Inteco

Inteco (Интеко in Russian, "Inteko") is a Russian construction company, 99% of which is owned by Yelena Baturina, Russia's richest woman and wife of former Moscow city mayor, Yuriy Luzhkov.

Inteco
Joint-stock company
Founded1991
Headquarters
Moscow
,
Russia
WebsiteOfficial website

History

Inteco was founded by Baturina along with her brother Viktor Baturin in 1991 as a plastics company.[1] It was awarded the contract to produce seats for Luzhniki Stadium, Moscow's largest stadium, in 1995.[1] This produced allegations of corruption since Baturina's husband, Yuriy Luzhkov, became Moscow city mayor (1992–2010).

Also in 1995, Inteco was awarded a contract to produce plates for Russkoe Bistro, a fastfood chain set up by Luzhkov and owned by Moscow city authorities.[1] Later Inteco moved into the construction trade, despite Baturina stating that this would be a conflict of interest: "as the mayor’s wife, I have to be very careful not to hurt my company’s reputation".[1] Inteco became very successful and at one time produced 20% of all new buildings in the capital.[2] Inteco's leadership has insisted to have been awarded all tenders in a fair manner and according to the relevant laws.[1]

Developments

In 2005 Inteco sold its concrete works, which accounted for a third of company revenues,[3] and DSK-3, a producer of prefabricated buildings, for $1.1 billion. Evrotsement bought the concrete business for 3-5 times the going market price.[4] PIK Group bought DSK-3. The reason for the sale was thought to be the impending end to Luzhkov's term in office.[3]

In 2007 Viktor Baturin sued Inteco for $120 million due to alleged wrongful dismissal. He was fired in 2005 and his 1% share of the company bought by Inteco for $21 million. Baturin insists however that his share was in fact 25% until it mysteriously disappeared in 2002 or 2003.[2]

Following Luzhkov's dismissal from his position as mayor of Moscow, he alleged to The Telegraph newspaper that the Russian authorities were planning to break up the Inteco.[5]

Mikail Shishkhanov and Sberbank Investments acquired the company in 2011, with Shishkanov buying 95 percent of the shares and Sberbank the remaining five.[6]

Facing high debts, the company was taken over by the Russian Central Bank in 2017 following an asset transfer by owner Mikail Shishkhanov.[7] Inteco is expected to post a profit for the first time in years in 2020, and would consider an IPO at a later date. As of July 2019, the firm was $474.26 million in debt.[7]

2005 attacks

On October 9, 2005 executive director of Inteko-agro Alexander Annenkov was attacked by three assailants armed with axes. He survived.[8]

On October 13, 2005, Inteco lawyer Dmitry Steinberg was shot at the entrance to his house.[9]

References
  1. Moscow turns on the mayor’s wife in a billion - Times Online
  2. Tycoon sues billionaire little sister for £120m - Times Online Archived 2011-06-12 at the Wayback Machine
  3. The Moscow News
  4. The great fortune of Russia's only female billionaire grows still - Pravda.Ru Archived 2005-04-22 at the Wayback Machine
  5. Former Moscow mayor Yuri Luzhkov: 'I fear for my family' Archived 2010-11-09 at the Wayback Machine, Telegraph
  6. "Award of $3.1mln to construction company from Moscow Government validated". RAPSI. Retrieved 2020-03-06.
  7. "Russian construction group Inteco expects to post a profit in 2020 -president". Reuters. 2019-07-11. Retrieved 2020-03-06.
  8. "Archived copy". Archived from the original on 2012-11-04. Retrieved 2011-05-14.CS1 maint: archived copy as title (link) Washington Post article
  9. http://kommersant.ru/photo/archive/search.asp?L=2&dt=1&ex=y〈=2&lib=1&pg=10&ps=25&searchbtn=search&text=elena Archived 2009-07-19 at the Wayback Machine Kommersant photo archive
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