Thai court clears way for Viktor Bout extradition


  • English
  • Arabic

BANGKOK // An alleged Russian arms smuggler dubbed "The Merchant of Death" was led off by masked commandos after a Thai court today removed a key legal obstacle to his extradition to the United States, which has landed Thailand in the middle of a diplomatic tussle between Washington and Moscow.

Viktor Bout, who allegedly supplied weapons that fuelled civil wars in South America, the Middle East and Africa, has been fighting extradition since his arrest in Bangkok in March 2008 as part of a US-led sting operation.

The Bangkok Criminal Court today dismissed a new trial against Bout, which had threatened to stall the extradition further. It was the latest phase, and a potential turning point, in a long-running legal battle. Both Washington and Moscow have been demanding Mr Bout's hand-over.

The announcement of the ruling stunned the normally stoic Mr Bout, who was standing to hear the verdict but then sat and hugged his wife, who was seated beside him and began to weep. He then waded through the courtroom to his defence lawyer and with a look of concern said: "(Do) something now. The appeal. We need to appeal."

Court officials told reporters that the defence was not allowed to appeal. Only prosecutors who filed the charges of money laundering and wire fraud on behalf of the U.S. have the right to appeal within 72 hours, after which time Mr Bout could be extradited. Prosecutors were not expected to appeal.

One possible twist is that the Thai prime minister, Abhisit Vejjajiva, has said once the court process is finished he will have the final say in Mr Bout's extradition.

Asked by reporters how he felt, Mr Bout replied: "I don't know. I don't know what to say."

Mr Bout, shackled at the ankles, was escorted in and out of the courtroom by masked commandos. He wore a bulletproof vest for his journey to and from prison. The vest was removed inside the courtroom.

A Thai appeals court gave its approval on August 20 for Mr Bout's extradition to the US to face trial on four terrorism-related charges that could land him in prison for life. That ruling reversed a lower court's decision.

But the process was stalled because, after the lower court rejected the request, Washington had filed a second set of charges to ensure Bout was not set free. Working with Thai prosecutors, the US then tried to drop those charges after the appeal court's ruling, but the Bangkok Criminal Court said on Monday the legal proceedings had already started and must be allowed to continue.

But in another twist in the case, the criminal court today ruled to dismiss the second set of charges, saying there was no further legal reason to keep Mr Bout from being extradited.

The apparent reversal from yesterday to today appeared to be the court's way of saying it would not be pressured into prematurely dropping the second case before its first hearing.

It ruled that there was "a lack of evidence and witnesses" to prove the charges of money laundering and wire fraud, and would so dismiss the case unless the prosecution appealed.

When the appeals court cleared the way for Mr Bout's extradition in August, it said the extradition must take place within 90 days, or roughly by November 20.

A US Embassy spokeswoman in Bangkok could not immediately be reached for comment.

Russia says Mr Bout is an innocent businessman and has demanded his return. Experts say Mr Bout, a former Soviet air force officer, has knowledge of Russia's military and intelligence operations and that Moscow does not want him going on trial in the United States.

Mr Bout's high-profile arrest at a Bangkok luxury hotel in 2008 was part of an elaborate sting in which US agents posed as arms buyers for the Revolutionary Armed Forces of Colombia, or FARC, which Washington classifies as a terrorist organisation.

The head of a lucrative air transport empire, Mr Bout long evaded UN and US sanctions aimed at blocking his financial activities and restricting his travel. He has denied any involvement in illicit activities and said he ran a legitimate business.

In 2000, a high-ranking minister at the British Foreign office called Mr Bout, who flouted UN arms embargoes on the warring parties in Angola and Sierra Leone, "a merchant of death."

Bout also reportedly supplied arms to warring parties in Afghanistan before the fall in 2001 of the Taliban's Islamic regime.


The 2005 movie Lord of War starring Nicolas Cage is loosely based on Bout's life.

*AP

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer