Putin's daughter Katerina and Kirill Shamalov

After marrying Putin's daughter Katerina, Kirill Shamalov, son of longtime Putin associate Nikolai Shamalov ( ) received a significant stake in the large Russian petrochemical company Sibur, which is now valued at $2.85 billion.

How did Sibur, which belonged to the state, become the property of Putin’s cronies?

2000s petrochemical company Sibur is owned by Gazprom

2005 Gazprom transfers 75% of Sibur to Gazprombank. Gazprombank is controlled by Putin's accomplices.

2007 Gazprom is transferring control of Gazprombank to Gazfond, a pension fund headed by Yuri Shamalov, brother of Kirill Shamalov. Gazprom sells the remaining 25% of Sibur to Gazfond. Yuri Shamalov becomes director of Gazprombank and Sibur.

2008 Before castling with Medvedev, Putin concluded a series of deals related to the distribution of state assets to close commercial structures. Among these transactions, the most blatant scam was the sale of a controlling stake in Sibur to its top managers. The real beneficiaries of this scam were Putin's accomplices.

in June 2008, Kirill Shamalov came to Sibur as vice president for administrative business support.

2010/11 Gazprombank and Gazfond sell Sibur to Timchenko and Mikhelson. The deal is financed by Gazprombank.
Mikhelson received 57.2% of Sibur, Timchenko - 37.3%. Five managers and former managers of the company owned the remaining 5.5%. Among them was Kirill Shamalov.

2011 Sibur introduces an option program for managers. Kirill Shamalov acquires 4.3% of Sibur.

2012 Kirill Shamalov becomes Deputy Chairman of the Board of Directors of Sibur

2014 Kirill Shamalov borrowed more than $1 billion from Gazprombank and bought 17% of Sibur from Timchenko. The main owners of Sibur were: Mikhelson 50.2%, Shamalov 21.3% and Timchenko 15.3%.

At a ski resort among a pine forest an hour's drive north of St. Petersburg, a wedding celebration was taking place on a grand scale. No expense was spared for the wedding, and all participants took a vow of silence. The newlyweds arrived on a traditional Russian sleigh drawn by three white horses, one of the resort employees said, describing what happened to Reuters.

The bride wore a long pearl-white wedding dress, the groom wore a dark one, said another participant in the event. The newlyweds were Katerina, Putin's youngest daughter, and Kirill Shamalov, the son of longtime Putin associate Nikolai Shamalov ( klikukha, one of the founders and shareholder , co-founder, accomplice in the construction of Putin's palace in Gelendzhik).

The wedding was celebrated in February 2013 in Igor, a small ski resort. the resort, located among pine trees with a picturesque lake at the foot of the hill, belongs to the family of longtime Putin accomplice Yuri Kovalchuk (click, co-founder, one of,), and a Cypriot offshore, the composition of the shareholders of which is not disclosed.

One of those present at the wedding said that the service staff were told that the bride and groom's names were Katerina and Kirill. According to him, guests wore white scarves decorated with the letters “K&K” embroidered in red thread. When he was shown a photograph of a woman known as Katerina Tikhonova, the source recognized her as the bride. Tikhonova is Putin's youngest daughter.

“There were security guards on every corner, not letting anyone in,” said a resort employee. “But we knew that they were celebrating the wedding of Kirill and Katerina, Putin’s daughter.”

At the time of the wedding, Kirill, a tall, dark man with rimless glasses, was a rising star in Russian business; he was only 31 years old. His fortune began to grow rapidly after marrying Putin's daughter, who is now in charge of

Over the course of 18 months, Kirill acquired a significant stake in the major Russian petrochemical company Sibur, which is now valued at $2.85 billion based on the price of recent share transactions. He left his job as a manager and created a company to manage "his personal investments."

How could someone so young rise so high and so quickly? A study of Shamalov's career shows that in the summer of 2013, a few months after marrying Putin's daughter, Kirill began negotiations to buy shares in Sibur from one of Putin's richest associates.

A year later, he was able to borrow more than $1 billion, judging by the published reports of his investment company. The loan came from a bank headed by another longtime Putin associate, and where Shamalov’s brother holds a senior position. The money was invested in Sibur with great benefit for Shamalov.

Kirill's rise to wealth sheds light on how Putin's cronies have moved into leadership positions at key companies, and how similar opportunities are now being offered to a new generation. Like a wedding, the redistribution of wealth occurs outside the public eye.

Opposition figure Vladimir Milov, a former Russian deputy energy minister, said Putin's cronies had acquired large assets with the help of state-linked lenders such as Gazprombank.

"It is extremely opaque, so it is difficult to obtain and evaluate the details of loan agreements. They consider Gazprombank to be their pocket bank," Milov said. "They want to pass on their power and their privilege to the next generation."

SHAMALOV BROTHERS

Kirill Shamalov's father, Nikolai, co-founded with Putin and others in the 1990s a dacha cooperative known as Ozero, located 100 kilometers north of St. Petersburg. Various members of Ozer have achieved high positions in Putin's Russia.

Nikolai Shamalov became a shareholder of a small company, which over the past 15 years has become one of the most influential. Kovalchuk, co-owner of the Igora ski resort, is the largest shareholder of Bank Russia.

After Russia annexed Crimea in 2014, the United States imposed sanctions against Bank Rossiya, calling it the personal bank of the Russian “elite.” The European Union imposed sanctions against Kovalchuk and Nikolai Shamalov for their close ties to Putin. The US Treasury also imposed sanctions against Kovalchuk, calling him a member of Putin's inner circle.

Nikolai Shamalov has two sons: Yuri, born in 1970, and Kirill, born in 1982. Both have prospered under Putin's rule.

After graduating from the Higher Naval Engineering School and the All-Russian Academy of Foreign Trade, Yuri Shamalov, according to his biography, worked in the external relations committee of the St. Petersburg mayor's office, which was headed by Putin.

On the eve of 2000, Putin became president. One of the companies to which he paid special attention was Gazprom, which he returned under state control. Gazprom's assets included Sibur and Gazprombank.

As Putin consolidated power, Yuri and Kirill Shamalov began to occupy important positions in these and other organizations.

In August 2003, Yuri, according to his corporate biography, became president of Gazfond, a giant investment fund that controls the assets of Gazprom pensioners. Led by Yuri, Gazfond acquired control of Gazprom's banking division, Gazprobank. Yuri became one of the deputy chairmen of the bank's board of directors.

