Jet Lag: Paradise Papers Reveal Avia Business of Russian Football Union Finance Head

Sanctions for Babakov and Rostech? What about the aircraft business?
22.11.2017
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The Paradise Papers revealed the names not only of officials, who have forgotten about Russian laws. The new leak gave an insight about the aircraft business. For example, owner of the CSKA football club Vadim Giner owns a decent fleet, but prefers to conduct business not in Russia, but in Latvia. Alexandrina Elagina and Mikhail Maglov ( Municipal scanner) tell the story of the family, which is in the sanction “waiting list.”


There are three interesting stories related to the Giner family. Firstly, in October 2016, it became clear that the CSKA football club belonged not to the businessman Evgeny Giner, but to his son Vadim. The parent company of the club – British Bluecastle Enterprises Limited – has published a report: in it, Vadim Giner is listed as a person owning more than 75% of the company.

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Evgeny and Vadim Giner

Giner Jr. owns a lot of companies – most of them are not in Russia. There are only 15 companies that are operating in Russia, including those specializing in construction and energy. For example, Energetichesky Standart LLC (Energy Standard), a subsidiary of Energoaliance LLC. Giner owns both companies along with his partner Alexey Yurkin.

The Energy Standard works closely with state-owned companies: the government orders amount to 1.8 billion rubles in two years in its books. The main customers are subsidiaries of RusHydro, Rosatom, Rosseti.

In May 2009, Vadim Giner was appointed the chairman of the Board of Directors of the Luxembourg company Karvis International S.A. Other directors were Giner Sr., and also a certain Marina Yaroslavskaya. Karvis is still functioning, RBC wrote.

According to the National Bank of Ukraine, a citizen of Germany Yaroslavskaya is a shareholder of the Latvian VS Energy Latvia, the managing company of VS Energy, an energy group with assets in Ukraine. VS Energy is associated with Evgeny Giner.

Also, Vadim Giner is director of Luxembourg's Sensei International, which is the largest creditor of Bluecastle (at the end of 2015 - $ 66.9 million) and is affiliated with it by “common management”, as follows from Bluecastle’s report. According to the Luxembourg database, Karvis and Sensei have the same addresses.

Giner Jr. also held executive positions in several Luxembourg companies, including Financiere Epidus and Financiere Egine (the address is the same as the other Luxembourg organizations mentioned in the Bluecastle report). In the same companies, the Latvian V.D. Nominees is the member of the Boards of Directors.

Regarding V.D. Nominees, there is another interesting story from the life of the Giner family. The company that provides services to nominee directors or nominal founders figured in the Panama Papers. It was used as a link between NYX Management (shareholder – Evgeny Giner) and AED International. The second company was registered in the British Virgin Islands in 2005 in the name of former State Duma deputy Alexander Babakov.

Babakov is a well-known person. He is a member of the Federation Council, previously was a deputy of three convocations of the State Duma. He has known the Giners for a long time: since 2001, Babakov is a co-owner of the CSKA football club, the Chairman of the company's Board of Directors. He is called a co-owner of VS Energy. In 2014, Babakov was included in the US sanctions list because of Russia's actions in the Crimea. In France, he has a company in the name of which a villa is registered. He also owns an apartment in the center of Paris. Of course, this property is not in his declaration.

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Senator Babakov owns a villa and flat in France through a company

In January 2017, Evgeny Giner bought 49% of Inzhiringovaya Kompaniya Techpromexport LLC (Engineering Company Techpromexport). The second half of its stakes belongs to Rostech. The company was established for the construction of a TPP in Iran, Vedomosti wrote. Like Babakov, Rostech is under sanctions as well.

Is it possible that the Giners will fall into the sanctions lists? It is likely: in addition to the stake in Rostech, Evgeny Giner is the founder of Severenergosbyt LLC, registered in Sevastopol in 2016.

Then, one question remains: will the heir of his wealth fall under the sanctions? After all, he has something to lose. For example, air ticket, hidden in Latvian companies and Bermuda offshore.

