AFK Sistema PAO is a large Russian conglomerate company, founded by Vladimir Yevtushenkov, who was chairman of the corporation's board of directors until 2022. In April, Yevtushenkov's shareholding in Sistema has decreased to 49.2%, and he also stepped down from Sistema's board.[2][3]
Native name | АО АФК Система |
---|---|
Company type | Public (OAO) |
Industry | Conglomerate |
Founded | 1993 |
Headquarters | Moscow , Russia |
Key people | |
Products | |
Revenue | $12.3 billion[1] (2023) |
$1.37 billion[1] (2023) | |
−$62.4 million[1] (2023) | |
Total assets | $27.7 billion[1] (2023) |
Total equity | $1.74 billion[1] (2023) |
Number of employees | 70,000 |
Subsidiaries | |
Website | www |
Sistema has its headquarters in Moscow. The company's global depository receipts (GDRs) traded on the London Stock Exchange from 2005 until delisting in May 2023.[4] It has been under US sanctions since November 2023.[5]
History
editIn 1993,[6] Evgeny Novitsky and Vladimir Yevtushenkov founded the holding company AFK Sistema, also known as Sistema JSFC, to group together several information technology (IT) and cell phone companies including MTS.[7][8][9][10][a]
Structure
editSistema operates a number of consumer service businesses in the areas of:
- IT and telecoms — Mobile TeleSystems, Moscow City Telephone Network, SkyLink, Sitronics (formerly known as 'Science Center Concern'), NIIME, Mikron, STROM telecom.[12]
- Banking — MTS Bank, East-West United Bank
- E-commerce – Ozon
- House-Building and Real Estate — Sistema-Gals till the end of 2010.[13] In February 2019, Sistema became the largest shareholder of Etalon Group[14]
- Retail — Detsky Mir Group until September 2020[15]
- Media — Sistema Mass Media until 2016[16]
- Healthcare and Pharmaceuticals — Medsi, Binnopharm[17]
- Agroholding - Steppe (Russian: «Агрохолдинг Степь») which, according to Forbes in June 2019, is the second largest land bank in Russia. It has holdings in Rostov Oblast and Stavropol Krai.[18][19]
- Segezha Group, a leading vertically integrated holding company in the timber industry performing a full cycle of operations from logging to advanced wood processing
- Hospitality – Cosmos Hotel Group
- Other businesses — Intourist (Travel Services), until July 2021[20] RTI Systems (Radio and space technology), Olympic Sistema (Sport)
- Kronstadt Group until July 2021.[20] In addition, in 07.27.2021 AO Kronstadt acquired 80% of the shares of NPP Strela (Research and Production Enterprise, Bykovo, Moscow Region), engaged in helicopter-type UAV work.[21]
- The corporation also invests in innovation projects, such as green hydrogen, and venture businesses.
In November 2021, “Sistema” was included in “Khabarovsky Project” (in Khabarovsk Krai) for pilot production of green hydrogen with projected 350 thousand tons per year, according to Ministry of Industry and Trade (Russia).[22]
Interests and subsidiaries
editBanking
editIn February 2005, AFK Sistema owned a 49% stake in East-West United Bank (Luxembourg), which was established in June 1974 as a "daughter" bank of the Central Bank of Russia and is one of the five Russian foreign banks of the VTB network.[23][24][25][26][b] In 2018, Sistema held a 100% stake in East-West United Bank (EWUB) with Sergei Pchelintsev (Russian: Сергей Алексеевич Пчелинцев) as the CEO.[35][36] In 2021, the company's revenue amounted to 24 billion rubles.[37]
Following the February and March 2022 sanctions issued against VTB and its subsidiaries which include the former daughter banks of the Soviet Union's State Bank Gosbank and later the Central Bank of Russia, EWUB in Luxembourg has become the principal Russian overseas bank in Europe after Gazprombank ceased operations in the region.[38][39] As of the end of March 2022, the Vladimir Yevtushenkov (Russian: Владимир Петрович Евтушенков) controlled Sistema and its subsidiary East-West United Bank (EWUB) in Luxembourg have not been sanctioned due to Russian invasion of Ukraine.[38][40][41] He is no longer controls Sistema after reducing his stake in the Corporation below control (49.2%), and voluntary resignation from its board of directors in April 2022.[42][43]
Hotels
editAccording to Arnold Tamm (Spivakovsky),[c] both the Peking Hotel at Bol'shaya Sadovaya Ulitsa, 5 in Moscow, where Oleg Kuznetsov (Russian: Олег Кузнецов) was the administrator from 2002 to 2016, and the Cosmos Hotel at 150 Mira Avenue in Moscow, are owned by Sistema.[46]
Aerospace and defence
editUntil July 2021[20] AFK Sistema PAO had an aerospace and defence subsidiary, Kronstadt Group, which was acquired in 2015 and developed unmanned aerial vehicles, and flight simulators. AFK Sistema no longer controls any assets related to the defense industry.[20]
