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, Government’s 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

«Russia's Power Families - 2011» / Khristenko Victor Borisovich, Minister of Industry and Trade and Golikova Tatyana, Minister of Health and Social Development

Employed at: the Government of the Russian Federation

Position held: RF Minister of Industry and Trade

Wife: Since 2003 – Tatyana Golikova, RF Minister of Health and Social Development.

Business involvement: as public servant, had no right to be involved in business.

Victor Khristenko and Tatyana Golikova reside in Moscow Krylatskoe District’s elite Fantasy Island village built on Moskvoretzky Park nature preserve (near Rechnik village). Minister Khristenko owns a 218.6 m² apartment, which he says he bought in 2007 on the secondary market. At the time, such apartments cost up to $14,000 per m², so the Minister would have had to pay around $3 Mln. According to his income tax returns, Khristenko’s 2008 income was 4.4 Mln. Rub. and his 2009 income – almost 5.4 Mln. Rub. Golikova’s 2008 income was 3.2 Mln. Rub.; and 2009 income – 3.1 Mln. Rub.

The minister spouses established a charitable foundation to rebuild Uspensky Monastery, with Khristenko chairing the foundation’s board. The foundation was co-founded by Andrei Reus, Evgeny Dedkov and Andrei Dementiev, all three of whom later took senior positions at the Ministry of Industry and Energy.

Influence on business: The media accused Health Minister Tatyana Golikova of involvement with Pharmstandard[1], of being its patron and helping it ward off competition. The Pharmstandard holding company is a longtime recipient of government funds. The Health Ministry recommends such Pharmstandard medicines as Arbidol to treat various illnesses.

Pharmstandard was founded in 2003 by Profit House, part of Millhouse Capital, which managed Roman Abramovich’s assets. In March 2008, Abramovich and Millhouse left this business. Victor Kharitonin and Yegor Kulkov still own the Pharmstandard pharmaceutical group.

Pharmstandard’s capitalization is 2.9 Bln.; its 2009 revenues – 23 Bln. Rub. The company is expanding regionally; in particular, Pharmastandard sought to acquire the Pervaya Pomosch’ (First Aid) [chain of] St. Petersburg pharmacies. While disputes with federal pharmacists went on, owners of Pervaya Pomosch’ died. According to the official version, the two businessmen committed suicide within 10 days of each other in 2008.

According to Pharmstandard [annual] reports, the RF Ministry of Health and Social Development is one of its  main customers. For example, income from sales to the Ministry was over 2,159,294,000 Rub. in 3Q 2010 and 2,960,207,000 Rub. in 4Q 2010.

In early 2009, Pharmstandard won the government anti-tumor medicine bid as part of the “Seven Nosologies” program (which, in turn, is part of the “Supplemental Medicine Provision” program which, experts agree, has failed). As Velcade[2] distributor, Pharmstandard sold over 2.5 Bln. Rub. of the product. In December 2009, Pharmstandard won another federal “Seven Nosologies” program bid – this time to supply 1.176 Bln. Rub. of Coagil-VII. In 2010, it won yet another “Seven Nosologies” program bid, this time for anti-tumor medicines. This contract involved Velcade and provided for payment of 4.28 Bln. Rub.

Velcade’s history [in Russia] is illustrative. In May 2009, the Belgian Velcade producer Janssen-Cilag had the foresight to sign a Russian distribution contract with Pharmstandard. Pharmstandard then applied to enter Velcade in the bid as part of the [government] procurement program involving buy expensive drugs for the treatment of serious illnesses. The lot totaled 2.5 Bln. Rub. [However,] Velcade [soon] had competition – Milanfore[3], Velcade’s exact generic copy created by Russia’s Pharmsynthez[4] group.

Although the Russian equivalent was 30% cheaper, on May 26, 2009, Milanfore was withdrawn from the bid due to “unreliability of information provided.” Two days later, a letter signed by Minister Tatyana Golikova suggested (citing unnamed experts) delisting Milanfore as its clinical efficacy was not proven. 

Pharmstandard’s 2009 reporting indicates that gross profit from Velcade sales was 4% of total sales – around 100 Mln. Rub. 

[Pharmastandard owner] Victor Kharitonin is well acquainted with Golikova and Khristenko. Forbes estimated Kharitonon’s 2010 worth at $900 Mln.

Khristenko’s old friend and former Deputy Minister, Andrei Reus, has been on the Pharmstandard board of directors since 2010.

