Support The Moscow Times!

Rotenberg's Stroigazmontazh 2011Revenue Up More Than 50%

Arkady Rotenberg

Thanks to orders placed by Gazprom, Arkady Rotenberg's construction business is growing by leaps and bounds.

Last year's Stroigazmontazh financial information was provided to Vedomosti by the company's public relations deputy director Andrei Baturin. Consolidated revenues of the group grew by more than 50 percent from 154 billion rubles ($5.1 billion) to 241.4 billion rubles. And net income more than quadrupled from 3.7 billion rubles to 17 billion rubles.

With those financial indicators, Stroigazmontazh could cost about $8 billion excluding debt, said Metropol analyst Sergei Vakhrameyev. Taking into account the company's high profitability and future growth in turnover, it could be valued at $10 billion, added Denis Borisov from Nomos Bank.

Both estimates are significantly higher than the amount Rotenberg paid for the main companies that make up Stroigazmontazh today. They are five former construction subsidiaries of Gazprom, which sold them to Rotenberg at an auction in the spring of 2008 almost at the starting price of 8.3 billion rubles ($347 million at the exchange rate on the date of sale).

After this purchase, Rotenberg — Vladimir Putin's longtime judo partner — began doing construction work for Gazprom. A year later, he ranked in the top three Russian construction companies for the oil and gas sector.

Gazprom is now the main customer of Stroigazmontazh, Baturin said, declining to say whether it was the construction company's only customer.

For more than a year, Stroigazmontazh has said it is planning to diversify its business, but it has not reported any large orders in other segments.

Read more

Independent journalism isn’t dead. You can help keep it alive.

As the only remaining independent, English-language news source reporting from Russia, The Moscow Times plays a critical role in connecting Russia to the world.

Editorial decisions are made entirely by journalists in our newsroom, who adhere to the highest ethical standards. We fearlessly cover issues that are often considered off-limits or taboo in Russia, from domestic violence and LGBT issues to the climate crisis and a secretive nuclear blast that exposed unknowing doctors to radiation.

Please consider making a one-time donation — or better still a recurring donation — to The Moscow Times to help us continue producing vital, high-quality journalism about the world's largest country.