JETS IN LATVIA

In the Paradise Papers, there are two Bermuda companies associated with Vadim Giner – Marimax Jets Limited and Vacuna Jets Limited. Together, they form the MVJets Group.

Vacuna was registered on 11 February, 2005. Since March 25, 2009, the company's director is Vadim Giner. His father is a shareholder of the company. It has two addresses in Moscow: the first on the Vozdvizhenka Street, and the second on the Parshin Street. Also, at the second address, Capital Jets Management Ltd is registered.

Marimax Jets, like Vacuna, is registered on the Vozdvizhenka Street. Muscovites know this building next to the metro station Arbatskaya very well: it was built at the end of the 18th century and was conceived as residential, belonged to the Temple of the Lord and the Moscow Synodal Office. Beige, with a sign of VTB Bank; passing by, one would not pay any attention to it. The office center is not noticeable: there are legal offices, yoga centers and even a closed business club. The rent starts from 150 thousand rubles a month (63 sq. m.) for an office. Particularly fastidious customers can rent a room of 2,2 thousand sq. m. for 8 million rubles a year.

The second address – on the Parshina Street – will tell more. Absolutely coincidentally, at the same address – Parshina, 16, Moscow – Vadim Giner has his company AVO-Kapital LLC, specializing in investing in securities. By the way, it belongs to the British Bluecastle. Avo-Kapital is the founder of JSC Professional Football Club CSKA. Their phone numbers coincide as well.

Here is another incredible coincidence: Alexey Yurkin and Vadim Giner had a joint company – Capital Jets LLC. They established it in September 2006 in Krasnogorsk, Moscow Region. The company was closed in 2013. The official website of the company exists until now. Its contacts show all the same address. A small detail: at these coordinates bring us to the hotel called Sever-City, near the future arena of CSKA.

Since the company closed, then the business ceased to exist? The company's profile on Instagram says the opposite: the last publication was made on October 31, 2017. As well as for the official Facebook page.

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The company’s Facebook page

According to the official list, the company’s fleet includes 30 jets: five Russian ones, the rest are small, medium, large and long-haul of such famous brands as GULFSTREAM, FALCON and CESSNA.

How did that happen? It is necessary to return to the two offshore companies in Bermuda, so that everything falls into place.

So, as we remember, the company Capital Jets is affiliated with Vacuna Jets Limited and Marimax Jets Limited. The names of companies hint at aircrafts. So what?

Here is, for example, the data on aircraft emissions from the Latvian Civil Aviation Agency, which published the data of ship operators, who did not report in 2012. Among them, there is the aircraft operator Marimax Jets Limited. Or, for example, the report of the European Commission from Latvia, which states that the aircraft under the same number was operated in 2017, and the operator is in the Russian Federation.

And here is, for example, a document from the official site of the Isle of Man. From it, you can find out that the Bombardier M-MTPO is owned by Marimax Jets Limited. The site flightradar24 confirms that the aircraft with such a board number does exist.

Only one question remains – why not Russia, but Latvia gives reports on Giner’s companies? This secret will be opened to us by the business register of this country. According to it, Vadim Giner and Alexey Yurkin own a company – Capital Jets Management, SIA. The company was opened in Latvia in February 2017.

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Extract from the Latvian register showing Vadim Giner and Alexey Yurkin as shareholders of Capital Jets Management, SIA

The whole picture is complemented by the highlight: in the OffshoreLeaks database, there is the third address in the network of off-shores from the Paradise Papers, indicated by Vadim Giner as a residence address.

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Extract from the Russian Register saying the apartment in Moscow’s Khamovniki belongs to Maria Yaroslavskaya

The apartment at the specified address belongs to Maria Yaroslavskaya, the same person, who was part of Luxembourg's Karvis International S.A. The same citizen of Germany, a shareholder of the Latvian VS Energy Latvia, the managing company of VS Energy, an energy group with assets in Ukraine.

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