Gazfond effectively acquired a state asset and turned it into a private bank controlled by people with long-standing ties to Putin.

Meanwhile, Kirill Shamalov was moving up the career ladder no less quickly. In 2002, he was appointed chief legal adviser for legal support of Gazprom's foreign economic activities, according to his biography on the Sibur website. Then he was only 20 years old and he was still a student at St. Petersburg State University.

Three years later, having received a law degree, Shamalov became the leading legal adviser in the legal department of Gazprombank, then a division of Gazprom. Then, in June 2008, Kirill joined Sibur as vice president of administrative business support.

Kirill’s brother, Yuri Shamalov, by this time was already on the board of directors of Sibur and worked as deputy chairman of the board of directors of Gazprombank. The chairman of the bank's board of directors was Alexey Miller, who worked with Putin in St. Petersburg in the 1990s. When Putin became president, he put Miller in charge of Gazprom.

In the same month when Kirill Shamalov came to Sibur, according to financial declarations, Gazfond, of which Yuri was chairman, through control of Gazprombank became the ultimate owner of Sibur.

CONNECTION WITH TIMCHENKO

The Shamalov brothers, in addition to their family ties, have long-standing ties to other members of Putin's "elite," who reformatted Russia's economy in the 2000s and made personal fortunes in the process. One of these people is Gennady Timchenko ( nickname "", one of Putin's business partners at the St. Petersburg mayor's office), who became a shareholder of Bank Russia together with Nikolai Shamalov.

Timchenko has known Putin for more than 20 years. In the 1990s, he began trading oil from St. Petersburg, where Putin was Sobchak's deputy, and co-founded Gunvor, which became one of the largest traders of Russian oil.

Timchenko's actions in the energy sector are directly linked to Putin. Putin has investments in Gunvor and, possibly, access to Gunvor funds, it says.

Timchenko was an important contact for Kirill Shamalov, as the oil trading magnate later became a major shareholder in Sibur.

In 2010, Gazprombank and Yuri Shamalov's Gazfond owned 95 percent of Sibur shares. That same year, they agreed to sell Sibur to a company owned by Timchenko and one of his business partners, Leonid Mikhelson. The deal was complicated, but Gazprombank helped make it happen by lending money to Mikhelson and Timchenko to finance at least half of the purchase.

As a result, Mikhelson received 57.2 percent of Sibur, Timchenko - 37.3 percent. Five managers and former managers of the company owned the remaining 5.5 percent. Among them was Kirill Shamalov. By 2014, according to Sibur reports, Kirill increased his stake to 4.3 percent.

LUCK OF KIRILL

Once Mikhelson and Timchenko gained control of Sibur, the others could only get a large stake in the company by convincing one of the main owners to sell part of the shares. Fortunately for Kirill Shamalov, Putin’s friend Timchenko wanted to sell his shares to him.

Timchenko and Putin's son-in-law began negotiations in the summer of 2013, according to Kirill's interview with the Kommersant newspaper in August of this year. Negotiations began a few months after Kirill celebrated his marriage to Putin's daughter.

In March 2014, Kirill resigned from his leadership position at Sibur. But he retained the shares and remained on the board of directors. Four months later, on August 1, he registered a new company, Yauza-12 LLC, which was wholly owned by him.

Kirill Shamalov is involved in removing the capital of Putin’s closest accomplices from sanctions. As Kommersant wrote, “the son of a co-owner Nikolai Shamalov Kirill, who works as deputy chairman of the board of SIBUR, decided to start his own business. Together with partners, he established a company to invest in securities. According to Kommersant's sources, the new structure will invest the funds of Rossiya's co-owners who have fallen under international sanctions.

The following month, Yauza-12 bought 17 percent of Sibur from Timchenko. This allowed Kirill to increase his stake in the petrochemical giant to 21.3 percent and become the second largest shareholder.

Gennady Timchenko sold a 17% stake in Sibur, Russia's largest petrochemical holding, to Kirill Shamalov. Shamalov’s father Nikolai, like Timchenko, is on the European sanctions list, but Kirill Shamalov is not.

How could 32-year-old Kirill afford such a purchase? A study of Yauza-12’s statements at the end of 2014 shows that the company borrowed 78.9 billion rubles (about $1.3 billion at the then exchange rate). The source of the money was a bank where Kirill's brother was deputy chairman of the board of directors.

The terms of the loan are unknown, but Kirill’s company apparently borrowed the money cheaply. The interest that was paid on the loan, according to the reporting of Yauza-12, amounted to 343 million rubles as of the end of 2014. This corresponds to an interest rate of 1.3 percent, based on Yauza-12's purchase of Sibur shares, the Moscow credit analyst said. He added that since the maturity date of the loan is unknown, it is unclear whether the rate differs from the market rate.

Shamalov is servicing the loan using the money received as dividends on Sibur shares, and now these payments are enough for him, said sources close to Shamalov and close to Gazprombank. In 2014, he was supposed to receive about 3.7 billion rubles.

In order to service this loan from the company’s dividend flow, its conditions must be purely individual, says Pavel Mitrofanov, director of corporate ratings and managing director of the Expert RA rating agency. At the market rate (this was no less than 10% per annum at that time, two major bankers said) and uniform repayment, the loan term would be unrealistically long - many decades, the expert says.

Using the $1.3 billion raised, Kirill was able to buy 17 percent of Sibur. He and his representative declined to say exactly how much he paid, saying only that the price was market price.

Three independent analysts said in October this year that Kirill's 21.3 percent of Sibur is worth at least $2 billion. This may be a conservative estimate. Chinese oil company Sinopec agreed on December 11 to pay $1.34 billion for only 10 percent of the company.

This valuation suggests that 21.3 percent of Sibur is now worth $2.85 billion.

THE CIRCLE IS CLOSED

A secret wedding at the Igora ski resort and the financial well-being of Kirill Shamalov shed light on how modern Russia works. The Putin era has its roots in St. Petersburg, where he began his political career. His friends from the Ozero dacha cooperative, as well as aides with whom he worked in the St. Petersburg mayor's office, gained wealth and influence as Putin consolidated power.

Now Kirill is among the elite of billionaires close to Putin. The connections, however, are not advertised. When Kirill and Katerina Tikhonova celebrated their wedding, security was heavy and the guest list was limited to about a hundred people, say people who were there at the time.

