Chaika Jr's garbage company might receive $31 million worth of state support

Chaika Jr's garbage company might receive $31 million worth of state support
Igor Chaika

Khartiya is preparing to submit applications for projects in the Tula and Yaroslavl regions.

The son of Prosecutor General of the Russian Federation Yuri Chaika, Igor, told Vedomosti that his company Khartiya was preparing to submit bids for two projects worth 2 billion rubles ($31.2 m) in the Tula and Yaroslavl regions.

According to Igor Chaika, the projects involve the construction of complexes for sorting and recycling municipal waste. Organic material will be recycled into compost, and the company is going to make containers for its own needs from plastic.

Until the end of June, a list of projects are to appear in the public domain that will mark the beginning of a garbage reform - the construction of sorting complexes, processing plants, landfills, and so on.

The Russian Ecological Operator (REO) should select the first 20 projects for implementation. Applications from almost 60 regions for 101 billion rubles ($1.5 b) have already been collected, Denis Butsaev, General Director of REO, said at the St. Petersburg International Economic Forum in early June.

Chaika stressed that Khartiya would finance their part of the projects from their own funds. “In recent years, profit has not been taken out of the company, but reinvested in the development,” said the son of the Prosecutor General.

Along with Khartiya, RT-Invest company (the largest waste handling provider in the Moscow region), Rostekh's facility, has also submitted an application for participation in the garbage reform. But they have not disclosed their proposals so far.

The struggle for state support has aggravated the confrontation between companies in the regions, a senior executive of one of the market participants comments: REO can help only one project. Those who claimed to be the regional operator, but were not chosen, decided that this was their chance to stay in business, says the interlocutor of Vedomosti.

In total, it will be necessary to raise about 300 billion rubles ($4.6 b) of private money to reform the industry.

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