Dmitry Arzhanov is a Nizhny Novgorod entrepreneur and former co-owner of the TNS Energo power retail holding company. At the time of his arrest in November 2020, he appeared on the Russian Forbes list with a net worth of approximately one billion dollars. Early in his career, Arzhanov became an aide in 1991 to the then Presidential Plenipotentiary Representative in Nizhny Novgorod Region, Boris Nemtsov, and in 1993 was appointed Deputy Chairman of the Board of the Volgo-Vyatsky Prombank — the authorized bank for managing the region's budgetary funds.[1][2]

Criminal Case

In November 2020, Arzhanov was arrested by the Tver District Court of Moscow on charges of large-scale fraud. Other executives of the TNS Energo group were detained at the same time.[2] The investigation charges the defendants with misappropriating funds collected from electricity consumers in Nizhny Novgorod Region and Yaroslavl Region between 2011 and 2020. According to the prosecution, the executives of the power retail companies diverted money intended to pay grid operators, causing damages of 14 billion rubles and driving up tariffs for end consumers. The investigation alleges that Arzhanov and TNS Energo's senior managers received payments from clients but, instead of settling accounts with the electricity supplier, channeled the funds through third-party company accounts into other projects and offshore entities abroad, while misleading the management of MRSK Tsentr and MRSK Tsentra i Privolzhya with documents purporting to show widespread consumer non-payment. The investigation established that a portion of the misappropriated funds was transferred to companies registered in Cyprus.[3][4][5] Formally, the charges encompass organizing a criminal enterprise and fraud related to the misappropriation of funds from Rosseti — specifically from PJSC MRSK Tsentr and PJSC MRSK Tsentra i Privolzhya.[2]

The criminal case has been before the Tver District Court of Moscow since late 2023. In February 2023, the charges were substantially intensified: all four defendants were additionally charged with organizing a criminal enterprise using their official positions (Part 3, Article 210 of the Criminal Code of the Russian Federation).[6] Co-defendants alongside Arzhanov include former company CEO Sergey Afanasyev, former executive director of TNS Energo Nizhny Novgorod Boris Shchurov, and holding company deputy director general Sofya Afanasyeva. Another participant in the case was convicted earlier under a plea arrangement and sentenced to six years in a maximum-security penal colony.[2] All remaining defendants deny any involvement in the misappropriation. Arzhanov stated in court that the sums cited in the charges constituted trade accounts receivable, fully repaid by 2024. The defense maintains that no criminal offence was committed and argues that granting the civil claims would result in "unlawful enrichment" of the grid companies, since the contractual obligations had been fulfilled.[5]

Closing Arguments

In August 2026, during closing arguments, the state prosecutor requested 18 years in a maximum-security penal colony for Arzhanov, along with a fine of 856.9 million rubles. The prosecution also insists on the confiscation of his assets, including stakes in 12 legal entities, shares in TNS Energo, real estate, and cash.[5] For Sergey Afanasyev, the prosecutor requested 17 years and a fine of 201.6 million rubles; for Boris Shchurov — 17 years and a fine of 111.7 million rubles; for Sofya Afanasyeva — 16 years and a fine of 39.9 million rubles.[5] In addition, the prosecution demands that civil claims filed by Rosseti subsidiaries (Privolzhye and Tsentr) totaling 14.9 billion rubles be satisfied.[5]

Assets

Arzhanov's property in Nizhny Novgorod was put up for sale several times in the course of the proceedings. His seized Nizhny Novgorod real estate — two houses and a plot of land — was valued by bailiffs at 61 million rubles and listed for sale, but the Federal Property Management Agency withdrew it from sale; both properties are meanwhile pledged to a bank under a mortgage loan, which created a conflict of interest among various creditors.[7][2] In March 2026, a Nizhny Novgorod court accepted a bankruptcy claim against the businessman for consideration, and in April 2026 Arzhanov himself filed for personal bankruptcy. In the summer of 2026, Arzhanov's seized assets — two houses and a plot of land in the village of Novaya — were again put up for auction.[4][2]

Arzhanov formally held the post of General Director of TNS Energo from 2008 to 2017, after which he remained a member of the holding's board of directors until his arrest in 2020.[8]

Afanasyeva has been granted a deferment of sentence until her child reaches the age of 14; until then she is subject to a travel ban. The court ordered the confiscation to the state of Arzhanov's real estate in Nizhny Novgorod Region — several plots of land and buildings — as well as his cash savings, including foreign currency.[6]

On 17 August 2026, the Tver District Court of Moscow delivered its verdict: Arzhanov was found guilty of embezzling nearly 15 billion rubles from grid companies and sentenced to 18 years in a maximum-security penal colony with a fine of 850 million rubles. Under the verdict, all four convicted individuals were banned from holding managerial positions in commercial organizations for a period of three years.[3][4]

Timeline of Events

Details of each event are in the article dedicated to it; listed here are dates and summaries.

Sources

  1. Forbes Russia — Energy-Intensive Adventures: How a "Black PR Specialist" Became a Leading Seller of Electricity and Rice — At the start of his career, Arzhanov became an aide in 1991 to the then plenipotentiary representative… (archive)
  2. NIA "Nizhny Novgorod" — Prosecution Requests 18-Year Prison Sentence for Nizhny Novgorod Oligarch Dmitry Arzhanov (archive)
  3. Otkryty Nizhny — By court verdict, all four convicted persons have been stripped of the right to hold managerial positions in commercial organizations for a period of three years. (archive)
  4. NN.RU — On August 17, 2026, the Tverskoy District Court of Moscow delivered its verdict: Arzhanov was found guilty of embezzling nearly 15 billion rubles from grid companies and sentenced to 18 years (archive)
  5. Business News. Time to Earn — Prosecution Requests Up to 18 Years in Prison for Former Executives of TNS Energo (archive)
  6. Govorit Nizhny — 18 Years and 850 Million: Former Co-Owner of TNS Energo Hears His Verdict — On August 17, 2026, the Tverskoy Court of Moscow delivered a verdict in the TNS Energo case: Dmitry Arzhanov was sentenced to 18… (archive)
  7. Nizhegorodskaya Pravda — The Great Schemer: How Bandit Capitalism Gave Rise to Large-Scale Fraud (archive)
  8. NN.RU (archive)
  9. Otkryty Nizhny — 18-Year Prison Term Requested for Former TNS Energo Co-Owner Arzhanov (archive)
  10. Kommersant (Volga Region) — Nizhny Novgorod Authorities Want to Demolish Part of the House Belonging to Arrested Dmitry Arzhanov (archive)