Bashneft interest seizure and Rosneft lawsuit
editIn 2014, 72% of Sistema's interest in Bashneft was seized by the Russian government.[56][57]
On May 3, 2017, Sistema shares plunged about 37% following a $1.9 billion lawsuit filed by Rosneft.[58]
On 15 May 2017, the Arbitration Court of Bashkortostan registered a RUB 106.6bn claim filed by Rosneft and Bashneft against Sistema, a preliminary hearing of the case was scheduled for 6 June, Irina Nurislamova was appointed as a judge for the case.[59][60]
In December 2017, AFK Sistema reached an amicable agreement with Rosneft and agreed to pay out 100 billion roubles ($1.7 billion) to resolve the dispute.[61]
According to a declaration given on 18 October 2018 in Spanish court by Sergey Dozhdev (Russian: Сергей Дождев), Igor Sechin uses his offshore companies to control Sistema through MTS and Bashneft.[46][51][d]
Management
editOn 27 June 2020, Etienne Schneider became an independent director of Sistema at which his close political friend Jeannot Krecké had been a director at Sistema since May 2012.[8][26] Positions they resigned in February 2022.
Notes
edit- ^ Novitsky is alleged to be one of the treasurers of the Solntsevskaya Bratva and is very close to Semion Mogilevich.[11]
- ^ With the support of Mr. Pierre Werner, who was the Prime Minister of the Grand Duchy of Luxembourg, on 12 June 1974, the East-West United Bank (EWUB) (Luxembourg) was formed with both the State Bank of the USSR or Gosbank and after the end of the Soviet Union, the Central Bank of Russia, and Russia's Foreign Trade Bank Vneshtorgbank (VTB) as the main shareholders from founding until 1992.[27][28][29] From 1992 to 2000, Imperial Bank had a major stake in EWUB of 49%[27][28][29] and Tokobank held a 28% stake in EWUB in 1998,[30][31] but, on 17 April 2000, Imperial Bank was dissolved.[32] Imperial Bank focused on oil and natural gas supplies to East Germany and later to Germany including the oil-for-pipes program.[33][34] With Vnesheconombank managing Soviet debt, Imperial Bank speculated in GKOs but collapsed with the demise of the GKO market following the 1998 financial collapse in Russia.[33] From 2000 to 2007, VTB had a major stake in EWUB.[27][28][29] Beginning in 2001, the Vladimir Yevtushenkov led Sistema gained a stake in EWUB and since 2007 Sistema has had the majority stake in EWUB.[27][28][29]
- ^ Arnold Tamm (Spivakovsky) (Russian: Арнольд Тамм (Спиваковский); death March 2019, age 51), also known as Arnosha, a member of the Solntsevskaya Bratva, was involved with finances and is the right hand man of Sergei Mikhailov also known as Mikhas. Tamm's attorney was Dmitry Yakubovsky (Russian: Дмитрий Якубовский) also known as "General Dima" (Russian: "генерал Дима").[44][45] In the early 2000s, Tamm was a deputy director of the Peking Hotel and Oleg Voropaev (Russian: Олег Воропаев) managed the Dolls club.[46][47][48] Gazpromgate which occurred before Alexei Miller became head of Gazprom in 2001, allegedly involved stolen money from the CEO Rem Vyakhirev (Russian: Рэм Вяхирев) led Gazprom and was laundered through the Union Development Bank (Russian: Союзный Банк Развития), which Evgeny Suvorov (Russian: Евгений Суворов) was a vice president and was also a member of the Dolls club, using Motor Technology JSC (Russian: АО "Технология моторов") in which Gazprom owned a 49% stake.[47] In September 2017, Tamm was arrested in Marbella, Spain, during the Spanish operation Oligarch (Spanish: operación Oligarca) under suspicion of tax evasion, money laundering, and involvement in the activities of the Solntsevskaya organized crime group.[49][50][51][52][53] Arnold Spivakovsky was the son of Arnold Tamm, who was a writer and Estonian translator of Russian materials, obtained his lastname Spivakovsky from a former wife, and had a civil marriage with Lolita Milyavskaya.[45][49][54][55]
- ^ Sergey Dozhdev (Russian: Сергей Дождев) stated "The real Russian mafia is those who rule the world. In particular, it includes Igor Sechin, a man who took over Sistema through Bashneft and MTS using his offshore companies. The Rotenberg brothers, who control the Platon Company, are in the mafia too. 75 percent of Platon belongs to offshore companies, which the Rotenbergs use to siphon off money to Europe. Arnold Tamm used to co-own Sistema. However, he had a disagreement with the Rotenberg brothers, and Herman Gref ceased the refinancing of loans through his son Arkady. The company incurred artificial liabilities, and Sechin bought it at a low price through offshore companies."[46]
References
edit- ^ a b c d e "Консолидированная финансовая отчетность специального назначения за 2023 год" (PDF) (in Russian). Sistema. 8 April 2024. p. 59. Retrieved 8 April 2024.
