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Akhmetov Rinat Leonidovych

Akhmetov Rinat Leonidovych

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Date of birth Sept. 21, 1966
Place of birth Donetsk
Citizenship Ukraine
Last position NGR B.V., Beneficial owner
Last profile update: Feb. 21, 2019

Dossier:

According to the official biography, he was born on 21 September 1966 in Pivnichne village near Donetsk in a miner's family. His father and brother worked at the mine, his mother was a shop assistant.

He studied at Donetsk school No. 63, and in 2001 graduated from Donetsk State University, Economic Department.

From 1994 to 1996 he was a Vice-President of FC "Shakhtar" (Donetsk).

Since 11 October 1996 up till now he is President of FC "Shakhtar" (Donetsk).

In 1999 he founded a school for children and youth FC "Shakhtar" in Donetsk with a network of affiliates and modern training center "Kirsha".

Rinat Akhmetov began his business in the 90s. He invested first capital, which was earned on trading coal and coke, in metallurgical and mining assets.

In 2000 he founded System Capital Management (SCM) company.

Today, SCM is the largest multi-industry industrial group in Ukraine that consists of more than 100 enterprises of mining, metallurgical, power generation, financial, telecommunication, media, and other sectors of economy.

In 2006-2007 and 2007-2012, he was a People's Deputy of Verkhovna Rada of Ukraine as a member of the Party of Regions. In 2006-2007, Irina Akimova was a parliamentary assistant of Akhmetov, later in 2011-2014 she became the Deputy Chairman of the Presidential Administration of Viktor Yanukovych.

According to the media, in April 2017, unknown persons fired a car with journalists of Slidstvo.info during filming a TV show about the construction of new estate of Rinat Akhmetov near Plyuta village (Kyiv region). The site belongs to Meta-Capital LLC, where Akhmetov is a beneficiary. Journalists state that according to the documents, the estate is "health and social care institution".

In 2018, Akhmetov was the only one Ukrainian in rating for billionaires Bloomberg Billionaires Index. His wealth was estimated at 5.71 billion UAH.

 

BUSINESS ASSETS

Mining and steel business is represented by Metinvest Group, which is managed by METINVEST HOLDING LLC, founded by SCM in 2006.

Metinvest is among top 50 steel companies in the world, according to the World Steel Association. The production capacity of Metinvest for steel smelting is 15 million tons per year.

Metinvest Group includes enterprises producing iron ore and dolomite  flux raw materials: Northern Iron Ore Enrichment WorksInguletskiy Iron Ore Enrichment WorksCentral Iron Ore Enrichment Works and Komsomolske Rudoupravlinnya and coal mining enterprises: Krasnodonvugillya and United Coal Company.

Komsomolske Rudoupravlinnya provides flux limestone to more than 100 enterprises of Ukraine and neighboring foreign countries.

Ore mining and processing company consists of three active careers and two crushing and concentrating factories. The capacity of enterprise is 10-12 million tons of commercial limestone per year.

United Coal Company is one of the leading producers of coking coal in the USA. It produces coking and steam coal in Central Appalachian Coal Basin. The company was founded in 2004. In spring 2009, it joined Metinvest Group.

The production capacity of four units that belong to United Coal Company exceeds 9 million tons of coal per year.

Krasnodonvugillya specializes in extraction and enrichment of coking coal of "J" and "K" grades. The main consumers are coke-chemical enterprises of Metinvest Group: Avdiivskiy Coke And Chemicals Plant and coke-chemical production MС "Azovstal".

Metinvest-Shipping provides freight forwarding services, customs clearance services for cargo and shipping agency services at Mariupol Sea Commercial Port, MC Azovstal port and SRZ JSC.  

Metinvest Group metallurgical enterprises include 12 factories and mills.

In Ukraine, these are Metallurgical Complex "Azovstal"Mariupol Metallurgical Plant Named After IllichMetinvest-Mariupol Repair-Engineering PlantMetinvest-Promservic LLC that specializes in equipment repair and maintenance; Yenakiivskiy Metallurgical PlantKhartzkiy Pipe Factory, which is the only producer of large diameter welded pipes in Ukraine; Avdiivskiy Coke And Chemicals Plant", which is one of the leading coke production enterprises in Europe and the largest one in Ukraine, and also INCOR and CO  is the largest producer of naphthalene in Europe.

