Fradkov Mikhail Efimovich, Foreign Intelligence Service Director
«Russia's Power Families - 2011» / Fradkov Mikhail Efimovich, Foreign Intelligence Service Director
Employed at: RF Foreign Intelligence Service
Positions held: 1992-98: Deputy Minister; Minister of Foreign Economic Relations;
1999: Trade Minister; 2000-2001: First Deputy Chairman of the RF Security
Council; 2001-03: Head of Federal Tax Police Service, 2004-07: Chairman of the RF
Government (RF Prime Minister); since 2007: RF Foreign
Business involvement: 1998-99 – chairman of the board of directors, then general director
of “Ingosstrakh” OJSIC (open joint-stock insurance company) (successor to USSR Foreign
Insurance Main Administration). While at Ingosstrakh, he headed the insurance
division at the foreign investment advisory
committee under RF Prime Minister Evgeny Primakov.
Influence on business: The press has called Fradkov a lobbyist for the so-called “Security, Defense and Law Enforcement Issues Academy.” The founding President of the Academy was Victor Shevchenko, former head of Strategic Missile Forces Central Headquarters’ military counterintelligence. Academy activities included issuing for-fee academic medals to businessmen; these medals looked almost identical to those issued by the State. While first deputy RF Security Council chairman, Fradkov sent a letter to Russia’s siloviki (defense and law enforcement agencies) seeking support for the Academy. Victor Shevchenko himself said that Fradkov appointed Academy head. In 2008, the Academy was liquidated by the RF Supreme Court per General Prosecutor’s Office request.
As head of Federal Tax
Police Service (FTPS), Fradkov initiated the filming of a TV series about FTPS
staff called “Maroseika [Street] 12,” managing to persuade businessmen controlled by FTPS
to pay for the entire project.
As RF Foreign Intelligence Service (FIS)
Director, Fradkov continues to influence business. In 2007, FIS staffer Alexander Blagov, who was close
to Fradkov, became Deputy Head of Caspian
Pipeline Consortium, an international
corporation. The media noted Fradkov’s possible link to Ruslan
Valitov, the entrepreneur and owner of the Investment and Social Development Commercial Bank
(Investsocbank). Valitov was named in a case involving the investigation of
embezzlement at Tomskneft (formerly
owned by Yukos Oil Company).
He was also the prosecution’s main witness in the case against Dmitry Dovgy, Director
of the RF Prosecutor’s
Office Investigative Committee Main Investigative
Administration. Dovgy was convicted of bribery. Valitov
was also referred to as former FIS division head, while his bank was referred
to as the FIS’ unofficial financial center.
Property redistribution involvement: While Mikhail Fradkov
was at the Ministry of Foreign Economic Relations (MFER), the following USSR
government-owned companies subordinate to MFER were privatized: Novoexport, Prodintorg,
Soyuznefteexport, Techmashimport, Technopromimport, Technopromexport, and Tyazhpromexport,
with [total] foreign property estimated at $1 Bln. These companies controlled over
two-thirds of Soviet oil export contract volumes. Soyuznefteexport became Nafta-Moskva
OJSC, with prominent entrepreneur Suleyman Kerimov handling its stock.
In 1995, a number of
high-ranking MFER officers were suspected of misappropriating 4.9 Bln. Rubles of Ministry
revenues and using the funds for their personal needs. An internal
investigation uncovered documents indicating that Mikhail Fradkov received a
loan of approximately 150 Mln. Rubles from MFER’s extra-budgetary fund to build
a country home. An RF General Prosecutor’s Office investigation produced no
practical results. The office where internal investigation materials related to
financial violations at MFER were stored burned down “due to a short circuit” (according
to the official version), while the main witness Alexander Koltzov (MFER’s General Accounting
Office director) suddenly died. In the end, the case was closed, and when Minister
Oleg Davydov resigned, Mikhail Fradkov took his place and repaid the country home
construction loan before the due date.
In 2010, someone introducing himself as FIS Director Mikhail Fradkov called the National Reserve Bank (NRB, owned by former KGB officer Alexander Lebedev) requesting a meeting for his coworker. That coworker introduced himself as Konstantin Mikhailovich Yakovlev and said a criminal case had been initiated against NRB. As evidence, he produced case file documents and offered to assist in getting the case closed in exchange for $1 Mln. The Russian FIS did not comment on this incident, while the media discussed the opinion that this was a way to provoke NRB to pay a bribe.