- ^ "Ad-Hoc Notice". sistema.com.
- ^ "Sistema announces decisions of the Board of Directors". sistema.com.
- ^ ""Система" провела делистинг с LSE". Интерфакс (in Russian). 2023-05-17.
- ^ "Russia-related Designations, Updates and Removal; Counter Terrorism Designation Update; Issuance of Russia-related General Licenses". United States Department of the Treasury. 2023-11-02.
- ^ "In 1993 Sistema JSFC was founded and acquired its first assets". sistema.com.
- ^ "Yevgeny Grigoriyevich Novitsky". Bloomberg. Archived from the original on 3 September 2017. Retrieved 3 August 2021.
- ^ a b "Sistema Board Recommends to the AGM to elect three new Independent Directors". AFK Sistema. 31 May 2012. Archived from the original on 3 September 2017. Retrieved 3 August 2021.
- ^ Hoffman, David (19 December 1997). "In Moscow, Business and Politics Mix". The Washington Post. Retrieved 3 August 2021.
- ^ "About Sistema: Success Story (history)". Sistema website. Archived from the original on 4 August 2021. Retrieved 3 August 2021.
- ^ Demydenko, Myroslav (16 September 2008). "Ukraine, Vanco Energy, and the Russian mob". Eurasia Daily Monitor Volume: 5 Issue: 177. Retrieved 16 September 2021 – via Jamestown Foundation.
- ^ "Феликс Евтушенков увеличивает инвестиции в стартапы". CNews.ru (in Russian). Retrieved 2023-03-24.
- ^ "О продаже 27,6% "Системы-Галс" АФК "Система" сообщила в пятницу. Покупателями выступили компании Blairwood Ltd. и Stoneflower Ltd, каждая из которых получила по 13,8%. Сумма сделки составила $70 млн". www.kommersant.ru. 6 December 2010.
- ^ "АФК "Система" приобрела 25% акций группы Etalon у семьи основателя девелопера Вячеслава Заренкова. После сделки у нее осталось 5,7% Etalon, а АФК "Система" стала крупнейшим акционером группы". www.vedomosti.ru.
- ^ "АФК "Система" перестала быть акционером "Детского мира": компания продала свою долю почти за 17 млрд рублей". www.forbes.ru. 2 September 2020.
- ^ "АФК «Система» продаст свои медиаактивы. Уже в начале 2016 года подконтрольная корпорации компания СММ будет преобразована в фонд прямых инвестиций, который займется инвестированием в технопроекты". www.rbc.ru. 25 December 2015.
- ^ "Евтушенков Владимир: "Эпидемия коронавируса — это общая проблема и касается всех без исключения"". Ридус. Retrieved 2023-03-21.
- ^ Попов, Игорь (Popov, Igor); Ляликова, Анастасия (Lyalikova, Anastasia); Плешков, Максим (Pleshkov, Maxim) (17 June 2019). "Хозяева земли русской: 20 самых дорогих землевладений России. Рейтинг Forbes" [The owners of the Russian land: 20 most expensive land holdings in Russia. Forbes rating]. Forbes (in Russian). Archived from the original on 30 March 2022. Retrieved 29 March 2022.
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- ^ a b c d "АФК "Система" больше не контролирует два актива, связанных с оборонной промышленностью – концерн "РТИ" и группу "Кронштадт"".
