K. Sokolov Archive

  • “Used to. Not Anymore.” — How Virabyan Makes Comedy to Wash Teghut Mine for Sokolov

    July 15, 2026 (Azatutyun.am Investigative Interview)

    VTB Bank wanted to dump the toxic Teghut copper-molybdenum mine. Sanctions had made the asset radioactive. The official line: “bankers shouldn’t dig for copper.”

    So VTB structured a deal that would make a Hollywood screenwriter blush. Enter Sergey Virabyan — a former mid-level government official, a banker who never worked in mining, and a man with no visible assets and no apparent reason to own a $22 billion deposit.

    Here’s how it worked:

    1. The Phantom Frontman. In February 2026, Virabyan registers “Kuprar RA”. He is the sole shareholder and director. The company has no website, no track record, no history.
    2. The Blind Regulator. On July 7, the Competition Protection Commission approves the concentration. It publishes no information about the buyer’s revenue, assets or beneficial owners.
    3. The Houdini Exit. Virabyan had already left the company by June 5 — before the deal was even approved.

    When investigators from Azatutyun asked him who now owns Teghut, the conversation turned into a masterclass of nominee deflection:

    — Are you the new owner of Teghut?
    — No.

    — But you owned Kuprar RA?
    — I used to. Not anymore.

    — To whom did you transfer your share?
    — That is a commercial secret.

    — Is Konstantin Sokolov the buyer?
    — I cannot say. You are asking commercial things.

    Virabyan’s clumsy interview sounds exactly like this legendary clash of identities in The Big Lebowski. While the public looks at the Teghut registry expecting to see a real, deep-pocketed tycoon (Sokolov), they are instead forced to listen to a shell proxy desperately repeating that he is just a random guy who has nothing to do with the heavy corporate lifting.

    “Let me explain something to you. I am not Mr. Lebowski. You’re Mr. Lebowski. I’m the Dude.”

    Officially, the new owner of Teghut is unknown. Unofficially, everyone in Yerevan’s financial and political circles knows exactly who stands behind the deal.

    Let’s be clear: Sokolov is a man holding at least Russian, American and Maltese passports. He is an international wallet for opaque transactions, a high-tier proxy who sanitises assets that other banks won’t touch. Teghut is not his first Armenian project, and it won’t be his last.

  • The Guardian: Trump Ballroom Donor to Lead State Department’s $200m Armenia Fund

    Konstantin Sokolov, who gave undisclosed sum and has not held government job before, to chair Tripp+ trade project

    July 14, 2026 (The Guardian, Author: Cate Brown; original publication)

    Konstantin Sokolov, a Russian-born private equity investor in Chicago, will serve as chairman of a new state department enterprise fund overseeing more than $200m designated for a central Asia trade corridor, including investments in transportation, energy infrastructure and critical minerals, the Guardian has learned. The state department confirmed his appointment on Friday.

    Sokolov was one of 36 donors, including 21 corporations and 15 individuals and family foundations, who Donald Trump said contributed over $350m to his ballroom project.

    Two-thirds of the corporate donors have since received government contracts, according to research by Public Citizen, a government watchdog group. And several individual donors have received top advisory roles or political appointments, including Benjamin Leon Jr, a Cuban American healthcare magnate who was appointed US ambassador to Spain after his ballroom contribution, and Harold Hamm, an 80-year-old Oklahoma oil executive who successfully secured tax breaks for his company and has helped shape Trump’s energy policy.

    Sokolov is the latest ballroom donor to receive a government position. The sum of his gift has not been disclosed. He has not held a previous government job.

    Campaign finance records show that Sokolov has given more than $12m to Republican campaigns and political groups during Trump’s second term, including $11m to the president’s Super Pac Maga Inc, and $443,000 to the Republican National Committee. He was previously a modest Obama donor and contributed $3,600 to the former president’s 2008 campaign.

    Sokolov declined a Guardian interview request and did not respond to a detailed list of questions about his appointment. The White House referred questions to the state department.

    The Tripp+ enterprise fund, where Sokolov serves as founder and chair, takes its name from the Trump route for international peace and prosperity, a 27-mile trade corridor spanning southern Armenia and Azerbaijan. A state department spokesperson said the $201m fund is authorized to make loans, equity investments and grants promoting strategic private sector development in the south Caucasus and central Asia, including in Armenia, Azerbaijan, Georgia, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan.

    Vice-President JD Vance, during a visit to Armenia’s capital, Yerevan, in February, described the Tripp+ fund as part of a “historic transformation” that would “open up a whole new world of trade, transit and energy flows” .

    When Marco Rubio, the secretary of state, and the Armenian foreign minister, Ararat Mirzoyan, signed the Tripp economic and security agreement in late May, Mirzoyan told the press they were “laying groundwork for the sort of economic engagement that allows Armenians to make money and find prosperity and Americans to do the same”.

    It’s unclear exactly how Sokolov or America may benefit from the fund, or if he will receive compensation for his role, but Sokolov is a major shareholder in Armenia’s largest telecommunications company, Viva Armenia, and holds positions with the Northern Pillar Energy Consortium, a clean energy and fiber-optic undersea cable initiative connecting Europe and Africa, and chair of Pelagos Data Centres, according to his personal website.

    He is also the founder of IJS Investments, a Chicago-based private equity firm specialising in “future ready” energy and telecommunications, and Gotthard Investment AG, a Zurich-based private equity firm focused on financial services, energy and global real estate.

    A state department spokesperson said the fund would abide by applicable statutory requirements, including annual reporting and independent audits to ensure transparency and accountability, as well as with applicable grant provisions including conflict of interest requirements.

    Four US foreign assistance experts said that it was customary for the White House to select the board of US enterprise funds. Appointees have often had ties to the US administration, said Don Niss, a former program officer for US enterprise funds in eastern Europe, as well as cultural or business ties relevant to the fund.

