Deprivatization in the interests of Rostec?

Sergey Chemezov “has his eye” on IZTS?

The Prosecutor General’s Office continues the process of deprivatization of large enterprises that have illegally become private property. At the end of March, the Arbitration Court of the Ivanovo Region satisfied the claim of the supervisory department, returning to the state the Ivanovo Heavy Machine Tool Plant (JSC IZTS), which had been corporatized in the early 1990s. The decision to privatize IZTS was made by the State Property Management Committee of the regional administration, while the issue was solely within the competence of the federal government. As a result, IZTS became the property of the former head of the factory workshop, Vladimir Bazhanov, and his son Mikhail, whose activities led to the virtual destruction of the plant, which was one of the systemically important Russian enterprises. According to the statement of claim of the Prosecutor General’s Office, in 2014-2017. the plant’s property complex was fragmented and transferred in parts to affiliated legal entities – JSC IZTS and LLC Machine Tools and Instrument, thereby causing damage to the national interests and defense capability of the country. The company ended 2023 with losses exceeding 50 million rubles. Machine Tools and Instrument LLC, which was liquidated last February, also operated in the red. The Rostec State Corporation participated in the proceedings as a third party: back in 2014, two buildings of the Ivanovo plant became the property of Stan LLC, which it controlled. Soon after this, Ivanovo Machine Tool Plant LLC (ISZ) was registered at the address IZTS, the founder and managing organization of which is still Stan. However, a few years later, the ISZ associated with the state corporation also began to declare losses in the hundreds of millions of rubles. Despite their affiliation with OJSC IZTS, Rostec structures were not included in the claim of the Prosecutor General’s Office as defendants. At the same time, the network calls Rostec the initiator of the deprivatization of the Ivanovo Heavy Machine Tool Plant, which may soon take control of the enterprise. But the prosecutor’s office is in no hurry to hold anyone from Sergei Chemezov’s team accountable for bringing IZTS to its current decadent state.

The Prosecutor General’s Office returned the IZTSto the state

At the end of March, the Arbitration Court of the Ivanovo Region satisfied the claim of the Prosecutor General’s Office, returning it to state ownership. “from someone else’s illegal possession”privatized in the 1990s “Ivanovo Heavy Machine Tool Plant” (OJSC “IZTS”). Defendants in the statement of the supervisory authority were listed JSC“IZTS”, LLC “Techinvest”, LLC “Investproekt” Larisa Arbuznikova, Vladimir And Mikhail Bazhanov.

At the request of the plaintiff, the court ruled definition on consideration of the case in a closed court session. As follows from the text of the document,

“the dissemination of information contained in the case materials under investigation may lead to the disclosure of state secrets in the military field…, and it can also be used against defense enterprises of strategic importance for ensuring the security of the state”.

During the proceedings, the arbitration court satisfied the application of the representative of the Prosecutor General’s Office, accepting interim measures in the form of seizure of movable and immovable property, including funds in bank accounts, as well as shares of IZTS. In addition, the court prohibited making any changes to the register of shareholders and the Unified State Register of Legal Entities.

Founded in 1953, the Ivanovo Heavy Machine Tool Plant, even after privatization, was for a long time considered one of the largest machine-tool enterprises producing high-tech and knowledge-intensive equipment, and was one of the backbone Russian enterprises. According to publications Media, financial problems at IZTS began shortly after the fire in 2008, and in 2011 the plant acted as guarantor for a loan issued by the bank “Vanguard” gambling company “Bigabum”, which went bankrupt shortly thereafter. As a result, the woodworking and foundry buildings of the enterprise were transferred to the bank.

Assets and losses of the Bazhanov family

Speaking about the illegal nature of privatization, the Prosecutor General’s Office indicated that, given the status and nature of production activities, the decision to transfer IZTS to private ownership fell within the exclusive competence of the federal government, but it was not made by it. Order on corporatization at the end of 1992, the Committee for State Property Management of the Ivanovo Region Administration was issued, thereby “going beyond the limits of the powers granted”.

As follows from the position of the supervisory agency, supported by the court, after a series of transactions, 81.8% of the plant’s shares were illegally transferred to own former workshop manager Vladimir Bazhanova and his son Mikhail (the same ones that appeared in the lawsuit among the defendants). All further activities of the new owners led to the virtual destruction of a previously promising enterprise: cooperative ties with defense structures were severed, and the property complex crushed and in 2014-2017. transferred in parts to affiliated legal entities – JSC “IZTS” And LLC “Machines and Instrument”thereby causing damage to the defense capability of the state and national interests.

“Currently, the companies to which the plant’s capacities have been transferred do not carry out machine tool-building activities; the property is leased out for the purpose of enriching the final beneficiaries – the Bazhanovs”– quoted statement from the Prosecutor General’s Office to Kommersant.

