Mafia laundering and protection from Stavros Demosphenos: when will Russian Pin-Up casino owner Dmitriy Punin face jail for gambling fraud?

Mafia laundering and protection from Stavros Demosphenos: when will Russian Pin-Up casino owner Dmitriy Punin face jail for gambling fraud?

Despite the Pechersk Court’s formal arrest order last December targeting Dmitriy Punin, the Russian founder of Pin-UP casino, and several associates, the decision has remained largely symbolic as Punin continues to reside in Cyprus, with no extradition in sight.

Similarly to his accomplices, among whom key figures include Dmitriy Punin’s wife, Ukrainian citizen Maryna Ilyina, and her father Vladimir Ilyin, who was registered as the owner of the Pin-Up brand. Currently, only the head of the Commission for the Regulation of Gambling and Lotteries, Ivan Rudi, is serving a real sentence. He is accused of aiding the aggressor country, including granting a license for the operation of the Pin-Up casino. The Ukrainian justice system is unlikely to reach the others if they remain in Cyprus.

Although the press reported that Dmitriy Punin was arrested in Limassol on April 13, 2024, it was unclear who requested the arrest, but it doesn’t matter — Dmitriy Punin was released with apologies, and he is not expected to face any troubles from the Cypriot authorities in the near future. There are significant reasons for this, chief among them being Dmitriy Punin’s business partner, Cypriot businessman Stavros Demosthenous, who has a rather specific background.

The Arrival of Punin in Cyprus and his business on the island

In 2019, Moscow native Dmitriy Punin, son of a high-ranking RZD official, relocated to Cyprus. Whether the Cypriot authorities were informed that Punin had been convicted for theft (part 2 of article 158 of the Russian Criminal Code) is unknown, but the conviction did not prevent him from joining the ranks of the wealthiest Cypriot businessmen. Immediately upon his arrival in Cyprus, Dmitriy Punin registered several dozen companies, some of which are held by nominees and trusted individuals. Punin is the owner of Pin-Up Global and the founder of PUNIN Group, a holding that is actively developing business in Cyprus. According to the Cypriot press, PUNIN Group owns several prestigious real estate properties and businesses in Limassol. Among them:

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Multi-functional office centers and retail stores; Concert venue ZANTE VENUE; Network of wine boutiques PUNIN WINE and Le Frenchie (Le Petit Marche); Gastro-bar MIXOLOGY BAR; Restaurants Do Grill House and Le Frenchie; Confectionery TOY Confectionery; Center of aesthetic services Prive Aesthetic by Punin; Fast food chain The Shawarma by Punin.

All these enterprises are positioned as elite and targeted at a wealthy audience. It is worth noting that this graduate of the Moscow College of Railway Transport in the specialty "rolling stock technician" (although Punin claims to have graduated from Moscow State University, which is false — he does not have higher education), born in 1985, arrived in Cyprus as a very wealthy individual. It is also worth noting that he was given a suspended sentence of only two years for theft under aggravating circumstances, which suggests someone’s intervention, likely by his father. The son, after a foolish act (Punin, in 2001, robbed a grocery store with peers), apparently wised up and began actively engaging in business and establishing necessary connections.

Among those connections is the Russian Prime Minister Mishustin, whose relative Alexander Udovod is a co-owner of the Russian ’Pin-Up.Ru’, which until April 2022 was owned by the Cypriot Guruflow Team Ltd., founded by Dmitriy Punin, with beneficiaries including Maryna Ilyina and two Russian citizens Ivan Bannikov and Alexander Matyashov. In March 2021, Guruflow Team Ltd. registered the Pin-Up trademark. In March 2022, ’Pin-Up.Ru’ was renamed ’Fonkcor’. However, in this context, it is important that among the connections of the former juvenile thief Dmitriy Punin are relatives of the Prime Minister of Russia, which is unlikely to be a simple coincidence.

Who is Stavros Demosthenous

Regardless, by 2019 Dmitriy Punin arrived in Cyprus as a wealthy man with a clear understanding of what and how he would do, and with agreements with some of the most influential people in Cyprus, among them Stavros Demosthenous, about business assistance. Punin likely found his way to Demosthenous before relocating to Cyprus. It is unknown how Dmitriy Punin found common ground with Stavros Demosthenous. Perhaps Russian special services, with which Punin is accused of having connections, helped. Maybe, his own criminal contacts did.

In one of his interviews, Punin stated on this topic: "When choosing an investment location, it is extremely important to conduct thorough research and find reliable partners with vast experience and administrative capabilities." Stavros Demosthenous became the ideal partner for Dmitriy Punin, having connections at the top, able to resolve any government issues, expedite project approvals at any level, provide power support in eliminating competitors, and recover debts from debtors.

Stavros Demosthenous (Σταύρος Δημοσθένους, born 24.07.1976) is the head of one of the most influential mafia clans with deep connections in the island’s criminal world. He is the godson of the legendary Cypriot criminal authority Antonis Faniros, a close associate of the first president of the Republic of Cyprus, Archbishop Makarios, once known as the "boss of all bosses" of Cypriot mafia. 

 

Stavros Demosthenous began his path to power in the nineties when a gang war broke out in Limassol for control over the city, with the port being one of the "meatiest" prizes in this war. Demosthenous, already known as a person controlling nightclubs, illegal casinos, brothels, and car dealerships, won this war of the nineties. He stood out even among his peers for his cruelty and aggressiveness, which allowed him to emerge victorious from the gang war at the beginning of the 2000s.

