The ongoing financial dispute between Russian billionaire Vladimir Potanin and his ex-wife Natalia has taken another significant turn with the Court of Appeal examining her substantive claim for financial relief.
Case background
Vladimir Potanin and his ex-wife Natalia married in 1983 after meeting at school in Russia. During their marriage, Mr Potanin built a business empire worth approximately $20 billion, largely through complex corporate structures where he held beneficial rather than legal ownership.
When they divorced in Russia in 2014, the court failed to consider these business assets in the settlement. As a result, Mrs Potanina received less than 1% of the wealth accumulated during their 31-year marriage.
English court proceedings
In 2019, Mrs Potanina applied to English courts for additional financial provision under Part III of the Matrimonial and Family Proceedings Act 1984. Permission was initially granted at a without-notice hearing, following standard practice at the time.
Mr Potanin successfully challenged this, having the permission set aside. However, the Court of Appeal later ruled that the original judge was wrong to set aside the grant of permission.
Supreme Court decision
Mr Potanin appealed to the Supreme Court, which allowed his appeal on narrow procedural grounds. The court ruled that Part III applications should not be made without notice to the other party.
Crucially, the Supreme Court rejected Mr Potanin’s attempt to dismiss the entire case. Instead, they remitted the matter back to the Court of Appeal to consider the substantive merits.
Wider implications
This case highlights the complexities of international divorce proceedings, particularly where substantial wealth is held through sophisticated corporate structures. It also demonstrates the ongoing scrutiny of “divorce tourism” – where parties seek more favourable outcomes in different jurisdictions.
The outcome could significantly impact how English courts approach similar international financial remedy cases in future, particularly those involving Russian oligarchs and complex asset structures.
