Summa Group owner Ziyavudin Magomedov has been declared bankrupt.

The Moscow Arbitration Court has declared businessman and owner of the Summa Group Ziyavudin Magomedov bankrupt, convicted of creating a criminal organization and embezzling more than 11 billion rubles from government contracts.

As reported by Kavkazsky Knot, at the end of September, the Meshchansky Court of Moscow confiscated the property of three enterprises for the benefit of the state as part of the criminal case against co-owner of the Summa Group Ziyavudin Magomedov and his brother, former Senator Magomed Magomedov.

The lawsuit was filed by GlobalElectroService, a subsidiary of Summa Group, and the Infrastuktura group of companies. GlobalElectroService was declared bankrupt by the court in 2019. In 2024, this company was awarded a contract for engineering preparation of the site for the Arena Baltika stadium in Kaliningrad, which was being built in preparation for the 2018 FIFA World Cup. According to investigators, the scope of work performed during site preparation and stadium construction was inflated, with damages estimated at over 500 million rubles, RBC reports.

According to court documents, Magomedov's debt to Infrastruktura amounts to over 107 million rubles and is included in the register of creditor claims. The bankruptcy decision follows several unsuccessful attempts in 2021 and 2022, when the applications were rejected due to a lack of necessary documents, Kommersant reports.

As a reminder, a Moscow court upheld claims for 3.6 billion rubles in damages in a case involving embezzlement by Ziyavudin and Magomed Magomedov, co-owners of the Summa Group. The rest of their property was confiscated.

In 2023, the Prosecutor General's Office demanded the return of shares in PJSC Far Eastern Shipping Company to the state, claiming that they were originally purchased with corrupt proceeds by the Magomedov brothers and hidden from confiscation.

Ziyavudin and Magomed Magomedov were influential opinion leaders in Dagestan and, if released, could defend the interests of the republic's residents, journalist Aida Mirmaksumova told the "Caucasian Knot." Biographies of Ziyavudin Magomedov and Magomed Magomedov have been published on the "Caucasian Knot"