Former Sberbank CIB analyst Alexander Fack responded to German Gref

According to Alexander Fack, a report on how Gazprom contractors are cashing in on corporations was the result of painstaking work. And German Gref himself hardly read it, because the report has not yet been translated into Russian.
The former analyst of Sberbank CIB Alexander Fack, dismissed for the report on Gazprom, disagreed with the charges brought against him by the company in unprofessionalism. The scandalous report, in which the main beneficiaries of Gazprom's large construction projects were named its contractors, is the result of painstaking work, which took about a month, says Fack. This is stated in his letter to the editorial board of Vedomosti. According to him, the main time was spent on the calculation of financial models of Gazprom's projects, and the purpose of the study was to forecast the parameters of the future investment program of Gazprom.

Closed report on Gazprom Fack and another analyst of Sberbank CIB - Anna Kotelnikova released in early May. Among the main beneficiaries of the construction of the "Siberia Power", "Nord Stream-2" and "Turkish Stream" gas pipelines, contractors Gazprom-Stroygazmontazh Arkady Rotenberg and Stroytransneftegaz (about 50% owned by Gennady Timchenko and his family) were named.

On Tuesday, May 22, it became known about Fack's dismissal. The head of Sberbank CIB, Igor Bulantsev, told Vedomosti that day that "strict compliance procedures" exist in the company and each employee is obliged to comply with them. Fack's report he called "unprofessional" and "executed with obvious violations of not only the company's internal regulatory documents, but also with violation of ethical standards." According to Bulantsev, Fack agreed with the arguments of the employer and left the company. Following Fak "Sberbank CIB" left its head - Alexander Kudrin, who headed the analytical division of the company. Kudrin was dismissed by agreement of the parties, the bank's press service said, without specifying the details.

The report of the investment division had to comment on the president of Sberbank, German Gref. The actions of the analyst and those who allowed the release of the report, he called unprofessional. Therefore, "Sberbank CIB" with them broke up, he added. Gref also called Timchenko to apologize for the report and notify the dismissal of those responsible, Timchenko himself told The Bell at the St. Petersburg forum. "Personally, I do not care, I do not ... read it," Timchenko replied to the request to comment on the report.

Fack, in a letter to the editorial board of Vedomosti, pointed out that he did not agree with the findings of the former leadership on his report. The analyst expressed the hope that those who read his report "will agree that he is built consistently and the arguments are laid out logically." "I do not know what prompted Messrs Bulantsev and Gref to make the statements cited in the article. Probably, they were simply misdirected, and they could not read the report itself, since it had not yet been translated into Russian, "concluded Fack.

The representative of "Sberbank CIB" in response to a request to comment on the words of Fack sent a comment Bulantseva, circulated on May 22 after the news about Fack's dismissal. The representative of the Savings Bank declined to comment.

The investment banks, with which Vedomosti wanted to discuss the quality of Fake's report, refused to do so. "It is not customary for investment banks to fire their own analysts for their investment opinion," said a member of one of the financial groups who asked not to be named.

"In my understanding, this is a very serious precedent that requires reflection," Kirill Tremasov, director of the analytical department of Loko-Invest, wrote on his Facebook page. In his view, what happened is the result of a low corporate culture and an underdeveloped institutional environment. "In a developed institutional environment, Gazprom's hypothetical claims to Sberbank would have been impossible in principle and would immediately become a reason for the analysis of flights by the regulator and, possibly, the prosecutor's office," Tremasov said. In his opinion, this story undermines the confidence of institutional investors in Sberbank's research and threatens the brokerage business of the bank.