Bortnikov Alexander Vasilyevich, Russian FSB Director
«Russia's Power Families - 2011» / Bortnikov Alexander Vasilyevich, Russian FSB Director
Employed at: RF Federal Security Service (FSB).
Positions held: Russian FSB Director since 2008.
Business involvement: until 2008, he was on the board of directors at Soviet Commercial Fleet OJSC, one of Russia’s largest shipbuilding companies.
Influence on business: Together with former Communications Minister Leonid Reyman, Minister of Internal Affairs Rashid Nurgaliev and Federal Migration Service head Konstantin Romodanovsky, Bortnikov lobbied for Voskhod Scientific Research Institute (federal state unitary enterprise) to be appointed operator of a biological passport issuing system. Reyman’s group succeeded in securing RF President Dmitry Medvedev’s [preliminary] approval, but Voskhod did not win the bid. The Federal Antitrust Service refused to annul bidding results and the President refused to give the final approval. A bidding auction for the construction of FSB departmental housing in Novosibirsk was held with just one participant – Kraftstroi LLC, with the contract being signed at the highest price. Similarly, the contract to develop the FSB internet portal was awarded to Systematika LLC after it won the bidding auction where it was the only participant.
Wife Tatiana Borisovna Bortnikova, homemaker. According to income information, the FSB director’s 2009 income was 4,723,400.50 Rub., while his wife’s was 90,452.76 Rub. Bortnikov owns a 99 m2 apartment, while his wife owns a 115 m2 apartment and a 1,198 m2 lot. According to the media, Alexander Bortnikov has access to Mercedes-Benz S500L 4Matik and Mercedes-Benz S600L automobiles, purchased for the Russian FSB in 2009 for 13.34 Mln. Rub.
Son Denis Alexandrovich Bortnikov, banker. Graduated from the St. Petersburg University of Economics and Finance with a major in national economics. In 1996 – 2004, he worked at the St. Petersburg Industrial Construction Bank (Promstroibank). In 2004 – 2005, he was advisor to Guta-Bank’s Northwest branch manager. In 2005 – 2006, he was deputy manager at Vneshtorgbank Retail Services CJSC. In 2006 – 2007, he was deputy VTB Bank branch manager in St. Petersburg. In 2007 – 2010, he was deputy chairman of the board; in 2010-2011, he was first deputy chairman of the VTB Bank Northwest OJSC board, and in 2011 he became chairman. There is reason to believe that after VTB bought the controlling share of Promstroibank, changing the name of the newly purchased bank to “VTB Bank Northwest,” Denis Bortnikov initially planned to build his career at VTB, and went to work for Guta-Bank in order to facilitate its upcoming acquisition by VTB. However, Denis Bortnikov denies this.
In 1996 – 2004, Denis Bortnikov worked for Promstroibank (PSB) owner Vladimir Kogan. After PSB shares were sold to VTB Bank, Kogan went to work for the government, while still owning significant property.
As deputy director of Rosstroi (Federal Agency for Construction, Housing and Utilities) and department head at the Regional Development Ministry, until recently he oversaw the construction of an anti-flood protective structures complex in St. Petersburg. He headed the Complex directorate in October-December 2005.
The media reported Vladimir Kogan’s cousin Yuri Sverdlov’s (State Duma member since 2007) essential active long-term involvement with the [anti-flood construction] project. Sverdlov is former vice president of Bankirski Dom St. Petersburg (St. Petersburg Private Bank) CJSC, which Kogan owns.
An Accounts Chamber audit revealed almost double overexpenditure of the project’s budgeted funds: 109 Bln. Rub. was spent on the dam construction instead of the [budgeted] 55 Bln. Rub. In particular, the price contracted with Metrostroi and its affiliated company Compact CJSC increased almost three-fold, exceeding $1 Bln. Metrostroi was initially owned by Promstroibank and Baltic Financial Agency (BFA) CJSC, established by a group of Promstroibank managers. According to SPARK-Interfax, Vladimir Kogan owns a company called BFA Development through Petrovsky Little Trade House LLC. BFA Development’s general manager is the civil servant’s wife, Ludmila Valentinovna Kogan. Center-Invest-Stroi LLC, which was awarded the contract for the anti-flood complex directorate building construction in Kronshtadt, is owned by Nikolai Kazanir, a manager at Papyrus LLC, which is owned by Vladimir Sverdlov – Vladimir Kogan’ uncle and Yuri Sverdlov’s father.
Vladimir Kogan currently heads the Moscow Metrostroi OJSC board of directors. According to the media, the company that won the bid to purchase Moscow Metrostroi is also owned by Kogan.
Former Prime Minister Sergei Stepashin and the [RF] President’s current chief of staff Sergei Naryshkin (who used to work at Promstroibank) are considered to be Vladimir Kogan’s main patrons.