Key Takeaways
- • A Moscow court upheld an "extremist" designation for Almaz Capital, the venture capital fund founded by tech entrepreneur Alexander Galitsky, 71, confirming a March lower court ruling and rejecting his appeal.
- • The court ordered confiscation of 8 billion rubles ($97.5 million) in assets belonging to Galitsky and affiliated individuals, including Moscow-area real estate, with funds transferred to state defense conglomerate Rostec.
- • Galitsky filed his appeal by mail and did not appear at the Moscow City Court hearing, which also rejected a motion to elevate the case to the Russian Supreme Court.
- • Almaz Capital, founded in 2008 to connect Western capital with startups across Russia and Eastern Europe, ceased Russian investments after 2014 and Galitsky divested remaining Russian holdings following the 2022 Ukraine invasion.
- • The fund maintains headquarters in Portola Valley, California, with international offices including the Netherlands; Galitsky holds Dutch citizenship.
Summary
A Moscow court has upheld the "extremist" designation of Almaz Capital Partners, the venture capital firm founded by Ukrainian-born tech entrepreneur Alexander Galitsky, confirming a lower court decision issued in March 2026. The Moscow City Court rejected Galitsky's appeal on Monday and struck down his motion to transfer the case to the Russian Supreme Court, effectively finalizing the controversial ruling.
The Tverskoy District Court's initial March decision ordered the confiscation of 8 billion rubles (approximately $97.5 million) in assets belonging to Galitsky and "affiliated individuals," comprising real estate properties across Moscow and the surrounding region. According to reporting by Vedomosti and TASS, the confiscated assets have been transferred to Rostec, Russia's state-controlled defense conglomerate. Notably, Galitsky did not appear in person at Monday's hearing, instead filing his appeal by mail.
Galitsky, 71, is widely recognized as a pioneering figure in Russian internet infrastructure, credited with advancing Wi-Fi and virtual private network (VPN) technology during the 1990s. He established Almaz Capital in 2008 with the objective of bridging Western institutional capital and venture investments with emerging technology companies across Russia, Eastern Europe, and Central Europe. The fund operated from its primary headquarters in Portola Valley, California, with additional offices in jurisdictions including the Netherlands, where Galitsky maintains citizenship.
The asset seizure and extremist designation represent a significant escalation in enforcement actions against Galitsky's interests. Almaz Capital had already substantially reduced its Russia-focused investment activity following the 2014 Crimean annexation. Following Russia's 2022 invasion of Ukraine, Galitsky liquidated his remaining stakes in Russian companies, effectively severing his active business connections to the Russian market prior to the current court actions.
The Tverskoy District Court's initial March decision ordered the confiscation of 8 billion rubles (approximately $97.5 million) in assets belonging to Galitsky and "affiliated individuals," comprising real estate properties across Moscow and the surrounding region. According to reporting by Vedomosti and TASS, the confiscated assets have been transferred to Rostec, Russia's state-controlled defense conglomerate. Notably, Galitsky did not appear in person at Monday's hearing, instead filing his appeal by mail.
Galitsky, 71, is widely recognized as a pioneering figure in Russian internet infrastructure, credited with advancing Wi-Fi and virtual private network (VPN) technology during the 1990s. He established Almaz Capital in 2008 with the objective of bridging Western institutional capital and venture investments with emerging technology companies across Russia, Eastern Europe, and Central Europe. The fund operated from its primary headquarters in Portola Valley, California, with additional offices in jurisdictions including the Netherlands, where Galitsky maintains citizenship.
The asset seizure and extremist designation represent a significant escalation in enforcement actions against Galitsky's interests. Almaz Capital had already substantially reduced its Russia-focused investment activity following the 2014 Crimean annexation. Following Russia's 2022 invasion of Ukraine, Galitsky liquidated his remaining stakes in Russian companies, effectively severing his active business connections to the Russian market prior to the current court actions.
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