Support The Moscow Times!

Timchenko Consolidates Construction Assets

Billionaire Gennady Timchenko’s investment vehicle Volga Group will consolidate its construction assets, centered around contractor Stroitransgaz, in a new Cyprus-based holding company, allowing it to settle the builder’s outstanding debts.

Stroitransgaz will transfer all its assets to the newly created company, Stroitransgaz Holding Ltd, which will also receive shares controlled by Timchenko in a number of other construction firms.

Meanwhile, 17 percent of the Cypriot company will be sold to businesses controlled by Timchenko’s partners, Maxim Vorobyov and Mikhail Kenin, Vedomosti reported.

Vorobyov payed 1.5 billion rubles ($45 million) for a 11.7 percent stake in the new holding, a source close to the businessmen said. This price would put Kenin’s 5.3 percent stake at 750 million rubles.

Once a preferred contractor for Gazprom, Stroitransgaz has more recently been unprofitable. Despite restructuring in 2012, Stroitransgaz ended the year in the red with a 7.6 billion ruble loss.

In addition to Vorobyov and Kenin’s 17 percent of the company, Volga Group owns 60 percent, while Gazprombank has a 20 percent stake.

Vorobyov and Timchenko have been partners since Volga Group bought 50 percent of the Vorobyov family’s seafood importer Russkoye More in 2011. Kenin sits on the boards of Stroitransgaz and a number of other companies affiliated to it.

Vorobyov left the Stroitransgaz board in December because he did not want to “give rise to conversations about possible conflicts of interest in the Moscow region” after his brother became the acting governor.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

paiment methods
Not ready to support today?
Remind me later.

Read more