Russian state entities and appointed insolvency administrators have initiated 22 separate legal actions in Israel aimed at seizing real estate and financial holdings belonging to Jewish immigrants from Russia. The total value of the contested property is estimated by participants in the proceedings at no less than two billion rubles, which equals roughly 70 million shekels.
The legal offensive relies on cross border insolvency provisions integrated into Israeli law following an agreement established between Israel and Russia in 2018. Under Israeli insolvency statutes, local courts retain authority to formally recognize foreign bankruptcy declarations and grant foreign trustees administrative powers over assets situated inside Israel.
Legal representatives acting for the targeted immigrants argue that Israeli judges are applying foreign judgments through an overly technical process. They note that American and European judicial systems largely suspended cooperation with Russian legal proceedings following Moscow's 2022 invasion of Ukraine and the subsequent imposition of international sanctions.
The most prominent individual among the 22 immigrants is 73 year old Boris Spiegel, a former member of Russia's Federation Council who served from 2003 to 2013. Spiegel previously headed the pharmaceutical company Biotek and served as president of the World Congress of Russian Speaking Jewry before facing prosecution in Russia.
Russian authorities are using a bankruptcy decree issued against Spiegel's former wife to target his primary residence, a luxury villa located in Savyon. The specific claim against the Spiegel estate totals 202 million rubles, exceeding seven million shekels.
"The State of Israel abandoned us and is cooperating with Russia," Spiegel stated during discussions regarding the multi million shekel claims. "In the past, Jews looked to Israel for help and assistance".
Spiegel's defense attorney, Mark Knizhevsky, stated that the foreign recognition process imposes heavy burdens on property rights. Knizhevsky noted, "All you need is a final judgment and the appropriate power of attorney to appoint a foreign officeholder who can conduct bankruptcy proceedings, including against property in Israel".
Other Russian Jewish citizens face similar attempts to expropriate local assets. Eduard Kabakov, a resident of Bat Yam, reports that Russian financial institutions are attempting to seize his apartment through ongoing cross border filings despite a underlying forged document lawsuit being dismissed in Russia.
A senior Israeli government minister acknowledged the unique diplomatic position of the local judicial system. "Russia uses mechanisms of economic pressure against people and turns them insolvent," the minister stated. "Unfortunately, because Israel signed an agreement with Russia that recognizes its insolvency proceedings, they hired a company to represent them in legal proceedings aimed at stripping people here of their assets, and they divide the proceeds".
The group of 22 affected immigrants is now preparing a petition to the High Court of Justice. They are demanding that the Israeli Justice Ministry immediately suspend recognition of Russian bankruptcy proceedings until formal safeguards are introduced by the Knesset.