Spouse, Elena Olegovna Fradkova, economist. According to one of her [place of residence] registrations, she was a neighbor of former RF Federal Security Service head and RF Security Council head Nikolai Patrushev, and neighbor of State Duma chairman Boris Gryzlov. She was listed as International Trade Center (Sovincenter) OJSC’s lead marketing specialist, and also worked at Vnesheconombank and Gazprom (2). Currently she is officially retired. Her declared income for 2009 was 190,000 Rub.; property: a 1,466 m2 land lot and part ownership of a 19 m2 apartment. Her husband’s income is 5.53 Mln. Rub.; Mikhail Fradkov owns a 10,300 m2 land lot, a 301 m2 country home, and a 587 m2 Moscow apartment.
Older son, Petr Mikhailovich
Fradkov, banker. Graduated from the Moscow State Institute of International
Relations with the major in international economics. During 2000-2004, he held
various positions at the Development and Foreign Economic Activity Bank, a
state corporation (Vnesheconombank, VEB). In 2004, while deputy VEB’s representative
in the US, he was appointed deputy general director of the Far East Shipping
Company. In 2006, he returned to VEB, where he worked as deputy head of the
investment banking operations directorate and director of the structural
financing department. Currently Petr Fradkov is deputy chairman of the VEB board
and member of the board of directors of Terminal OJSC (established by VEB,
Aeroflot and VTB Bank), involved in the construction of [Moscow’s] Sheremetyevo-3
Terminal. Terminal OJSC also employs Andrei Chikhanchin – the son of Yuri Chikhanchin, who heads the Federal
Financial Monitoring Service. In 2009, Petr Fradkov’s income was 10,952,606.81 Rub. He owns a 219 m2 apartment, a garage and a Lexus-350. Petr Fradkov’s [income tax] declaration
does not list automobiles registered in his name – a Mercedes-Benz and a BMW 318iÀ. His wife lists an Alfa Romeo [automobile] and
a Harley Davidson motorcycle as her property.
Younger son, Pavel Mikhailovich Fradkov, diplomat. In 1995, he enrolled at the St. Petersburg Suvorov Military Academy. His father told this to his acquaintance, St. Petersburg Deputy Mayor Vladimir Putin. In 1996, when Putin’s team lost the gubernatorial election and Mikhail Fradkov’s friend resigned from city hall, the 15-year old Pavel Fradkov was transferred to the Moscow Suvorov Military Academy. He graduated from the Federal Security Service Academy (which he attended together with Nikolai Patrushev’s son Andrei Patrushev) and from the RF Ministry of Foreign Affairs’ Diplomatic Academy. While at school, he registered two Mercedes-Benz automobiles in his name. Since 2005, Pavel Fradkov is employed as Third Secretary at the RF Ministry of Foreign Affairs’ European Cooperation Department.
In December 1991, foreign
economic cooperation minister Petr Aven gave permission to Vladimir Putin, then
head of the St. Petersburg’s mayor’s office Foreign Relations Committee (FRC), to
issue business licenses
to sell raw materials abroad in exchange for supplying food to
the city. Later, a St. Petersburg legislative
assembly working group discovered that some of the export companies were impossible
to supervise, while most contracts deliberately contained serious errors that allow
the exporters to eschew their obligations. Legislative assembly officials recommended
Putin be removed as FRC chairman, but St. Petersburg Mayor Anatoly Sobchak
refused to fire Putin. Petr Aven continued granting Putin the right to issue licenses, and tasked Mikhail
Fradkov with overseeing this process on behalf of MFER. This was the start of ongoing
financial collaboration between Vladimir Putin, Mikhail Fradkov and Petr Aven (who
since 1994 co-owns the Alpha Group together with Mikhail Friedman and German
A number of experts
believe Fradkov promoted this holding group’s interests while still at MFER in
1992-98. Alpha Bank obtained permission to buy Russian foreign debt at 25-30% of their
value, then receive the full original amount from the state budget. The Alpha-Eco
company was given the opportunity to buy imported goods to offset the producer
countries’ debt to Russia. It was also awarded a government contract to provide 1.5
Mln. tons of Russian oil in exchange for 500,000 tons of Cuban sugar annually.
The press also noted Mikhail Fradkov’s likely involvement in Alpha-Eco’s purchase of 40% of Tyumen Oil Company OJSC stock. According to the RF Accounts Chamber, the price paid for the stock was no more than 46.8% of its actual value. The General Prosecutor’s office initiated a criminal case after the [stock purchase] auction, but the case was soon closed. Alpha-Eco also became the West Siberian Iron and Steel Works’ export agent, using this opportunity to export oil.