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Bortnikov Alexander Vasilyevich, Russian FSB Director

Chaika Yuri Yakovlevich, General Prosecutor

Fradkov Mikhail Efimovich, Foreign Intelligence Service Director

Fursenko Andrei Alexandrovich, Minister of Education and Science

Ivanov Victor Petrovich, head of Federal Drug Control Service

Ivanov Sergei Borisovich, Deputy Chairman of RF Government

Khristenko Victor Borisovich, Minister of Industry and Trade and Golikova Tatyana, Minister of Health and Social Development

Kudrin Alexei Leonidovich, ex-Minister of Finance

Levitin Igor Yevgenievich, Minister of Transport and Communication

Murov Evgeny Alexeyevich, Federal Protective Service director

Mutko Vitaly Leontievich, Minister of Sports, Tourism and Youth Policy

Nabiullina Elvira Sahipzadovna, Minister of Economic Development

Patrushev Nikolai Platonovich, Security Council Secretary

Serdyukov Anatoly Eduardovich, Defense Minister

Shoigu Sergei Kuzhugetovich, Minister of Civil Defense, Emergency Situations and Disaster Relief

Shuvalov Igor Ivanovich, Governments First Deputy Chairman

Skrynnik Elena Borisovna, Minister of Agriculture

Stepashin Sergei Vladimirovich, Accounts Chamber Chairman

Trutnev Yuri Petrovich, Minister of Natural Resources and Ecology

Zhukov Alexander Dmitrievich, Deputy RF Prime Minister

Zubkov Victor Alekseyevich, First Deputy RF Prime Minister





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Russia's Power Families - 2011 / Shoigu Sergei Kuzhugetovich, Minister of Civil Defense, Emergency Situations and Disaster Relief

Employed at: Russian Federation Government


Position held: Since 1994:
RF Minister of Civil Defense, Emergency Situations and Disaster Relief

 

Business involvement: As government official, Shoigu was barred from business involvement. However, the Ministry of Emergency Situations (MES) is considered to be one of the wealthiest and most corrupt agencies, with a system fire safety and emergency prevention financial schemes in place. A multitude of formally state-owned companies were set up that make money in one way or another.

 

 

In particular, in 1995, MES set up the State Unitary Air Enterprise (SUAE) primarily tasked with large-scale disaster and catastrophe air emergency response. By 2010, this MES aviation subordinate had up to 45 aircraft consisting of 12 airplane and helicopter types. The air fleet serves businesses and performs other tasks unrelated to cataclysm mitigation. For example, in 2009, an MES-owned MI-26 helicopter transported Swiss billionaire Ernesto Bertarelli’s Alinghi yacht from Lake Geneva to the Italian Genoa seaport. In 2010, an MES airliner brought home Russian spies who flopped in the US, including Anna Chapman. The same year, Col. Arkady Bubnov (MES Far East Regional Center (FERC) aviation head) was criminally prosecuted for accepting large bribes from businessmen in exchange for assistance with agreements to use MES aviation for business purposes.

 

 

A government agency called the “Information Center of the Russian National Integrated Crowded-Area Population Notification and Warning System” was tasked with implementing the MES-supervised OKSION program: “Russian National Integrated Population Notification and Warning System.” OKSION was launched with federal funds as part of a federal target program called “Russian Federation Natural and Industrial Disaster Risk Reduction and Mitigation for the Period Ending 2010.” The program’s budget was 1,825.5 Bln. Rub.

 

 

Under OKSION, emergency awareness equipment was installed in 2009-10 in the subways of Moscow, St. Petersburg, Kazan, Volgograd, Nizhny Novgorod, Samara, Yekaterinburg and Novosibirsk. The equipment

[1] is called Tercommet (Subway Terminal Complex) (Tercommet-P and Tercommet-B) and includes full-color LCD screens broadcasting video, audio, text, roll captions and graphics, as well as camera surveillance and radioactive and fire hazard analysis.

 

Tercommet was developed in 2008 by Telecommunication Technologies and installed in cooperation with Cardo Media LLC.

 

 

On January 27, 2011, President Dmitri Medvedev visited Moscow’s Okhotny Ryad subway station and viewed the Tercommet screens installed there, with Minister Sergei Shoigu reporting to Medvedev on this latest transportation safety and security system. A planned 80 LCD screens will be installed in Moscow subway that will help alert passengers in emergency situations. During non-emergency operations, Tercommet will be used for advertising (the Moscow subway advertising market has been estimated at $100 Mln.).

