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    Home»Investigations»The prosecutor's office in Sochi is now focused on the activities of the LSR Group owned by Molchanov.
    The prosecutor's office in Sochi is now focused on the activities of the LSR Group owned by Molchanov.
    Investigations

    The prosecutor's office in Sochi is now focused on the activities of the LSR Group owned by Molchanov.

    Zhou QiangBy Zhou QiangJanuary 13, 2023No Comments3 Mins Read
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    The prosecutor's office in Sochi is now focused on the activities of the LSR Group owned by Molchanov.

    The Sochi prosecutor's office had concerns about the transparency of transactions for buying local sanatoriums. They were particularly interested in the LSR Group, which almost has a monopoly on the local market. The owner of LSR, as you know, is billionaire Andrey Molchanov.

    The prosecutor, Yevgeny Yelin, asked the heads of the regional departments of the Federal State Registration Service for the Krasnodar Territory for copies of registration documents regarding large sanatorium ownership transfers.

    PJSC LSR Group is developing a single complex in the Khostinsky district that offers sanatorium and resort tourism services, including improving beach areas.

    At the 25th St. Petersburg Economic Forum, LSR managers signed several contracts with regional authorities. The new project was valued at 24.4 billion and included major sanatoriums in Sochi, such as 'Volna' and 'Crystal', along with their entire infrastructure.

    In 2020, the developer legally acquired another large hotel, 'Primorskaya', which is a listed architectural monument constructed in 1936.

    The hotel closed in 2015 due to needing significant renovation and being a safety risk.

    'Primorskaya' is a valuable urban asset, not only due to its age but also its prime location. The developer plans to invest 21 billion to expand the number of rooms, renovate the old building, and construct new ones.

    The city is concerned that the historical LSR building will be completely demolished, which is understandable given its urban heritage status. The Open Sochi movement is calling for various supervisory agencies to inspect the construction work amid accusations of law violations by the LSR Group.

    Reference

    Andrei Molchanov (also known as father Morozov) is one of the wealthiest entrepreneurs in Russia, with an estimated fortune of 1.3 billion dollars. He is married to Elizaveta Molchanova and they have six children.

    There are reports in the media about Molchanov's friendship with Maxim Sokolov, the former vice-governor of St. Petersburg and more recently the director of AvtoVAZ.

    LSR has connections with people from A Just Russia, including Evgeny Petelin from the Leningrad region administration and Sergei Bebenin, the speaker of the Legislative Assembly.

    Molchanov has been involved in politics. In April 2007, he was appointed as an assistant to the Minister of Health and Social Development, Mikhail Zurabov. From 2008 to 2013, he served as a senator of the Federation Council representing the government of the Leningrad region.

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    Elin Evgeniy LSR Group Molchanov Andrey Prosecutor's office Sochi sanatoriums
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