Forbes: Kings of Government Order 2017
1520 group of companies belonging to son of Vladimir Yakunin's ex-adviser, which won Russian Railways contracts for 218.2 billion rubles ($3.8bn) tops the rating.
Forbes magazine publishes a rating of Kings of the Government Order. Alexey Krapivin, the son of late ex-adviser to Russian Railways former head Vladimir Yakunin Andrey Krapivin, as well as former partners of Krapivin Sr. Boris Usherovich and Valery Markelov, top the rating.
The 1520 group of companies, owned by Krapivin and his partners, won the state orders worth 218 billion rubles. 1520 is engaged in the design and construction of railway infrastructure. The group of companies continues cooperation with Russian Railways after Yakunin's resignation. In 2017, its owners topped the Forbes rating for the first time. Krapivin, Markelov and Usherovich also control the companies Roszheldorproekt and Lengiprogaz. Roszheldorproekt, in particular, got two contracts worth almost 230 billion rubles from Russian Railways.
The second place is taken by businessman Dmitry Pumpyansky. His group of companies Sinara and Pipe Metallurgical Company (TMK) won contracts with Russian Railways and Rosneft worth 173.5 billion rubles ($3bn). Pumpyansky owns 65.06% of TMK. The company won tenders for the supply of pipes for Rosneft at 228 billion rubles.
Arkady Rotenberg, who received Gazprom's contracts for 88.1 billion rubles ($1.5bn), ranked third. His company Stroygazmontazh received "about a hundred orders". In 2017, Rotenberg's place improved by 4 positions.
Last year, owners of the Peaton company Igor Mnushkin, Oleg Polyakov and Vladimir Zaitsev got the first place in the rating. In 2017, entrepreneurs dropped out of it.
Forbes notes that the state hides the real recipients of contracts. In 2017, Prime Minister Dmitry Medvedev allowed state customers to publish data on the contract, the method of procurement and its price, information on the winners could be kept close. Thus, it is more difficult to identify real Kings of the State Order, because unknown companies "who are clearly unable to fulfill them" got contracts.
The CrimeRussia previously wrote about the companies of Krapivin, Usherovich and Markelov. As a rule, firms are acting as intermediaries: they win the tender and transfer the work to a third-party subcontractor, while taking most of the profits. It is also known about Usherovich's ties with Solntsevskaya gang. Banker German Gorbuntsov, who was assassinated in London in 2012, as well as the ex-wife of the banker, disclosed ties between the businessman and the gang.
The situation on international markets is worsening because of trade wars and protectionist policies. However, Dmitry Medvedev noted that the Government expects the expansion of the Russian economy until 2024.