Andrey Kozlov

Andrei Andreyevich Kozlov
Andrei Andreyevich Kozlov
Born	6 January 1965 (age 61); Moscow, Soviet Union
Died	14 September 2006 (aged 41); Moscow, Russia
Occupation(s)	Banker, Central Bank official
Years active	1989–2006
Known for	First deputy chairman of the Central Bank of the Russian Federation; founder of Deposit Insurance Agency; anti-money laundering efforts

Adapted from the English Wikipedia article Andrey Kozlov, available under CC BY-SA 4.0Updated 11 August 2025

Andrei Andreyevich Kozlov (; January 6, 1965 – September 14, 2006) held the position of first deputy chairman at the Central Bank of the Russian Federation during two periods: from 1997 to 1999 and later from 2002 until 2006. He was proficient in Russian, German, and English. Kozlov was a family man, married with three children. His life was tragically cut short when he was assassinated in 2006.

Career

Originating from Moscow, Kozlov completed his military service in the Soviet Army between 1983 and 1985 before graduating from the international economics faculty at the Moscow Institute of Finance in 1989. That same year, he commenced his professional journey at the Soviet Union’s central bank as a senior economist. After a stint in the private sector starting in 1999, he returned to the Bank of Russia in April 2002.

Kozlov was instrumental in establishing Russia’s deposit insurance framework and was the founder of the Deposit Insurance Agency, aimed at restoring public trust following the 1998 Russian financial crisis. While overseeing bank supervision, he withdrew licenses from financial institutions implicated in money laundering and other illicit operations by cutting their access to deposit insurance. Notably, in 2004 he assumed control over Sodbiznesbank amid accusations of laundering ransom payments. In 2006, he also revoked the license of VIP-Bank (previously Neftyanoi Bank).

In recognition of his substantial influence on Russia’s stock market, Kommersant named Kozlov among top professionals in 2005. Posthumously, he received acclaim for his efforts to dismantle "gray schemes"—illegal import tactics designed to evade customs duties and VAT.

Shortly before his assassination, on September 8, 2006, Kozlov declared at a banking conference in Sochi: "Individuals caught laundering criminal proceeds should likely be banned from the banking sector permanently. Such actors tarnish the integrity of the banking system."

Death

In June 2006, during a visit to Tallinn, Kozlov met with Andres Palumaa of Estonia’s Financial Supervisory Authority (FSA), demanding that Raul Malmstein, Estonia’s CFO, close suspicious accounts at two banks—SEB Eesti Ühispank and Sampo Pank—to halt laundering operations involving hundreds of billions of rubles transferred from Russia to Western countries. This laundering activity intensified ahead of Russia’s 2008 presidential election. Following Kozlov’s pressure, Sampo Pankki shut down the accounts while SEB Eesti Ühispank closed eight accounts; however, these were reopened soon after Kozlov’s murder in September 2006. Auditors later reported no irregularities at that time. This laundering network was subsequently connected to the Danske Bank laundering network. Danske Bank had acquired Sampo Pankki in 2006 and rebranded it as Danske Bank Estonia by 2012.

Additionally, Austria’s Raiffeisen Zentralbank (RZB) and Russia’s Diskont Bank were implicated in similar money laundering activities. Between June and August 2006 alone, more than $1.5 billion passed through Diskont Bank accounts en route to RZB. On August 31, 2006, Kozlov revoked Diskont Bank’s license; however, just five days after a criminal probe commenced into these matters, he was assassinated. Reports indicate that funds from the Nord Stream 1 pipeline project were laundered through these banks. Investigations suggest involvement by prominent figures such as Alexander Bortnikov of the FSB and Vladimir Putin in channeling Nord Stream finances via RZB and Diskont.

On September 14, 2006, Kozlov was fatally shot twice near the Spartak sports center. His driver died instantly at the scene; Kozlov succumbed after emergency surgery. Authorities recovered weapons believed to have been used in the attack nearby. Following his death, Russian media linked the killing to his efforts against small banks engaged in money laundering schemes. Alexei Frenkel, owner of VIP Bank (formerly Vindobona Privatbank), which had been closed in June 2006 due to suspicious activities, was arrested and accused of orchestrating Kozlov’s murder; Frenkel denied all allegations.

Boris Gryzlov, speaker of the State Duma, commented that criminal groups affected by revoked banking licenses were probably behind the assassination. Prime Minister Mikhail Fradkov assigned Prosecutor General Yury Chaika to lead the investigation and provide ongoing updates on its progress.

Investigations by Natalia Morar

During her inquiry into Raiffeisen Zentralbank, Natalia Morar was expelled and reported receiving a death threat allegedly from the FSB.

Acknowledgments

Levan Zolotarev, senior vice president at Russian Standard Bank, commended Kozlov as a vigorous proponent of reforming Russia's financial markets, highlighting his involvement in driving essential changes within the banking industry. In 2006, they worked together on revising a bankruptcy law in the Duma that aimed to classify subordinated loans as capital. Finance Minister Alexei Kudrin referred to Kozlov as "a brave and principled individual" who actively fought financial crime, often opposing "the interests of corrupt financiers." Anatoly Chubais, Chairman of RAO UES, described Kozlov as "undoubtedly honest, principled, and entirely non-commercial," recognizing him as one of the most skilled professionals in Russian banking and condemning his murder as "an overt challenge to the entire Russian government system," calling for a decisive response. Mikhail Grishankov, a senior parliamentarian, labeled the killing a direct affront to the state, stressing that bringing the perpetrators to justice was "a matter of honor," and underlining Kozlov’s efforts against schemes used by certain banks to launder illicit and shadow funds. The Central Bank acknowledged Kozlov’s "significant contribution to reforming the nation’s banking system," which improved its efficiency, transparency, and stability. Oleg V. Vyugin, Russia’s chief securities regulator, noted that criminals retaliated against legal actions by the central bank, with Kozlov tragically bearing the consequences.

Court proceedings

On October 28, 2008, a jury convicted banker Aleksei Frenkel, Liana Askerova, and Boris Shafrai of orchestrating Kozlov’s assassination, while Bogdan Pogorzhevsky, Aleksei Polovinkin, Maksim Proglyada, and Aleksandr Belokopytov were found guilty of executing the crime. Frenkel reportedly planned the murder after Kozlov revoked VIP-Bank's license on June 16, 2006, due to money laundering allegations. Frenkel engaged Askerova, who connected him with intermediaries Pogorzhevsky and Shafrai; these intermediaries then hired shooters Proglyada and Polovinkin. Frenkel paid a total of $310,000: $200,000 to Pogorzhevsky, $90,000 to Askerova, and $20,000 to the gunmen. Andrei Kasmynin remained at large throughout the trial.

Sentences handed down included 19 years for Frenkel; life imprisonment for Polovinkin; 24 years for Proglyada; 14 years for Shafrai; 13 years for Askerova; 10 years for Belokopytov; and 6 years for Pogorzhevsky. The Supreme Court upheld these verdicts in November 2009 but reduced Proglyada’s sentence to 22 years. Kasmynin was subsequently arrested and received a nine-year sentence in March 2010.

On May 18, 2010, juror Sergei Levin was charged with attempting to bribe fellow jurors to acquit Frenkel due to disputes over the judge’s behavior. Levin admitted guilt and was dismissed from the jury before the final verdict.

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