Guests were asked to hand over their mobile phones at the ice rink. Organizers wanted to ensure that no photos were leaked to social media, and celebration participants were kept away from resort staff.

The choice of venue also underscored the tight fabric of the circle that unites Putin, his friends from St. Petersburg and their children.

Igora is located 30 kilometers from the Ozero dacha cooperative. The resort and adjacent land plots belong to companies previously or currently associated with Shamalov, Kovalchuk and Timchenko.

The owner of Igora is the local company Ozon LLC. Putin's longtime friend Kovalchuk, his wife and son own 25 percent of Ozone; the remaining 75 percent is owned by a Cypriot company.

According to resort employees, Putin is a frequent guest of Igora, although he did not advertise his presence, staying in a nearby mansion behind a high fence. The plot with this mansion is registered to another company, which is entirely owned by the Kovalchuk family, according to the registry.

There are two more plots nearby. They belong to JSC Leader, which manages the assets of the Gazfond, which is headed by Kirill Shamalov’s older brother Yuri.

The wedding ceremony thus reflected an important aspect of Putin's Russia: a wealthy and close-knit "elite" celebrating, shielded from the gaze of ordinary Russians. Entertainment included figure skating, a laser show and the Russian Village ethnic show, said a person who attended the wedding.

At one point, an emblem with the names Kirill and Katerina was projected onto the snow, one of Igora’s workers said:

"We're not allowed to talk about it. I could get fired - you know whose daughter it is."

", the shareholder structure of Russia's largest petrochemical holding SIBUR has changed. The main co-owners of the company included the deputy chairman of its board, one of the sons of businessman Nikolai Shamalov, Kirill. He bought 17% of the shares from Gennady Timchenko, consolidating 21.3%. The share of Mr. Timchenko himself will decrease up to 15.3%, but he is not going to completely withdraw from SIBUR’s capital.

Deputy Chairman of the Board of SIBUR Kirill Shamalov acquired a 17% stake in the company from businessman Gennady Timchenko, several sources close to the negotiations said. The amount of the transaction is unknown; the interlocutor familiar with its terms only stated that “the price is market.” Taking into account the shares he already owned, Kirill Shamalov became the owner of 21.3%. Gennady Timchenko reduced his stake to 15.3%; Leonid Mikhelson, who owns 50.2%, remains the largest shareholder of SIBUR. The petrochemical holding itself declined to comment yesterday. A representative of Gennady Timchenko confirmed the fact of the sale of 17% of the shares to Mr. Shamalov’s structures. NOVATEK only stated that “Leonid Mikhelson is completely satisfied with the existing share.”

According to representative Gennady Timchenko, the businessman began negotiations on the partial sale of a stake in SIBUR about a year ago, and “Kirill Shamalov was one of the interested parties.” At the same time, the issue of complete sale of the stake was not considered, since “Gennady Timchenko is interested in maintaining a minority position in an effective business.” A source close to the negotiations says that Mr. Timchenko also discussed the sale of securities with the head of SIBUR, Dmitry Konov, “as part of increasing the management’s share in the company.” But Mr. Konov refused “due to the debt burden of servicing loans from previous transactions.” As a result, according to the interlocutor, Dmitry Konov still owns just under 5%.

SIBUR is the largest processor of associated petroleum gas (APG) in the Russian Federation, owns the infrastructure for processing and transporting APG and natural gas liquids, produces base polymers, polyethylene, polypropylene, etc. Net profit according to IFRS for 2013 is 50.9 billion rubles, EBITDA — 78.9 billion rubles. Dividends amounted to 12.8 billion rubles. The company processed 19.6 billion cubic meters of gas, produced 5.3 million tons of broad hydrocarbons, sold 4.8 million tons of liquid hydrocarbons, and 2.1 million tons of petrochemical products.

Gennady Timchenko entered the capital of SIBUR in 2011, buying a stake from Leonid Mikhelson. The latter began purchasing shares of the holding from Gazprombank in 2010; he explained Mr. Timchenko’s arrival by good partnerships and difficulties in attracting cheap capital due to instability in the financial markets. Ultimately, Leonid Mikhelson consolidated 57.5%, Gennady Timchenko - 37.5%, and the remaining shares were distributed among SIBUR's top managers. Step by step, during the option program, the total share of management in SIBUR was increased to 17.5%, which is how Mr. Shamalov received 4.3% of the shares.

Kirill Shamalov was born on March 22, 1982 in Leningrad, graduated from St. Petersburg State University. Worked at Gazprom, Rosoboronexport, Gazprombank, and the government apparatus. He came to SIBUR in 2008 as vice president for administrative support, and in 2012 became deputy chairman of the board.

Kommersant's sources believe that Mr. Shamalov bought a stake in SIBUR with borrowed funds. The interlocutors do not know whether he will remain a top manager of the holding when he joins the board of directors of SIBUR, but they believe that “this is not a question of today.” There are precedents for large co-owners of companies remaining as second-level managers - for example, LUKOIL Vice President Leonid Fedun (almost 10% of shares). In 2011, Gazprombank valued SIBUR at RUB 225 billion. Grigory Birg from Investcafe notes that SIBUR is a non-public company, so it is quite difficult to give objective estimates of the value. Taking into account the multiple growth of EBITDA and implemented investment projects in recent years, the market price of the holding most likely already exceeds $10 billion (about 370 billion rubles), the analyst believes. However, he adds, the deal with Kirill Shamalov could have gone through at a discount.

Gennady Timchenko was blacklisted by the United States back in the spring, but this had no effect on SIBUR, since the businessman’s stake was initially much lower than the control one. At the same time, Mr. Birg adds, Mr. Timchenko said that he wants to focus on infrastructure projects, so reducing the share in SIBUR looks logical.

Global partnerships. Implementation of the ZapSibNeftekhim project

New competencies and industry leadership allow SIBUR to begin implementing the ZapSibNeftekhim investment project, the largest not only in the history of SIBUR, but also in the history of the domestic petrochemical industry. The size of investments in it is estimated at up to $9.5 billion, while the share of participation of Russian contractors and suppliers is at least 220 billion rubles.

ZapSibNeftekhim, which is planned to be commissioned at the Tobolsk industrial site in 2020, will become the largest modern petrochemical complex in Russia with a capacity of 1.5 million tons of ethylene and 2 million tons of polymers per year. It will allow SIBUR to practically double its polymer production capacity in Russia.

