Chechnya, all out

How Kadyrov’s  charity foundation makes profit
02.05.2017
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The Ahmat Kadyrov foundation does not only build houses for socially vulnerable citizens, supplies Syria with foods and makes presents to the world celebrities. It also builds factories, establishes companies and opens foreign accounts. The Russiangate finds out who feeds the Kadyrov foundation.


“Charity”

Ahmat Kadyrov foundation was established in 2004 by Ramzan Kadyrov’s mother Aimani Kadyrova. The co-founders have been the head of the Chechnya’s justices of the peace service Khalid Vaikhanov, deputy director of the Grozneftegaz Abusupyan Daaev, chief of the republic’s emergency ministry Ruslan Yahyaev and the chief of the republic’s traffic police Shamkhan Denilkhanov - Ramzan Kadyrov’s brother-in-law.

The foundation’s operations have not been transparent and no one knows who contributes to it and how much. No mass media has ever published the foundation’s reports, similarly to the Dar foundation run by the Prime minister Dmitry Medvedev.

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Ramzan Kadyrov during 10th anniversary of the  foundation – fondkadyrova.net


The sources said in 2015 that the foundation had been fed through “voluntarily-obligatory” contributions of the Chechnya residents, who were obliged to chip off 10% of their salaries, thus providing the foundation with $60 mln a month.

The Transparency International included the foundation into the global corruption list.

In 2013, the foundation presented a five-room apartment in Grozny worth 15 mln rub to Gerard Depardieu. Stylist Sergei Zverev received wristwatches worth 100,000 euros. TV host Yana Rudkovskaya got a Porsche Cayenne worth 250,000 euros. Mike Tyson, who had visited Grozny for a friendly boxing fight with Ramzan Kadyrov, was paid 2 mln euros.

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House with the clocks - the Olymp tower in Grozny City - where Depardieu apartment is located. - gdehorosho.ru


Salman Kimaev, who had been on the Interpol wanted list four years ago, currently manages several private companies connected to the foundation. Along with his partner Sergei Gonchar, he plans to establish a biopharmaceutical cluster in Grozny worth 16 bln rubles invested by the international Magnus Union holding (which has Russian beneficiaries).

In 2017, the foundation sponsored the Defense ministry’s Heroes’ Race military-sporting game due on May 13. The foundation will award the winners with money prizes and a  Mercedes of the E class.

Interests of charity foundation

The Ahmat Kadyrov foundation runs several sister companies, which is in line with the Russian laws.

Head of Chechnya Ramzan Kadyrov has always seen his primarily task to restore the republic destroyed in two wars and render it the richest region in Russia.

Still, many questions arise.

Ten years ago, the foundation set up the Grozny Avia airline. Prior to its reorganization in 2012, the company was transferred to the property of the Ministry of transportation and communications and the Liner Ltd (owned by Aimani Kadyrova in 2011-2015). Since 2012, the Grozny Avia has received 120.8 mln rub via the state contracts.

Since 2010, the airline has been lossmaking and in 2015 its operations were suspended. In 2016, the federal aviation safety watchdog Rosaviatsiya revoked its certificate from the Grozny Avia.

The Grozny airline had been the first which opened routes to Simferopol after Crimea incorporation into Russia. After that, the government had transferred to the airline 87.7 mln rub in 2014 to cover the losses.

In 2007-2014, the foundation owned the Lider Auto company which had later been transferred to the Grozny-City Ltd and Bai-ali Edilgireev, who also owns the Toyota Center Grozny.

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The Lider Auto has received 141 state contracts on 71.4 mln rubles.

Construction capital

In 2007, the foundation established the MegaStroiKomplekt Ltd (in  2012 renamed the MegaStroiInvest). Until recently, it had been managed by Muslim Zaipulayev. In 2016, he was appointed the Construction minister of Chechnya and the MegaStroiInvest’s acting director had become Ruslan Saidov.

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During five years, the MegaStroiInvest has earned 2.9 bln rubles, the latest tenders it wan was on Feb 28, 2017 on road construction, seismic protection, house building.

In 2009, the foundation established the Arena City Ltd. Six years later, the company was renamed the Grozny-City and changed its owners. The key beneficiary of the reorganized company has been Movsadi Alviyev.

He also owns several other construction companies which have received lucrative contracts from the Kadyrov foundation.

One of them, the City-Stroi, formally belongs to Magomed Musayev and the BVI-registered  Lortina Assets Limited.

Alviev also has been engaged in construction of the international training center for special troops. The project must be completed in Gudermes in 2018.

The center is being built on the land rented by the Master multifunctional sport training center of Alexei Chudanov. His company has been registered at the same address as the Kadyrov foundation.

Kadyrov’s laundromat

In 2013, the Construction ministry of Chechnya contracted the Slovenia’s Omnia Arhing company to build a brick-making plant in Grozny. Chechnya had paid 5.5 mln euros to the company.

The Omnia Arhing was invited to the tender by the City-Stroi managed by Movsadi Alviyev. The project subcontractor was the Rosslav company of Gela Valiev. He and the Slovenian firm’s director Stefan Scek co-own the GS Group dealing with construction and forestry materials trade.  The GS Group has been also registered at the Kadyrov foundation’s address.


In 2017 it became clear that the Omnia Arhing has been receiving  fund on its accounts in the Slovenian NLB bank not from the Construction ministry but from the British shell companies Ronida Invest LLP (2008-2015)  and Drayscott Overseas LLP (2013 - 2015). The British firms had been the key participants in the Laundromat money-laundering scheme which was used to withdraw $22 bln from Russia.

At all frontlines

Alihan Dergizov obtained the university diploma in 2006. The next year, he had become the head of the Chechen Mineral Waters Ltd established by the Kadyrov foundation. The same time, Dergizov managed the Arena City (Grozny City).

The water enterprise employs the staff of 258. In 2015, the enterprise earned 515.7 mln rub. Ramzan Kadyrov has been a frequent guest at the plant which provides water to Grozny city hall, the plant’s only client.

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Alihan Dergizov and Ramzan Kadyrov

Nine years ago, the Iceberg refrigerating facility was launched in Grozny. The construction was initiated by Ramzan Kadyrov and the Kadyrov foundation had financed the project it now owns.

In the Stavropol region the foundation set up the Zolotoi Kolos company dealing with foods trade. The company was closed six years ago. Its head had been Galina Amhadova, who has been owned one more company since 2015, the Procion Ltd, in Grozny. For two years, the company has struck 110 state contracts on 155.8 mln rub.

The Procion supplies foods, furniture, medical drugs to the pre-school facilities, organizes city events.

In 2016, the Procion wan seven tenders announced by the Chechnya’s Youth ministry worth 5 mln rub.

In 2016 too, the Procion received 1.5 mln rub for running field research in the interests of the Ministry for natural resources and environmental protection.

Meanwhile, the company’s owner has evaded taxation in the last two years. The criminal case has been opened over the taxpayer’s failure to pay 8.4 mln rub.

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