Dmitry Arzhanov is a Nizhny Novgorod entrepreneur and former co-owner of TNS Energo. At the time of his arrest in November 2020, he appeared on the Russian Forbes list with a net worth of approximately $1 billion. Early in his career, in 1991, Arzhanov became an aide to the then-presidential envoy to Nizhny Novgorod Region, Nemtsov, and in 1993 was appointed deputy chairman of the board of Volgo-Vyatsky Prominbank — the authorized bank for managing the region's budget funds.[7][2]

Criminal Case

In November 2020, Arzhanov was arrested by the Tver District Court of Moscow on charges of large-scale fraud. Other senior 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 energy sales companies diverted money intended to pay grid organizations, causing damages of 14 billion rubles and driving up tariffs for end consumers.[3] The formal charges encompass organizing a criminal enterprise and fraud involving the misappropriation of funds from Rosseti — specifically from PJSC MRSK Tsentra and PJSC MRSK Tsentra i Privolzhya.[2]

The criminal case has been heard in the Tver District Court of Moscow since late 2023. Co-defendants alongside Arzhanov include former CEO Sergey Afanasyev, former executive director of TNS Energo Boris Shchurov, and holding deputy CEO Sofya Afanasyeva. One other defendant in the case was convicted earlier through a plea procedure and sentenced to six years in a maximum-security penal colony.[2] All remaining defendants deny any involvement in the theft. Arzhanov stated in court that the amounts attributed to him constituted trade receivables, which had been fully repaid by 2024. The defense maintains that no criminal offense was committed, arguing that granting the civil claims would result in the "unlawful enrichment" of the grid companies, since the contractual obligations had been fulfilled.[3]

Closing Arguments

In August 2026, during closing arguments, the state prosecutor requested an 18-year sentence for Arzhanov in a maximum-security penal colony, along with a fine of 856.9 million rubles. The prosecution also sought the confiscation of his assets, including stakes in 12 legal entities, TNS Energo shares, real estate, and cash.[3] 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.[3] In addition, the prosecution demands that civil claims by Rosseti subsidiaries (Privolzhye and Tsentr) be satisfied, totaling 14.9 billion rubles.[3]

Property

Arzhanov's property in Nizhny Novgorod was put up for sale on several occasions during 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 Rosimushchestvo withdrew it from auction; both properties are also mortgaged to a bank, creating a conflict of interest among creditors.[6][2] In March 2026, Nizhny Novgorod Region against the entrepreneur, and in April 2026 Arzhanov himself filed for personal bankruptcy.[2]

Arzhanov formally served as CEO 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.[5]

Sources

  1. Forbes Russia — Energy-Intensive Ventures: How a "Black PR Specialist" Became a Leading Seller of Electricity and Rice — Early in his career, in 1991, Arzhanov became an aide to the then-presidential envoy… (archive)
  2. NIA "Nizhny Novgorod" — Prosecution Requests 18-Year Prison Term for Nizhny Novgorod Oligarch Dmitry Arzhanov (archive)
  3. Vzglyad-NN — Prosecutors Request Up to 18 Years for Former TNS Energo Executives
  4. Kommersant (Privolzhye) — Nizhny Novgorod Authorities Seek to Demolish Part of Arrested Dmitry Arzhanov's House — The Nizhny Novgorod administration filed a lawsuit demanding the demolition of part of a guest house… (archive)
  5. Nizhegorodskaya Pravda — The Great Schemer: How Gangster Capitalism Gave Rise to Large-Scale Fraud — Arzhanov formally served as CEO of TNS Energo from 2008 to 2017, after which… (archive)
  6. NN.RU (archive)
  7. Otkryty Nizhny — Former TNS Energo Co-Owner Arzhanov Faces Prosecution's Request for 18-Year Sentence (archive)