In addition, SIBUR is considering the possibility of building a project of similar capacity in the Far East - the Amur Gas Chemical Complex on the distant horizon after 2023–2024.

Today, these projects are among the top 5 largest projects in the world petrochemical industry and will increase the export potential of all Russian petrochemicals, establishing SIBUR on the international market as a major regional player.

While SIBUR is building global capacity projects in the priority area of ​​base polymers, in the rubber business it is implementing a strategy of alliances with leading manufacturers in the main growing markets - Chinese and Indian.

In 2013, a joint venture was organized with the Chinese corporation Sinopec on the basis of the Krasnoyarsk synthetic rubber plant, a significant part of the products of which is sent to China. Unique for SIBUR and the entire Russian petrochemical industry was the creation of a joint venture between SIBUR and the Indian Reliance Industries Ltd, which is building a new butyl rubber production complex in India with a capacity of 120 thousand tons per year using SIBUR’s own technology.

The level of design, construction and engineering competencies of the company has reached a level that allows them to be capitalized into a service for other companies on the market. Engineering and EPC competence were concentrated at NIPIGAZ. Today, this division of SIBUR is a leading Russian center for design, supply, logistics and construction management, which is involved in major projects in the oil and gas and petrochemical industries.

SIBUR is also working to develop its own technologies. The company is actively developing its developments on the basis of the R&D center of the NIOST company. R&D at SIBUR has already reached self-sufficiency and is generating steadily increasing income.

The new SIBUR has become attractive for investment not only at the regional level, but also at the global level. SIBUR's profitability indicators have reached the level of world leaders.

In 2015, the company acquired its first foreign shareholder - in December, a deal was closed for the Chinese corporation Sinopec to enter SIBUR's capital as a strategic investor with a 10% stake. In 2016, an agreement was signed to sell a 10% stake to the Chinese Silk Road Fund.

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Implementation of a large-scale investment program. Creation of global capacity production facilities

After Alexander Dyukov moved to Gazprom Neft, the management team he assembled continued to work under the leadership of Dmitry Konov. It was obvious to management that the achieved production and financial indicators were largely the result of operational organizational measures. To achieve long-term sustainable growth, it was necessary to balance production capacities at different stages of processing, build infrastructure and new plants capable of competing in the Russian and global markets with leading companies, and bring the production culture and labor productivity in line with world standards.

The main response to these demands was SIBUR's large-scale investment program, implemented in subsequent years, which served as the impetus for a new mobilization of the company along with the growth of its potential. Gradually, the company's gas processing capacity increased from 8 billion cubic meters. m in 2003 to 25 billion cubic meters. m in 2016. The recovery rate of useful fractions from APG was increased from 62% in 2003 to over 90% in 2016. Thus, SIBUR made a decisive contribution to the growth of useful processing of associated petroleum gas in Russia, annually preventing the emission of more than 70 million tons of greenhouse gases in CO2 equivalent into the atmosphere. The growth in volumes of processed hydrocarbon raw materials and the depreciation of product pipelines built during the Soviet era required new transport infrastructure. A high-tech product pipeline with a length of over 1 thousand km and a cost of over 50 billion rubles was laid from the Purovsky condensate processing plant of NOVATEK to the Tobolsk industrial site. This project was of key importance for SIBUR, providing the company with stable and guaranteed access to raw materials in Western Siberia and the opportunity to implement future investment projects in the petrochemical field.

In Tobolsk, the fractionation capacity for processing raw materials from northern gas processing plants into LPG was increased several times. As a result, the company significantly expanded its raw material base, modernizing and increasing the capacity of its fuel and raw materials segment at all levels - gas processing, logistics infrastructure and gas fractionation. Also, to export volumes of raw materials that were excessive for the Russian market, the first complex in the northwestern part of the country and the largest in the Baltic Sea was built to transship up to 1.5 million tons of LPG and up to 2.5 million tons of light petroleum products per year, which switched to export flows previously sent through foreign ports of neighboring countries.

By creating one after another large, technologically complex production facilities, including on greenfield terms, the company has become one of the most active customers in the industrial construction market. SIBUR managers had to master a lot of new competencies related to engineering and project management in an extremely short time. Today, a distinctive feature of SIBUR is that it manages all its projects itself.

The expansion of the fuel and raw materials segment has opened up additional opportunities for SIBUR in the petrochemicals sector. The company begins to build important import-substituting capacities of medium tonnage, such as the production of 100 thousand tons per year of polystyrene foam in Perm, the production of 50 thousand tons per year of thermoplastic elastomers in Voronezh, and the expansion of PET production from 140 thousand to 210 thousand tons per year.

Having modernized and expanded the raw materials part of the business, and increased competencies in industrial construction, SIBUR is implementing projects of unprecedented scale in the petrochemical segment. In Tobolsk, by 2013, a complex was built to produce 500 thousand tons per year of polypropylene; in Kstovo, in 2014, production of 330 thousand tons per year of PVC was launched (a joint venture with the SolVin group). Global capacity production takes the company to a new level of competitiveness in terms of cost per ton of product.

In an effort to develop markets for the use of petrochemical products, SIBUR is entering certain downstream segments. For example, the company acquires the production of acrylates (used in the paint and varnish industry) and the BIAXPLEN company, which produces BOPP films for food and other areas, subsequently significantly increasing the volume of production of this type of product.

The economic crisis of 2008–2009 was a serious test for SIBUR, but at the same time showed the strength of the company's integrated model. Due to a drop in demand from the automotive and other industries, the company was forced to stop a number of installations, primarily in tire and rubber production, and the investment program was actually frozen. SIBUR emerged from the crisis with new competencies - successful experience of development in an economic downturn and self-confidence.

The last non-core production assets - the business of producing tires and mineral fertilizers - are being sold at a profit. SIBUR managed to bring these segments to stable and profitable operation.

Investments from the effective sale of non-core assets, along with profits from core activities, were directed into polymer projects. In total, in 2006–2016, SIBUR implemented over 150 large and medium-sized investment projects. The company's capital investments over the decade exceeded 650 billion rubles.

Nevertheless, the Gazprom group continued to look for a strategic investor for SIBUR, which remained a non-core asset for it. As a result, a controlling stake in the group in 2010–2011 was acquired by Russian entrepreneur, co-owner of NOVATEK Leonid Mikhelson. Later, the circle of shareholders expanded to include other Russian investors, as well as current and former managers of the company.

