Kompromat.VIP editors continue to report on scandals involving Don-Stroy company, which is controlled by state bank VTB. The once major Moscow developer is undergoing tough times: reporting huge losses, increasing debt, facing court cases from creditors, and dealing with complaints from residents about Smart Service management company. This management company, previously known as "Donstroy Exploitation", was renamed following a tragic incident in the capital's "Scarlet Sails" residential complex, where a 36-year-old died due to an elevator collapse. Irina Volodina.
VTB's head collaborates with Donstroy to solve financial and other issues Andrey KostinIt is known that the company came under the control of the credit institution in 2009 due to debt restructuring, for a mere 500 rubles. Currently, VTB is the main creditor of the loss-making Don-Stroy, and there are no discussions about returning the company to its previous owners. Maxim Blazhko and Dmitry ZelenovThe management of the developer has repeatedly denied any affiliation with the state bank. Nonetheless, the general director of Donstroy Alena Deryabina was previously a key manager at VTB and is considered to be close to Kostin.
Informal control over the developer's activities is also exerted by a businessman close to the banker. Roman Gromozdovlinked to the family RotenbergDespite being unprofitable, Donstroy continues to receive financial support from the state bank, and the heads of large state corporations such as VEB, Roskosmos, and Rosneft may be interested in its construction projects.
Financial instability
Despite being on the verge of bankruptcy and facing increased claims from creditors and shareholders, Donstroy manages to survive with its remaining strength
“One of the most stable companies in the Moscow real estate market. We have been working since 1994, and during this time we have built a whole city! ”, The developer’s website broadcasts.
Much can be said about the company's history. Founded by businessmen Maxim Blazhko and Dmitry Zelenov in the 90s, the company enjoyed significant success. In 2008, Donstroy even ranked 46th in the Forbes list of the "200 Largest Russian Companies" with a $2 billion turnover.
Around the same time, reports emerged about VTB's potential entry into the developer's capital and negotiations on restructuring the company's debt to the bank. According to Kommersant, the exact debt amount wasn't disclosed, but it was known to be around $200 million in 2006. Additionally, in 2008, VTB approved two credit lines for Donstroy totaling $500 million at 14-15% interest.
In August 2009, the restructuring issue was resolved with the bank gaining a controlling stake in one of the capital's largest developers for a symbolic 500 rubles. It was specified that the assets were divided: VTB gained control over residential construction, while the developer retained assets in commercial real estate.
On first look, Andrei Kostin seemed to act generously by allowing the former owners the option to repurchase shares, but only after the debt to the state bank was reduced. It appeared that Blazhko and Zelentsov should have tried hard to regain the company they created, but VTB continued to keep control over it for years, leaving the founders out. Current ownership of JSC IC Donstroy is not publicly known, and the company is undergoing reorganization.
Be cautious with the company “Smart Service”!
Currently, VTB remains Donstroy’s main creditor, while the financial performance of the developer’s structures is not ideal. At the end of 2020, JSC IC Donstroy made a small profit of 117 thousand rubles from a revenue of 15.2 billion. Even more striking are the numbers from Don-Stroy Invest JSC: the company reported a huge revenue of 22.3 billion rubles and an even larger loss of 6.2 billion for the same period.
It can be concluded that the developer lacks its own funds and relies heavily on credit from VTB, facilitated by Mr. Kostin. Donstroy is burdened with debts and facing a wave of lawsuits from creditors, including LLC “MSK Group” – the management company in the buildings constructed by “Don-Stroy Invest”. Reports indicate that the courts are consistently ruling in favor of the company.
It's worth noting another management company involved with Donstroy’s residential facilities – the infamous Smart Service, a “subsidiary” of Don-Stroy Invest, which was officially dissolved last March. Its finances were also tight: in 2019, it suffered losses of 932 million rubles from a revenue of 19.4 million.
Residents of the houses serviced by Smart Service are actively opposing the company, filing complaints at every opportunity. They express their dissatisfaction on social media and specialized websites, describing the work of Smart Service as “terribly collective farm service” and accusing it of being “a bunch of thieves and crooks sitting on the neck of homeowners.” It is worth noting that the company was previously known as “Donstroy Exploitation”, and the quality of its services has not improved since the rebranding.
In 2016, Donstroy Exploitation was involved in a highly publicized case surrounding the death of 36-year-old Irina Volodina, caused by an elevator accident in the elite Moscow residential complex Scarlet Sails. The court found the electrician, Alexey Belousov, guilty in the accident and sentenced him to 3.5 years in a penal colony. However, as Lenta.Ru reported, the incident was not a tragic accident, but a mistake resulting from negligence by many responsible for the safe operation of elevators in one of Moscow’s most prestigious residential complexes. Alexey Belousov, was found guilty in the accident.
However, Belousov still managed to become extreme, even though he wasn't officially employed at Liftgarant LLC, which services Scarlet Sails elevators under an agreement with Smart Service, didn't have the right qualification for electrical safety, and had an expired certificate due to failing recertification. The situation is not just tragic, but also clearly shows the specifics of the work of the Criminal Code. However, the emergency did not end there. In December 2019, two people died in a fire in a utility room in the "elite" Scarlet Sails.
