Prosecutor General’s son Igor Chaika is to supply beer and vodka to China
The news broke about Igor Chaika’s new business projects. The company, he owns, is coming to the Chinese market. Previously Chaika had supplied Russian candies to the Republic of China.
The First Russian Cross-Border International Trading ltd has won the license for the supply of Russian alcohol to China for three years. This was reported by Vedomosti with reference to the Alcoholic Beverages Sales Office in Shanghai. The son of the Russian Prosecutor General, Igor Chaika, is among the shareholders of the company registered in March 2016 in Shanghai. He also owns 41% share in the Russian company Russky Eksport LLC (Russian Export). The companies (FRC and Russky Eksport) are affiliated. The former conducts its work in China, and the latter operates in Russia. In addition to Chaika, the following people are entitled to various shares in the companies: Anna Barysheva, Artyom Semyonov, and Oleg Dmitrienko.
According to Dmitrienko, Russian alcohol beverages are extremely popular in the PRC. However, he has yet to specify the number projected for sale.
Incidentally, Igor Chaika and his partners already have experience working with Chinese consumers. At present, Russky Eksport supplies confectionery and groceries to China. This was announced by Chaika Jr. himself at the St. Petersburg International Economic Forum in June. Moreover, the company itself does not produce anything; it is engaged in transportation, customs clearance, certification, and sale. Russky Eksport LLC has its offices in Moscow and Shanghai, and warehouses in Moscow, Shanghai, and Hangzhou. In addition, there is an online store. Russky Eksport LLC currently cooperates with three major Chinese trade networks, including Lotus Supermarket (82 hypermarkets), RT-MART (335 hypermarkets), Weifang Group (622 hypermarkets), and several online retailers. The product range consists of about 100 items; it is planned to increase it up to 500 by the end of the year.
At the same time, according to the Director General of the Center for Federal and Regional Alcohol Markets Research Vadim Drobiz, Russia can hardly aspire to the role of major exporter of alcohol to China. Last year, our country sold 100 million liters of beer and 45 million liters of vodka abroad. In this case, only 2% aсcounts for China. Although the alcohol market of this country has a great potential, Chinese people consume minimum 5 billion liters of strong alcohol per year, with 99% being the locally produced drinks, Drobiz noted.
It should be noted that it is not the first business experience of the prosecutor general’s younger son. May 2013, Igor Chaika established Aqua Solid company, which bought 50 % minus 2 shares of Russia’s largest producer of railway sleepers BetElTrans using its affiliate company T-industriya. The deal amounted to 3 billion rubles. BetElTrans is a monopolist in the supply of its products for the amount of 269 billion rubles to the Russian Railways (up to 2017).
In 2014-2015, Chaika worked as advisor to the Governor of the Moscow region on a voluntary basis. He also owns Agro-region, a company which plans to build a champignon growing complex by 2017.
In addition, Chaika also plans to build a desalination plant in Iran.