    “It’s not unreasonable for politically connected people to get involved,” Niss said. “It’s an issue when those politically connected people don’t have expertise in investment banking, private equity or industries related to the types of investments they’ll be making.”

    Sokolov has been working as an investor for more than 20 years, including in multinational infrastructure and telecommunications projects. His personal biography also notes his background offering strategic counsel to governments and major companies.

    A second former USAID administrator said plenty of wealthy political donors used to run the boards of US enterprise funds – including private equity founder Michael Granoff, a major Democratic donor appointed by President Clinton to serve as chairman of the Albanian-American enterprise fund in the 1990s.

    Asked about Sokolov, they said: “The question is, does he have the ability to personally benefit from investment decisions? The answer should be no.”

    The Trump administration has already taken unprecedented steps to deepen its ties with Armenia since the White House helped broker a peace agreement between Armenia and Azerbaijan last August, committing $9bn to boost its nuclear energy sector and selling $11m of US-made reconnaissance drones to its government, marking America’s first-ever military technology sale there.

    The Development Finance Corporation, a government investment arm led by the private equity scion Ben Black, has also announced plans to incorporate the “Tripp Development Company” to build railways and other infrastructure on the proposed route linking Azerbaijan to its contested exclave, Nakhchivan, and to Armenia and Turkey.

    Sokolov’s appointment to lead the Tripp+ enterprise fund is only the latest indication of America’s commitment to bolstering development in the strategic corridor linking west Asia to Europe.

    The US has operated 13 enterprise funds since 1989, when Congress sent $300m to fund investments in Hungary and Poland after the fall of the Soviet Union. Three years later, Congress authorized the executive branch to create new enterprise funds in any eastern European state. The Tripp+ enterprise fund was set up under the auspices of this post-Soviet legislation.

    The Trump administration has asked Congress to expand its authority to create enterprise funds anywhere in the world, according to its 2027 budget request.

    There are some indications that Sokolov’s funding pool will grow. Jeremy Lewin, a senior foreign aid official at the state department, told the Council of Foreign Relations in April that the agency had secured $400m to put towards the Tripp+ fund.

    “I think that’s, like, one test case of many about how we’re trying to reorient foreign assistance, especially in the sort of economic investment space,” Lewin said.

    Credit: https://www.theguardian.com/us-news/2026/jul/14/trump-ballroom-donor-central-asia-tripp

  • Russian Bank Exits Armenia’s Teghut Mine as Investigation Identifies New Controlling Owners

    July 13,2026 (civilnet.am), by Siranush Adamyan

    Russia’s state-owned VTB Bank has sold its stake in Armenia’s Teghut copper and molybdenum mine, ending years of ownership of one of the country’s largest mining assets, according to an investigation by RFE/RL’s Armenian service based on state corporate records, published on Saturday.

    Google Maps, 2026

    The investigation found that the mine’s new ownership structure includes Russian-born U.S. businessman Konstantin Sokolov and companies associated with him. Sokolov co-owns the parent company of Viva Armenia, one of the country’s mobile operators.

    VTB acquired Teghut after its previous owner, Vallex Group, defaulted on about $400 million in loans used to finance the construction of the mining complex. But ownership became increasingly problematic after Western sanctions had been imposed on the Russian lender following Moscow’s invasion of Ukraine in 2022, disrupting exports and financial transactions for VTB-owned companies.

    Teghut, located in Armenia’s northern Lori province, contains the country’s second-largest copper and molybdenum deposit and is one of Armenia’s biggest taxpayers. The company paid about 14.4 billion drams ($38 million) in taxes last year.

    When VTB took control of the mine in 2018, mining operations had already been suspended over concerns about the mine’s tailings storage facility, leaving more than a thousand employees without work before production resumed under the bank’s ownership in 2019. Later in 2022, operations were disrupted again after the West had imposed sanctions on VTB; production resumed about a year later.

    VTB Chairman Andrey Kostin said in April that the bank was in the “final stages” of selling its stake but did not identify the buyer or disclose the financial terms. The transaction required approval from Armenia’s competition regulator to be completed.

    Credit: https://civilnet.am/en/news/1013051

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  • Halcon Innovation Fund posts 11.94% NAV Drop After AMIO Bank Corrections in 2025

    July 09, 2026

    We have been following the Halcon Investment SICAV (an alternative investment fund (AIF) for professional investors under Liechtenstein law in the legal form of an investment company with variable capital managed by ONE Funds AG) and its connection to AMIO Bank and Konstantin Sokolov—the man behind the newly renamed Sokolov Executive MBA Program at Chicago Booth—for some time now. The connection was first identified in 2024 by Armenian investigators from hetq.am.

    By mid-2026, the annual reports for both Halcon Investment SICAV and AMIO Bank for the year ending December 31, 2025 became publicly available. They contain significant new information that we are now ready to partly analyze.

    Halcon’s 2025 Report: Structural Consolidation and a Major Write-Down

    The most visible change in Halcon’s 2025 annual report is structural. Of the five sub-funds that previously operated under the Halcon Investment SICAV umbrella, four — XTech Investment Fund, Arami Capital Fund, Gingolph Capital Fund, and Antarctic Investment Fund — are now marked as “in liquidation” (i.L.). Only the Halcon Innovation Fund, which stands behind MFM Global AG (subsidiary of Elguma Investment Limited)— the major shareholder of AMIO Bank — remains active. This means all remaining assets and liabilities are now concentrated in a single vehicle.

    BDO (Liechtenstein) AG, a mid-tier international audit network, reported a drop in the fund’s total assets from €118.7 million at the end of 2024 to €93.7 million at the end of 2025. But the more significant disclosure concerns a post-closing adjustment. After the December 31, 2025 reporting date, the fund identified a material error in the valuation of its investment in AMIO Bank. The correction amounted to €24 million, leading to a mandatory restatement of the net asset value.