In Europe Metinvest Group is represented by rolling enterprises in Italy, Great Britain and Bulgaria. Ferriera Valsider SPA (Verona, Italy) produces about 500 thousand tons of heavy plate and hot rolled coils per year. Trametal SPA (Italy) and Spartan UK (UK) produce heavy plates. Promet Stil AD is a modern rolling enterprise in Bulgaria, the main products of which are high-quality and shaped rolling. 

On 22 May 2018, branch of "Production center" of Ukrainian railway PJSC according to tender results concluded two agreements with Metinvest-SMC LLC for the purchase of steel for the total amount of 1.69 billion UAH. 

DTEK is an energy holding company that manages four operating companies with assets in coal mining, generation and distribution of electricity, in alternative energy and gas extraction area.

DTEK Group controls about 80% of thermal power generation and extracts more than 80% of all energy coal in Ukraine.

DTEK is a member of SCM financial and industrial group.

DTEK ENERGO is an operating company responsible for coal production, generation and distribution of electricity within DTEK Energy Holding structure.

Coal of gas brands is extracted by DTEK Pavlogradvugillya (Dnipropetrovsk region), DTEK Dobropillyavugillya and DLC "Shahta "Bilozerska" (Donetsk region).

Coal preparation factories of the holding are DTEK Oktyabrska Central Enriching FactoryCentral Enriching Factory PavlogradskaDTEK Dobropilska Central Enriching Factory  Central Enriching Factory Kurakhivska.

Company's production capacities are represented by such thermal generation companies as DTEK Skhidenergo, DTEK Dniproenergo, DTEK ZachidenergoKyivenergo and Mironivska TPS that is a part of DTEK Donetskoblenergo. 

Thermal power stations supply all produced electricity to the wholesale electricity market of Ukraine, except two TPS that belong to DTEK Skhidenergo. The damage of main electrical networks of Ukrenergo NPC  separated DTEK Lugansk TPS from the United Energy System (UES) of Ukraine. Since September 2014, the station has been operating in the mode of power island. DTEK Zuyevska TPS is separated from UES of Ukraine by resolution of Cabinet of Ministers of Ukraine.

DTEK Skhidenergo consists of three TPS in Donetsk and Lugansk regions, namely Zuivska, Kurahovska and Luganska.

DTEK Dniproenergo consists of three TPS which are situated in Zaporizhya and Dnipropetrovsk regions, namely Zaporizska, Prydniprovska, Kryvorizska.  

DTEK Zakhidenergo includes three TPS in Ivano-Frankivsk, Lviv and Vinnytsia regions, namely Burshtynska, Dobrotvyrska and Ladyzhinska. Electricity produced at DTEK Zakhidenergo is supplied not only to Ukrainian consumers but is also exported to European countries.

Kyivenergo provides a complete cycle of power supply to Kyiv. On September 27, 2001 the integral energy complex of Kyiv (TPS, thermal networks, etc.) was transferred to its administration.

In 2017 the agreement between Kyiv City Council with Kyivenergo regarding the use of integral energy complex expired. KCSA extended the contract until the end of heating season 2017-2018.

Since May 2018, Municipal Enterprise Kyivteploenergo became the supplier of hot water and heating services instead of Kyivenergo PJSC.

In 2017 Kyiv residents' debt to Kyivenergo increased by 784,000 UAH and reached 4.7 billion UAH.

In May 2018 Naftogaz of Ukraine NJSC refused to sign contract for gas supply to ME Kyivteploenergo", as Kyiv City State Administration does not assume all obligations to repay debts of Kyivenergo PJSC.

DTEK Energo includes distribution companies: DTEK Donetskoblenergo, DTEK Vysokovoltni MerezhiDTEK Pem-EnergovugullyaDTEK DniprooblenergoKyivenergoDTEK Crymenergo (due to Crimea annexation, DTEK currently does not manage an operating activity of the company).

Distribution enterprises of the company serve 4.4 million customers - metallurgical, coal and machine-building plants, as well as enterprises and population in Donetsk and Dnipropetrovsk regions.

On 21 January 2015, Crimean authorities decided that movable and immovable property of DTEK Crymenergo would be considered as property of the Republic of Crimea.

DTEK Naftogaz is the largest private gas production company in Ukraine. In 2017, Ukraine produced record 1.65 billion cubic meters of natural gas for Ukrainian private gas production.

DTEK Naftogaz consists of Naftogazvdobuvannyya and NAFTOGAZROZROBKA, which make exploration and extraction of hydrocarbons in Poltava and Kharkiv regions.

