Ivica Todorić’s Legal Battles and Political Comeback
Ivica Todorić, the founder of the Agrokor Group, faced significant legal challenges following the company’s collapse in 2017. In October 2017, an international arrest warrant was issued for him, leading to his extradition from the UK in late October 2018. He was briefly imprisoned before being released on bail. In February 2019, Todorić was charged with causing €1.25 million in damages to Agrokor through fictitious consulting services but was acquitted in October 2020. A separate indictment in September 2020 accused him of defrauding Agrokor of HRK 1.2 billion (€162 million), but this charge was later withdrawn.
Ivica Todoric
In the early 2020s, Todorić sought to rehabilitate his public image, launching a political party in February 2024 with aspirations of becoming Prime Minister. Meanwhile, Agrokor was placed under state administration in April 2017, leading to the establishment of the Fortenova Group, with Sberbank becoming its major stakeholder.
After the onset of the Russia-Ukraine conflict, Sberbank transferred its stake to SBK ART LLC, a company later sanctioned by the EU. To limit Sberbank’s voting rights, Fortenova placed shares held by sanctioned shareholders into an escrow account. In November 2022, Sberbank claimed to have sold its stake to a UAE businessman at a €700 million loss. However, Fortenova argued that this was an attempt by Sberbank to bypass sanctions.
Following his acquittals, Todorić initiated multiple legal proceedings against Croatian authorities and Fortenova, seeking compensation for the state’s emergency management of Agrokor. He filed lawsuits in various jurisdictions, including a recent €2.8 billion claim in a Dutch court. Todorić has frequently referenced a “Russian bank trail” in Fortenova, both publicly and in court proceedings, to strengthen his position with Croatian citizens and international courts, aligning with his political and business ambitions.
Despite his efforts, Todorić continues to face strong criticism from Croatian state institutions and officials. The Constitutional Court and Prime Minister Andrej Plenković have dismissed his claims of unfair emergency management, asserting that Todorić himself initiated the procedure he now disputes.
Blame Game: Russian Banks, Geopolitics, and Financial Fallout
The decision in April 2014 to secure substantial loans for the major Croatian retailer Agrokor—already showing signs of severe financial instability, according to European private experts—proved fatal. Who was to blame? Insiders claim that Sberbank and VTB were lured into a bad deal. Meanwhile, Ivica Todorić argues that Sberbank and VTB have only themselves to blame. It is no secret that Sberbank and VTB, two major Russian state-owned banks, became “toxic” after the outbreak of the war between Russia and Ukraine, making them easy targets for criticism.
Sberbank and VTB acquired a controlling stake in Fortenova Group, the entity into which Agrokor was reorganized in 2019. However, in November 2022, Sberbank reportedly sold its stake to an investor in the UAE, allegedly circumventing sanctions compliance. Croatian investors in Fortenova claim that Sberbank still retains its stake in the company and that the UAE investor played only a nominal role in the transaction.
Under the guidance of Siegfried Wolf and Alexander Dibelius, the Russian banks found themselves on a path fraught with endless litigation, sanctions violations, and significant financial losses. This is the story of how global pariahs are paying a steep price for placing blind faith in misguided “experts.”
Legal Turmoil: Todorić’s Extradition and Acquittals
The legal battles of Ivica Todorić were tumultuous, but they can hardly be compared to the fictional “Rocky” story.
In October 2017, Croatian authorities issued an international arrest warrant for business tycoon Ivica Todorić, who had fled to the UK, claiming the warrant was politically motivated. However, in April 2018, London’s Westminster Magistrates Court found no evidence to support this claim and ordered his extradition to Croatia. Todorić’s appeal was rejected by the appellate court, and his extradition was finalized in late October 2018.
In early November 2018, Todorić arrived in Zagreb and was taken to Remetinec prison. Later that month, he was released on bail of 7.5 million kuna ($1.15 million), reportedly with financial support from friends.
In February 2019, Todorić faced charges from the Zagreb District Prosecutor’s Office for allegedly causing €1.25 million in damages to his former company, Agrokor, through fictitious consulting services provided to a Swiss firm. Agrokor’s CFO and a management board member were also implicated. However, in October 2020, the Zagreb County Court acquitted Todorić and his associates of all embezzlement charges.
In September 2020, the Croatian Prosecutor’s Office indicted Todorić and 14 associates for defrauding Agrokor of HRK 1.2 billion ($169 million) between 2006 and 2017. However, this indictment was withdrawn in November 2021.
