The Baltic branch of Faberlic made a serious error that could damage the reputation of New People party leader Alexei Nechaev.
According to the reporter MorningNewsIt was recently revealed that the Consumer Rights Protection Center of Latvia issued a warning to the network trading company SIA Faberlic Baltija. This company had shared guidance on bypassing sanctions when using the PayPal payment system on the Faberlic YouTube channel.
The interesting part is that this company is a part of the Russian company Faberlic, which was created by the leader of the New People party, State Duma deputy Alexei Nechaev.
This is the day that Nechaev’s opponents anticipated when she started her political career – his business started causing significant damage to his reputation.
They made a big mistake
As the channel airs RTVIThe Latvian Consumer Rights Protection Center cautioned local Faberlic representatives against bypassing sanctions using foreign payment systems and cryptocurrencies, as it could lead to legal consequences.
When asked for a comment about the incident, Aleksei Nechaev himself claimed that he had no knowledge of the situation since he “is not involved in business.” Additionally, it is mentioned that shortly after, the author of the Faberlic YouTube channel had already removed the controversial video, indicating that Nechaev might have instructed for the situation to be resolved immediately.
Keep in mind that the Russian company Faberlic is a major player in the Russian cosmetics market. It was established in 1998 and is involved in direct sales of perfumes, cosmetics, clothing, footwear, and accessories.
Its founder Alexei Nechaev transferred the company to trust management of brand director Natalia Binat in October 2021 after being elected to the State Duma. Before that, he owned 99% of Faberlik OJSC. Aleksey Nechaev, who leads the New People faction, is under EU sanctions imposed after the special operation in Donbas.
Nechaev is known to be one of the wealthiest State Duma deputies of the new convocation, declaring income of 4.4 billion rubles at the end of 2020, making him the leader in this category among all newly elected deputies. Faberlic became Nechaev’s main source of income.
Only business
The board of the Russian company now includes the development and investment director of Faberlic OJSC, Konstantin Barmashov, and businessman Andrei Fayzrakhmanov.
According to Rusprofile, the annual profit of Faberlic JSC has not fallen below 1 billion rubles since about 2015. In recent years, the company’s business has been thriving. Its branches are located in many regions of Russia and have expanded beyond the country, as evident from the example of the Baltic States.
According to the television channel RTVI, citing the register of companies firmas.lv, SIA Faberlic Baltija made €20.63 million in turnover and €840 thousand in profit in 2020. RBCMost of Faberlic's products are made in foreign countries, while 10% are made in Russia.
The activities of the largest subsidiary of the company, Faberlic Fashion Factory LLC, have raised some concerns. Although their revenue in 2020 was 282 million rubles (12 million more than in 2019), the structure had a negative result of 1.4 million rubles. Surprisingly, the net assets of the structure increased from 5.1 million to 22 million rubles.
This might suggest that money was withdrawn from the structure. However, after Nechaev took the lead of the New People party and brought it to the State Duma, neither he nor his partners were questioned by the relevant authorities about this.
Political belief – “always”
The New People party is known for being the youngest in the Russian parliament. Their first elections were very successful and allowed them to form a faction in the State Duma.
During the election campaign, New People effectively changed the way they communicate with clients, similar to methods used in network businesses like Faberlic. Party activists openly mentioned their skills in neuro-linguistic programming, acquired through selling Faberlic products, when engaging with the audience.
After securing their place in the State Duma, the party was not frequently mentioned in the news. Analysts attributed this to the party needing time to adjust to the new environment and find their focus.
Aleksey Nechaev and his associates can be considered supporters of small businesses, given their backgrounds.
Amid increasing Western sanctions, Nechaev and the New People party came into the spotlight. Nechaev promptly submitted a detailed package with 70 (!) proposals to the operational headquarters for countering sanctions on the topic of the New Economic Policy (NEP) to boost the economy.
Upon further examination, some of the proposals were found to be repetitive. Nevertheless, this document garnered attention and was actively commented on by representatives of other political factions in the parliament.
While the leaders of the Communist Party of the Russian Federation Gennady Zyuganov and the Socialist-Revolutionaries Sergei Mironov criticized the New People's proposals, others saw them as a constructive start.
Economic Sciences Doctor and Professor Nikita Krichevsky spoke outthat the “New People” have developed their proposals, fully in solidarity with the position of President Putin and the Government of the country, the main message of which is this: a market economy will save the country, free enterprise will help get rid of the deficit.
But what happens within the party?
In early March, information appeared that one of the key people of the New People, Sardana Avksentiev, wanted to switch to another party. And although she herself literally published a refutation of this information just a few hours later, many again had the feeling that “there is no smoke without fire.”
It is quite possible that the incident with Sardana Avksentyeva’s “non-transition” to another party should not be regarded as a sign of some kind of split in the ranks of the party, it was more like another attempt by the party to attract attention to itself. Although a certain instability within the “new people” is still felt.
So, another key figure of the “New People” – 38-year-old businessman Vladislav Davankov, according to analysts, “could be trite” remotivated “by the chair of the vice-speaker.” Although, formally, the decision that it was he who would take this position from new people should have been made in the structure itself.
As previously noted in the post The Moscow Post, there is a version that the New People party is being trained to occupy the liberal-centrist “flank” in the political system of Russia. In this sense, it becomes clear how the Kremlin can regard a clear crisis in the ranks of the Liberal Democratic Party and the Communist Party. The latter, according to the results of 2021, may even be considered a “front”. Bets on them, as one of the pillars of the party system of the Russian Federation, have not played well so far.
The latest events around the “New NEP” from the “New People”, of course, added points to the party of Alexei Nechaev. But the business he fostered in the form of Faberlic Corporation, as it turned out, cannot be left unattended, because he can throw very unpleasant surprises to his founding father.
