Underground Wars: how billionaires fight for the contracts of the Moscow metro

Iskander Makhmudov and Andrey Bokarev were called the "Kings of public procurement" by Forbes in 2015. How did they win the largest of their contracts?
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Fourteenth November 2014 Office of the Federal Antimonopoly Service of Russia has registered the joint statement by three very serious companies. Canadian engineering giant Bombardier, «urban transport solutions" group "Sinara" Dmitry Pumpyansky and favorite company of Vladimir Putin "Uralvagonzavod" complained about the State Unitary Enterprise "Moscow Metro". The main carrier of the capital, announcing a tender for procurement of 768 wagons and thirty years of service, and set the conditions: metrovagonov current production in the world, operating at least five years, and the availability of net profit of not less than 1 billion rubles for the last three year. An additional plus was the presence of his own design bureau with experience of developments in the field metrovagonostroeniya and localization in Russia for three years. All these requirements correspond to only one manufacturer - "Transmashholding" Iskander Makhmudov. Others estimate the subway could not - no one but the TMX is not applied.

Two weeks later, the FAS stated that "signs of irregularities" in the bidding documents "Moscow Metro", but did not cancel the tender. First in December 2014 "Transmashholding" was awarded the contract for the supply of cars and their maintenance for 30 years, the cost of 130 billion rubles. A similar contract for 30 years, but for the amount of 144 billion rubles, and the supply of 832 cars was in early 2014, part of the holding "Metrovagonmash".

But Makhmudov with partners (the largest - Andrey Bokarev) did not stop there. December 29 "Central Suburban Passenger Company", in which it holds 50% minus two shares, won another tender for the capital cost of 56.9 billion rubles - for the carriage of passengers being built on the small ring of the Moscow railway. After starting the movement of the company will receive 3.79 billion rubles a year for 15 years. To this we must add 150 billion rubles, which "Transmashholding" will receive from tenders won in 2014 for the supply and maintenance of locomotives for Russian Railways in 1008.

All companies in which the Iskander Makhmudov, one way or another is a shareholder, according to Forbes estimates, obtained in 2014, state orders worth more than 500 billion rubles. <br />
Of these, 80% were non-core to the founder of the Ural Mining and Metallurgical Company and "Kuzbassrazrezuglja" areas - engineering and transport.

Mahmudov transport engaged in the early 2000s, after together with Andrei Bokarev established control over "Kuzbassrazrezuglem". Mined in the mines of coal transported from the Kuzbass for export through the Port of Tallinn by Sergey Glinka Estonian entrepreneurs Maxim Liksutova 154 and 157. Although the latter was 10 years younger partner, it was he who ran the business, and Glinka has always kept a low profile. "They worked in rail transportation and son Aksenenko (Rustam, son Aksenenko, who headed in 1999-2002 the Ministry of Railways -. Forbes), then they took some conflict and seriously complicate relations with Aksenenko Sr., after which they Iskander came to with a proposal to establish a joint shipping company, which, strictly speaking, did "- says one of Makhmudov friends. Since the transport market appeared "Transgroup". Makhmudov, according to him, trying to stdit conflict, "asks Aksenenko which the claim is to Maxim, the claims were not, but to improve relations still could not."

Strained relations with the head of the railway ministry and the complete dependence of the work "Transgroup" from the Ministry of Railways, which determined the private operators freight rates, retarded development of the company (in 2004, the IPU was disbanded, some of its powers transferred to RZD). Solve the founders' Transgroup "issue tried by creating a monopoly for monopoly.

Consolidation of the main Russian producers of rolling stock could make ICS compliant. In 2002, the partners in the "Transgroup" registered company "Transmashholding", which began buying manufacturers of cars and locomotives across the country. Freight transport by rail grew wagons lacking.

"We analyzed the state of the locomotive and rolling stock Railways have realized that they will have nowhere to go, we will have to buy, will be forced to buy, - says one of the partners of Iskander Makhmudov. - Buying up cheap plants were in debt and without orders, we they actually got the gift. "

By 2006, "Transmashholding" included 10 engineering companies (currently 16 plus one profile SRI). The degree of influence on the Russian Railways was such that in 2007 the railway monopoly purchased 25% + 1 share in "Transmashholding", two years later the same package acquired the French Alstom. Now holding Railways delivers products at $ 2-3 billion per year, revenues on the basis of 2014 amounted to about 150 billion rubles.

Cooperation with Russian Railways grew stronger with time. In 2008, Russian Railways bought 50% of the company "Aeroexpress" (a joint venture co-owners "Transgroup" and Sheremetyevo airport managing firm trains between the airports of the Moscow aviation hub and Moscow). In 2009, Russian Railways and Property Committee of the Tver area created together with the shareholders' Transgroup "(25% + 1 share) Moscow-Tver Suburban Passenger Company. In the autumn of 2011 "Transgroup" structures acquired from Moscow government a blocking stake in the Central Suburban Passenger Company and alternations year increased their share to nearly 50%.