- ^ Блог Missiles.ru - Беспилотные “Стрелы” вертолетного типа. 10.10.2021г.
- ^ "АФК Система включена в хабаровский проект по производству зелёного водорода" (in Russian). Интерфакс. 2021-11-17.
- ^ ""Дочерние" российские зарубежные банки и сеть ВТБ: доли ЦБ, ВТБ и др" [Russian Foreign "Daughter" Banks and the VTB Network: stakes held by Central Bank, VTB, others]. compromat.ru. February 2005. Retrieved 15 July 2021.
- ^ Бирман, Александр (Birman, Alexander) (21 February 2005). "В советских сетях: Нефтедоллары пойдут по проверенным каналам загранбанков" [In Soviet networks: Oil dollars will go through proven channels of foreign banks]. Компании Деловой Еженедельник (ko.ru). Archived from the original on 13 March 2005. Retrieved 15 July 2021.
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: CS1 maint: multiple names: authors list (link) - ^ "Les 45 ans d'East-West United Bank célébrés" [Celebrating 45 Years of East-West United Bank]. paperjam.lu (in French). 19 September 2019. Archived from the original on 4 August 2021. Retrieved 3 August 2021.
- ^ a b "Étienne Schneider élu administrateur chez Sistema" [Étienne Schneider elected director at Sistema]. paperJam (paperjam.lu) (in French). 3 July 2020. Archived from the original on 4 August 2021. Retrieved 3 August 2021.
- ^ a b c d "East-West United Bank (EWUB). Our History: Ownership History". East-West United Bank S.A. April 2022. Archived from the original on 6 April 2022. Retrieved 5 April 2022.
- ^ a b c d "East-West United Bank (EWUB). Our History: Ownership History". East-West United Bank S.A. April 2022. Archived from the original on 6 April 2022. Retrieved 5 April 2022.
- ^ a b c d SABIR, USMAN (14 May 2021). "SUBSIDIARY BANK OF SISTEMA PJSFC: EAST-WEST UNITED BANK IN LUXEMBOURG". International Press Service News Agency (IPS) (ipsnews.net). Archived from the original on 6 April 2022. Retrieved 5 April 2022.
- ^ ""Дочерние" российские зарубежные банки и сеть ВТБ: доли ЦБ, ВТБ и др" [Russian Foreign "Daughter" Banks and the VTB Network: stakes held by Central Bank, VTB, others]. compromat.ru. February 2005. Retrieved 5 April 2022.
- ^ Бирман, Александр (Birman, Alexander) (21 February 2005). "В советских сетях: Нефтедоллары пойдут по проверенным каналам загранбанков" [In Soviet networks: Oil dollars will go through proven channels of foreign banks]. ООО Журнал «КО» (ko.ru). Archived from the original on 13 March 2005. Retrieved 5 April 2022.
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: CS1 maint: multiple names: authors list (link) - ^ Юрьев, Виктор (Yuryev, Viktor) (26 May 2000). "ВСЕМИРНАЯ ИСТОРИЯ БАНКРОТСТВ-3: Новое руководство "Империала" возвращается на рынок банковских операций" [WORLD HISTORY OF BANKRUPTCY-3: The new management of "Imperial" returns to the banking market]. Nezavisimaya Gazeta (ng.ru) (in Russian). Archived from the original on 20 June 2000. Retrieved 5 April 2022.
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: CS1 maint: multiple names: authors list (link) - ^ a b Седунов, Александр (Sedunov, Alexander) (17 August 2015). "25 лет Всемирной Истории с Банком Империал" [25 years of World History with Imperial Bank]. Information Agency InterRight (in Russian). Archived from the original on 23 March 2022. Retrieved 5 April 2022.
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: CS1 maint: multiple names: authors list (link) - ^ leptosis.org staff (February 2020). "Столяренко, Владимир Михайлович" [Stolyarenko, Vladimir Mikhailovich]. АНО «Экономическая летопись» (leptosis.org) (in Russian). Archived from the original on 11 February 2020. Retrieved 5 April 2022.
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- ^ "ПАО АФК "Система"". www.rusprofile.ru (in Russian). Retrieved 2023-10-27.
- ^ a b Fassone, Marc (28 February 2022). "SANCTIONS AGAINST RUSSIAN INTERESTS: East-West United Bank is in the clear for now". Delano (delano.lu). Archived from the original on 27 March 2022. Retrieved 26 March 2022.