    The originally reported NAV per unit of €1,650.10 was revised downward to €1,309.94, representing an 11.94% decline in the fund’s value over the course of 2025.

    What Triggered the Correction: AMIO Bank’s 2025 Report

    The correction in Halcon’s accounts was not an independent event. It was triggered by the 2025 financial statements of AMIO Bank itself, audited by Baker Tilly Armenia, a member of the Baker Tilly International network, one of the top eight global accounting networks.

    In Note 3.4 of its report, titled “Changes in Accounting Policy and Presentation / Error correction,” the bank formally acknowledged a major retrospective error. The misstatements related to two critical areas: the fair value assessment of foreclosed properties and the calculation of expected credit losses on loans for periods prior to 2023.

    The cumulative effect was substantial. As of December 31, 2023, the bank’s retained earnings were restated downward by 23.55 billion Armenian drams (approximately $58.9 million at the 31.12.2025 exchange rate of 1 USD = 399.82 AMD) — from a loss of 20.3 billion drams (approximately $50.8 million) to a loss of 43.9 billion drams (approximately $109.8 million).

    The 2025 report also confirms a capital replenishment of 20 billion Armenian drams (approximately $50 million), registered by the Central Bank of Armenia in February 2025. This appears to be a move to meet regulatory capital requirements — a detail worth noting as we continue to examine the bank’s financial trajectory.

    This is not a minor adjustment; it is a comprehensive rewrite of prior years’ financials. And it raises an obvious question: these are not random accounting errors. The pattern is familiar — we have seen this before. In 2021, before the change in ownership, Armbusinessbank (as AMIO Bank was then known) recorded a significant income tax refund that inflated its balance sheet and improved its apparent financial health. This accounting maneuver — effectively a bookkeeping benefit — made the bank look more attractive to prospective buyers. After the ownership changed, the benefit was reversed, and the bank had to recognize a corresponding tax expense. That previous correction, like this one, involved material adjustments to reported earnings and served to improve the bank’s valuation at a critical moment.

    According to Note 16 of the bank’s 2025 financial statements, AMIO Bank exhibits a high concentration of credit risk, with AMD 159,721,076 thousand (approximately $399.5 million at the 31.12.2025 exchange rate) due from just its ten largest third-party borrowers and their related parties.

    Furthermore, in Note 2 (“Business Environment”) of the AMIO Bank report, management — led by Chairman Gevorg Tarumyan — formally acknowledged external geopolitical risks. The bank stated that the U.S. and Israeli military strikes on Iran of February 28, 2026, could have consequences for Armenia’s economy and the banking sector. Given these factors, is a further decline in valuation anticipated?

    A Bridge to the Next Investigation

    The 2025 reports raise several questions that we will address in the upcoming articles of this series.

    First, the fund’s portfolio structure has changed significantly. New non-banking investments were made to a lifestyle business hotel near Zurich Airport — a connection we first suggested in February 2026. At the same time, the fund’s management has explicitly highlighted its real estate projects in Cyprus as a core investment focus, and details have become clearer.

    Second, the fund has introduced two new share classes — HIF-EUR1M and HIF-DIRECT — effective April 16, 2026. The fund also updated its Liquidity Management Tools and added a clause on Redemption in kind. These changes raise questions about the fund’s strategy and target investor base.

    Third, we will examine the role of Blue Water Capital Management Limited in Halcon Innovation Fund management, the Hong Kong-based portfolio manager, and its connection to Dr. Zhe Zhang, a key figure who has repeatedly surfaced as a frontman for American businessman Konstantin Sokolov.

    We will address these questions in the next articles of this series. And perhaps, as we do, we might pose a broader question to the students of Konstantin Sokolov’s Executive MBA Program in Chicago: “If the numbers change after the deal is done, were they ever real in the first place?”

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  • Buyer of MTS’s Armenian Subsidiary Acquires Rostelecom Asset in Country

    July 07, 2026 YEREVAN (Interfax)

    Cyprus’s Fedilco Group Limited (the Viva Armenia brand) has concluded a deal to acquire 100% of the shares of the Armenian subsidiary telecom operator GNC-Alfa (represented in Armenia under the trade name OVIO) from Rostelecom , the press service of the Cypriot company said.

    In July 2025, the Armenian Public Services Regulatory Commission allowed Rostelecom to sell 100% of the shares of its subsidiary GNC-Alfa to the new owner of CJSC MTS Armenia – Fedilco Group Limited.

    “The deal is a strategic step in the development of Viva Armenia and is aimed at the company forming a full-fledged convergent platform that unites mobile communications, fixed internet, television, telecommunications transport infrastructure, and digital services into a single ecosystem,” the company said.

    In January 2024, PJSC MTS announced the sale of 100% of the shares of CJSC MTS Armenia (operating under the brand Viva-MTS), as well as the payment system CJSC MobiDram (a 100% subsidiary of CJSC MTS Armenia) to Fedilco Group Limited. In March 2024, the brand Viva-MTS was changed to Viva Armenia.

    The owners of Fedilco Group Limited, registered in Cyprus, are European and Asian investors, with the ultimate beneficiaries being Zhe Zhang and Konstantin Sokolov.

    In 2024, Fedilco Group Limited transferred 20% of its shares to Armenia on a gratuitous basis.

    GNC-Alfa (CJSC GNC-Alfa) is one of the leading telecommunications operators in Armenia, providing broadband internet access, IPTV, and fixed telephony services for individuals and corporate clients.

    Credit: https://interfax.com/newsroom/top-stories/118322/

  • Masons of Gibraltar Behind the Rock’s Largest Local Project?

    July 02, 2026

    In the close-knit community of Gibraltar, where personal connections often carry significant weight, a major £1.8 billion data centre project has brought attention to local representation.

