2018 FIFA World Cup, Black Sea, Caspian Sea, Caspian Venture Capital Fund, Daghestani oligarchs, Diamond Foundry, embezzlement, FESCO, Magomedov, Makhachkala, Novorossiysk, Novorossiysk Commercial Sea Port, oil, Russian Black Sea Fleet, Russian oligarchs, Russian ports, Russian rail, RZD, Summa Group, Syria, Syrian Express, Syrian War, TransContainer, Transneft, Transneft pipelines, Uber, Virgin Hyperloop One, Ziyavudin Magomedov
A Russian oligarch was arrested on Saturday. Why? One logical guess would be so that Russian State owned Transneft could expropriate Magomedov’s port assets in Novorossiysk either without compensation, or at a discount rate. Putin’s deal-making at work? There could be something else that Putin wants from him. For instance, it has been speculated that Russian mobster Semion Mogilevich was arrested for tax evasion so that Putin could obtain compromising information on Hungary’s PM Orbán. And, that this information was handed to Putin in exchange for Mogilevich getting out of jail. Mogilevich was arrested in Moscow on January 24, 2008, and was released on July 24, 2009. https://miningawareness.wordpress.com/2017/03/19/fbi-doc-mogilevich-org-tied-to-tochtachunov-genovese-all-tied-to-trump-at-least-indirectly-mogilevich-org-planned-to-dump-waste-at-chernobyl-too Enforcement in Putin’s Russia is reportedly selective. Thus, guility or innocent, there is probably at least one other reason for this arrest, than those stated.
Magomedov has investments in Uber and other US assets.
Perhaps it is related to this? “Novorossiysk is the home of the naval base of the Russian Black Sea Fleet, which is serving as the loading point for the “Syrian Express”, that is military equipment destined for Syria“. See: https://informnapalm.org/en/in-a-hybrid-way-why-russia-was-preparing-to-ship-equipment-in-un-livery-from-novorossiysk; “War in Syria: Russia Paved Its Way to the Ground Operation Through the Sea. Infographics“: https://informnapalm.org/en/dec02-war-in-syria ; https://informnapalm.org/en/?s=syrian+express
Official reason for arrest:
“Russian tycoon Magomedov arrested on embezzlement charges
Posted:Sat, 31 Mar 2018 20:34:27 -0400
MOSCOW (Reuters) – Russian authorities on Saturday arrested billionaire Ziyavudin Magomedov on charges of embezzling more than $35 million, in one of the highest-profile prosecutions of a Russian tycoon in years. http://feeds.reuters.com/~r/reuters/businessNews/~3/J4TBDaDARoY/russian-tycoon-magomedov-arrested-on-embezzlement-charges-idUSKBN1H70A2
Magomedov is the main owner of Summa investment group: https://en.wikipedia.org/wiki/Ziyavudin_Magomedov According to Bloomberg, Summa and Russian State owned Transneft “have been in a long-running dispute over control of Novorossiysk Commercial Sea Port.” Transneft’s management was ordered by the board to “reach a deal with Summa under ‘acceptable conditions“. See: “Russia Detains Tycoon Magomedov Over Suspected Fraud” By Scott Rose March 31, 2018, 10:53 AM EDT Updated on March 31, 2018, 12:54 PM EDT https://www.bloomberg.com/news/articles/2018-03-31/russia-detains-transport-tycoon-magomedov-for-suspected-fraud Old
Putin friend from Putin’s KGB days and Warnig’s Stasi days, Matthias Warnig serves on the Transneft Board: Matthias Warnig has been Managing Director of Nord Stream 2 AG (Switzerland) since September 21, 2015. He has also been a Member of the Board of Directors of Transneft since July 24, 2015; Chairman of the Administrative Council of GAZPROM Schweiz AG since May 1 2011; Vice-Chairman of the Board of Directors, Rosneft, since July 1, 2014; Chairman of the Board of Directors of United Company RUSAL Plc since August 2012. From October 1, 2010 to August 26, 2015 he was a Member of Supervisory Council of Verbundnetz Gas AG (Germany). He held many senior positions in Dresdner Bank. https://miningawareness.wordpress.com/2018/02/12/navalny-video-about-russian-oligarch-kremlin-official-bribery-and-trump-campaign-link-now-banned-in-russia/
Based on reporting from Kommersant (26 Feb. 2018), Russian State owned Transneft is currently buying Summa’s stake in Novorossiysk Commercial Sea Port (NCSP, NMTP), valued at 40.5 billion rubles (709 million US$). It has been speculated that Summa may be getting rid of its Russian assets. Alternatively, Summa may use money from the sale to purchase the controlling shares of TransContainer (intermodal container operator) of which it owns 25.07%, it has been observed. Russian State owned railway operator RZD is selling its 50% plus 2 shares in Transcontainer. Summa might also use the money for FESCO transportation company, another of its assets, it has been suggested. According to Reuters, 31 March 2018: Through Caspian Venture Capital fund Zyavudin Magomedov is invested in ride service Uber; the Diamond Foundry (synthetic diamond maker) and Peek. Magomedov is co-executive chairman of LA tech firm Virgin Hyperloop One.
TransContainer is another important asset held, in part, by Magomedov.
“In 2016, more than 80% of Russia’s crude oil and condensate exports were seaborne. However, regardless of the ultimate mode of transport, most of Russia’s crude oil exports must traverse Transneft’s pipeline system, either as a direct route to reach bordering countries or to reach Russian ports. Russia’s state-owned Transneft holds a near-monopoly over Russia’s pipeline network, although some smaller volumes of exports are shipped by rail and on vessels that load at independently owned terminals.” https://www.eia.gov/todayinenergy/detail.php?id=33732
Less than two years ago, Magomedov was trying to gain control of another port, discussed below.
“Struggle Under Way For Control Of Strategic Russian Port
August 13, 2016 12:19 GMT, by Liz Fuller
For the past several years, the volume of goods and crude oil shipped through the commercial port of Makhachkala on Daghestan’s Caspian coast has been declining, from 4.8 million tons in 2010 to 3.8 million in 2015 and 1.6 million in the first six months of 2016. Yet notwithstanding that decline, a cutthroat competition is under way for control of the state-owned port, which is scheduled for privatization by auction before the end of this year.
Initially, the two protagonists in that struggle were Daghestani oligarchs Ziavuddin Magomedov and Suleyman Kerimov. In recent weeks, however, Daghestan’s leadership has reportedly begun talks with a third potential buyer.
Rival interest groups within the Russian government may also have designs on the port, which is the only Russian deep-water port on the Caspian that is not closed by ice for part of the winter.
First Deputy Minister for the North Caucasus Odes Baysultanov is lobbying for its transformation into a major transport and logistical hub, while the independent Daghestani weekly Chernovik reports that the Russian Defense Ministry may seek to appropriate at least part of the infrastructure as a base for the Caspian fleet.
Magomedov, 47, is an Avar who heads the Summa investment group, which focuses on port logistics, engineering, highway construction, and oil and gas transportation, both in Russia and abroad. Last year he was considering investing in an oil terminal in Rotterdam; in June 2016 Summa and Hyperloop One signed an agreement with the city of Moscow to explore the possibility of a high-speed passenger transport system for the Russian capital. Magomedov is close to Daghestan’s influential mufti Akhmad-hadzhi Abdulayev…..” Copyright (c) 2018. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave NW, Ste 400, Washington DC 20036. Read the rest here: https://www.rferl.org/a/caucasus-report-cutthroat-competition-makhachkala-port/27919418.html (Emphasis our own.)