Russian Court Orders Detention of Former CEO of World’s Largest Titanium Producer on Fraud Charges
By Vladislav Trifonov
On the evening of June 26, 2025, the Dorogomilovsky District Court in Moscow ordered the detention of Mikhail Foyevodin, former CEO of VSMPO-AVISMA, the world’s largest titanium producer, for two months pending investigation, according to RTVI. Foyevodin is accused of orchestrating a scheme to purchase semi-processed titanium raw materials for his company at prices approximately 30% above market value. Investigations indicate that American businessman Igor Raikhelson, an investor in Bahrain Titanium (BTI), was a key partner in this scheme, with estimated damages amounting to around 4 billion rubles (approximately $51 million USD).
The court session lasted over three hours, during which a representative of the Russian Federal Investigative Committee insisted on Foyevodin’s pretrial detention, while the defense team requested alternative precautionary measures. After reviewing the arguments, the court deemed the evidence sufficient and issued a two-month detention order. About an hour and a half later, a similar ruling was issued against another suspect in the case, Yevgeny Liseyenko, the general director of the non-profit organization NPO Vtorpromresursy.
According to court documents, both suspects were detained in Moscow on the eve of the hearing and charged with “large-scale fraud” under Article 159, Paragraph 4 of the Russian Criminal Code. RTVI reports that the case was opened on June 23, 2025, under the supervision of the Investigative Committee’s Sverdlovsk Region branch, with involvement from the FSB’s “P” Department, which oversees strategic enterprises.
Details of the Financial Scheme
Investigations reveal that since 2015, Regionprom has been the primary supplier of titanium raw materials to VSMPO-AVISMA under a contract signed on November 10, 2015, at a price of 504.4 rubles per kilogram (approximately $6.43). However, starting in January 2016, Foyevodin, allegedly in collaboration with Raikhelson, began routing new supply contracts through companies owned by the latter—Torgovo-Promyshlennyy Vektor LLC and Vtorpromresursy—at deliberately inflated prices.
The Investigative Committee claims that Foyevodin, leveraging his position, unilaterally approved the new prices without consulting management, raising the cost per kilogram to 898.1 rubles (≈ $11.45) through Vtorpromresursy and 898.4 rubles (≈ $11.45) through Vektor. These companies reportedly reaped substantial profits from the price difference, with funds allegedly funneled to Raikhelson and other unidentified partners.
Conclusion
RTVI notes that dismantling such fraudulent schemes could significantly reduce titanium costs in Russia’s aerospace industry.
Previous Record and Ongoing Investigations
This is not the first criminal case against Foyevodin, who served as VSMPO-AVISMA’s CEO from 2009 to 2020. Previously, he faced charges related to manipulating the sale of titanium waste (metal shavings) and purchasing ilmenite concentrate from Singapore-registered Minerals and Metals Group. The first case resulted in a reclassification of charges and a fine of 80,000 rubles (approximately $1,020 USD), while the second case remains pending.
As for Raikhelson, intelligence suggests he currently resides in Switzerland. During the investigation, authorities seized a 200-square-meter apartment owned by him in central Moscow. RTVI reports that Russian authorities are considering charging Raikhelson in absentia.
