On Tuesday, officers from Russia’s Federal Security Service (FSB) and regional security forces conducted extensive searches at 50 locations linked to Daghestani State Secretary Magomed‑Sultan Magomedov. The raids took place at his private residence, his office, and several departments of the Makhachkala administration — specifically the architecture department and land and property management offices.
Magomedov was arrested on suspicion of embezzlement during the privatisation of the state-owned fuel depot Dagnefteprodukt (also known as Dagneftebaza). Sources have suggested the privatisation process was illegal and involved transferring the state-owned company into private ownership back in 2005, while Magomedov retained control by becoming the general director.
Local Telegram channels reported that the searches also extended to properties in Moscow belonging to his son, also named Magomed Magomedov, a member of the Daghestani Parliament and head of LLC MSB‑Holding, a holding company included some of the assets of Dagnefteprodukt. Among the assets was a Moscow flat valued at roughly ₽95 million ($1.2 million).
Authorities were also seen at the residence of former Speaker of the Daghestani Parliament, Khizri Shikhsaidov, according to the local independent newspaper Chernovik. During the search in Magomedov’s home, investigators reportedly seized a substantial sum in cash along with documents related to the company’s operations.
According to local Telegram channels, the FSB deployed operational groups from its central office and regional headquarters, engaging in surveillance for a full week and involving significant manpower.
Official sources have yet to comment on the nature of the privatisation or the potential financial losses suffered by the state. The Administration of the Head and Government of Daghestan confirmed that investigative action is taking place ‘in relation to one of the Daghestani officials’ without naming anyone.
‘The leadership of the republic is in close cooperation with law enforcement agencies to ensure legality and order in the region. Investigators are being provided with full assistance to conduct an objective investigation’, said the Administration of the Head and Government of Daghestan.
The same body called on journalists and bloggers ‘to refrain from premature conclusions and spreading unverified rumours’.
The pro-security Telegram channel SHOT claimed that Magomedov owns a four-storey mansion in Makhachkala, spanning nearly 4,000 m². The private estate reportedly features carved wooden doors, towers, and a heavily fortified security post. The grounds include two additional houses. Magomedov also allegedly owns a 160 m² flat in Moscow.
His three daughters each reportedly possess 90 m² flats in Moscow, all in the same building, each valued at approximately ₽40 million ( $510,000). His son, who once played for his father’s club Anzhi, reportedly owns a Moscow apartment worth around ₽140 million ($1.8 million) with an area of about 160 m².
From 1991 until privatisation in 2005, Magomedov served as head of the state enterprise Dagnefteprodukt. He remained as general director of its successor private company until 2010. Between 2010 and 2013 he was speaker of the Daghestani Parliament, and then served as a member of the regional parliament. In November 2021 he was appointed state secretary of the republic and passed his parliamentary seat to his son.
Magomedov is also known as the founder of FC Anzhi, which in the 2010s attracted global football stars such as Roberto Carlos and Samuel Eto’o. He has been awarded the order ‘For Merit to the Republic of Daghestan’ and the medal ‘For Labour Valour’.
According to public records, LLC Kaspetrolservice (formerly Dagnefteprodukt) reported revenue of ₽1.5 billion ( $1.9 million) and a profit of ₽588 million ($7.5) in 2020. The company reorganised in 2021, with 52 % of the shares owned by Magomedov and the remainder held by his female relatives.
Elizaveta Chukharova
