KES and Renova top-managers caught withdrawing income to offshores

KES and Renova top-managers caught withdrawing income to offshores

The state-owned companies have been accumulating profits on foreign accounts for five years.

The leaders of Kompleksniye Energeticheskiye Sistemy (Integrated Energy Systems) CJSC and Renova Group have been caught withdrawing the companies’ profits to offshores, reported TASS referring to a source close to the investigation of the case against former Komi Head Vyacheslav Gaizer.

According to the source, the withdrawal of funds was affected between 2003 and 2008. Moreover, such a scheme was practiced in every subject of the Russian Federation where the KES has its branches (reorganized in PJSC T Plus).

"The so-called fuel scheme has been practiced since 2010, aimed at withdrawing funds from generating companies in favor of Renova Group," the TASS wrote.

According to the agency, 41.2 billion rubles ($719m) from the budget that had been allocated for the construction of additional capacity were meant to "repay loans" and were used "to acquire the missing portfolio of shares in order to control and operate the generating companies."

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