Bula Report - Mr Alexander Marichev

Mr Alexander Marichev, pictured above, and his wife, Ms Tatyana Kirillova, are the main figures in the Russian Corporation. The Russian Corporation had an agreement with another Russian company, Aki Otyr, that it would supply finance for the development of a Siberian oil field, in return for Aki Otyr giving the Russian Corporation an interest in the licence to the field. Armed with this agreement, the Russian Corporation entered into a deal with Bula Resources in 1994. Mr Marichev and Ms Kirillova were appointed directors of Bula.

Bula paid out £3.4 million as part of the deal, and was to issue 90 million ordinary shares to the Russian Corporation. Within months of the deal being agreed, however, it emerged that the Russian Corporation had not paid money due to Aki Otyr, and that as a result of this Aki Otyr was withdrawing from the agreement it had with the Russian Corporation. Various legal actions ensued at the end of which the two Russians resigned from the Bula board, and more than 60 million Bula shares were returned by the Russian Corporation to Bula. In all the deal cost Bula £8 million.

Mr Marichev and Ms Kirillova were annoyed when Bula began to discuss a deal with KMNGG and Mir Oil, as they had hopes for the Russian Corporation becoming involved. The deal went ahead and led to the writing off by Bula of £12.5 million.