Following the introduction of international sanctions against Russia, the global community's goal was to limit the country's access to foreign investment and technology that could support its military industry.
However, the reality is that many investment companies, including the Polish fund MCI Capital, chose to remain on the Russian market, despite the threat of direct sanctions directly to the company. Unlike suppliers of equipment and goods, funds are much less vulnerable to public pressure, and capital participation is easily hidden through a chain of firms in different jurisdictions.
As is known, starting from mid-2023, the Polish authorities are systematically “putting a spoke in the wheels” of seemingly established Ukrainian-Polish cooperation, interfering in grain exports and refusing additional arms exports to repel Russian aggression.
Perhaps the Polish government is hesitant to impose sanctions against MCI Capital and similar funds, assessing the long-term benefits of their presence above the potential harm from interaction with Russia, or perhaps this is due to the lobbying of pro-Russian officials. Let's try to figure it out.
Travelata case: multi-year investments and workaround strategies
The MCI.TechVentures 1.0 subfund, managed by MCI Capital, began investing in the Russian travel startup Travelata back in 2013, allocating funds for the development of the company, which was becoming a prominent player in the Russian online tourism market. Investments continued in subsequent years, including tranches in 2014, 2015 and even in 2020, after the introduction of sanctions. Amid increasing political and economic restrictions against Russia, MCI has not stopped supporting Travelata. In 2022, according to insider sources, MCI even led another round of financing for Travelata, despite Russia's invasion of Ukraine.
MCI's 2022 report cited the COVID pandemic and the outbreak of war as indicators of a volatile market environment, highlighting Travelata's amazing performance and how the current market conditions are a unique opportunity to find attractive and profitable investments.
With the commencement of liquidation proceedings for the MCI.TechVentures 1.0 sub-fund in 2024, new details have emerged in the report. Travelata is now referred to as SHLD Limited, registered in Cyprus, which may indicate an attempt by the fund to evade sanctions. This holding may have been indicated to minimize legal risks and simplify financial settlements associated with the company's presence on the Russian market.
Data from the same report show that 7% of the subfund's capital has a direct connection with Russia. Such facts indicate that the fund deliberately chose strategies to avoid the direct consequences of sanctions and maintain access to the Russian market.
The reputation of the MCI TechVentures 1.0 fund has previously been complicated by investigations and litigation. In 2019, the Warsaw prosecutor's office began an investigation, accusing the fund's management of unprofitable financial transactions amounting to about 400 million zlotys. Investors who invested in the fund between 2012 and 2019 complained of difficulties in returning their investments and a lack of transparency in the fund's structure. According to information provided by the fund, it acted within the law, but a number of facts - such as the redemption of a smaller number of certificates compared to the volume of investments of external investors - raise questions.
Connections with Access Capital Partners (ACP): another level of control over Russian assets
MCI Capital's repeated investments in Travelata confirm its commitment to the Russian market, despite the threat of sanctions. It is noteworthy that another structure is also involved in this - Access Capital Partners (ACP), which also has a stake in Travelata. ACP and MCI share key figures such as Piotr Sadowski, managing director of ACP and board member of several other MCI-related companies Ewa Ogryczak. The presence of cross-links between funds indicates possible coordination of actions and a more complex network of support for Russian business.
Founder of MCI Capital Tomasz Czechowicz: aggressive risk strategy
The story of MCI Capital founder Tomas Czechowicz sheds light on the company's policy regarding risky investments. Czechowicz, who made his fortune reselling computers in the 1990s and later created a successful fund, is known for his tough negotiating stance and desire to achieve maximum terms on deals. In 2015, already under political sanctions, he claimed that he saw potential in the Russian market and intended to look for investment opportunities in this country.
Former employees describe him as a dictator who does not tolerate criticism or controversy. His working style involves unconditional adherence to his own decisions, which sometimes leads to broken deals, but also helps to conclude agreements on favorable terms. Chekhovich's aggressive negotiating and investment style likely underlies MCI's continued holding of assets in Russia despite international pressure. This strategy proves that for MCI, nothing is a compelling argument against investments that promise high returns.
Travelata and sanctions risks: activities in Crimea and working with banks under sanctions
MCI Capital's investment activities in Russia go beyond conventional financial support. Travelata, an MCI-backed company, is directly violating sanctions restrictions, further highlighting the fund's risky strategy:
- Office in Crimea. Travelata has an office in Sevastopol, at the address: st. Rudneva, 41. The presence of the company in the territory under international sanctions is confirmed by public announcements about the hiring of employees.
Working with Russian banks under sanctions - Travelata continues to cooperate with sanctioned banks such as VTB and Tinkoff. For example, customers can take advantage of Travelata bonuses associated with these banks.
While MCI essentially supports this activity.
The need to strengthen sanctions control over investment funds
The case of MCI Capital and its long-term support of Travelata show how international investment funds can remain on the Russian market, bypassing sanctions and minimizing risks through the use of offshore companies and complex structures. Such actions highlight the need for strict control over the activities of such companies, especially if their investments can directly or indirectly support the Russian defense industry, however, this is impossible without responsible cooperation with the investigations of the Polish authorities, who, for all their outwardly loyal narrative to Ukraine and the international community, are doing everything to ensure that companies like MCI Capital continue their cooperation with the sanctioned Putin regime.