 

 

OKSION operator Cardo Media, which installed the displays, is a private company providing printing and outdoor advertising services, including subway advertising. The selection of this particular printing company as supplier of this system, intended as a counterterrorism measure, was controversial. According to SPARK-Interfax, the nominal owner of Cardo Media LLC (established in December 2007), Focus Media NMT (New Media Technologies) LLC, was set up by a Cypriot offshore. Cardo Media will apparently broadcast subway advertising [for profit] using terminals installed at government expense.

 

 

According to SPARK-Interfax, Telecommunications Technologies LLC participants are its general director Valery Victorovich Degtyarev and Hurstleigh [sp?] Holding Ltd. Corporation registered on the Caribbean islands of Saint Kitts and Nevis. Degtyarev was on Rostelecom OJSC, Dalsvyaz OJSC, Tetrasvyaz OJSC, VolgaTelecom OJSC and Centertelecom OJSC boards of directors.

 

 

Subway Cardo Media LCD screen terminal installation continues under RF government’s Comprehensive 2011 Public Transportation Safety Program. Bids are being solicited to set up similar systems in subways of St. Petersburg (starting price is 112 Mln. Rub. to install at least 150 units at 14 subway stations) and Kazan (starting price is 75 Mln. Rub. to install at least 80 units at six stations).

 

 

A federal government entity called “Civil Defense, Natural and Industrial Disaster Prevention and Fire Safety Government Expert Assessment” assesses city planning documentation and equipment to aid in oil spill prevention. The entity is permitted to engage in business and has branches all over Russia.

 

 

This entity licenses fire prevention workshops as well as fire safety equipment installation, repair and maintenance in buildings and other structures. Essentially every construction company needs this type of license. The license is valid for five years, and its formal cost is 1,300 Rub. payable to the government. However, intermediaries charge up to 90,000 – 130,000 Rub. to obtain MES licenses.

 

 

A government healthcare facility called the “Russian MES National Center of Emergency and Radiation Medicine” named after A.M. Nikiforov provides for-fee medical services.

 

 

The MES-based government entity called “Emercom

[2]” “Russian International Humanitarian Operation Participation Support and Coordination Agency” was set up in 1996 (its director is Oleg Belaventzev). Although Emercom is officially a government entity, it’s often called the Ministry’s “largest business,” and its official website lists services offered.

 

Emercom is named as buyer of Iraqi oil in the 2005 report of the Paul Volcker UN committee

[3] that investigated abuses in the Oil for Food program. In 2002, The Washington Post called Emercom a favorite of this Arab regime: In 2001, Iraq signed contracts with EMERCOM to pump 12 Mln. barrels of oil. At the time, Iraq levied a $0.20 per-barrel surcharge for oil. The newspaper thus calculated Hussein’s illegal profit from these deals to be $1.8 Mln. Also in 2002, the German Frankfurter Rundschau, citing the British news outlet The Guardian, estimated the total value of Emercom’s Iraqi contracts at $270 Mln. According to the newspaper, Emercom wired million-dollar bribes to Iraqi foreign accounts in order to secure the deals, thus supporting Saddam Hussein’s regime. Emercom press secretary denied this.

 

A 2000 Accounts Chamber audit of Emercom uncovered numerous violations. Some of the agency’s bylaws provisions violated the RF Civil Code. Also uncovered was the unauthorized use of 175,100 Rub. of federal funds, and the use of 9,601,600 Rub. of non-government funds, in violation of the bylaws and the Federal Law “On non-profit organizations.” Charitable donations received from Rosneft were used for other purposes. In violation of the RF Fiscal Code, Emercom got a 35 Mln. Rub. line of credit, and from oil sale profits and loans to build MES facilities not approved by the 2000 Russian Rescue Worker Training Center Development Program.

 

 

MES is constantly hounded by crime and corruption scandals. In 2003, MES security division head Lt. Gen. Vladimir Ganeyev was arrested during the investigation of a case known as “Changelings in Uniform.” Ganeyev had set up a gang involved in criminal protection rackets, bribe extortion, and planting weapons and drugs on [innocent] citizens. Ganeyev then invested the proceeds of crime in foreign real estate by buying apartments in Spain. He was charged with: creating an organized crime group (RF Criminal Code (CC) Art. 210 p. 3); extortion (RF CC Art. 163 p. 3); abuse of office (RF CC Art. 286 p. 3); and illegal trade in precious stones (RF CC Art. 191 p. 1). In 2006, Ganeyev was convicted and sentenced to 20 years in a high-security prison.

