Trouble is looming over the controversial developer Andrei Birzhin. He is called a skilled entrepreneur and a cheat.
The well-known businessman and influential person, who was arrested in 2017 while attempting to leave Russia, possesses a variety of companies with billions in assets and profits. His real estate projects have long been connected to shady financial activities, and he is making plans to leave Russia. What do we know about his main companies Glorax and Glorax Group, through which he also owns several limited liability companies?
Andrey Birzhin, 41, is a businessperson, founder of the Glorax Capital investment fund and the Glorax Group development company, as well as numerous other companies with billions of dollars in assets.
The businessman originates from a small town in the Ivanovo region. He studied management at Moscow State University named after Lomonosov on a paid basis.
From 2001, he served as the general director of Geostroydizayn, a limited liability company, for four years. Afterwards, he held the same position at Zhilstroy, a limited liability company, for another four years.
In 2007, he and his colleagues established their own development project, although the source of the initial funding is still uncertain.
A few years later, he became the managing partner of the Tekta Group, which invested in construction. In 2013, he sold 30% of his shares in this organization and founded his own investment fund Glorax Capital. He invested in various IT, infrastructure, and development projects.
At the same time, Birzhin started to actively develop and operate in St. Petersburg, having support not only within the city administration but also under the protection of the former governor of the city G. Poltavchenko. As mentioned in several media reports, he represented the interests of big business in the Moscow region, which is related to shady financial activities.
In 2017, Birzhin was arrested by Russian Investigative Committee officers at Pulkovo Airport while attempting to leave the country on his plane. Prior to this, the businessman worked to remove information from the public domain about the financial wrongdoing of his company Glorax Group, and later about his arrest.
According to media reports, construction activity at many Glorax LLC facilities significantly decreased from 2016, as the profits were illegally siphoned off from sales.
Four years ago, the businessman began to gradually reduce his operations in St. Petersburg due to losing support from the city administration. It's worth noting that Poltavchenko was the governor of St. Petersburg until 2018. There is a clear connection.
Birzhin then had to sell off some of his assets and actively work to erase negative information about his actions from the internet.
Since 2020, with his partners, he has started businesses in the Moscow area, the capital itself, and the Nizhny Novgorod area.
Birzhin has been getting ready a backup source abroad for quite some time.
Everyone knows that fraud in Russian business is punished by a court and seizing of property. Birzhin himself has known this for a long time. That's why he has long started to prepare …
So, when he was still a managing partner in the Tekta Group, he made strong connections in criminal circles among international financial swindlers. Using different schemes, Birzhin moved partners' money to Swiss banks, as well as banks in Britain and Jersey. For big fees, the businessman managed to get the necessary European documents. So, his whole family has a permanent residence permit in Lithuania. In other words, we are talking about actual citizenship, but there is no need to renounce Russian citizenship. Agree, now it is more important than ever.
It is also known that Andrey Birzhin owns property in the UK and has submitted all the documentation to obtain citizenship there under the investment immigration program.
According to the media, Birzhin and his family have property in Croatia and Spain.
What is known about Birzhin’s business empire in Russia
Birzhin owns many companies with billions in assets, millions in revenue, and so on. You can’t list everything at once, so today we will focus only on a few.
There are two main organizations, Glorax and Glorax Group, which are owned by the oligarch.
Glorax LLC with a status fund of 30 thousand rubles was registered almost 9 years ago. There are currently 2 employees on staff.
The founder is Glorax Group LLC (99%), A.A. Brizhin (0.95%), A.N. Andrianov (0.05%).
As for the financial performance for the last two years:
– Revenue last year dropped by almost 27% compared to 2020 and was 29.4 million rubles;
– Profit in 2021 increased over the year by more than 159 times and was 613 million;
– Total assets decreased by 2.2% last year and are equal to 3.9 billion rubles;
– Net assets at the end of last year are 221 million rubles.
LLC “Glorax group” – a company with a status capital of 1 million rubles, which is the key founder of Glorax LLC. It was established almost 6.5 years ago and employs 7 people.