Why Iskander Mahmudov got into the business subsidized commuter rail? "We saw this as a major in the future of the consumer and the customer's production of" Transmashholding ", - says one of the partners Mahmudova. - In addition, there can be developed a lot of businesses. Take control of a huge flow of people, there passes 450 million people a year will be 600-700 million! This is a huge opportunity for trade and public catering, and payment systems. For a long time to enumerate all possible. " All this is implemented in the "Aeroexpress" electric trains in which there is a trade snacks and beverages in the terminal there is a point of catering, ATMs, retail space, advertising media.

In March 2011, by Aeroexpress swept Prime Minister Vladimir Putin, accompanied by the Minister of Transport, the head of Russian Railways and Moscow Mayor Sergei Sobyanin.

Modern trains and debugged work of the enterprise is so impressed with the mayor, that in a month he appointed the CEO and co-owner of "Aeroekspresand "Maxim Liksutova his adviser, in December - the head of the Moscow Department of Transportation and Development of road transport infrastructure.

And in September 2013 - Deputy Mayor in charge of transport development program with a budget of 2.2 trillion rubles (purchase of new cars for the metro, the organization of passenger traffic on the small ring of the Moscow railway, the renewal of public transport).

A conflict of interest became apparent. In September 2012 Maxim Liksutov sold its stake in "Transmashholding" partners and stake "Aeroexpress", as he said himself in the air of radio "Echo of Moscow", gave his ex-wife Tatiana in the process according to the division of property (to comment for this article Liksutov refused).

In 2013, the income of "Aeroexpress" amounted to 5.5 billion rubles (transported about 17 million passengers), the company's revenues from "other activities" (advertising, trade, commercial use of space in the terminals, and others.) Increased by 217%, to 200 million rubles. Much greater benefit "Otherie activities "can bring Central PPK, which in 2014 carried 600 million passengers (revenue - 32 billion rubles). Based on the indicators of "Aeroexpress", we can talk about additional revenue of $ 7 billion a year. The company in August 2014 received from the Railways for rent 2500 platforms in the area of ​​its activities and is now responsible for their content, maintenance of all equipment and maintenance. Nothing prevents to realize and commercial component of the project. According to Director General of the Central PPK Mikhail Khromov, in a company think about it, but the plan has not yet built.

Still about 300 million passengers a year will add Central PPK transportation on the small ring of the Moscow Railway, won on the tender "Moscow Metro". Besides Central PPK was attended by Russian Railways and the Moscow-Tver Suburban Passenger Company. None of the results of the losers are not contested.

However, competitors are humbled and "Transmashholding". Speaking about the results of the tender for the supply of cars for the Moscow underground in an interview with RBC, General DirKtorov "Uralvagonzavod" Oleg Sienko said that "this lot in modern conditions definitely had to give a purely Russian manufacturer. And time has shown that this step was correct. " The plant was going to go to the competition to design the development of Bombardier, has not yet been implemented in production in Russia, "Sinara" - wagons with Spanish CAF.

The production of "Transmashholding", says a representative of the company Artem Ledenev, components of foreign origin a bit and they are replaceable. There were other reasons why the manufacturers of imported cars (from the devaluation can not escape) dropped out of tenders for hundreds of billions of rubles.

On hand of Iskander Makhmudov has played one more thing - almost all Western companies are not ready to transfer to the Russian partners the know-how in software and engine manufacturing.

In a situation of political tensions rise fears of government departments about the unknown "bookmarks" in the software, too, have become an essential factor when choosing acontractor.

But that's not all. "The contract prescribes a rate of 8.25%, according to which producers reimbursed the cost of credit interest for the production of cars, - says the official of the Moscow government. - One participant was planning to take a loan in Germany, in the export-import agency "Hermes", the other - in the Export-Import Bank of Canada by 1-2%. Crimea has not happened yet, all of them arranged. When the West was impossible to borrow, they demanded a raise in the contract to 18.7%, which would increase the cost actually 2 times. "

The owners of "Transmashholding", he said, also complained about the crisis and asked the Moscow city government to improve the conditions of the contract: the holding of import completing about 20%. He refused: "The crisis will last two years, and the contract - 30 years". But in December 2014 Russian Deputy Industry and Trade Minister Andrei Dutov said that the ministry is ready to support the request of management "Transmashholding" on state support in the form of a partial interest subsidy on loans for poizvodstva and supply of cars for the Moscow metro.

"As far as we know, money they have not yet received, - says Moscow official. - TMX owners, of course, welcome. Got a long term contract, when there is no money for anybody. "

However, instead found themselves burdened with the responsibility for non-fulfillment of the contract with the giant penalties (for non-delivery wagons fine for two contracts of about 10 billion rubles), and blacklisted suppliers Moscow, if something goes wrong.