Who is Yevtushenkov treating?

The Medsi group of companies, which is part of AFK Sistema of the controversial oligarch Vladimir Yevtushenkov, has offered a concession proposal for over 5 billion rubles to the government of the Nizhny Novgorod region. They want to build a medical complex in Vyksa for 20-25 years.

The journalist with The Moscow Post in the Nizhny Novgorod region found out why Medsi is seeking a partnership with the state and what is happening with Yevtushenkov.

Oligarch’s favorite

The network of private clinics “Medsi”, built upon the “Medical Center for the Mayor’s Affairs”, is one of the largest medical networks in Russia, with 115 clinics across the country.

The group of companies has decided to expand and, together with the government of the Nizhny Novgorod region, they plan to build a large medical complex as a public-private partnership.

In fact, this is not surprising: there have been rumors for a long time about the close relationship between Vladimir Yevtushenkov and the governor of the Nizhny Novgorod region Gleb Nikitin.

In November 2021, the region and AFK Sistema signed a cooperation agreement, which involves joint projects.

Now it’s becoming clear what kind of project the official and the oligarch are aiming for: apparently, all this was agreed upon in advance.

According to Medsi’s proposal, the Group of Companies will act as a concessionaire, and the regional government is invited to be a concedent. The potential concession agreement will last for 20-25 years.

Initially, Medsi intends to receive a capital grant of 1.45 billion rubles from the region and invest 2.45 billion rubles from their own and borrowed funds, as reported by Kommersant.

By the end of August, the parties plan to finalize its individual provisions, and in September, sign a concession agreement.

However, when we look at Medsi's finances, things are not as positive. Its parent company has 25 subsidiaries, many of which are not profitable, and some may even be suspected of being fictitious.

By the end of 2021, Medsi-St. Petersburg incurred a loss of 31 million rubles, and the value of assets was 181 million rubles.

A photo: rusprofile.ru

Similar situations are in the subsidiaries of Izhevsk and Perm. “Medsi Vyksa” has a negative value of assets and receivables.

A photo: rusprofile.ru

As for the parent organization, it had government contracts worth over a billion rubles. By the end of 2021, revenue amounted to 24 billion rubles, and profit was almost 700 million rubles. Compared to the state of subsidiaries, one question arises – where is the money? Is it being sent abroad?

A photo: rusprofile.ru

It's possible that money from state contracts, which Medsi clinics generously provide to the authorities in the regions, could also be flowing there. Is it at the suggestion of local officials, and what might be motivating them? Will the money earned by Medsi in the Nizhny Novgorod region not flow there?

unwell care

The owner of AFK Sistema, billionaire Vladimir Yevtushenkov, is seeking real estate in prestigious locations in big cities to find ways to enter regions and open more Medsi branches.

It would be good if the largest private network of clinics in the country, Medsi, offered professional treatment properly. Patients of the institutions have repeatedly expressed dissatisfaction with the services provided.

Medsi in Moscow was accused of not meeting standards for treating people with heart disease and nervous system disorders. In the Perm Territory, Roszdravnadzor ordered disciplinary action against the staff of the local branch for causing harm to the health of a 40-year-old patient. This was reported by Life.ru based on audit documents.

There are also unusual reports about the deaths of patients. For example, in one case, a deceased man was not taken to the state morgue but to a commercial one owned by Medsi. Additionally, the medical examiner who determined the cause of death did not have the appropriate license at the time.

In 2020, as reported by Lenta.ru, a well-known pulmonologist, Alexander Karabinenko, accused the Medsi clinic of being responsible for the death of his sister, who contracted COVID-19 there.

Reviews from patients on various websites also provide significant information.

Photo: irecommend.ru

There are numerous checks, violations, and negative reviews about Medsi. Doesn’t Mr. Yevtushenkov keep track of what happens behind the closed doors of the clinics?

Family business

The founder and largest shareholder of AFK Sistema Vladimir Yevtushenkov transferred a 5% stake in the holding to his son Felix, Deputy Chairman of the Board of Directors, in 2018. In April, when he was hit by sanctions, he shared another 10% stake with his son, increasing Felix Yevtushenkov's share to 15.2%.

Vladimir Yevtushenkov’s daughter Tatyana began her career at Sistema. Since 1999, she has led the investment department of Sistema Telecom. In 2008, she left to work for Sberbank. When Vladimir Yevtushenkov converted his family office into a €100 million investment fund Redline in 2011, she headed its London office. Tatyana Yevtushenkova was listed as a partner in London and a member of the investment committee and board of directors on Redline's website.

However, according to Insider (https://www.businessinsider.com/), the company quietly removed the page with this information from its website due to the political situation.

Yevtushenkov himself has been involved in major scandals. In 2014, he was accused of illegally acquiring a controlling stake in Bashneft. As a result, the shares were returned to the state and sold to Sechin’s Rosneft.

There were also speculations about a potential agreement between Sechin and Yevtushenkov in that situation, for which the latter could have allegedly received compensation.

In addition, Yevtushenkov is the owner of Segezha Group, which is involved in wood production and processing. In 2021, the company announced plans to increase plywood production by expanding the capacity of the Vyatka Plywood Mill with an investment of 6 billion rubles, and the launch of the new production was scheduled for the end of 2022.

Then the company raised 30 billion rubles as part of an IPO on the Moscow Exchange. The organization has already announced preparations for a foreign IPO, which could be a success. But here unexpected political changes, as well as sanctions, have made their own adjustments about the IPO Yevtushenkov can only dream of.

Despite the fact that Yevtushenkov is listed as 51 on the Forbes list, he is “drowning” in debt that will have to be closed. Now, when the foreign market remains out of reach, all the oligarch’s hope is for the Russian one, where he has at least some leverage.

And just then a good option with a concession initiative turned up. Well, drowning in their own debts and assets, Yevtushenko can only wish good luck.