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Restructuring. Foundation for growth and greater efficiency

After the departure of the previous management from SIBUR, the management teams in the company changed very quickly. Gazprom and the creditors were faced with the question of whether to try to save the company or organize a sale of its assets, covering losses as much as possible. The solution to this issue directly depended on the effectiveness of the new management team. At the beginning of 2003, Alexander Dyukov became the head of SIBUR, having previously held senior positions in the Sea Trade Port of St. Petersburg and the St. Petersburg Oil Terminal.

Alexander Dyukov quickly formed the basis of a new management team, on the one hand, inviting representatives of a new generation of managers, and on the other, relying on ambitious production professionals. The new team was united by the desire to build an effective business, the scale of which would be noticeable not only in the industry, but also in the Russian economy as a whole.

The most important moment in the formation of the “new” SIBUR was the formation of the company’s development strategy.

The development strategy developed by Dyukov’s management team and approved by Gazprom was based on several key principles that the company still follows today. First of all, it is strengthening long-term access to raw materials at attractive prices and offering oil and gas companies an effective solution for processing by-products of oil and gas production. At that moment, SIBUR had a unique, but largely outdated APG utilization infrastructure that required updating and expansion.

The next principle is the monetization of raw materials through the creation of new capacities for its transportation and deep processing. The new management immediately decided on priority and non-core areas of business. The new team relied on unlocking the growth potential of demand for polymers in the Russian market, which dictated the task of building new large plants for the production of polypropylene, PVC, polyethylene - materials for a variety of industries, from construction to medicine.

Consolidating resources for large-scale investments, the company, under the leadership of a new management team, gradually freed itself from non-core assets. Within the group, three business areas remained, united in three directorates: hydrocarbon raw materials, synthetic rubbers, as well as plastics and organic synthesis. The tire business and enterprises related to the production of mineral fertilizers were transferred to subsidiary holdings with greater operational independence. It was decided to increase their value and prepare them for sale to specialized investors.

Finally, the company formulated another strategic principle - constantly improving efficiency, reducing risks and creating a more stable and sustainable business.

SIBUR began to implement uniform standards of corporate governance and culture, began to highlight best practices and form competence centers. The new team quickly transformed the amorphous, loose structure into an organism close to a modern company.

The chosen strategy and its clear implementation began to bring results, and already in 2005–2006, SIBUR stabilized its financial and production position.

As part of the completion of vertical integration and the settlement of the debt issue, AKS Holding was founded, to which the assets of AK SIBUR were transferred. On the contrary, the debts accumulated over previous years were consolidated at AK SIBUR and were completely repaid within several years, and the legal structure was abolished. In December 2005, AKS Holding was renamed SIBUR Holding. For Gazprom, petrochemicals remained a non-core business, so the company, having solved the problem of stabilizing SIBUR’s business, began the procedure of gradually exiting its share capital, transferring the non-core asset to Gazprombank and Gazfond.

As a result, in the early 2000s, SIBUR experienced growing pains - a management and financial crisis. To complicate matters, the timing of new asset integration coincided with a severe global petrochemical downturn.

Under these conditions, the company's debt only grew; given the scale of the problems, there was no significant improvement in the company's financial position.

As a solution to SIBUR’s problems, Goldovsky proposed bringing the company to the stock markets and conducting an additional issue of shares, which created the risk of Gazprom losing control in the company. In 2001, the placement of the issue was frozen.

As part of crisis management, Gazprom initiated bankruptcy proceedings for SIBUR in 2002, and Yakov Goldovsky was forced to leave the company and sell his stake.

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Foundation of the company. The initial stage of restoring production links in the Russian petrochemical industry

With the disappearance of a single planning center, the role of which was previously played by ministries and the State Planning Committee, the processes of disintegration in gas processing and petrochemicals in Russia led to a shortage of raw materials and a reduction in sales markets, and problems with logistics arose. The beginning of privatization complicated the situation - a fierce competitive struggle developed for Soviet assets, in which the main goal was financial flows, and not the restoration or modernization of factories.

The first step towards restoring the lost connections and potential of the industry was the creation in 1995 by government decree of the Siberian-Ural Petroleum and Gas Chemical Company - SIBUR. The basis for integration was the production cooperation of petrochemical enterprises of the former USSR, and Gazprom became the driver and guiding force for the consolidation of petrochemical assets on the basis of SIBUR. Despite the non-core nature of the petrochemical business, the gas company began to fulfill the stated state task of creating a powerful national player in the market for deep processing of hydrocarbon raw materials.

In 1995, the new company included the gas processing plants and infrastructure of Sibneftegazpererabotka, the Perm gas processing plant, which produces petrochemical products, and the design institute NIPIgazpererabotka.

SIBUR is the largest processor of associated petroleum gas in Russia, annually preventing more than 70 million tons of CO2 and 7 million tons of pollutants from entering the atmosphere.

SIBUR produces and sells petrochemical products on the domestic and international markets in two segments:

* Olefins, polyolefins (polyethylene, polypropylene, BOPP and others)

* Plastics, elastomers and intermediate products (synthetic rubbers, polystyrene foam, PET and others).

SIBUR production sites are located in more than 20 regions of Russia. The company sells products to consumers in the automotive industry, construction, fuel and energy complex, production of consumer goods, chemical and other industries in 80 countries. The number of employees of the group is about 26,000 people.

At the end of 2018, the company’s net profit decreased by 7.9% and amounted to 110.8 billion rubles. The main factor of the decline was the reflection in the same period of 2017 of profit from the sale of JSC Uralorgsintez, while at the end of 2018 losses from exchange rate differences were reflected due to the depreciation of the ruble against the US dollar and the euro and the corresponding revaluation of debt obligations in foreign currency. currency. The company's revenue according to IFRS increased by 25.1% compared to 2017 and amounted to 568.6 billion rubles, the company's EBITDA increased by 25.0% and amounted to 201 billion rubles.

Since 2015, SIBUR has been building the largest modern petrochemical complex in Russia, ZapSibNeftekhim, which will more than double the production of the group’s polymer products. Construction should be completed in the second quarter of 2019.

The company is registered in Tobolsk. The headquarters is located in Moscow. Full name - Public Joint Stock Company "SIBUR Holding".