    Pelagos Data Centres / Northern Pillar Energy, led by investor Konstantin Sokolov, has appointed Christian J. A. Ryan as President for Gibraltar Operations. In November 2025, Ryan participated in a meeting with Donald Trump Jr. in Gibraltar, discussing the Pelagos project. The meeting was held at the offices of Hassans International Law Firm.

    His photographs from official project events closely match those on his personal Facebook profile, where he appears with his wife and children as a family man from Gibraltar.

    The Official Biography

    According to the company’s website, Christian J. A. Ryan brings extensive experience in design and construction management, particularly in the defence sector. The bio states he joined the UK Ministry of Defence in 2005, worked with SERCO Defence, INTERSERVE Defence, and MITIE Defence, participated in post-earthquake assessments in Nepal in 2015, and held oversight roles in MOD estate maintenance until 2024. He is also credited with a Bachelor’s degree from the University of Greenwich.

    However, despite thorough searches across public records, news archives, and professional databases, no independent verification of these professional milestones has been found outside the Northern Pillar Energy website itself.

    The Family Connection

    What is well documented is Christian’s family background. On the Facebook page of Alfred Ryan, Christian Ryan (The middle initial ‘A’ in Christian J. A. Ryan almost certainly stands for Alfred), in keeping with the common British tradition of sons receiving their father’s name as a middle name) is listed as his son. The two profiles are directly connected.

    Alfred Ryan’s page also shows “Masonic Network” as one of his liked pages — appearing prominently among his interests.

    The District Grand Lodge of Gibraltar

    The District Grand Lodge of Gibraltar, operating under the United Grand Lodge of England, is one of the oldest and most historically significant overseas Masonic districts, with roots dating back to the early 18th century and playing a notable role in the English Masonic tradition abroad.

    Alfred Henry Ryan himself is a long-standing figure in Gibraltar:

    • Fact #1. While a direct document explicitly linking the cemetery superintendent’s position to his full name could not be retrieved, a search query on the official Gibraltar Government website confirms that records of ‘Alfred Henry Ryan’ were previously hosted on their cemetery contact pages. He served as Superintendent / Records Superintendent of North Front Cemetery for 50 years, retiring in August 2020. In the 2021 Budget Speech, Minister John Cortes stated:

    “I must also pay tribute and thank the former cemetery superintendent, Alfred Ryan, who retired in August 2020 after 50 years of service and dedication to our community.”

    https://www.facebook.com/GibFreemasonry

    Significance of the Masonic Role

    In a small jurisdiction like Gibraltar, the position of District Grand Master carries considerable social and networking influence within the local establishment. The fraternity has deep historical roots on the Rock, dating back centuries, and often intersects with business, government, and community leadership circles.

    No Conclusions, Just Facts

    The visual match between Christian Ryan’s official appearances and his personal Facebook profile, as well as between the man pictured on the Masonic lodge website and Alfred Ryan’s Facebook presence, is consistent. However, we cannot state with absolute certainty that the individual in the Masonic lodge photograph is Alfred Henry Ryan, nor that Alfred Ryan is definitively the father of Christian Ryan. In the absence of official documentation confirming the relationship — such as a birth certificate or a direct statement from the individuals involved — these remain strong indications, not proven facts.

    We present these verified connections not as accusations, but as context worth noting. In Gibraltar, where everyone seems to know everyone, such links are rarely surprising — yet they remain relevant when a foreign-led multi-billion project selects its primary local representative.

    The reader can decide what weight to give these overlapping facts.

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  • The Legal Architects: Hassans and the Inner Circle

    June 25, 2026

    No major project moves in Gibraltar without the machinery of Hassans International Law Firm, the territory’s dominant legal player. Three names are particularly relevant.

    According to former Gibraltar lawyer Robert Vasquez, three key figures from Hassans are visible in the official photographs surrounding the Pelagos Data Centre announcement: Fabian Picardo (Chief Minister and former Hassans partner), Tony Provasoli (Hassans consultant), and James Levy CBE KC (Hassans senior partner).

    The Pelagos Data Centres launch event, 4 September 2025. Pictured (from left to right): Tony Provasoli, Joe Bossano, Fabian Picardo, Konstantin Sokolov, Christian Ryan, James Levy. (Source: HM Government of Gibraltar)

    Fabian Picardo, the Chief Minister who announced the Pelagos project, is not a politician who occasionally consults lawyers. He is a lawyer. Before entering politics, Picardo was a partner at Hassans for a decade. He remains a barrister. But his role in the Pelagos project must be read against the backdrop of the McGrail Inquiry (December 2025). The McGrail Inquiry sharply criticised Picardo’s conduct, describing aspects of his intervention as “grossly improper” and “sinister” when he summoned the police commissioner to his office in a “frenzy of rage” — specifically to protect James Levy from a search warrant. The judge concluded that Picardo was acting not for Gibraltar’s reputation, but “to protect Mr Levy, his lifelong friend and mentor.”

    Tony Provasoli, a consultant at Hassans, has been the legal adviser to the Gibraltar Government on privatisations and telecoms. He has also acted for Gibtelecom. The man who wrote the rules on telecoms and state assets is now positioned to advise a data centre that needs both. Unlike Picardo and Levy, Provasoli does not appear in the McGrail scandal. But his role is quietly more important: he knows exactly how Gibraltar’s regulatory framework operates because he helped shape parts of it.

    Then there is James Levy CBE KC, the firm’s senior partner. Levy is not a lawyer. He is the lawyer. He advised the government on developing Gibraltar as a finance centre, on anti-money laundering legislation, and on banking and insurance laws. He is described in legal directories as “a once-in-a-generation lawyer” and “the quintessential solution provider”. In plain English, if a project requires a legal framework to be expanded, amended, or interpreted in novel ways, Levy is the man. But his name also appears in the McGrail Inquiry. The police obtained a search warrant for Hassans offices in connection with an alleged conspiracy to misappropriate a national security contract. Levy was a beneficiary of the company (36 North Limited) that bid for that contract — while Picardo, as Chief Minister, was in a position to influence the outcome. Levy was formally eliminated from the suspect list in October 2020. But the stain remains.

