Sistema
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Company type | Public company (OAO) |
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| Headquarters | Moscow , Russia |
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| Website | www |
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AFK Sistema PAO is a large Russian conglomerate company, founded by Vladimir Yevtushenkov, who was chairman of the corporation's board of directors until 2022. In April, Yevtushenkov's shareholding in Sistema decreased to 49.2%, and he also stepped down from Sistema's board of directors.[1][2]
Sistema has its headquarters in Moscow. The company's global depository receipts (GDRs) traded on the London Stock Exchange from 2005 until delisting in May 2023.[3] It has been under US sanctions since November 2023.[4]
History
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In 1993,[5] Evgeny Novitsky and Vladimir Yevtushenkov founded the holding company AFK Sistema, also known as Sistema JSFC, to group together several information technology (IT) and cell phone companies including MTS.[6][7][8][9][a]
Structure
Sistema operates several consumer service businesses in the areas of:
- IT and telecoms — Mobile TeleSystems, Moscow City Telephone Network, SkyLink, Sitronics (formerly known as 'Science Center Concern'), NIIME, Mikron, STROM telecom.[11]
- Banking — MTS Bank, East-West United Bank
- E-commerce – Ozon
- House-Building and Real Estate — Sistema-Gals till the end of 2010.[12] In February 2019, Sistema became the largest shareholder of Etalon Group[13]
- Retail — Detsky Mir Group until September 2020[14]
- Media — Sistema Mass Media until 2016[15]
- Healthcare and Pharmaceuticals — Medsi, Binnopharm[16]
- Agroholding - Steppe (Template:Langx), which, according to Forbes in June 2019, is the second largest land bank in Russia. It has holdings in Rostov Oblast and Stavropol Krai.[17][18]
- Segezha Group, a vertically integrated holding company in the timber industry, performs a full cycle of operations from logging to advanced wood processing
- Hospitality – Cosmos Hotel Group
- Other businesses — Intourist (Travel Services), until July 2021[19] RTI Systems (Radio and space technology), Olympic Sistema (Sport)
- Kronstadt Group until July 2021.[19] In addition, on 07.27.2021, AO Kronstadt acquired 80% of the shares of NPP Strela (Research and Production Enterprise, Bykovo, Moscow Region), engaged in helicopter-type UAV work.[20]
- The corporation also invests in innovation projects, such as green hydrogen, and venture businesses.
In November 2021, "Sistema" was included in "Khabarovsky Project" (in Khabarovsk Krai) for pilot production of green hydrogen with a projected 350 thousand tons per year, according to Ministry of Industry and Trade (Russia).[21]
Interests and subsidiaries
Banking
In February 2005, AFK Sistema owned a 49% stake in East-West United Bank (Luxembourg), which was established in June 1974 as a "daughter" bank of the Central Bank of Russia and is one of the five Russian foreign banks of the VTB network.[22][23][24][25][b] In 2018, Sistema held a 100% stake in East-West United Bank (EWUB) with Sergei Pchelintsev (Template:Langx) as the CEO.[34][35] In 2021, the company's revenue amounted to 24 billion rubles.[36]
Following the February and March 2022 sanctions issued against VTB and its subsidiaries which include the former daughter banks of the Soviet Union's State Bank Gosbank and later the Central Bank of Russia, EWUB in Luxembourg has become the principal Russian overseas bank in Europe after Gazprombank ceased operations in the region.[37][38] As of the end of March 2022, the Vladimir Yevtushenkov (Template:Langxв) controlled Sistema and its subsidiary East-West United Bank (EWUB) in Luxembourg have not been sanctioned due to Russian invasion of Ukraine.[37][39][40] He no longer controls Sistema after reducing his stake in the corporation below control (49.2%), and voluntarily resigned from its board of directors in April 2022.[41][42]
Hotels
According to Arnold Tamm (Spivakovsky),[c] both the Peking Hotel at Bol'shaya Sadovaya Ulitsa, 5 in Moscow, where Oleg Kuznetsov (Template:Langx) was the administrator from 2002 to 2016, and the Cosmos Hotel at 150 Mira Avenue in Moscow, are owned by Sistema.[45]
Aerospace and defence
Until July 2021[19] AFK Sistema PAO had an aerospace and defence subsidiary, Kronstadt Group, which was acquired in 2015 and developed uncrewed aerial vehicles, and flight simulators. AFK Sistema no longer controls any assets related to the defense industry.[19]
Bashneft interest seizure and Rosneft lawsuit
In 2014, 72% of Sistema's interest in Bashneft was seized by the Russian government.[55][56]
On 3 May, 2017, Sistema shares plunged about 37% following a $1.9 billion lawsuit filed by Rosneft.[57]
On 15 May 2017, the Arbitration Court of Bashkortostan registered a RUB 106.6bn claim filed by Rosneft and Bashneft against Sistema, a preliminary hearing of the case was scheduled for 6 June, Irina Nurislamova was appointed as a judge for the case.[58][59]
In December 2017, AFK Sistema reached an amicable agreement with Rosneft and agreed to pay out 100 billion roubles ($1.7 billion) to resolve the dispute.[60]
According to a declaration given on 18 October 2018 in a Spanish court by Sergey Dozhdev (Template:Langx), Igor Sechin uses his offshore companies to control Sistema through MTS and Bashneft.[45][50][d]
Management
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On 27 June 2020, Etienne Schneider became an independent director of Sistema, at which his close political friend Jeannot Krecké had been a director at Sistema since May 2012.[7][25] Positions they resigned in February 2022.