Owners

Management

The Chairman of the Board of Directors of the company is Leonid Mikhelson.

General directors of the company:

Since 2016, the position of Chairman of the Board was introduced (Dmitry Konov was appointed), and in 2018, in addition, the position of General Director was restored (Mikhail Karisalov was appointed).

The structure of the company

Basic enterprises providing raw materials: JSC Siburtyumengaz (Nizhnevartovsk) and its branches Gubkinsky Gas Processing Plant (in Gubkinsky), Vyngapurovsky Gas Processing Plant (Noyabrsk), Muravlenkovsky Gas Processing Plant (Muravlenko), Yuzhno-Balyksky Gas Processing Plant (Pyt-Yakh), as well as Nizhnevartovsk Gas Processing Plant, Belozerny Gas Processing Plant (Nizhnevartovsk) and Nyagangazpererabotka (Nyagan). SIBUR's gas processing capacity is 25.4 billion m³. ZapSibTransgaz LLC maintains pipeline infrastructure, including the Purpe-Tobolsk pipeline, 1,100 km long, to deliver processed products from the gas processing plant to the petrochemical site in Tobolsk. Enterprises in Tobolsk are united into the Tobolsk industrial site, which includes: SIBUR Tobolsk LLC (formerly Tobolsk-Neftekhim LLC and Tobolsk-Polymer LLC), ZapSibNeftekhim LLC and Tobolsk CHPP.

Manufacturers of base polymers: RusVinyl LLC (Kstovo, a joint venture with Solvay), NPP Neftekhimiya LLC (a joint venture with the Gazprom Neft group), POLIOM LLC (a joint venture with the Gazprom Neft group and GC Titan), LLC SIBUR-Kstovo, LLC Tomskneftekhim (Tomsk), as well as LLC BIAXPLEN (sites in Kursk, Zheleznodorozhny, Balakhna, Tomsk, Novokuybyshevsk), which produces film based on base polymers.

Manufacturers of plastics, elastomers and organic synthesis: JSC SIBUR-Neftekhim (Dzerzhinsk, Nizhny Novgorod region), JSC Sibur-Khimprom (Perm), JSC POLIEF (Blagoveshchensk, Bashkortostan), JSC Sibur-PETF ( Tver), SIBUR Togliatti LLC, Voronezhsintezkauchuk JSC, Krasnoyarsk Synthetic Rubber Plant JSC (a joint venture with the Chinese Sinopec).

Activity

SIBUR's main activity is the production of petrochemical products based on the processing of by-products of oil and gas production.

Performance indicators

The total number of employees at the holding's enterprises is about 26 thousand people (2018).

The company's capital investments in 2018 increased by 12.0% and amounted to 151.4 billion rubles.

At the end of 2015, SIBUR ranked 7th among all the world's leading petrochemical corporations in terms of EBITDA and investment volume. SIBUR's EBITDA amounted to $2.2 billion, which is comparable to that of BASF or Sinopec ($3.4 and $3.1 billion, respectively) and more than that of Lanxess, Reliance, LG Chemical, Petronas. In terms of profitability (33%), SIBUR became second, ahead of such giants as Dow Chemical, BASF, Lanxess.

The average growth rate of the company's revenue in 2005-2015. amounted to 16%. The growth rate of Russian GDP is 3%, that of global petrochemical companies is 4%.

Company financial indicators

Social responsibility

In 2016, SIBUR launched a corporate charity program “Formula of Good Deeds”, which united the company’s socially significant initiatives. This program was awarded the “HR Brand Award 2017” as the best social project. In 2017, support for various interregional projects was provided in two forms: on a grant basis (130 grants were issued) and in the form of direct implementation.

Project support is provided in six main areas:

SIBUR environmental programs

Water conservation . Key activities in 2017 to reduce the volume and improve the quality of wastewater:

• modern biological treatment facilities were built and put into operation, which made it possible to reduce the volume of water disposal by 3 times and ensure compliance with quality standards for wastewater discharge at SIBUR-PETF JSC;
• working documentation was developed for the project for the reconstruction of the industrial wastewater treatment system at Tomskneftekhim LLC;
• the main construction and installation work of the biochemical treatment unit for industrial wastewater was carried out at JSC Sibur-Khimprom;
• reconstruction of local treatment facilities at JSC Krasnoyarsk Plant SK was carried out, which made it possible to reduce the content of suspended solids in wastewater, reduce coagulant consumption and prevent the loss of raw materials.

Air resource protection . Key measures aimed at reducing pollutant emissions:

• sanitary protection zones (SPZ) were established for the enterprises of JSC SIBUR-PETF, LLC Poliom, LLC RusVinyl;
• design and survey work was carried out to re-equip and stabilize the operation of the flare facility at JSC SIBUR Tolyatti;
• pontoons were installed on gasoline tanks in the commodity and raw materials workshop in order to reduce emissions of petroleum products at Sibur-Kstovo LLC.

The process of negotiations with creditors regarding the terms of debt restructuring lasted more than six months and ended on September 10, 2002 with the signing of a settlement agreement. According to some reports, the decisive factor in this was forceful pressure and the subsequent arrest of the then co-owner of Sibur, Yakov Goldovsky. After the transfer of Sibur shares to Gazprom, Goldovsky was released, lived for some time in Austria, but then returned to the Russian petrochemical business (Dzerzhinsk enterprise Korund).

The head of the company at the beginning of 2003 was Alexander Dyukov, who previously held senior positions in the Sea Trade Port of St. Petersburg and the St. Petersburg Oil Terminal.

In July 2005, Sibur established AKS Holding OJSC to “clear” the holding company of debts in the amount of 60 billion rubles, most of which were debts to the parent company; shares of 26 petrochemical enterprises belonging to Sibur were transferred to the balance sheet of the new legal entity . In December 2005, AKS Holding was renamed Sibur Holding.

In 2007, Gazprom sold shares in Sibur to Gazfond as part of an exchange for energy assets owned by this structure. Both Gazprombank and Gazfond also left the Gazprom group.

On December 2, 2009, Sibur acquired 50% in Biaxplen, the largest Russian manufacturer of BOPP film and the largest consumer of polypropylene. In the fall of the following year, Sibur acquired and consolidated with Biaxplen the polymer business of Novatek - the production of polymer film in the Samara region. On July 28, 2011, 100% of the shares of Akrylat, the only Russian manufacturer of acrylic acid and its esters, were purchased.

