Forbes: Arkady Rotenberg no longer King of Government Order

Forbes: Arkady Rotenberg no longer King of Government Order
Arkady Rotenberg

The annual Forbes ranking called "Kings of the government order" is led by the Peton holding shareholders who concluded state contracts of 176 billion rubles ($3b). Leader of last year's rating Arkady Rotenberg this time comes 7th.

Forbes magazine has published its annual ranking "Kings of the government order" that listed companies that got the largest government contracts in 2016.

With the help of the Kontur.Zakupki, the magazine reviewed the biddings for more than 1 billion rubles, having excluded state-owned companies from the list of winners. Then, using Kontur.Focus database and the official portal of public procurement contracts, all private companies’ contracts were analyzed, after which the magazine identified the owners of the government order companies and checked whether any other structures belonging to them received any state contracts. After this, the share in the amount of government contracts, for which the rating participant may qualify according to the effective share in the company-contractor has been calculated.

The leader of last year's Forbes ranking Arkady Rotenberg secured only 7th place at the end of 2016 (96.9 billion rubles or $1.6b). In 2015, the amount of contracts received by his company Stroygazmontazh reached 555.55 billion rubles ($9.5b).

Current Forbes rating is dominated by the owners' of Peton process engineering holding: Igor Mnushkin, Oleg Polyakov, and Vladimir Zaitsev. According to Forbes, in 2016, the company with revenues of about 2 billion rubles received contracts for 176 billion rubles from Gazprom. The magazine points out that Peton set the record after receiving two large orders with no competition: the construction of a complex for production, storage, and shipment of liquefied natural gas in the vicinity of the compressor station Portovaya in the Leningrad Region (126.75 billion rubles or $2b) and construction of a condensate stabilization unit of the Achimov deposits in Yamal (47.7 billion rubles or $817.6m).

The Forbes’ second bests are the owners of CJSC VAD Valery Abramov and Viktor Perevalov. According to the publication, in 2016, the company got one of the largest contracts in the history of the Crimean government with no competition: the construction of Taurida highway with a connection to the Kerch Bridge for 128 billion rubles ($2b). The amount of government orders received by the company last year reached 163.2 billion rubles ($2.7b).

Stroytransneftegaz owners came third, it is Gennady Timchenko who owns 31.5%. The contracts of the company in 2016 amounted to 153.3 billion rubles ($2.6b); the main customer was Gazprom and its affiliates.

Government contracts amounting to 147.1 billion rubles ($2.5b) were received by Neftetransservis owners Vyacheslav Aminov, Vadim Aminov, and Aleksey Likhtenfeld. According to Forbes, the company had no competition when signing several contracts with Rosneft in 2016 to transport exported and domestic oil cargo with the costliest one being 119.4 billion rubles ($2b).

Timchenko mentioned above ranked 5th in the rating with a 31.5%-share in Stroytransneftegaz, 80% in TransOil, and 80% in Stroytransgaz. Stroytransgaz JSC got considerably fewer contracts in 2016 than usually: only 15 billion rubles ($257m), according to Forbes’ estimates. Meanwhile, railway operator Transoil signed three long-term contracts with Rosneft for the provision of freight forwarding services.

As the magazine emphasized, the research of public procurement revealed that in 2016 the government and state-owned agencies distributed vast majority of large orders "without even trying to simulate any competition." And the "cancerous tumors" spread well beyond the area pointed out by the FAS, to "many other places, and they have already metastasized," concludes Forbes.

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