Russian seeks Sh4bn from Kenya over gold

A goldsmith displays gold bars at his shop. The Russian said he met officials of a Kenyan firm that claimed to have gold. Photo/FILE

A Russian has sued Kenya, seeking Sh3.9 billion ($50 million) over lost profits in a gold sale.

Mr Andrew Vilenchik, an immigrant in the US, has sued the Republic of Kenya in a Minneapolis court.

He says he wanted to buy gold and hired Mr John Saina, a Minneapolis-based consultant from Kenya in 2009 to help him do so.

In May 2009, a group that claimed to own a gold mine in the Democratic Republic of Congo approached Mr Saina claiming that they had 3,700 kilos of gold for sale at a cost of $70 million (Sh5.4 billion).

Mr Vilenchik, 31, who manages Community Finance Group, authorised Mr Saina to buy 300 kilos at a cost of $5.7 million.

Mr Saina met officials of the firm that claimed to have the gold, together with a customs agent and G4S security guards at Hazina Towers in Nairobi, where he saw the gold and had it verified.

Mr Vilenchik wired $350,000 (Sh27 million) for customs fees, but the gold was not given to him, on claims that additional documents were needed from Customs and the UN, claims that were false.