On December 23, 2010, it was announced that Gazprombank would sell 50% of the company to the structures of Leonid Mikhelson, co-owner and chairman of the board of the gas company Novatek. In September 2011, after receiving permission from the FAS, Mikhelson’s structures purchased additional shares and his share exceeded 50%. In November 2011, Sibur Limited became a 100% shareholder of Sibur, the ultimate beneficiaries of which are the shareholders of Novatek OJSC: Leonid Mikhelson and Gennady Timchenko. The beneficiaries of the remaining 5.5% of the authorized capital of Sibur Limited were Sibur managers Dmitry Konov, Mikhail Karisalov, Mikhail Mikhailov, as well as deputy chairman of the board of directors Alexander Dyukov. In 2013, the main shareholders of Sibur reduced their stake in the company to 82.5%, and the share of current and former management increased to 17.5%.

At the end of December 2011, Sibur completely gave up control over Sibur - Russian Tires, selling 75% of the shares to the company's management, and the remaining shares to the partners of the company's general director, Gurinov. Also, assets in the mineral fertilizer business were sold to Uralchem ​​(Perm Minudobreniya) and the Siberian Business Union (Kemerovo Azot and Angarsk Nitrogen Fertilizer Plant). Investments from the effective sale of non-core assets, along with profits from core activities, were directed into polymer projects.

In 2015, the company acquired its first foreign shareholder - in December, a deal was closed for the Chinese corporation Sinopec to enter the capital of SIBUR as a strategic investor with a 10% stake. In 2016, an agreement was signed to sell a 10% stake to the Chinese Silk Road Fund

Notes

1. http://investors.sibur.com/~/media/Files/S/Sibur-IR/Financial-results/2019/SIBUR_IFRS_FY%202018_RUS.PDF/
2. Sibur. Photo | Forbes.ru(English) . www.forbes.ru. Retrieved August 8, 2018.
3. SIBUR reduced its environmental impact index by 2% due to the implementation of environmental programs. And investment
4. Sibur. About company (undefined) .
5. PJSC SIBUR Holding. [http://investors.sibur.com/~/media/Files/S/Sibur-IR/rus-press-releases/2019/IFRS_FY2018_Press%20Release_RUS.pdf (undefined) . https://www.sibur.ru (29.02.2019).
6. Construction of ZapSibNeftekhim is in full swing - the overall progress of work on the project is 72.3%. VIDEO (Russian) . Retrieved August 8, 2018.
7. Shamalov sold 17% of Sibur shares to Mikhelson, NEWSru.com. Retrieved August 8, 2018.
8. Management Board of CJSC SIBUR Holding (undefined) . // sibur.ru. Retrieved August 30, 2011. Archived February 9, 2012.
9. LPG at the crossroads (Russian) , "Oil of Russia"(February 13, 2018). Retrieved August 16, 2018.
10. About SIBUR (undefined) .
11. PJSC SIBUR Holding. (undefined) . https://www.sibur.ru (29.02.2019).
12. PJSC SIBUR Holding. [http://investors.sibur.com/~/media/Files/S/Sibur-IR/rus-press-releases/2019/IFRS_FY2018_Press%20Release_RUS.pdf SIBUR reported financial and operating results under IFRS for 2018] (undefined) . https://www.sibur.ru (21.02.2019).
13. Speaker: Sergey Komyshan. Lecture: "World trends and their impact on petrochemicals." (undefined) .
14. Speaker: Sergey Komyshan. [https://www.sibur.ru/upload/iblock/cf1/cf1aa2fec733854b5f4e6124c683480e.pdf Lecture: "World trends and their impact on petrochemicals."] (undefined) .
15. SIBUR reported financial results under IFRS for 2013 (undefined) .
16. (undefined) .
17. SIBUR reported financial and operating results under IFRS for 2017 (undefined) .
18. SIBUR reported financial and operating results under IFRS for 2018 (undefined) . https://www.sibur.ru (21.02.2019).
19. PJSC SIBUR Holding published operating and financial results for 2014 in accordance with IFRS. (undefined) .
20. SIBUR reported financial and operating results under IFRS for 2015 (undefined) .
21. SIBUR reported financial and operating results under IFRS for 2018 (undefined) .

2016

APG processing capacity - 24 billion cubic meters per year

As of the end of 2016, APG processing capacity was 24 billion cubic meters per year. The holding has 26 production sites and a staff of 25 thousand people.

Investment of more than 600 million rubles in R&D

SIBUR invested more than 600 million rubles in R&D. As part of the 2017 investment project, the company does not plan to reduce investments in this area. The investment program focuses on two areas of R&D - the development of new products and technologies, as well as increasing operational efficiency through changes in technological processes.

The head of SIBUR, Dmitry Konov, noted that the company is expanding its product line both by attracting ready-made solutions from the market and by developing its own technologies. Optimizing the “development plan” of the petrochemical and gas processing market in Russia is one of the strategically important issues for the industrial and economic growth of the country.

The development of domestic equipment and technological solutions through scientific research plays a vital role within the framework of the program approved by the Ministry of Industry and Trade until 2030. Progress in this direction largely depends on the involvement of experts from government agencies, vertically integrated companies, as well as service, scientific and analytical organizations.

Agreement on the sale of 10% shares to the Silk Road Fund

In 2016, an agreement was signed to sell a 10% stake to the Chinese Silk Road Fund.

2015

In 2015, the company acquired its first foreign shareholder - in December, a deal was closed for the Chinese corporation Sinopec to enter SIBUR's capital as a strategic investor with a 10% stake.

Revenue in the first half of 2015 amounted to $3.2 billion, EBITDA - $1.1 billion. The number of large consumers was 1,400. Products are supplied to 75 countries.

2014

Development of existing assets. Completion of the construction of new production facilities and global capacity infrastructure: Tobolsk-Polymera, RusVinyl, the Purpe-Tobolsk product pipeline and other projects. The beginning of the implementation of the largest project in the history of Soviet and Russian petrochemicals - ZapSibNeftekhim. In 2014, the structure, the founder and owner of which is SIBUR Deputy Chairman of the Board Kirill Shamalov, acquired 17% of SIBUR shares, the beneficial owner of which was previously Gennady Timchenko. SIBUR share capital structure as of September 5, 2014: Leonid Mikhelson - 50.2% Kirill Shamalov - 21.3% Gennady Timchenko - 15.3%, current and former SIBUR management (excluding Kirill Shamalov's share) - 13.2 %.