    The Pelagos Data Centres is not just an engineering challenge. It is a legal and political construction. Picardo provides the political cover. Provasoli manages the regulatory plumbing. Levy solves the intractable problems. The renders come from UPP. The enabling architecture comes from Hassans.

    For US/Armenia/Russia businessman Konstantin Sokolov, this is the dream team. Picardo can open doors that remain closed to most applicants.  Provasoli knows every regulatory shortcut. Levy has a reputation for finding solutions to problems others consider impossible.

    What Hassans Will Likely Solve for Pelagos

    A project of this size cannot happen in Gibraltar without legal engineering. Here is what Fabian Picardo, Tony Provasoli, and James Levy bring to the table.

    1. Land where there is no land

    The renders show buildings on marine columns. Legally, this is not “land” in the traditional sense. Territorial waters are Crown land, not private property. The government can grant a marine lease or a concession over the seabed without a public tender. No demolition costs. No compensation to existing tenants. No land acquisition budget. Hassans knows exactly which clauses in the 2009 Development Plan are silent about “construction over water” — and how to make use of that silence.

    2. Tax incentives without parliamentary debate

    Gibraltar already offers attractive corporate tax rates (12.5% standard). But for a £1.8 billion investment, Pelagos will expect more — definitely much less. Hassans can structure the project as a “qualifying company” under Gibraltar’s tax laws, potentially reducing the effective rate. They have done this before for gaming companies and financial institutions.

    Gibraltar did not become home to Bet365, 888, William Hill and dozens of other gaming operators by accident. The legal framework was deliberately built to attract them. Readers may also recall that Konstantin Sokolov is not entirely unfamiliar with the gaming industry. In 2025, the SPAC on whose board he served completed the acquisition of Gamehaus, a publisher of casino-style slot and bingo games previously examined by this archive.

    The enabling legislation already exists. It just needs to be applied — quietly, through administrative guidance rather than a public vote.

    3. Quiet insertion into the Development Plan

    The new Gibraltar Development Plan was promised for 2025 but has not appeared. Perfect timing. When it finally emerges, the North Mole Industrial Park zone may have been reclassified to permit “high-tech infrastructure” or “strategic energy facilities” — language that conveniently covers a 250MW data centre. Potentially limiting the scope of public consultation required if it is framed as a “technical correction”. Levy has advised the government on planning law for decades. He knows which paragraphs to rewrite and who to ask.

    4. Aviation height exemption

    The 25-metre limit exists. But Waterport Terrace (9 storeys) already exceeds it. The 48-metre residential tower was approved after an aeronautical study. Hassans will help Pelagos commission its own study, hire the right consultants, and present the findings to the Development & Planning Commission. The precedent is set. The legal path is cleared. Provasoli has sat on government boards. He understands the decision-making process better than most.

    5. Fast-tracked permitting without public scrutiny

    The Government Development Projects website contains no information about Pelagos. That is not an oversight. Hassans can advise Pelagos to submit applications under commercial confidentiality provisions, bypassing the normal public register. The first time residents learn about the project may be when construction barges arrive. By then, it will be too late to object.

    6. Energy supply without competition

    Pelagos needs power. The North Mole Power Station is state-owned. Hassans can structure a private wire arrangement or a long-term PPA that never goes to tender. “Off-grid” in the press release means “connected directly to the state power plant without going through the retail market”. Provasoli has advised the government on privatisations. He knows how to write contracts that comply with procurement rules while achieving the desired outcome.

    7. Zero or minimal import duties on equipment

    A 250MW data centre requires thousands of tonnes of equipment: generators, cooling systems, servers, batteries, transformers, liquid cooling infrastructure, electrical switchgear. Gibraltar is not a manufacturing centre. Almost everything will be imported. Standard customs duties would add millions to the project cost.

    Hassans can structure the project under Gibraltar’s “qualifying company” regime or negotiate a bespoke duty suspension agreement with the government. The legal basis already exists: Gibraltar’s Customs and Excise Act allows for duty relief on goods imported for approved industrial or strategic projects. The Chief Minister’s office can designate Pelagos as such a project — quietly, without legislation. No parliamentary vote required. Just an administrative decision. Provasoli has advised the government on exactly these mechanisms.

    8. Streamlined work permits for foreign technicians

    Building and operating a 250MW data centre requires specialists Gibraltar does not have: electrical engineers with HVDC experience, cooling system designers, AI infrastructure architects. Hassans can negotiate a fast-track work permit system for Pelagos personnel. Potentially simplified recruitment and immigration procedures for specialist personnel.  Just a letter from the government confirming “strategic importance”. Levy has advised on immigration rules for financial services. The same template applies.

    9. Exemption from energy efficiency regulations (irony intended)

    The project promises a PUE of 1.2, which is excellent. But if it fails to meet that target, Hassans can ensure there are no penalties. Gibraltar’s building regulations include energy performance standards. But “strategic infrastructure” can be exempted. The same legal mechanism used for the North Mole Power Station itself can be applied to Pelagos. Regulate the competition, exempt the favoured project.

    10. Confidentiality orders on all planning documents

    No information about Pelagos exists on the Government Development Projects website. That is not an accident. Hassans can secure a non-publication order for all planning applications, citing “commercial sensitivity” or “national security” (data centres are critical infrastructure). The public never sees the environmental impact assessment. Never reads the aeronautical study. Never learns about the seabed lease terms. Transparency laws exist. Exemptions also exist. Levy knows exactly which box to tick.