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- ^ "Евтушенков сократил долю в АФК "Система" ниже контроля на фоне британских санкций". www.interfax.ru.
- ^ "Владимир Евтушенков вышел из совета директоров АФК "Система"". www.interfax.ru.
- ^ Скворцова, Елена (Skvortsova, Elena) (18 January 2006). "Кража века: 11 лет назад в Питере украли рукописей почти на 150 миллионов долларов. Тогда это называли "делом Якубовского"" [Theft of the century: 11 years ago, nearly $150 million worth of manuscripts were stolen in St. Petersburg. Then it was called the "Yakubovsky case"]. «Собеседник» (sobesednik.ru) (in Russian). Retrieved 29 March 2022.
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: CS1 maint: multiple names: authors list (link)[dead link ] Alt URL - ^ a b Хинштейн, Александр (Khinshtein, Alexander) (3 June 2002). "Солнцевское затмение 2" [Solntsevo eclipse 2]. Московский комсомолец (in Russian). Retrieved 29 March 2022.
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: CS1 maint: multiple names: authors list (link) - ^ a b c d Кириленко, Анастасия (Anastasia, Kirilenko) (2 April 2019). "On the death of Tamm: Solntsevskaya gang's ties to FSB and United Russia". The Insider (theins.ru). Retrieved 29 March 2022.
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: CS1 maint: multiple names: authors list (link) - ^ a b Старостин, Дмитрий (Starostin, Dmitry) (24 March 2002). "Кокаин и "Газпромнейт"" [Cocaine and GazpromNate]. «Вести.Ру» (vesti.ru) (in Russian). Retrieved 29 March 2022.
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: CS1 maint: multiple names: authors list (link)[dead link ] Alt URL Archived as "Газпромовские" круче "солнцевских": "Правая рука" Михася Арноша Спаваковский может не дожить до суда ("Gazpromovskie" is cooler than "Solntsevo": "Right hand" Mikhas Arnosh Spavakovsky may not live to see the trial). - ^ Хинштейн, Александр (Khinshtein, Alexander) (31 May 2002). "Солнцевское затмение" [Solntsevo eclipse]. Московский комсомолец (in Russian). Retrieved 29 March 2022.
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: CS1 maint: multiple names: authors list (link) Archived as Арноша (Спиваковский) подсаживал танцовщиц из стриптиз-клуба Dolls на кокаин (Arnosha (Spivakovsky) hooked dancers from the Dolls strip club on cocaine). - ^ a b RUIZ FÁJULA, DAMIÁN (26 September 2017). "La Guardia Civil estrecha el cerco a la mafia rusa en la Costa del Sol" [The Civil Guard narrows the siege of the Russian mafia on the Costa del Sol]. El Mundo (in Spanish). Archived from the original on 4 October 2017. Retrieved 29 March 2022. Alternate archive
- ^ Ortega Dolz, Patricia (28 March 2022). "La silenciosa mafia rusa: así opera en España. Oligarcas amparados por Putin se han asentado por el territorio con millones de euros del crimen organizado o de empresas estratégicas privatizadas tras caer la URSS" [The silent Russian mafia: this is how it operates in Spain. Oligarchs protected by Putin have settled in the territory with millions of euros from organized crime or strategic companies privatized after the fall of the USSR]. El País (in Spanish). Archived from the original on 30 March 2022. Retrieved 29 March 2022.
- ^ a b "Sergey Dozhdev's statement on Gref and Sechin – Spain". Transborder Corruption Archives (tbarchives.org). 17 October 2018. Retrieved 29 March 2022.
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- ^ "В Испании пока не выяснили причину смерти бывшего гражданского мужа Лолиты" [Spain has not yet found out the cause of death of Lolita's ex-civil husband]. RIA Novosti (in Russian). 13 March 2019. Archived from the original on 12 March 2022. Retrieved 29 March 2022.
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Russia has seized 71.6 percent of OAO Bashneft from Sistema since ordering Evtushenkov's arrest on Sept. 16 in a money-laundering investigation linked to the state's sale of the oil company in the previous decade.
- ^ Steven Lee Myersand Jo Becker (December 26, 2014). "Even Loyalty No Guarantee Against Putin". The New York Times. Retrieved December 27, 2014.
Mr. Rakhimov's government privatized Bashneft, wilth most of its shares ending up in the hands of a company called Bashkir Capital
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- ^ "Russia's Rosneft reaches $1.7 billion settlement with Sistema". Reuters. 22 December 2017.