2013

SIBUR's main shareholders reduced their stake in the company to 82.5%, while the share of current and former management increased to 17.5%.

2011

Sale of Sibur - Russian Tires and assets in the mineral fertilizer business

At the end of December 2011, Sibur completely parted with control over Sibur - Russian Tires, selling 75% of the shares to the company's management, and the remaining shares to the partners of the company's general director, Gurinov. Also, assets in the mineral fertilizer business were sold to Uralchem ​​(Perm Minudobreniya) and the Siberian Business Union (Kemerovo Azot and Angarsk Nitrogen Fertilizer Plant). Investments from the sale of non-core assets, along with profits from core activities, were allocated to polymer projects.

Sibur Limited - 100% shareholder of Sibur

In November 2011, Sibur Limited became a 100% shareholder of Sibur, the ultimate beneficiaries of which are the shareholders of Novatek OJSC: Leonid Mikhelson and Gennady Timchenko. The beneficiaries of the remaining 5.5% of the authorized capital of Sibur Limited were Sibur managers Dmitry Konov, Mikhail Karisalov, Mikhail Mikhailov, as well as deputy chairman of the board of directors Alexander Dyukov.

In September 2011, after receiving permission from the FAS, Leonid Mikhelson's structures purchased additional shares, and his share exceeded 50%.

Sale of non-core assets

SIBUR sold assets previously identified as non-core - the tire business and the mineral fertilizer business. The company's shareholders are Leonid Mikhelson (controlling shareholder), Gennady Timchenko, as well as current and former SIBUR executives Alexander Dyukov, Dmitry Konov, Mikhail Karisalov, Mikhail Mikhailov.

Purchase of 100% shares of Akrylat

On July 28, 2011, 100% of the shares of Akrylat, the only Russian manufacturer of acrylic acid and its esters, were purchased.

2010

Sale by Gazprombank of 50% of SIBUR to the structures of Leonid Mikhelson

On December 23, 2010, it was announced that Gazprombank would sell 50% of the company to the structures of Leonid Mikhelson, co-owner and chairman of the board of the gas company Novatek.

Purchase and consolidation of Novatek's polymer business

In the fall of 2010, Sibur acquired and consolidated with Biaxplen the polymer business of Novatek - the production of polymer film in the Samara region.

In 2013, the main shareholders of Sibur reduced their stake in the company to 82.5%, and the share of current and former management increased to 17.5%.

Start of phased sale of SIBUR to Leonid Mikhelson

In 2010, the phased sale of SIBUR to entrepreneur Leonid Mikhelson began.

2009: Purchase of a 50% share in Biaksplen

On December 2, 2009, Sibur acquired 50% in Biaxplen, the largest Russian manufacturer of BOPP film and the largest consumer of polypropylene.

2007: Sale by Gazprom of shares of SIBUR to Gazfond

Expansion and modernization of existing production facilities, optimization and increase in efficiency. SIBUR shares owned by Gazprom were sold to Gazfond as part of an exchange for energy assets owned by this structure.

Within the Group, three business areas remained, united in three directorates: hydrocarbon raw materials, synthetic rubbers, as well as plastics and organic synthesis. The tire business and enterprises related to the production of mineral fertilizers were transferred to specially created holdings with greater operational independence. The implementation of an investment program until 2015 has begun, designed to ensure growth for the company.

2006: Appointment of Dmitry Konov as president of SIBUR

Alexander Dyukov was appointed head of Gazprom Neft. The new head of SIBUR, Dmitry Konov, continued the program for developing SIBUR as a leader in the gas processing and petrochemical industry in Russia.

2005: Establishment of AKS Holding with subsequent renaming to SIBUR Holding

As part of the completion of vertical integration, AKS Holding was founded by a number of legal entities in July 2005, to which the assets of AK SIBUR (shares in 26 petrochemical enterprises) were transferred.

In December 2005, AKS Holding was renamed SIBUR Holding. The owners of SIBUR also became the St. Petersburg Oil Terminal.

Under his leadership, work began on a major reorganization of the company and the formation of a long-term growth strategy, SIBUR's current solvency was restored, and the company's debt was systematized and settled.

2002: Settlement agreement with creditors on debt restructuring

SIBUR is unable to service its financial obligations, pay interest and repay debt. The main creditor initiated bankruptcy proceedings in March 2002. Gazprom has begun active work on debt restructuring. The process of negotiations with creditors regarding the terms of debt restructuring lasted more than six months and ended on September 10, 2002 with the signing of a settlement agreement.

According to some reports, the decisive factor in this was forceful pressure and the subsequent arrest of the then co-owner of Sibur, Yakov Goldovsky. After the transfer of Sibur shares to Gazprom, Goldovsky was released.

2001

An attempt to dilute the share of OJSC Gazprom in the management company of SIBUR

At the end of 2001, the company's management, led by Yakov Goldovsky, attempted to dilute Gazprom's share in the company's authorized capital by conducting an additional issue of ordinary shares, and previously tried to remove Sibur's petrochemical assets from the legal control of the company.

Asset building

Intensive expansion of assets and construction of a financial and production flow management system. As a result, almost 60 Russian enterprises fell into the company’s perimeter. Almost all acquisitions of that period were made with borrowed funds received from Gazprom or commercial banks under the guarantee of Gazprom.

1998: Transformation

During 1998-2001, the company included a significant part of Russia's petrochemical assets and became the country's largest petrochemical holding.

The transformation of SIBUR's structure into a vertically integrated gas processing and petrochemical group has begun, covering the full production cycle - from advanced processing of raw materials to the release of final products. The basis for integration was the production cooperation of petrochemical enterprises of the former USSR.

In 1998, the company was privatized, Gazprom became the largest shareholder of the holding, but real control over production and economic activities passed to the Gas and Petrochemical Company of Yakov Goldovsky.

1995: Formation of the company

SIBUR was registered on March 7, 1995 as the Siberian-Ural Petroleum and Gas Chemical Company (JSC AK SIBUR). It included the enterprises of Sibneftegazpererabotka (today the gas processing plants of SiburTyumenGaz), the Perm Gas Processing Plant (today part of Sibur-Khimprom) and the design institute NIPIgazpererabotka. 38% of the company's shares were assigned to federal ownership for three years.