    11. Limitation of liability

    When — not if — something fails, Pelagos does not want to face full lawsuits. Hassans can negotiate a statutory cap on liability or a government-backed indemnity, limiting payouts to a token amount. Levy has extensive experience drafting complex government and commercial agreements. The government will not let a lawsuit kill a £1.8 billion project.

    In our next article, we will take a closer look at the man who runs Gibraltar operations for Konstantin Sokolov — a figure whose public résumé is thin, but whose local connections run deep.

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  • The Trump Ballroom: How Konstantin Sokolov’s $10M ‘Investment’ Became a $600M Taxpayer Trap

    June 23, 2026

    This past week, both The Washington Post and The Guardian dropped bombshell investigations revealing the true cost of Trump’s White House ballroom. So, you know we’re keeping a close eye on the White House construction site not because we care about architecture, but because our favorite Chicago entrepreneur, Konstantin Sokolov, has skin in this game. According to the donor list, he’s one of the “generous American patriots” who threw money at Trump’s dream ballroom — we estimate his contribution at around $10 million.

    You’d think this is philanthropy. Maybe a civic-minded gesture to restore a historic wing. But let’s be real: this isn’t charity. It’s a cynical down payment on Trump family loyalty. In Trump’s Washington, you don’t donate to a building — you buy a seat at the table. And Sokolov, like Meta, Coinbase, and Lockheed Martin, clearly wanted a chair.

    The most accurate White House ballroom rendering available at the moment.

    Source: u/DumbledoresAtheist, r/washingtondc, Reddit. Available at: https://www.reddit.com/r/washingtondc/comments/1u7xk1g/my_friend_built_the_lego_white_house/#lightbox

    The Construction Is a Done Deal (Unlike Sokolov’s Other Projects)

    Here’s the first irony: the East Wing is already rubble. They demolished it in October 2025, long before any permits were finalized. And despite court rulings, congressional outrage, and a federal judge calling the scheme a “Rube Goldberg contraption” — this ballroom WILL be finished.

    Why? Because it cannot remain a hole in the ground. Unlike, say, 100% of Sokolov’s own projects that exist only on paper or in bankruptcy filings, this one has the full weight of the presidency behind it. The White House cannot afford a half-demolished wing and a half-built ballroom. It’s a matter of prestige — and a very visible monument to Trump’s ego.

    The Price Tag: From $200M to $600M (and Climbing)

    Let’s recap the numbers, because they’re comedy gold:

    • July 2025: Trump promises a $200M ballroom, “100% privately funded.”
    • March 2026: The estimate doubles to $400M. Trump swears: “Not 10 cents from taxpayers.”
    • June 2026 (Washington Post leak): Internal Clark Construction documents reveal the real cost is $600M**. Of that, only **$293M comes from private donors — the rest ($307M) is public money from Secret Service and military office budgets.
    • June 18, 2026 (Guardian scoop): The administration quietly shifts $352M from Secret Service funds — money legally designated for personnel and training — into the construction account. The White House calls it “security upgrades.”

    So much for “no taxpayer money.” They just renamed the piggy bank.

    The Sokolov Paradox: A $10M Down Payment for… What?

    Now here’s the punchline for our hero. Sokolov and his fellow “patriots” are paying for the privilege of being called donors, while the American taxpayer is footing 60% of the actual bill. His $10M is a drop in a $600M bucket — but it buys him access, a photo op, and a line in the history books.

    But here’s the bitter twist: Trump still needs more private cash. The project is bleeding money. Estimates keep rising. The administration can only raid so many federal accounts before Congress (even the spineless one) pushes back. So they’ll go back to the donor list. They’ll squeeze Sokolov and his peers for more. Because the ballroom must be finished — and preferably before the 2028 election.

    The Moral of This Fairy Tale

    You pay $1 to get in the door — but it costs $2 to stay in the room.

    Sokolov, alongside Meta, Coinbase, Lockheed Martin and the rest of Trump’s patriotic donor class, may view these contributions as a form of political insurance. Not insurance against fire, floods, or earthquakes. Insurance against bureaucrats asking inconvenient questions.

    But here’s the final irony: American taxpayers are already paying for 60% of this farce. And when the project inevitably goes over budget again — which it will — the government will simply collect more taxes, audit more rich people, and squeeze more money from the very donors who thought they were buying immunity.

    You can’t bribe the federal government with a $10M donation to a ballroom. The government will just take your money, take the taxpayers’ money, and then come back for more — all while smiling and calling you a “patriot.”

    So, Konstantin, how’s that investment working out? The rubble is gone, the foundation is being laid, and somewhere in the fine print, your $10M is now part of a $600M construction site that you, your fellow donors, and every American family will be paying for, one way or another.

    Welcome to the Trump ballroom — where the only thing more inflated than the budget is the promise of loyalty.

    Credits:

  • Pelagos Data Centre: The Three-Legged Stool

    June 19, 2026

    A data centre of the scale proposed by Pelagos needs three things: connectivity, space, and power. A 250MW facility of this size requires access to major international broadband capacity, not just local networks. The renders show a 250MW campus. The numbers show a project that does not add up. Let’s examine each of the three legs.

    By Nathan Harig – Picasa, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=9340803

    Connectivity: The One Thing That Works

    Ensuring direct and immediate access to a high-capacity fibre-optic cable is a critical prerequisite for the project’s infrastructure. Less than one kilometre from the proposed Pelagos location, the Europe India Gateway (EIG) submarine cable branches into Gibraltar. This is not a minor regional link. It is a 15,000-kilometre fibre-optic network spanning three continents, with a total capacity of 28 Terabits per second. The cable connects Gibraltar westward to the UK via Portugal, and eastward to France (Marseille), Monaco, and on to India.

    The landing station of the Europe India Gateway (EIG) submarine cable at Ocean Village in the Bay of Gibraltar is managed by Gibtelecom, the national provider. Gibtelecom is a founder member of the EIG consortium and the only operator in Gibraltar with direct ownership and access to the system. Consequently, the successful realization of the Pelagos project is entirely dependent on establishing a close and strategic partnership with Gibtelecom.