 

 

 

In 2008, there was coverage of the “Yamal firefighters case” involving government firefighters in Krasnoselkupsky, Tazovsky and Yamalsky Districts as well as top brass at RF MES Yamal-Nenetz Autonomous District (YNAD). First deputy RF MES YNAD head Alexander Maslov was convicted in the case and sentenced to 5 years in prison. An international arrest warrant was issued for Boris Gershtein, MES Privolzhsko-Uralsky Center’s former first deputy head. Gershtein and family fled to Israel.

 

MES set up “Russian Rescue Workers Union (Rossoyuzspas),” a Russian national non-profit organization. According to SPARK-Interfax, the Union was established by individuals including: Yuri Vorobiev (former first deputy MES head and Federation Council deputy chairman); Salavat Mingaleyev (MES territorial policy department deputy head); Igor Malyi (head of MES Ivanovsky Government Firefighting Service Institute); Andrei Moskaletz (MES legal department head); Pavel Plat (MES chief military expert); Konstantin Rastegayev (deputy head of MES Centrospas unit, Tuapse branch); Victor Gavrilenko (deputy head of the Central Regional Search and Rescue unit of the Central Regional Center [sic] for Civil Defense and Emergency Situations); Victor Gulevich (head of the Baikal search and rescue unit’s search and rescue service [sic]); Olga Darzhaa (head of MES West Siberian search and rescue unit); Dina Kuznetzova (MES staffer); Vladimir Legoshin (Centrospas deputy head); Evgeny Lineitzev (head of Central Regional Search and rescue unit); Alexander Romanov (head of Centrospas unit); Boris Tilov (head of Elbrus search and rescue service); Alexander Chuprian (deputy MES Minister for emergency situations); Sergei Schetinin (head of MES Northern Ossetia rescue unit); and Alexander Yankov (head of Novosibirsk Region emergency rescue service).

 

 

Rossoyuzspas has 76 regional divisions. Its bylaws allow security-related entrepreneurial activity; payment is provided by sponsors. Expensive Rossoyuzspas events are indicative of the agency’s means. For example, with MES support and in honor of MES’ 20th anniversary, Rossoyuzspas held a “From the Baltic to the White Sea” sailing regatta, with Sergei Shoigu giving the regatta its official start. In January 2010, Rossoyuzspas and its subsidiary took part in several winter snowmobile races at Pirogovskoye reservoir, as confirmed by MES Moscow Regional main administration’s PR department.

 

 

In his 2008 interview, First deputy RF MES Minister Ruslan Tzalikov said that the Russian Rescue Workers Union “supports safety-related business development,” and that he believes that “businesses should be interested in getting closer to Rossoyuzspas, and in moving forward together.”

 

 

 

The Union owns a network of businesses involved in fire prevention, civil defense, security, and hazardous industrial facility safety and maintenance. In particular, Rossoyuzspas set up Security Service LLC (with 33 RF branches), Fire Safety Service LLC (22 branches), and Aquatic Safety Service LLC.

 

Russian Rescue Workers Union planned to set up training facilities (to be sponsored by municipal, city and industrial entities) as well as special tourism safety business divisions.

 

 

Sergei Shoigu is president of the Russian Geographic Society where Marina Ignatova is executive director. Shoigu also chairs Por-Bazhyn Fortress Cultural Foundation’s board of trustees, while Ignatova is the Foundation’s president. Businesswoman Ignatova is a successful developer involved in Moscow and Moscow Region construction. Her projects are sometimes marked by controversy.

 

 

Shoigu’s request to Moscow Mayor Yuri Luzhkov (involving control over an unoccupied 3,955.8 m2 building on central Moscow’s Novaya Ploschad (New Square) may have benefited Ignatova’s business.

 

 

In 2005, Shoigu put his Moscow Region Razdory Village home up for sale. According to the press, the property spans 5,300 m2 and, in addition to Shoigu’s villa, has a tennis court, hunting lodge, guesthouse, garden with exotic trees and flowers, greenhouse, swimming pool, three-car garage and a small parking lot. Realtors valued Shoigu’s house at $3.7 Mln.

 

 

Sergei Shoigu’s 2005 income was 1.2 Mln. Rub.; in 2006 it was 1.7 Mln. Rub., and he owned a 7,434 m2 land lot and a 477 m2 home. His official 2008 income was 2.709 Mln. Rub., and he purchased another land lot (1.1 ha.) and a 1957 ZIM GAZ 12 automobile. Such a car is worth over €30,000 if in running condition. In 2009, Shoigu’s declared income was 3.299 Mln. Rub.; in 2010 it was 4.416 Mln. Rub. Shoigu’s latest tax return notes (for the first time) that the 1.1 ha. land lot is intended for health and fitness.

