Civil Lawsuit Filed Against Dagestans State Secretary Amid Allegations of Illegal Privatization

State prosecutors initiated a civil lawsuit against Magomed-Sultan Magomedov, a high-ranking official in Dagestan, earlier this week as part of an ongoing probe into the suspected illegal privatization activities.

Magomedov, who has held the position of Dagestan’s state secretary since 2021, was reportedly detained on Wednesday in Makhachkala following search operations at numerous properties associated with him and his family. Telegram channels linked to Russian security agencies indicated that the inquiry pertains to the alleged unauthorized privatization of the oil distributor Dagnefteprodukt in 2005.

As revealed by Russia’s judicial database, the country’s deputy prosecutor filed the civil lawsuit on Monday against Magomedov, along with five other individuals—four of whom share his patronymic—and two companies. Additionally, three other companies were mentioned as third parties in the proceedings.

The lawsuit did not clarify the specific legal basis or any charges involved.

Dagestan’s court press service informed state media that authorities aim to confiscate an oil refinery owned by the Magomedov family and transfer it, along with other assets, to state ownership.

Magomedov served as the CEO of Dagnefteprodukt from 1991 until 2005. The company underwent restructuring in 2021 and currently operates under the name Kaspetrolservis, which is identified as one of the third parties in the lawsuit.

According to the RBC news website, Kaspetrolservis is part of MSB Holding, a firm led by Magomedov’s son, Magomed Magomedov. Both MSB Holding and the younger Magomedov are included among the eight defendants in the case.

On Thursday, the Sovetsky District Court in Makhachkala ruled in favor of prosecutors, deciding to nationalize Kaspetrolservis.

A federal official familiar with the situation described Magomedov to RBC as one of Dagestan’s most powerful figures, noting that law enforcement had hesitated to take action against him for years “for various reasons” despite long-standing concerns.

The Kommersant business newspaper reported that Magomedov had received a presidential certificate of honor from Dagestan’s regional head, Sergei Melikov, on June 12, just under two weeks before his arrest. Melikov’s office announced on Wednesday that it is cooperating with law enforcement during the investigation.

Preliminary hearings for the civil case are scheduled for July 10 at the Sovetsky District Court.