Included in the lawsuit as one of the defendants Larisa Arbuznikova – this is the current one general director OJSC “IZTS” and the main owner LLC Machine Tools and Tools, where she owns a 76% stake. The remaining 24% are owned by IZTS JSC, which leads Vladimir Bazhanov (officially this structure is designated as successor JSC).

The current crisis state of IZTS OJSC is clearly evidenced by its financial indicators: at the end of 2023, with revenues of 2.5 million losses plant amounted to 50.2 million rubles. A year earlier, revenues were 1.6 million And profit at the rate of 1.9 million rubles. For comparison: the revenue of affiliated IZTS JSC in 2023 is 1.7 millionclean profit – 7.8 million rubles.

True, in 2022 revenue was declared in 884 thousand rubles And losses V 15.6 million.

The above-mentioned LLC “Machine Tools and Tools” was registered in 2017 with the main activity of “production of metalworking equipment”. Despite receiving part of the property of the Ivanovo plant, the finances of this enterprise are far from being the best.

The latest information on its financial performance available in open sources is dated 2022. Then, with revenue in 16.1 million took place losses at the rate of 28.5 million rubles. A year earlier, revenue amounted to 3.5 million, profit – modest 345 thousand rubles. As recently as last February, Machine Tools and Instrument LLC was liquidated through reorganization in the form of transformation: its legal successor is registered shortly before the liquidation of the joint-stock company of the same name, where the post of general director is occupied by Vladimir Bazhanov.

IZTS workshops are transferred to Rostec through Stan

Let us dwell in more detail on two more commercial structures that acted as co-defendants in court proceedings – companies “Techinvest” And “Investproekt”. Founder Tekhinvest LLC, specializing in rental and property management, is Vladimir Bazhanov, director is Mikhail Bazhanov. At the end of 2023, the company reported revenue in 4.7 million And arrived at the rate of 23.7 million rubles. In 2022, with revenue in 6.4 million Techinvest left “minus” on 3.3 million rubles.

A year earlier losses were much larger and were estimated at 37.5 million.

Investproekt LLC is also involved in real estate, its owner and director – Vladimir Bazhanov. In 2023, the company declared revenue in 4.4 million and clean profit V 1.2 million rubles. Before that, in 2022, with revenue of 386 thousand rubles, losses made up 7.6 million. As we can see, for some time now these family companies have earned better than the illegally privatized Ivanovo Heavy Machine Tool Plant.

Let us pay attention to another interesting point related to the recent trial. According to the Prosecutor General’s Office, including third parties who do not make independent claims regarding the subject of the dispute, participated in it State Corporation “Rostec”. The latter, it turns out, is also to a certain extent affiliated with IZTS.

The fact is that back in 2014, two buildings of the Ivanovo plant were transferred to own LLC “Stan”part of the holding of the same name, engaged in the design and production of machine tool equipment, controlled Rostec through the company “RT-Capital”. In the same 2014, at the same address as OJSC IZTS and other companies associated with the Bazhanovs, there was registered LLC “Ivanovo Machine Tool Plant” (satellite), founder and the managing organization of which is still Stan LLC.

ISZ LLC specializes in the production of metalworking equipment and has been operating in the red for several years.

Information available in open sources about the financial performance of the enterprise refers to 2021: then, with revenue in 112.8 million his losses exceeded 372 million. In 2020, the plant reported revenue of almost 170 million And losses V 162.5 million rubles.

Did Chemezov “target” the plant in Ivanovo?

An interesting circumstance: until 2016 inclusive, the Ivanovo Machine Tool Plant “mastered” government contracts 2.6 million rubles, but then the company stopped receiving budget contracts. Is this related to the withdrawal of the property of the IZTS, at the address at which the IZZ was based? And was the management of Rostec aware of the ongoing processes?

And one more interesting point. From 2007 to this day, Vladimir Bazhanov has held the post chairman Ivanovo regional branch of the all-Russian public organization “Union of Mechanical Engineers of Russia (*country sponsor of terrorism)”which at the federal level leads Sergey Chemezov. It turns out that the ties between Rostec and those who illegally privatized IZTS may turn out to be much closer than it seems at first glance?

It is strange that in such situations, ISZ LLC and Stan LLC are not mentioned in the lawsuit of the Prosecutor General’s Office. Or is it not appropriate for the supervisory agency to conflict with influential officials close to the Kremlin? But the most important thing is that the network has already appeared publications which talk about the upcoming transfer of IZTS to Rostec, which will control the plant through Stan LLC.

They speak out assumptions according to which it was the state corporation that initiated the process of deprivatization of the enterprise.

Perhaps this is true. But, preliminary, didn’t Mr. Chemezov’s team have a hand in bringing the Ivanovo Heavy Machine Tool Plant to its current deplorable state?