
The Sochi-2014 Winter Games are already considered to be the most expensive Olympics ever. With estimated
total costs of $50 billion, it has surpassed the previous record
holder, the 2008 Beijing Summer Olympics. It also stands at more
than twice the London-2012 Games, which were estimated to have cost
nearly $19 billion.