In summer 2008, Prime Minister Vladimir Putin visited the group’s plants with Golikova and Khristenko.

In September 2010, state-owned Russian Technologies[5] (headed by Sergei Chemezov) and Pharmstandard signed a cooperation agreement regarding assistance to Victor Kharitonin’s business in the area of high-tech medical equipment supply and maintenance.

Daughter Yulia Victorovna Khristenko (Bogdanchikova), graduate of Moscow State Institute of International Relations. In 2004, she married Evgeny Bogdanchikov, the younger son of Rosneft head Sergei Bogdanchikov. Starting in 2004, Yulia Bogdanchikova worked as SevMorNefteGaz legal department’s chief specialist. SevMorNefteGaz was established in 2002 by subsidiaries of Rosneft and Gazprom in order to explore the Prirazlomnoye oil deposit and the Shtokman gas condensate deposit. (In 2006, Gazprom consolidated 100% of SevMorNefteGaz shares). Starting in 2004, Evgeny Bogdanchikov worked at Fleming Family and Partners’ Russian office, then at VTB Capital as direct investment and special projects department specialist.

In 2008, Yulia Khristenko married Vadim Shvetzov, the owner of Sollers[6] automobile group that includes Ulyanovsk Automobile plants with revenues of $1.1 Bln. Shvetzov’s business is actively growing: 2010 sales increased by 37%. Shvetzov is member of the Association of Russian Automakers[7], the industry’s main lobbying group.

According to Forbes, all assembly projects have Shvetzov to thank for the RF government decision allowing customs-free industrial assembly. At the height of the economic crisis, the Sollers owner initiated [government] revision of customs duties on new foreign cars. As a result, [import] duties [on new cars] increased from 25% to 30%, and duties on used cars increased even more significantly.

Shvetzov’s holding company’s successful lobbying and financial success may well be due to his marriage, since the Ministry of Industry and Trade [which his wife Golikova runs] is responsible for all aspects of automotive industrial policy, from customs duty increases to government subsidy and loan allocation.

Son Vladimir Victorovich Khristenko is an entrepreneur, graduate of the Higher School of Economics[8]. His father, Minister of Industry Victor Khristenko, comes from Chelyabinsk, and Vladimir Khristenko’s financial interests are tied to the  Chelyabinsk region. Vladimir Khristenko works at Chelpipe[9] industrial group, which combines the Chelyabinsk tube rolling plant and the Pervouralsky Novotrubny Works[10]. Chelpipe is owned by former Chelyabinsk senator Andrei Komarov.

In 2004, Khristenko Jr. became head of MeTriS analytical division and oversaw Chelpipe’s strategic development directorate’s project. In 2005, he became general director of the Chelpipe-KTS (Kompleksnye Trubnye Sistemy - Integrated Pipe Systems (KTS)) service division. In 2006, when he was 25, he became head of the Chelpipe-KTS board of directors and head of the supervisory council of MSA a.s.,[11] the Czech pipe fitting producer affiliated with Komarov’s holding company.

Vladimir Khristenko then held various positions at companies linked to Chelpipe. He was on boards of directors of NyaganNefteMash CJSC (2008), IzhNefteMash OJSC (2008- 2010), Trubodetal’ (2005-10), ALNAS LLC (2008-9), RIMERA CJSC and RIMERA-Service CJSC (2007-9), BENZ OJSC (2008-9). He was also general director of RIMERA-Service CJSC, RIMERA CJSC and Chelpipe-KTS CJSC.

According to Kommersant newspaper, Vladimir Khristenko is currently involved with Chelpipe’s development projects and oversees golf course construction.

In 2008, Vladimir Khristenko married the writer Eva Lanska, who was previously married to Mikhail Bezelyansky, the former co-owner of Mosmart retail chain. Eva Lanska took Khristenko’s last name.

Andrei Reus is on the Rosneft board of directors; prior to September 2007 he was deputy Minister of Industry and Energy, and later OboronProm

Evgeny Dedkov was head of the Chelyabinsk Region healthcare administration, deputy chief of [Chelyabinsk regional] government, and has worked with Khristenko at the Ministry of Finance. In 1998, when Khristenko became deputy RF Prime Minister, Dedkov headed Khristenko’s secretariat (prior to Reus). Dedkov currently heads the Ministry of Industry and Energy’s administrative department.

Andrei Dementiev also comes from Chelyabinsk Region. He was advisor and deputy head of Khristenko’s secretariat when Khristenko was deputy RF Prime Minister. Currently Dementiev is deputy Minister.