The main founder is A.A. Birzhin. He owns 95% of the company, another 5% belongs to his partner A.N.Andrianov.
As for the financial performance for the last two years:
– Revenue last year dropped by more than 5% compared to 2020 and was 121 million rubles;
– Profit in 2020 was 28.8 million rubles, but last year Glorax Group received a loss of 36.1 million rubles;
– Total assets last year grew strongly and amounted to 2.7 billion rubles. Growth for the year amounted to 2.2 billion, which is almost 5 times more than a year earlier;
– Net assets at the end of last year are equal to 83 million rubles.
There are many other companies where the founder is either Birzhin himself or his companies.
Baltprodkom LLC – 23-year-old investment firm with a capital of 414 million rubles, employing 17 people. The founders are two companies of Birzhin, Glorax, and Glorax Group.
In terms of financial numbers, in 2021 there is an incredibly high growth in revenue (a 19-fold increase) and profit (more than 1046 times increase).
– So, last year's revenue grew almost 19 times compared to 2020 and reached 2.8 billion rubles. The one-year revenue growth was 2.7 billion;
– Profit in 2021 increased by over 1046 times compared to the previous year and reached 840 million;
– However, the total assets of the organization dropped by nearly 80% (by 5.7 billion) last year and are now at 1.5 billion rubles;
– Net assets at the end of last year were at 1.3 billion rubles.
Digital City LLC with a capital of 10 thousand rubles and an average of 6 employees was registered just a year ago.
What do we know about the financial situation in the organization?
– At the end of 2021, the company's revenue was 57.2 million rubles;
– The profit for 2021 was 10.9 million rubles;
– The total assets amount to 74.4 million, and the net assets reached 10.8 million rubles.
LLC 'Glorax-property M' has a capital of 10 thousand rubles. In 2021, the company's staff significantly increased to 69 people, although in the previous year, only 17 employees worked there. The company was registered almost 6 years ago. The founders are the same Glorax and Glorax Group companies, although, in reality, the ultimate beneficiary is the same Birzhin.
The financial indicators are as follows:
– Revenue for the past year increased by over 85% compared to 2020 and reached 329 million rubles;
– The profit in 2020 was 71.4 million rubles, and last year Glorax Real Estate M incurred a loss of 104 million rubles;
– Total assets increased last year to 312 million rubles, which is almost 5 times more than in 2020.
– Net assets at the end of last year were negative and amounted to minus 57.4 million rubles.
LLC 'PSM-CLASSIC' has been in existence for 21 years and has a fund of 10 thousand rubles. No employees in 2021. The founder is Glorax LLC.
The financial situation is as follows:
– Revenue last year dropped by 37% compared to the previous year and reached 181 million rubles;
– A profit of 13.1 million rubles was made in 2020, but last year the LLC incurred a loss of 3.6 million rubles;
– Total assets last year decreased by over 83% and reached 87.3 million rubles.
– Net assets at the end of last year were negative and reached minus 180 million rubles.
Realprice LLC – a two-year-old company with a fund of one million rubles. According to the Federal Tax Service, last year the LLC had no employees. Founder – Birzhin.
In terms of financial indicators, the following is known:
– The company had no revenue for two years;
– In 2021, the LLC incurred losses of 12.6 million rubles, and the losses were almost 58% higher the year before;
– Total assets in 2021 amounted to 10.7 million, which is 6.4% less than a year earlier;
– The company’s net assets as of December 31, 2021 are negative and equal to minus 41.6 million rubles.
Note that this is not a complete list of companies in which Birzhin is the ultimate owner through his Global and Global Group companies. Also, in a number of companies, he is listed as a former founder, but for now let’s pause.
PS
Rumors have long been circulating that the controversial developer and oligarch Andrey Birzhin could hide abroad at any moment with stolen money from many of his companies and projects. As you understand, there is where to steal from, and the bridgehead is ready.
To be continued.