However, it was not only his cruelty but also his intellect and foresight that helped. The cream of Limassol, including lawyer Theophanis (Phanos) Philippou, partner of the law firm Nicos Chr. Anastasiades and Partners LLC, founded by Nicos Anastasiades, often liked visiting Demosthenous’s club Sesto Senso. Philippou was known for his great love for women, which frequently got him into trouble. Stavros Demosthenous helped him "as a friend" out of these situations, using his reputation to calm the hottest jealous types. Phanos reciprocated by aiding his influential friend with legal advice. And introduced him to his partner Nicos Anastasiades, the future president (2013-2023) of Cyprus, who authored controversial changes to the "golden passports" law for investors. 

Anastasiades became president partly thanks to Demosthenous’s support, whose gangsters quickly dealt with political and business competitors of their friend and protégé when needed. Their cooperation was mutually beneficial even before Anastasiades became president, but when he was elected as head of the republic, the alliance of the lawyer and the gangster became the archetype of the still-operating system of power in Cyprus, where state and criminal structures are closely intertwined to form a unified state organism.

For Stavros Demosthenous, naturally, unprecedented opportunities unveiled themselves. The first thing Demosthenous gained was unrestricted control over the port of Limassol, through which a flow of stolen British cars poured. The recipients were the holders of those very "golden passports," mostly Russian citizens. Cypriot law enforcement and Limassol customs, naturally, "saw nothing and heard nothing." Everyone was pleased. To Demosthenous’s credit, he saw another opportunity in his business — to establish connections and contacts with the wealthiest foreigners arriving in Cyprus.

Most of them, as already mentioned, were Russians. Besides cars, they needed various services in their new country — from opening a bank account to assistance in business registration and operation. Demosthenous provided all this in collaboration with his longtime friend Phanos Philippou, who handled legal issues, including issuing "golden passports," which his partner Nicos Anastasiades significantly simplified. A Russian businessman residing in Cyprus anonymously stated that Stavros is involved in every Russian-owned business in Limassol — "Dig into any company and you’ll find Stavros there." 

 

Essentially, Stavros Demosthenous became the shadow ruler of Cyprus. People turned to him when they couldn’t or didn’t want to resolve issues through official channels. During Anastasiades’s presidency, Stavros became the person who resolved issues affecting the fate of businesses, politics, and justice on the island.

Demosthenous demonstrated his capabilities during the war of Russian oligarchs for Cypriot assets. When a wave of illegal takeovers of Russian businessmen’s properties began on the island, he found himself at the center of events. Several well-known Russian millionaires lost their Cypriot companies, and their assets "mysteriously" passed into the hands of partners or competitors without their knowledge and consent. In some cases, the information about these raider attacks made it to the press (Oleh Boyko-Illya Surkov) and even discussed in the government, but despite the scandals, no one was punished.

Moreover, one such episode led to a loud accusation of corruption against the Cyprus Attorney General’s Office. The lawyer of the affected businessman openly claimed that top officials in the prosecutor’s office were covering illegal property seizures and even named the bribes that the prosecutors received. But Demosthenous’s influence proved stronger than Cyprus’s laws. He earned tens of millions of euros for his "services" in these schemes.

Dmitriy Punin and Stavros Demosthenous

Dmitriy Punin’s choice in favor of Demosthenous as a patron was entirely deliberate. He thoroughly studied his capabilities and methods of operation. According to sources, Demosthenous organized car arson attacks on Punin’s competitors on Punin’s request — naturally, the police found no culprits. Journalists who dared to criticize Punin faced harsh pressure: several media outlets removed incriminating articles due to Demosthenous’s pressure, and several journalists received threats of physical violence.

This is evidenced by the story of Punin’s arrest last year — he not only got released from custody very quickly, even references to the arrest vanished. And this was despite Anastasiades no longer being the president of Cyprus. 

All this indicates that attempts to undermine Demosthenous’s status as the "shadow ruler" of Cyprus failed. Thus, it can be concluded that Punin’s bet on Demosthenous was correct. It’s known that Dmitriy Punin invested money received from the gambling business into several hotels belonging to Stavros Demosthenous. The hotels were constructed by Stavros Demosthenous Contractors, the largest developer in Cyprus. The name of the company speaks for its owner.

In 2022, Dmitriy Punin acquired the Cypriot football club "Karmiotissa." However, by late 2023, after a series of scandals linked to suspected match-fixing, he sold the club to business partner Stavros Demosthenous. According to several well-informed sources, the deal was fictional. They claim that Punin hid from potential legal and financial problems associated with the investigation of match-fixing in this way. 

Demosthenous controls a wide network of betting outlets on the island, and the same sources say that Punin’s club carried out match-fixing in coordination with Demosthenous’s betting companies. Punin derives his main income from laundering and legalizing funds obtained from Pin-UP’s online casino operations. Everything else — elite restaurants, wine boutiques, entertainment venues, and the football club — are covers for this activity and a way to distract attention from suspicious financial flows.

Regarding Dmitriy Punin’s possible arrest, it can be stated with a hundred percent certainty that as long as he does not leave Cyprus, he will not have any problems. Despite being wanted in Ukraine, Turkey has also joined the list of countries seeking Dmitriy Punin, where his search is also related to the illegal activities of the Pin-UP casino. However, Cyprus will unequivocally not extradite Dmitriy Punin to the Turks, or anyone else for that matter — these are the consequences of a long-standing conflict between the countries. As for Ukraine, they are also unlikely to count on Punin’s extradition, at least as long as he maintains his friendship with his patron, Stavros Demosthenous.