NAFTOGAZVYDOBUVANNYA is the largest private gas production company in Ukraine. 75% of shares belong to Akhmetov's structures. The last 25% were bought in 2017 by People's Deputy Nestor Shufrych.

According to the media, in July 2016 DTEK NAFTOGAZ received the right to install tax debts amounting 145.1 million UAH.

This is one of the largest installments issued by tax administration in the capital during the period from 2015 to the beginning of 2017, when Roman Nasirov was the Head of State Fiscal Service.

DTEK VDE is an operating company that manages DTEK's renewable energy assets.

In 2012, the company built Botievska WES, the largest wind power plant in Ukraine. In 2017 Trifanovska Solar Power Plant started its work and the same year the construction of Prymorska Wind Power Plant in Zaporizhzhya Oblast began.

DTEK VDE Group includes affiliated companies of Wind Power, which manages the largest wind power plant in Ukraine - Botievska WPP, Wind Tech, which provides services for wind turbines, Trifanivka Energy, which includes the Trifanovska solar power plantб and Primorska WPP, which implements the development project of Prymorska wind power plant in Zaporizhya region.

The repair direction of DTEK is represented by Interenergoservice LLC, a separate subdivision of Galenerergo, Electronaladka LLC and Pershotravenskiy Repair And Engineering Plant LLC.

DTEK TRADING LLC and DTEK POWER TRADE LTD provide sale of goods on Ukrainian market, as well as export to CIS countries. DTEK Hungary Power Trade LLC is responsible for the development of electricity trade as well as other energy products on the territory of Hungary.

To provide direct exit to Europe’s energy markets DTEK Trading SA was established in June 2013.

The financial business of SCM Group is represented by First Ukrainian International Bank (FUIB) and two insurance companies - ASKA and ASKA-Life.

First Ukrainian International Bank (FUIB) is universal bank focused on commercial, retail and investment banking operations.

Ukrainian Joint Stock Insurance Company Aska (UASK ASKA) provides non-life risk insurance services. 

Ukrainian Joint Stock Insurance Company Aska-Life (UASK ASKA-Life) specializes in life insurance services.

СORUM GROUP (earlier - "Mining Machines") operates in the mining business. The group's activities are focused on providing high-tech integrated solutions, manufacturing and service equipment in the extraction, processing and transportation of minerals, as well as construction of mines.

Lemtrans calls itself the largest private operator of railway rolling stock of Ukraine.

As of 2018 Lemtrans operates a fleet of more than 20 thousand open railway cars.

100% of authorized capital of Lemtrans company belongs to SCM Group of Rinat Akhmetov.

In 2012 journalists wrote that Akhmetov and his related structures own 60% of Lemtrans, while the remaining 40% are controlled by close circle of President Viktor Yanukovych. In particular, share in enterprise was indirectly owned by Viktor Rizanov, who lived in Mezhyhirya and, according to local residents, was the guard at Yanukovych’s residence. The press service of the elder son of the President denied any connection with Lemtrans.

Media Holding "MEDIA GROUP UKRAINE" is a management company that combines television, publishing, print and new media projects of SCM Group. Holding includes national TV channel "Ukraina", youth channel NLO TV, thematic channel Indigo TV, thematic channels "Futbol 1" / "Futbol 2", "Regionalna Media Grupa" (channels "Donbass", "34 kanal", "Sigma" ), sales-house "Mediapartnerstvo", company "Digital Screens" (oll.tv), production company "TELE PRO", Front Cinema and "Dopomozhemo TV", as well as holding "Sogodni Multimedia".

"ESTA HOLDING" combines SCM Group's assets in real estate area. The main activity is concentrated in five key areas: investment and development of commercial real estate in premium segment, development, consulting, hotel business, as well as operation and management of commercial real estate objects.

Ukrtelecom PJSC is one of the largest companies in Ukraine, which provides full range of telecommunication services in all regions of the country.

On March 11, 2011 State Property Fund of Ukraine sold 92.791% shares of Ukrtelecom telecommunications company to ESU for 10,575.1 million UAH. ESU was the only bidder to buy shares. In 2011, real beneficiaries of the company were unknown.

In 2013 media reported that ESU was acquired by UA TELECOMINVEST LIMITED (Cyprus). Rinat Akhmetov is beneficiary of the company in Cyprus, although his press service had previously denied it.

On October 19, 2017 Commercial Court of Kyiv terminated the agreement regarding purchase and sale of Ukrtelecom’s block of shares. ESU was also charged a fine of 2.17 billion UAH, accrued for improper performance of agreement regarding purchase and sale of block of shares. According to the case, shares of the company were bought at lowered price - 1.6 billion UAH.