 

 

The Minister collects cold weapons: swords, daggers, broadswords; Indian, Chinese, Japanese and Samurai swords, and Aztec sacrificial knives. His collection includes historical artifacts, such as an 1860 “For Bravery” honorary dagger.

 

 

 

 

Family:

 

Wife Irina Alexandrovna Shoigu is a businesswoman. According to Novaya Gazeta, in the late 1990s, she, together with Yulia Khetagurova (wife of then-deputy MES Minister Sergei Khetagurov) and a group of former executives from the Russian MES Medicine, Rehabilitation and Tourism Center were listed as founders of the Albion AG consulting and marketing company. Later, Variti travel agency was set up by Irina Shoigu, Yulia Khetagurova, Alla Tzalikova (wife of Ruslan Tzalikov, First Deputy MES Minister) and Olga Eliseyeva (former Medicine, Rehabilitation and Tourism Center staffer).

 

 

 

These companies’ beneficiaries then moved to Expo-Em (with Irina Shoigu as president). Expo-Em was involved in tourism since 2002 and is now also providing trade show support services. Expo-Em’s client list, according to its website, includes MES, MES’ Emercom agency, and Rosobornexport (Russian Defense Export). According to Irina Andrianova (MES information department head), Expo-Em won a bid in 2007 to assist with Russian MES and its divisions’ participation in international trade shows. The contracted amount was 5,299,960 Rub.

 

 

 

Expo-Em set up Expo-Em-Trans, and a namesake called Expo-Em (incorporated in 2004) founded Expo-Em-Logistics, a customs broker. MES sources say that none of these companies (Expo-Em-Trans, Expo-Em Logistics, Albion-AG or Variti) worked for the Ministry. According to SPARK-Interfax, Expo-Em is currently owned by Evgeny Andrianov (apparently related to MES top brass Irina Andrianova mentioned above). Evgeny Andrianov is also on the Bashkirnefteproduct (Bashkir Oil Products) OJSC board of directors.

 

According to tax authorities, in 2001, Irina Shoigu received 23,460,751 Rub. from NIKoil LLC brokerage firm, owned by Nikolai Tzvetkov and Lukoil shareholder Vagit Alekperov. Around the same year, there was a corruption scandal involving a letter from General Prosecutor Yuri Skuratov to RF government chairman Evgeny Primakov regarding the Main Military Prosecutor’s Office investigation of MES. According to the media, the investigation resulted in the initiation of a sealed criminal case against Lt. Gen. Ivan Koltunov (MES logistics department head). The investigation established that Koltunov owns an apartment on Krylatskie Holmy St., two country homes outside Moscow, and two Mercedes automobiles. His personal wealth was assessed at around $650,000 which, the investigators believe, Koltunov received through bribes.

 

According to Moskovsky Komsomoletz newspaper, Alexander Minovich (MES Major and SKVM-30000 company owner), allegedly with Gen. Koltunov’s blessing, set up a financial scheme involving mutual offsets involving Lukoil company’s oil and bills of exchange. MES ended up owing Vagit Alekperov’s Lukoil money, and in 1999, an arbitration court ordered MES to pay Lukoil 199 Mln. Rub.

 

 

In 2000, Moscow city military prosecutor’s office lost a lawsuit filed on behalf of MES against Lukoil and Minovich’s firm. The claimants had unsuccessfully asked the court to invalidate six agreements and contracts in an attempt to cancel MES debt to Lukoil.

 

 

The criminal case against Ivan Koltunov was closed due to amnesty. The former MES Lt. Gen. is now an entrepreneur who founded Runeko LLC, registered at Ilyinka Street 4 – the Gostiny Dvor building.

 

 

 

 

According to SPARK-Interfax, Irina Shoigu is a participant in Barvikha, 4 LLC registered outside Moscow. She invested 1 Mln. Rub. in the company – 25% of its authorized capital. The company, set up in October 2006 in Odintzovo District, is involved in building an over-26,000 m2 A-Class business center on a lot spanning over 0.44 ha. at the intersection of Rublevo-Uspenskoye and Podushkinskoye Highways. Irina Shoigu’s partners in Barvikha, 4 LLC include Sergei Matvienko (St. Petersburg Region governor Valentina Matvienko’s son) and Moscow’s Grand Land Group of companies. The project was halted in 2008 due to the financial crisis; Vedomosti newspaper projects construction completion by 2012.

 

Sergei Matvienko and Grand Land Group also set up Razdory City LLC, which intends to build a residential complex in Razdory Village, Odintzovo District. According to Vedomosti newspaper, Razdory City LLC’s co-founders are David Yakobashvili (Wimm-Bill-Dann Foods

[4] board member) and landowner Timofei Klinovsky, whose son is married to former RF Prime Minister Mikhail Kasyanov’s daughter.