Notes
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- ^ Novitsky is alleged to be one of the treasurers of the Solntsevskaya Bratva and is very close to Semion Mogilevich.[10]
- ^ With the support of Mr. Pierre Werner, who was the Prime Minister of the Grand Duchy of Luxembourg, on 12 June 1974, the East-West United Bank (EWUB) (Luxembourg) was formed with both the State Bank of the USSR or Gosbank and after the end of the Soviet Union, the Central Bank of Russia, and Russia's Foreign Trade Bank Vneshtorgbank (VTB) as the main shareholders from founding until 1992.[26][27][28] From 1992 to 2000, Imperial Bank had a major stake in EWUB of 49%[26][27][28] and Tokobank held a 28% stake in EWUB in 1998,[29][30] but, on 17 April 2000, Imperial Bank was dissolved.[31] Imperial Bank focused on oil and natural gas supplies to East Germany and later to Germany including the oil-for-pipes program.[32][33] With Vnesheconombank managing Soviet debt, Imperial Bank speculated in GKOs but collapsed with the demise of the GKO market following the 1998 financial collapse in Russia.[32] From 2000 to 2007, VTB had a major stake in EWUB.[26][27][28] Beginning in 2001, the Vladimir Yevtushenkov led Sistema gained a stake in EWUB and since 2007 Sistema has had the majority stake in EWUB.[26][27][28]
- ^ Arnold Tamm (Spivakovsky) (Template:Langx; death March 2019, age 51), also known as Arnosha, a member of the Solntsevskaya Bratva, was involved with finances and is the right hand man of Sergei Mikhailov also known as Mikhas. Tamm's attorney was Dmitry Yakubovsky (Template:Langx) also known as "General Dima" (Template:Langx).[43][44] In the early 2000s, Tamm was a deputy director of the Peking Hotel and Oleg Voropaev (Template:Langx) managed the Dolls club.[45][46][47] Gazpromgate which occurred before Alexei Miller became head of Gazprom in 2001, allegedly involved stolen money from the CEO Rem Vyakhirev (Template:Langx) led Gazprom and was laundered through the Union Development Bank (Template:Langx), which Evgeny Suvorov (Template:Langx) was a vice president and was also a member of the Dolls club, using Motor Technology JSC (Template:Langx) in which Gazprom owned a 49% stake.[46] In September 2017, Tamm was arrested in Marbella, Spain, during the Spanish operation Oligarch (Template:Langx) under suspicion of tax evasion, money laundering, and involvement in the activities of the Solntsevskaya organized crime group.[48][49][50][51][52] Arnold Spivakovsky was the son of Arnold Tamm, who was a writer and Estonian translator of Russian materials, obtained his lastname Spivakovsky from a former wife, and had a civil marriage with Lolita Milyavskaya.[44][48][53][54]
- ^ Sergey Dozhdev (Template:Langx) stated "The real Russian mafia is those who rule the world. In particular, it includes Igor Sechin, a man who took over Sistema through Bashneft and MTS using his offshore companies. The Rotenberg brothers, who control the Platon Company, are also associated with the mafia. Seventy-five percent of Platon belongs to offshore companies, which the Rotenbergs use to siphon off money to Europe. Arnold Tamm used to co-own Sistema. However, he disagreed with the Rotenberg brothers, and Herman Gref ceased refinancing loans through his son, Arkady. The company incurred artificial liabilities, and Sechin bought it at a low price through offshore companies."[45]
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- ^ Page Module:Citation/CS1/styles.css has no content."Spanish police arrest Estonian head of Russian mafia group". Baltic Times. 29 September 2017. Archived from the original on 30 March 2022. Retrieved 29 March 2022.
- ^ Page Module:Citation/CS1/styles.css has no content."В Испании пока не выяснили причину смерти бывшего гражданского мужа Лолиты" [Spain has not yet found out the cause of death of Lolita's ex-civil husband]. RIA Novosti (in русский). 13 March 2019. Archived from the original on 12 March 2022. Retrieved 29 March 2022.
- ^ Page Module:Citation/CS1/styles.css has no content.Natasha Doff and Ksenia Galouchko (December 18, 2014). "Sistema Shares Soar as Putin Says Evtushenkov Charges Not Proven". No. Bloomberg Business News. Bloomberg News. Retrieved December 27, 2014.
Russia has seized 71.6 percent of OAO Bashneft from Sistema since ordering Evtushenkov's arrest on 16 September in a money-laundering investigation linked to the state's sale of the oil company in the previous decade.
{{cite news}}: CS1 maint: deprecated archival service (link) - ^ Page Module:Citation/CS1/styles.css has no content.Steven Lee Myersand Jo Becker (December 26, 2014). "Even Loyalty No Guarantee Against Putin". The New York Times. Retrieved December 27, 2014.
Mr. Rakhimov's government privatized Bashneft, with most of its shares ending up in the hands of a company called Bashkir Capital
- ^ Page Module:Citation/CS1/styles.css has no content."Sistema shares plunge a third after $1.9 billion Rosneft lawsuit". Reuters. Moscow. 2017-05-03. Retrieved 2017-05-04.
- ^ Page Module:Citation/CS1/styles.css has no content."Предварительное заседание суда по иску "Роснефти" к АФК "Система" назначено на 6 июня". Ведомости. 15 May 2017.
- ^ Page Module:Citation/CS1/styles.css has no content.""Система" не признала обвинения "Роснефти"". Ведомости. 18 May 2017.
- ^ Page Module:Citation/CS1/styles.css has no content."Russia's Rosneft reaches $1.7 billion settlement with Sistema". Reuters. 22 December 2017.
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