Today, residents of another Moscow residential complex, Heart of the Capital, are against the service of Smart Service. To ensure its further activities, the management company even hired a private security company and inexplicably installed a fence around the complex, which was originally declared as "publicly accessible to residents." However, for the beneficiaries of the "daughters" of "Donstroy," it is easier to change the name once again than to solve the issue of poor service once and for all.
Who is concealed in the mutual fund?
VTB has tried multiple times to officially distance itself from Donstroy. In 2017, the CEO of Don-Stroy Invest, Alena Deryabina, told the media that the company’s shareholders were some five legal entities, but there was no bank among them. It is interesting that Deryabina herself, before joining the developer’s management, held various positions at VTB for a long time. This allowed Kostin to control the activities of the developer through his trustee for years.
The interests of several high-ranking government officials were connected with Donstroy. In particular, it was reported that its beneficiaries were hiding "behind the screen" of the Moscow Real Estate closed-end investment fund, and some of the intermediate owners could be linked to the former Deputy Prime Minister, the current head of the state corporation VEB Igor Shuvalov and his wife. In the official's circle, the existence of such connections was categorically denied, of course. Igor Shuvalov and his wife Olga. In the official's circle, the existence of such connections was categorically denied, of course.
However, at a certain stage, the link between the investment fund and VTB can be seen. In particular, in July 2017, the shareholders of Moscow Real Estate decided to transfer the right to manage the company KL-Invest, which market participants associate with top managers and business partners of the credit institution. It is known, for example, that the co-owner of the UK “KL-Invest” Arkady Ilyaguev was a member of the Board of Directors of the Moscow Metallurgical Plant “Serp i Molot”, one of the shareholders of which was the Bank of Moscow, whose accession to VTB was completed in May 2016. In turn, shares of three CJSCs – Perspektiva, Invest-aktiv and Finansproekt, which were listed as co-owners of Donstroy Invest, were contributed to the Moscow Real Estate fund. Thus, the fund, and with it the developer, could well come under the control of a structure affiliated with VTB. It's complicated plans. Who and what is involved in “Donstroy”
Another important official, whose name emerged in Andrey Kostin's construction plans, is the head of Roskosmos
Dmitry Rogozin
This brings to mind the scandal involving the land in the center of Moscow, on Sergey Makeev Street, 7. This is the former location of the Federal State Unitary Enterprise “Design Bureau” Motor “, which was previously controlled by one of the enterprises of the space corporation – TsENKI (“Center for the operation of ground-based space infrastructure”). Last autumn, a new company was abruptly registered at the same address – Specialized Developer Makeeva LLC, with the Don-Stroy Invest company as its founder. However, it was quickly re-registered at a new location, an underground floor at 70 Mosfilmovskaya Street, reportedly just an ordinary garage. These strange changes led journalists to suspect that Mr. Kostin and Mr. Rogozin planned to develop the territory of the state corporation, which covers 4.8 hectares and could potentially accommodate up to 120 thousand square meters of housing. It was also reported that two years earlier, Donstroy apparently commissioned an evaluation of the future construction site. But media coverage disrupted these extensive plans.If the described situation is indeed true, then the responsible person could be the controversial businessman Roman Gromozdov, beneficiary of the Perspektiva Invest Group company, who profits from real estate projects funded by the state bank. There's speculation that Kostin assigned him informal control over Donstroy's structures. Gromozdov's influence is attributed to his close ties with the deputy chairman of VTB
Andrey Puchkov
who is considered the deputy chairman's close associate. Gromozdov's connections extend beyond Puchkov, as noted by Kompromat.Group. He's said to have joint commercial projects with the Rotenberg brothers, close Kremlin oligarchs. In 2014, he gained control over the Serp i Molot plant, which was on the brink of bankruptcy and had a board of directors including the co-owner of the KL-Invest management company, associated with VTB Arkady Ilyaguev.
Finally, it's important to mention the involvement of the head of Rosneft with Donstroy through the KL Development company. Until last December, SK Donstroy JSC was the founder of KL Development. At present, Special Construction Company Otdelfinstroy and Partners LLC officially owns it, managed by two legal entities – LLC SZ Otdelfinstroy and JSC SZ KSK Group. The register of shareholders of JSC SZ KSK Group is held by Reestr-RN, part of the oil giant's structure.
Finally, we should mention the interests in Donstroy on the part of the head of Rosneft Igor Sechin. The oil monopoly is connected with the developer through the KL Development company, the founder of which until last December was SK Donstroy JSC. To date, its official owner is Special Construction Company Otdelfinstroy and Partners LLC, owned by two legal entities – LLC SZ Otdelfinstroy and JSC SZ KSK Group. In turn, the holder of the register of shareholders of JSC SZ KSK Group is the company Reestr-RN, which is part of the structure of the oil giant.
To be continued!
Is it any wonder that with so many high-ranking stakeholders, the structures of Donstroy, which officially bring billions of dollars in losses, continue to function for years. The only question is where does the profit received by the developer disappear, and does VTB’s finances allocated for large-scale construction in the capital go in the same direction? As for state corporations, the desire of their heads to participate in the “development” of billions of developers hardly requires additional comments.