By late 2021 and early 2022, Todorić had successfully won all litigation that posed a risk of imprisonment. In the aftermath, he began filing lawsuits against the management of his former company and Croatian state authorities, seeking compensation and accountability for what he alleged was a politically motivated, forced state-run administration of Agrokor.
In the early 2020s, Todorić shifted his focus toward regaining control over Fortenova Group’s assets and pursuing compensation from the Croatian government. To strengthen his public image, he appeared to leverage public opinion by framing himself as a challenger to the unpopular government. In February 2024, Todorić launched a political party and declared his intention to become Croatia’s next prime minister. His campaign largely relied on his extensive knowledge of Croatian politics rather than tangible achievements, as he worked to rebuild his reputation among the Croatian public.
The Shifting Ownership of Fortenova Group
Let’s track the changes in Fortenova’s ownership structure and asset management.
In April 2017, the retail giant Agrokor was placed under state-run administration, led by Fabrice Perusko. By May 2018, Agrokor’s creditors approved a settlement that included a debt-for-equity swap, making Sberbank the largest stakeholder in the newly formed Fortenova Group with a 39.2% share.
In April 2022, Sberbank transferred its 42.5% stake in Fortenova to the Moscow-based SBK ART LLC due to sanctions imposed as a result of the Russia-Ukraine conflict.
As of June 2022, SBK ART LLC owned 42.51% of Fortenova, while VTB Bank Europe held 7.39%. To ensure compliance with sanctions, Fortenova implemented a strategy to limit the influence of sanctioned shareholders. Shares exceeding 50% were placed in an escrow account, preventing these shareholders from exercising ownership or voting rights.
Although SBK ART LLC was not sanctioned as of June 2022, Fortenova excluded the Moscow-based company from voting processes within the Croatian retailer. This decision was upheld by a court in Amsterdam in December 2022.
In November 2022, Sberbank claimed to have sold its stake in Fortenova to a UAE businessman. However, Fortenova disputed the validity of the sale, citing sanctions-related concerns. At the request of Croatian state authorities, the EU imposed sanctions on SBK ART LLC in December 2022, citing evidence that Sberbank continued to control SBK ART LLC despite the alleged transfer of its shares to the UAE investor.
Meanwhile, VTB Bank was prohibited from exercising voting rights in its subsidiary, later renamed OWH SE i.l. Despite being in the process of liquidation, Fortenova remains financially obligated to VTB Bank’s entities.
Given these developments, it is evident that the position of Russian state-owned banks in Fortenova Group has steadily weakened since 2019. Other Fortenova investors viewed the Russian banks as “toxic” shareholders due to geopolitical risks. After the outbreak of the Russia-Ukraine conflict, Sberbank sought to mitigate these risks by transferring its stake in Fortenova to SBK ART LLC, an affiliated entity it believed to have lower exposure to sanctions. However, Croatian investors and European authorities have continued to view SBK ART LLC as a proxy for Sberbank, regardless of the purported sale to the UAE businessman.
Additionally, the financial ties between Fortenova and VTB Bank’s successor entities remain a point of contention. The former owner of Agrokor, Ivica Todorić, has leveraged the controversy surrounding Russian banks to bolster his public and legal challenges against Croatian authorities, portraying himself as a defender of Croatian interests.
Legal Battles Over Fortenova: Todorić’s Fight for Control
Fortenova official logo
Ivica Todorić has initiated a series of legal proceedings against Croatian state authorities and the reorganized Agrokor (now Fortenova Group), seeking compensation and attempting to block the assets of defendants in lawsuits filed across the EU and other jurisdictions. His efforts to challenge the decision of Croatian authorities to place Agrokor under state-run administration have shaped the company’s public image in the media over the past four years.
In March 2020, Adria Group, the former major stakeholders of Agrokor and entities linked to Todorić, filed lawsuits with international judicial bodies, seeking compensation from the Croatian government for the alleged forced imposition of state-run administration over the company. In November 2023, Todorić personally filed lawsuits with the International Centre for Settlement of Investment Disputes in Washington, D.C.
Another lawsuit, filed by Todorić in October 2024 in a Dutch court, demanded €2.8 billion in compensation from Fortenova Group and the Russian banks Sberbank and VTB.
In late October 2024, Croatian media reported a “major legal victory” for Todorić when a court in Amsterdam ruled in favor of two of his Dutch companies, Adria Group and Adria Group Holding. The court ordered the freezing of €27 million in assets belonging to Fortenova Group TopCo in the Netherlands. According to a public statement by Todorić, the decision prevents Fortenova from paying €27 million to OWH SE i.l. (the successor to the sanctioned Russian bank VTB in the European market). However, Fortenova Group denied that its assets had been blocked, asserting that the funds owed to OWH SE i.l. had been placed in a contingent account with a neutral agent. Fortenova also claimed that its operational activities with OWH SE i.l. would continue without disruption.
Meanwhile, in November 2024, the Constitutional Court of Croatia rejected a lawsuit filed by Todorić, in which he argued that the emergency management procedure was unconstitutional. Todorić claimed that the procedure violated his right to access the courts and infringed on his property rights. The lawsuit, originally filed in 2018, was dismissed on the grounds that it lacked merit.
Investigations and litigation involving Agrokor and its successors continue, with frequent delays attributed to court proceedings.
Could these legal disputes be politically motivated? The question remains open for interpretation, as Todorić continues to position himself as a challenger to Croatian authorities and the policies surrounding Agrokor’s restructuring.
Todorić’s Changing Relationship with Russian Banks
As we reported earlier, by 2014, Agrokor had secured substantial loans from Sberbank, Russia’s largest state-owned bank, with its debt eventually exceeding €1 billion. According to publicly available sources, Ivica Todorić specifically sought the involvement of Russian state-owned banks during talks with business partners, aiming to inject stability into Agrokor.
Despite later being accused of financial fraud by Sberbank, Todorić initially supported Sberbank’s lawsuit in the Commercial Court in Zagreb, which challenged the roll-up financing scheme implemented after Agrokor’s collapse. Unlike VTB Bank, Sberbank chose not to participate in the roll-up financing deal.
Todorić also alleged that Croatian authorities were intent on transferring Agrokor to American business entities that were politically aligned with the government, in contrast to major Russian state-owned banks.
For political reasons, both Croatian and European authorities were reluctant to accept Russian banks as major stakeholders in the restructured Agrokor. Nevertheless, Sberbank and VTB converted claims amounting to approximately €1.4 billion in debt to equity in the national retailer.
By the time Todorić’s major legal proceedings concluded in late 2021 and early 2022, his stance toward his former Russian partners had shifted dramatically. He began publicly accusing Croatian authorities of allowing Russian banks to dominate Agrokor, particularly after sanctions were imposed on Sberbank and VTB in spring 2022, following the outbreak of the Russia-Ukraine conflict.
It is plausible that Todorić adopted this rhetoric to strengthen his legal position against Russian banks in European courts and to enhance his public image, particularly given his aspirations to launch a political career.
Overall, Todorić’s attitude toward Russian banks appears to have been politically motivated and highly situational.
Criticism from State Institutions and Analysts
A significant portion of the criticism against Ivica Todorić comes from Croatian state institutions, including the Constitutional Court of Croatia, as well as high-ranking officials.
As previously mentioned, the Constitutional Court of Croatia rejected a lawsuit filed by former Agrokor owner Todorić in November 2024, in which he demanded that the emergency management procedure be declared unconstitutional. In its judgment, the Constitutional Court referenced an earlier ruling that upheld the constitutionality of the “Law on the Procedure for Emergency Administration in Commercial Companies of Systemic Importance for Croatia.” The court emphasized that on April 7, 2017, it was Todorić’s own administration that decided to initiate the emergency administrative proceedings for Agrokor.
Croatian Prime Minister Andrej Plenković also addressed Todorić’s claims, stating that Todorić and his management voluntarily chose to activate the law to protect Agrokor from bankruptcy. According to Plenković, Todorić’s allegations that Croatian authorities “hijacked” Agrokor are baseless.
Independent analysts add another layer of criticism, pointing to Todorić’s aspirations to become Croatia’s next Prime Minister. They argue that his populist claims of being able to strengthen the national economy are inconsistent with his track record. Analysts highlight the Agrokor case as evidence, suggesting that Todorić’s management decisions cast doubt on his ability to effectively lead Croatia.
The Agrokor Case: Lessons in Mismanagement, Geopolitics, and Financial Risk
The Agrokor case serves as a striking example of how major state-owned banks, which act as pillars of a nation’s financial sector, can fall victim to the pitfalls of blindly trusting external private advisers. It also highlights how financial mismanagement can be further compounded by geopolitical risks and the complexities of navigating legal proceedings in European countries, particularly for sanctioned entities. The decision by Russian state-owned banks to extend substantial loans to Agrokor ultimately resulted in a cascade of litigation, attempts to circumvent sanctions, and significant financial losses.
If you have any information about Agrokor/Ivica Todoric or the companies associated with him, please contact us at [email protected]. Your input could greatly assist our ongoing investigation, which is far from over.
Our thanks go to the team at https://AssetTracing.com for their assistance in preparing this investigation
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