 

 

Another Barvikha-4 LLC owner is Mikhail Kenin, owner of Russkoye More (Russian Sea) holding company. Russian Sea, Barvikha-4 and Grand Land all share the same telephone number. Alla Pugacheva Song Theatre LLC in St. Petersburg is owned by Kenin, Grand Land, Kristina Orbakaite, Alla Pugacheva and Evgeny Finkelshtein (president of RMI, a corporation close to St. Petersburg Regional governor’s family). The LLC plans to build a multifunctional complex of over 100,000 m2 on St. Petersburg’s Vasilyevsky Island. The 100-m long U-shaped structure will be built on a man-made island at the mouth of Smolenka River. The commercial project includes a 4,500-seat concert hall, a recording studio, a producers’ school, a 120-room hotel, apartments, and a business center.

 

 

Since 2009, Irina Shoigu is dean of G.V. Plekhanov Russian Economics University (REU) Higher School of Sports Industry (HSSI), where Victor Grishin is Rector. The School provides training, re-training and continuing education to sports managers (in particular, in preparation for the Olympic Games in Sochi). HSSI classes are taught by Vyacheslav Fetisov, Irina Rodnina, Shamil Tarpischev and others. Annual HSSI tuition is 200,000 Rub. Irina Shoigu actively supports construction of a multi-purpose REU sports complex outside Moscow (using University and federal funds) which would include a health and fitness facility, an ice arena, a swimming pool, a 3000-person dormitory and a 200-apartment residential building.

 

 

Irina Shoigu is on the board of trustees of “Republic of Sport” Children’s Social Foundation, set up by Federatzia (Federation) Political Reform Assistance Foundation, which, in turn, was set up by several individuals. The Foundation’s board of trustees is headed by entrepreneur Ladlena Fetisova (wife of Vyacheslav Fetisov, Primorski Krai representative to the Federation Council). Ladlena Fetisova is also involved in construction outside Moscow.

 

 

Sergei Shoigu’s wife also chairs the board of trustees of International Humanitarian Dimension Foundation, whose primary statutory purpose is humanitarian cooperation. The Foundation was established by three individuals. According to the Foundation’s website, the Foundation has for-profit companies under its umbrella. In fact, however, those companies were set up [not by the Foundation, but] by individuals, including Foundation head Alexander Titov. The companies (Consul WHD, Visa-Delight, and Visa HR Consulting) offer visa, work permit and other document processing services.

 

 

Irina Shoigu is still involved with trade shows and is on the organizing committee of the RF Ministry of Sports, Tourism and Youth Policy’s International Sports Exhibit. In March 2011, she took part in the official opening of the Exhibit. The 2004 and 2005 Sports Exhibits were officially managed by Expo-EM LLC.

 

 

Irina Shoigu’s 2008 declared income was 2.1 Mln. Rub.; in 2009 it was 3.74 Mln. Rub. In 2010, her income rose sharply to 54.608 Mln. Rub., and she bought an Audi A4 automobile. In 2003, Irina Shoigu was known to drive a BMW X5 and an Opel Astra.

 

 

Sister Larisa Kuzhugetovna Shoigu is State Duma member, graduate of Kemerovo Medical School. She worked as psychiatrist in Tuva, then was appointed Deputy Regional Healthcare Minister in 1998. Since 2000, she is MES Central Clinic’s Insurance Medicine [department] deputy head in Moscow. Larisa Shoigu is on the Por-Bazhyn Fortress audit commission, and member of the RF State Duma of 5th Convocation.

 

 

Daughter Yulia Sergeyevna Shoigu, scientist, graduate of Moscow State University’s Department of Psychology; Ph.D. in Psychology specializing in psychology of extreme situations. She joined the MES Emergency Psychological Assistance Center in 1999, and was appointed its director in 2002. She was awarded the Medal of the Order “For Service to the Fatherland,” 2nd Grade.

 

 

Son in law Alexei Victorovich Kuzovkov is a notary; appointed Moscow notary in September 2005. Kuzovkov (who is married to Shoigu’s daughter) was named in connection with controversy around the Moscow Notary Association after lawyer Inna Yermoshkina publicly described a corrupt notary appointment system.



[1] Translator note: photo of TerComMet here – http://www.cardomedia.ru/print_news-44.htm

[2] Translator note: http://www.mchs.gov.ru/en/

[3] Translator note: http://www.un.org/News/dh/iraq/paul_volcker.htm

[4] Translator note: http://www.wbd.com/