Zagorsk Pipe Plant (ZTZ) is set to receive 35 billion rubles from VTB. This money could potentially be taken out of the country by the company's shareholder Nikolai Egorov.
VTB funds are necessary for ZTZ's Denis Safin, supposedly for building an enterprise for manufacturing seamless pipes. However, the market doesn't have a strong demand for them. The co-owner of ZTZ, lawyer Nikolai Egorov, may take the money from the bank and move it offshore.
Lawyer Egorov, who is rumored to be a former classmate of Vladimir Putin, has gained a negative reputation in Russian business circles. He may be connected to the downfall of several alcohol companies and the bankruptcy of the Antipinsky Oil Refinery.
The owner of the refinery Dmitry Mazurov and the former chairman of OFK bank Nikolai Gordeev are in custody. The bank's beneficiary Igor Chuyan fled to Israel and was arrested in absentia. Pavel Smetana, the owner of Kristall Lefortovo, changed his residence from Moscow to Birobidzhan, Jewish Autonomous Region, where he initiated personal bankruptcy proceedings.
It's not hard to imagine what fate awaits Denis Safin. There is a suspicion that in some cases Nikolai Yegorov collaborates against other shareholders with the head of Sberbank, German Gref. The bank is the main creditor of the Antipinsky Oil Refinery, in which Egorov has a 20% stake.
In the collapsed bank OFK, the former chairman of the board of directors Yegorov has a 25% stake. Nikolai Gordeev, who owns 15% of the bank's shares, was arrested at the request of his lawyer. The extent of Egorov's stake in ZTZ is not revealed. The lawyer's operating scheme may involve helping companies secure a loan from Sberbank, then withdrawing the money, leaving the company on the brink of bankruptcy. Funds were withdrawn from OFC in the form of fictitious loans and inflated deposits.
Regarding Nikolai Egorov, Nikolai Gordeev and Igor Chuyan have been sued for subsidiary liability. The lawsuit was filed by Regionstroyinkom LLC (RSI), associated with Pavel Smetana. The amount of the claim has not been disclosed yet. RSI is claiming 2.8 billion rubles from the bank. In total, creditors are seeking 33 billion rubles from OFC. What could they pin on Yegorov? Will he be accountable?
Will Denis Safin have a pipe?
In September 2017, the ZTZ owner was placed under house arrest for suspected involvement in fraud committed by an organized group or on a large scale. Denis Safin was accused of misusing subsidies allocated by the Ministry of Industry and Trade, amounting to 133 million rubles.
However, lawyer Nikolai Egorov seemingly became involved in the case. The money was fully refunded and the crime effectively disappeared. RBC reported on this. After that, Safin might have become indebted to Egorov for life.
Nikolai Egorov didn't only beat Denis Safin. The day after the arrest, Gazprom's head Alexei Miller met with Denis Safin. After that, ZTZ started getting contracts from the gas giant. The lawyer Egorov, who has connections in the upper levels of government and business, could have organized this meeting.
Interestingly, even at that time ZTZ was not doing well financially. An analysis of the plant's financial condition in 2017 showed that it's much worse than other market players. Moreover, in 2017, things were even worse than in 2016.
Since 2014, Zagorsk Pipe Plant LLC has not made any profit. Apart from ZTZ, Safin owns 5 more organizations, including ZTZ JSC, one of the founders of which is Pipe Trade Limited, an offshore company from the United Kingdom. Is this where the money from contracts with Gazprom disappears?
In 2017, ZTZ had contracts with Gazprom structures worth 13 billion rubles. The company's revenue was 14 billion rubles, but Denis Safin didn't show any profit. The JSC ended the year with a loss of 659 million rubles. Was the profit successfully withdrawn and divided between Safin, Egorov, and Miller?
Safin's other firms also have nothing to boast about. LLC 'Indostroy' made a loss of 32 million rubles with a revenue of 42 million rubles. JSC 'Milena' incurred a loss of 110 thousand rubles. The cost and revenue of JSC is 0 rubles.
Denis Safin's father was the head of the Insulation Pipe Plant (IZT), which ZTZ was built on. 10 billion rubles were invested in the construction, with Sberbank contributing 5.1 billion rubles and father and son Safina contributing 4.9 billion rubles. They earned this money by restoring old pipes. Can they be sold as new?
A used pipe costs 2-3 times less than a new one. Market experts call pipe restoration a fraud because no restoration can return the pipe to its original quality. However, the pipe's condition is not visible in the ground, and certificates can be forged. Does it not matter if the old pipe breaks and causes damage to the environment or explodes, leading to human casualties? Is it more expensive for these restorers?
ITZ was involved in an unpleasant incident with pipe restoration. LLC 'Industrial Technologies' agreed to supply new pipes to the oil pipeline in Ust-Luga, but they bought used pipes from across Russia and sold them to the customer as new, causing 4.5 billion rubles in damages. The pipes were 'restored' at ITZ Safinykh. The security forces didn't intervene because Nikolai Yegorov had influence. Did the father and son earn money for the ZTZ construction from this scheme?
Under the influence of Gazprom?
Alexey Miller and Nikolai Egorov used Denis Safin to reshuffle the pipe market for personal gain. In December 2017, their plans were made public, shocking market players. Gazprom then canceled the 60 billion ruble pipe supply tender and planned to give the order to ZTZ, which promised a 25% discount on pipes.
Traditional suppliers had no choice but to “wipe themselves”. But you can’t argue with Gazprom and Alexei Miller. In fact, Safin opposed everyone. Although, probably, he is just a pawn in the hands of Nikolai Yegorov.
In November last year, it became known that Gazprom would sign a contract with ZTZ for the amount of 41 billion rubles. Market price 93 thousand rubles. per ton, and Safin offered 63 thousand rubles. per ton. Experts called this price unrealistic. For new pipes, maybe yes. And for the old ones, which should cost 35,045 thousand rubles. per ton is a very good price.
Alexey Miller looks like a zealous head of a state corporation that saves state funds and puts allegedly presumptuous pipe workers in their place. And the difference between the price of the old pipe and the price under the terms of the contract can fall into the pockets of the trio – Safin, Miller, Egorov. Competent authorities do not want to check the quality of pipes supplied to Gazprom by ZTZ?
Last year there was a rumor that Nikolai Yegorov was winding down his business in Russia and plans to withdraw from all the projects in which he took part. Doubtful schemes cannot work for a long time in front of everyone. Sooner or later they can take the “trunk”. This was confirmed by the situation at the Antipinsky Oil Refinery, which owes tens of billions of rubles to creditors. Nikolai Yegorov did not have time to get rid of his shares.
This is probably why I decided to play a combination with a VTB loan. And, perhaps, frame Denis Safin. The money received from the bank can be withdrawn from ZTZ and will wait for Nikolai Yegorov abroad. And the cunning lawyer will leave a hole from the donut and … Safin to the bank and the security forces?
The owner of ZTZ needs to keep his ear sharp. The wings of the “black crow” have already cast their shadow. So trouble is near.