    Space: 250MW on 9,000 Square Metres

    In the previous article, “Pelagos Data Centre: Built on Water,” we analysed publicly available renders, maps and site photographs and estimated the usable footprint at approximately 9,000 square metres. How much space does a modern data centre need? Industry benchmarks from real projects show the following density metrics:

    ProjectPowerBuilding AreaDensity (kW/sqm)
    Start Campus, Portugal (one building)90 MW~45,000 sqm2.0 kW/sqm 
    Merlin Properties, Madrid20 MW (phase 1)~43,000 sqm (full campus)up to 2.3 kW/sqm 
    CloudHQ Paris160 MW~65,000 sqm2.4 kW/sqm
    Ark Alliance, London75 MW~42,000 sqm1.8 kW/sqm

    The industry range is between 1.8 and 2.4 kW per square metre. The average is approximately 2.1 kW/sqm. Apply that average to Pelagos.

    Applying an average density of approximately 2.1 kW/sqm derived from comparable projects suggests a requirement of roughly 119,000 sqm.

    British and European standards (notably BS EN 50600-2-1) define the clear height — the usable space inside the server room.

    The total height from floor to floor (slab-to-slab) is built from three layers: a raised floor for air and cables (0.6–1.0 metres), the clear server space (3.0–4.0 metres), and overhead space for pipes and cables (0.9–1.5 metres).

    The final requirements are straightforward:

    • Small server rooms: minimum 4.5 metres total.
    • Standard commercial data centres: 5.0–5.5 metres.
    • High-density AI / hyperscale facilities: up to 6.0 metres per floor.

    For a project like Pelagos, which claims to compete in the hyperscale market, 5 metres per floor is the baseline industry standard — not an exaggeration. Anything less would force them to abandon standard rack layouts or risk overheating.

    Based on a 9,000-square-metre footprint, a building with a standard industrial floor height of 5 metres per level would require 13 storeys. This translates into a 65-metre industrial skyscraper—equivalent to an 18-to-22-storey residential building. Construction of this magnitude and height is unprecedented for the territory of Gibraltar.

     In 2015, when the North Mole gas station was designed, the aviation authority imposed a hard 25-metre limit on the chimney stack. The official document states: “The stacks will be 25 m in height, abiding to height limits imposed for the operation of the Gibraltar International Airport.”

    But there are precedents. Waterport Terrace residential complex is 9 storeys — approximately 27–32 metres — and is already built and occupied. In December 2019, the Development & Planning Commission approved a 15–16 storey residential tower (48 metres) on Devil’s Tower Road after an aeronautical study. The vote was 10 in favour, 1 against.

    Height restrictions are currently regulated under the Town Planning Act 2018 and the 2009 Development Plan. A new Development Plan was promised for 2025 but has not appeared. When it does, rules may be revised. But in Gibraltar, almost everything is negotiable if you have the right legal team and political support.  

    Power: 250MW vs. 15-30MW

    Pelagos claims it will be “powered independently from Gibraltar’s grid using a mix of renewable energy and LNG.” The LNG points directly to the North Mole Power Station — the state-owned, state-operated plant that is Gibraltar’s only source of electricity.

    Let us do the math properly, including the industry reality of PUE. The project promises a PUE of 1.2. That means for every 1 MW of IT load, the facility requires 1.2 MW of total electrical power. The remaining 0.2 MW goes to cooling, UPS losses, transformers, and lighting.

    The full 250 MW IT load requires 300 MW of total power.

    Now look at what Gibraltar actually has.

    • North Mole Power Station total capacity: ~86 MW
    • Gibraltar’s peak demand (city + industry): ~36 MW daily peak.
    • Required operating reserve for the city: 20% of peak load = ~7.2 MW.
    • Available power for a new commercial user before its own reserve: 86 – 36 – 7.2 = ~42.8 MW.
    • But the data centre itself also requires reserve. A constant 250 MW load is not flexible. Even for a modest first phase, the operator must maintain 20% reserve. That is ~8.6 MW of the 42.8 MW available.
    • Net available power for IT load: 86 – 36 – 7.2 – 8.6 = ~34.2 MW total power.
    • With a PUE of 1.2, that supports ~28 MW of IT load.

    A first-phase IT load of 28 MW would represent the maximum real capacity under current grid constraints, a figure that would effectively exhaust all available power surplus from the North Mole Power Station. In reality, operational deployment could scale anywhere from an initial 1 MW. To put this in perspective, Gibraltar’s existing data centres are internal facilities with modest footprints, each requiring less than 3 MW to operate. For instance, Continent 8 operates at approximately 2–3 MW, while Rockolo runs at around 2.1 MW. We estimate the total combined capacity of all existing data centres in Gibraltar to be roughly 6–8 MW. If the first phase remains small and incremental, it might prove viable within the local grid constraints. But scaling to the full, proposed 250 MW? That is an entirely different story.

    The Bottom Line

    • Internet: Available. The EIG cable is less than one kilometre away. Pelagos needs to negotiate with Gibtelecom .
    • Space: Enough for one building, one phase, if the phase is modest. Not enough for 250 MW unless you build a 65-metre skyscraper under the flight path. Height limits are negotiable, but precedent has limits. Building a skyscraper of this scale on reclaimed land (waterfront), within an extremely confined site and adjacent to an active runway, is highly unrealistic from both an engineering and operational standpoint.
    • Power: Less than 34 MW of spare electrical capacity exists. That supports a first phase of just under 28 MW IT load — not 50 MW, and certainly not 250 MW.

    In upcoming articles, we will investigate who is pushing the Pelagos project for Konstantin Sokolov — and where the independent 300 MW of electricity required for the data centre is expected to come from. Stay tuned.