On July 3, 2018 Supreme Court satisfied the cassation appeal of ESU LLC by canceling the decision of lower courts regarding the case of termination the agreement of purchase and sale of Ukrtelecom’s block of shares and charging ESU a fine of 2.17 billion UAH. The case was forwarded to Commercial Court of Kyiv for the new hearing.

Since 2017 GPO is conducting pre-trial investigation regarding criminal proceeding on the fact of failure to fulfill privatization conditions for the creation of telecommunication network of special purpose (hereinafter - TMSP) by the buyer of block of shares of Ukrtelecom OJSC - ESU LLC, illicit financing during 2012-2013 of creation of TMSP at expenses of budget funds and privatization of 92% of state-owned shares of Ukrtelecom at lowered price.

In 2017 statement has been complied and sent in criminal proceeding regarding the suspicion of former First Vice-Prime Minister Serhii Arbuzov in illicit financing during 2012-2013 of creation of TMSP at expense of budget funds amounting 220 million UAH according to Part 5, Article 27, Part 5, Article 191 (appropriation, embezzlement of property or possession of property by abuse of official position) of the Criminal Code of Ukraine. Former President Viktor Yanukovych and former Prime Minister Mykola Azarov are also suspects of the case.

more information is available in Ukrainian version of the dossier

Criminal record and sanctions:

Criminal proceedings

On 24 March 2017, NABU started pre-trial investigation No. 52016000000000209 under Part 2 of Article 364 of the Criminal Code on the fact of abuse of authority by officials of National Commission for State Regulation of Energy and Public Utilities (NCSREPU) by the so-called formula "Rotterdam +".

The essence of "Rotterdam +" is that formula for calculating the cost of electricity produced by thermal power plants includes overestimated cost of coal. The cost of coal is calculated on the basis of the price at the port of Rotterdam (Netherlands) + delivery to Ukraine.

"Rotterdam +" formula has created conditions for future growth of DTEK profits.

After implementation of the formula, the value of DTEK Finance plc. securities, which were acquired by ICU Investment Management Ltd. (ICU), CIS Opportunities Fund SPC Ltd. and Global Opportunities Fund SPC Ltd.grew by 60%.

In criminal proceedings No. 52016000000000209 NABU detectives are also investigating the acquisition of DTEK's Eurobonds by ICU companies.

On 26 February 2018, NABU instituted criminal procedure No. 52018000000000158 under Part 2 of Article 364 of the Criminal Code on the fact of abuse of authority by officials of NCSREPU in making regulatory decisions in favor of energy companies of DTEK holding. Namely, NCSREPU has established a separate algorithm for distributing funds between electricity producers for released electricity and calculations for electricity consumed by coalmining enterprises in 2016, which unjustifiably gave preference to enterprises of DTEK energy holding. 

Chairman of NCSREPU Dmitry Vovk is former ICU employee and also was manager at Roshen company of Petro Poroshenko.

Main Investigation Department of Prosecutor General’s Office of Ukraine is conducting pre-trial investigation regarding criminal proceeding No. 42016000000001833 dated 14.07.2016 on the fact of illegal actions of Ukrzaliznytsya PJSC officials who had conspiracy with representatives of mining and concentrating holdings of Russian Federation in favor of forwarding companies Second Freight Company in Ukraine LLC, Lemtrans Transit LLC and Subsidiary Company Gal-Generaltrans, who unjustifiably reduced tariff conditions for transit of iron ore, and as a result caused damage to the state in particularly large amounts with signs of crime classified under Part 2, Article 364 of the Criminal Code of Ukraine.

Investigators state that tariff commission of Ukrzaliznytsya PJSC had unjustifiably reduced tariff for transit by rail for iron ore from Russian Federation, which transits through the territory of Ukraine.

According to calculations, unlawful establishment of preferential tariffs for transit of iron ore and iron ore raw materials that transit from Russian Federation through the territory of Ukraine caused losses to the state, represented by Ukrainian Railways PJSC, for more than USD 10 million.

Organization of iron ore transportation, forwarding of specified cargoes were carried out by Second Freight Company in Ukraine LLC, Lemtrans Transit LLC and Subsidiary Company Gal-Generaltrans, which receive profits as a result of unjustifiably established preferential tariffs.

Beneficial owner of Lemtrans Transit LLC is Rinat Akhmetov.

more information is available in Ukrainian version of the dossier

Connections: