A Russian tycoon who flouted High Court orders in an acrimonious multi-million divorce battle with his wife - as she accused him of having a secret second family - is facing a possible jail term.
Elena Kroupeeva and Michael Kroupeev’s 36-year marriage collapsed in late 2023 when she says she found out he had a second family in Russia, allegedly hidden from her for 20 years.
The divorce fight, potentially one of the most expensive in British legal history, came to light on Wednesday as Ms Kroupeeva applied for her “exceedingly wealthy” husband to be jailed for contempt of court.
She says he has “brazenly” flouted court orders, blocked efforts to value his business empire, refused to pay maintenance to his wife or help with legal fees, and now allegedly owes more than £800,000.
“He clearly considers himself to be above the law of England and Wales”, Ms Kroupeeva’s barrister Justin Warshaw KC told the High Court.
“His conduct reflects a concerning pattern of evasion, contempt for judicial authority, and refusal to meet his responsibilities.”
The tycoon’s barrister, Michael Glaser KC, told the court that allegations about a secret family are “denied” and also “not relevant” to the hearing.
On Wednesday afternoon, Mr Justice Harrison found Mr Kroupeev in contempt for a series of failures to comply with court orders, including paying £195,789 from his fortune for his wife’s legal expenses and offering up his collection of luxury watches.
The judge concluded Mr Kroupeev’s “neglect or refusal (to comply with orders) is willful”.
The judge adjourned sentencing of the tycoon until next week, and ordered that he attend court in person.
Mrs Kroupeeva says her husband used his vast wealth to bankroll their life of lavish holidays, designer clothes, and lavish spending spree.
She believes their family fortune could run to “hundreds of millions of pounds”, but he is accused of now concealing his business and financial interests while offering her a £300,000 lump sum settlement along with ownership of two properties.
“He has approached her claim as if they are playing a game”, said Mr Warshaw. “It’s a game in which he clearly intends to cheat.”
The court heard the couple met in Russia in 1988 and moved to the UK in 1993, becoming naturalised citizens seven years later.
Mr Kroupeev, described as “exceedingly wealthy” in court papers, made his fortune in the oil and gas industry in Russia, working alongside a close associate of former President Boris Yeltsin.
Mr Warshaw said the couple have two children, now aged 20 and 28, who they sent to private school in London.
He said Mr Kroupeev started a “secret relationship” with a woman in Russia and they had a child in 2008, who was later sent to the same UK private school, it is said.
“In late 2023, after a 36-year marriage, the parties separated after Ms Kroupeeva learned of (his) second family”, Mr Warshaw told the court, in written submissions.
“The breakdown of the marriage was, to say the least, tempestuous.”
Mrs Kroupeeva has accused her husband of blocking valuations of his companies and billion dollar energy deals, while allegedly moving his financial interests through tax havens in Guernsey and the Seychelles.
The court heard the couple lived in a luxurious seven-bedroom £15 million home in Hamilton Terrace, St John’s Wood, and have a £22.5 million property portfolio including homes in Russia and holiday villas in Portugal and Turkey.
She tells of “opulent” holidays during their marriage, including private jet globe-trotting to South Africa, Iceland, Argentina, Mauritius, and Europe, five-star hotel stays, skiing in Val D’Isere, and $200,000 Christmas vacations to Mustique.
“A large motivation for travelling privately would be to ensure that the family dogs could go on holiday with the family”, said Mr Warshaw. “A return flight to their home in Portugal would be around £22,000.”
Mrs Kroupeeva said she went on lavish designer clothes spending sprees, including two annual trips to the boutiques of Milan, while her husband spent money on “the finest wines”, designer clothes, top of the range cars, a customised shotgun collection, knives, sabres, fountain pens, and luxury watches.
She says her estranged husband has spent thousands on his own lawyers before steadfastly refused to pay her legal fees.
He ignored a February 2025 court order to pay £195,789 of her legal expenses, and instead put forward a settlement offer that she could keep the London home and a small flat in Moscow, retain some furniture and £300,000, and have 18-months’ worth of access to the holiday homes in Portugal and Turkey.
“Apart from that, she would get nothing”, said Mr Warshaw, of the offer. “In particular, she would get nothing from the business empire that he had built up during their marriage, which had funded the family’s life.”
The judge agreed with Mrs Kroupeev’s legal team that the offer he put forward showed that he had money in his bank account, and was purposely refusing to use it to settle the legal fees bill.
She accused Mr Kroupeev of then refusing to comply with court orders, not attending court after sacking his legal team, and refusing to disclose the value of his assets.
She says that when, in March, a judge increased the month maintenance payments to his wife from £10,000 to £19,084, Mr Kroupeev stopped paying anything at all.
Mrs Kroupeeva applied for a contempt order against her husband and committal to prison, saying he now owes a total of £837,188.
“Nothing short of a period of imprisonment will be an effective punishment”, said Mr Warshaw, adding that the billionaire is accused of “consistent, brazen, and unremorseful contempt of court.”
Mr Kroupeev followed court proceedings over a videolink from Cyprus. Mrs Kroupeeva is in court, sitting on the front row with her legal team.
Mr Glaser argued in his written submissions that the attempt to jail Mr Kroupeev for not making payments was “Kafkaesque”, as he says he has been hampered in his financial dealings by a freezing order imposed by the court itself.
He says evidence about his assets is “scant in the extreme”, and he offered an apology for not complying with court orders, promising to do so within the next 28 days.
“This is not a game, the liberty of my client is at stake”, he said.
Mr Glaser added: “He is unable to attend this hearing in person as he has high blood pressure and cannot presently fly.”
But in his closing submissions, Mr Warshaw told the court: “The man who should be answering questions is sitting on a phone in Cyprus. He’s not even had the courtesy of attending by videolink.”
He suggested Mr Kroupeev’s offer to comply with court orders within 28 days is “fanciful”.