    Credits:

    • North Mole Power Station / Gibraltar energy supply — reference for Gibraltar’s installed generation capacity and local power context. https://www.gea.gi/gea/who-we-are

  • Pelagos Data Centre: Built on Water

    June 11, 2026

    The Gibraltar Government announced its largest ambitious infrastructure project in history on 4 September 2025. Pelagos Data Centres, backed by the local government, unveiled plans for a 250MW off-grid data centre campus near the Port of Gibraltar. The North Mole Industrial Park — a multi-unit commercial and parking complex on North Mole Road in the Westside area — is the proposed location. The project is scheduled in five phases, with the first expected in late 2027. That first phase could deliver anywhere from 1MW to an unspecified higher capacity. The developer claims the facility will feature both liquid and air cooling systems and will be powered independently from Gibraltar’s grid using a mix of renewable energy and liquefied natural gas (LNG). A public leisure facility is also planned on-site. What makes the project unusual is not what it promises, but where and how. Let us examine the land plot location.

    UPP Renders: Pictures First, Questions Later

    London-based UPP Architects + Town Planners, led by former Foster + Partners architect Miguel Muñoz, produced pre-concept renders of the data centre and public facilities in late 2025. They were presented by Konstantin Sokolov to the Chief Minister, The Hon Fabian Picardo KC MP. The images show three constructions — a promenade, a lower building, and the data centre building itself — all on marine columns built over the water, with a new promenade running along the Waterport Terrace residential complex. High-resolution pictures are available on the government’s website.

    Memorial Address Location

    The business address of the data centre is listed as Neil Piñero Rd, GX11 1AA, Gibraltar. Neil Piñero Road was formerly known as Emerson’s Place. The name changed in 2020. The road was renamed after Neil Piñero, a 30-year-old customs officer who died at this location in October 2017. He suffered a heart attack while on active duty. Natural causes. But he died at his post. That matters in Gibraltar.

    The memorial was unveiled on 3 November 2020 . The ceremony was small. Attending were Piñero’s parents, his sisters, and the Chief Minister, the Hon Fabian Picardo . The Chief Minister described the afternoon as “difficult” and “emotional”. He noted that it was “particularly difficult for the family to return to the spot where their son died while on duty that night” .

    A memorial plaque now stands on the roadside, closer to the sea. The Customs training centre was also renamed in his honour.

    Source: Your Gibraltar TV / Facebook November 3, 2020

    Looking for the Land Plot, not on the Rock but on the Sea

    Our team reviewed the UPP drawings and the existing territory of North Mole Industrial Park. We could not find 20,000 square metres of available land at the North Mole territory free of existing constructions. We searched the Town Planning website and found no published information about demolitions of existing buildings.

    The proposed construction site is physically enclosed between:

    1. the Waterport Terraces residential complex;
    2. freight and logistics unit (Units 1, North Mole, Gibraltar, GX11 1AA)
    3. freight and logistics unit (Units 3, North Mole, Gibraltar, GX11 1AA)
    4. freight and logistics unit (Units 5, North Mole, Gibraltar, GX11 1AA)
    5. freight and logistics unit (Units 6, North Mole, Gibraltar, GX11 1AA)
    6. the North Mole Power Station – Gibraltar’s main power plant,
    7. runway of Gibraltar International Airport (Note: Aircraft can approach and land from both directions (from either the east over the Mediterranean Sea or the west over the Bay of Gibraltar), depending entirely on the prevailing wind conditions).

    Based on publicly available maps, published renders, and the absence of announced demolitions, we could not identify sufficient existing land to support the stated 20,000 sq m plot.

    Our team, based on the renderings and site constraints, estimates that the total marine-adjacent area is approximately 16,000 square metres, including the promenade and all buildings. The actual data centre footprint is closer to 8,000-9,000 square metres. The distance to the airport glide path would be reduced by approximately 34 metres, bringing it to less than 100 metres from both the glide path and the runway’s obstacle limitation surfaces.

    Gibraltar’s Town Planning: 2009 Rules in a 2025 World

    Gibraltar’s 2009 Development Plan is the main legal document governing all construction on the territory. Every project requires planning permission from the Development & Planning Commission. However, the system allows for individual, case-by-case decisions — especially for large developments with government backing. Political support can unlock approvals, even when the formal plan is outdated or silent.

    Gibraltar’s Town Planning Department, working with consultants from Lichfields UK, is currently reviewing the existing 2009 Development Plan. A new version was promised for 2025, but it has not yet appeared. For now, the territory continues to operate under the 2009 rules. What will the new plan include? It is supposed to set out the vision, objectives, and strategic policies for Gibraltar over the next 10 to 15 years, covering housing, transport, health, economic strategy, and climate change mitigation.

    These policies will provide developers with clear design principles and define the government’s expectations for new development in the Northern District area — including tall buildings, when proposed. Crucially, the current draft does not include the North Mole Industrial Park zone, though some changes may be possible.

    Naturally, there is no information about the Pelagos project on the Government Development Projects website. Nothing at all.

    Conclusion: Seven Findings

    Our team has carefully reviewed the UPP design and the location of existing buildings, and reached the following conclusions:

    1. We could not find a 20,000 square metre land plot within the North Mole Industrial Park for the data centre.
    2. We found no information about the demolition or removal of existing structures at North Mole Industrial Park.
    3. The Neil Piñero Memorial is located within the area examined in this review of the proposed development site.
    4. The published renders suggest that significant parts of the project would be located on reclaimed land or marine-supported structures.
    5. The total sea-side area is approximately 16,000 square metres at most, including the promenade and data centre buildings. The distance to the airport glide path is reduced by at least 35 metres.
    6. Our estimate of the actual data centre building footprint on the water is approximately 8,000-9,000 square metres.
    7. The facility is to be built in immediate proximity to the North Mole Power Plant.