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{{Short description|Russian conglomerate company}}{{Other uses}}

factoids

>{{lse|SSA}}}}Vladimir Yevtushenkov {{Small}}| industry = ConglomerateTelecommunicationsBanking>Real EstateRetail>Media (communication)>TourismSpace Technology>Health care>Biotechnology}}revenuerevenue|ref}}revenue|year}}operating_incomeoperating_income|ref}}operating_income|year}}net_incomenet_income|ref}}net_income|year}}assetsassets|ref}}assets|year}}equityequity|ref}}equity|year}}| num_employees = 70,000Mobile TeleSystemsMoscow City Telephone Network>SkyLinkMTS India>Sitronics}}www.sistema.com}}}}AFK Sistema PAO is a large Russian conglomerate company, founded by Vladimir Yevtushenkov, who was chairman of the corporation's board of directors until 2022. In April, Yevtushenkov's shareholding in Sistema has decreased to 49.2%, and he also stepped down from Sistema's board.WEB, Ad-Hoc Notice, sistema.com,weblink WEB, Sistema announces decisions of the Board of Directors, sistema.com,weblink Sistema has its headquarters in Moscow. The company's global depository receipts (GDRs) traded on the London Stock Exchange from 2005 until delisting in May 2023.WEB,weblink "Система" провела делистинг с LSE, ru, 2023-05-17, Интерфакс, Has been under US sanctions since November 2023.WEB,weblink Russia-related Designations, Updates and Removal; Counter Terrorism Designation Update; Issuance of Russia-related General Licenses, 2023-11-02, United States Department of the Treasury,

History

In 1993,WEB, In 1993 Sistema JSFC was founded and acquired its first assets, sistema.com,weblink Evgeny Novitsky and Vladimir Yevtushenkov founded the holding company AFK Sistema, also known as Sistema JSFC, to group together several information technology (IT) and cell phone companies including MTS.WEB,weblink Yevgeny Grigoriyevich Novitsky, Bloomberg L.P., Bloomberg, 3 August 2021, 3 September 2017,weblink WEB,weblink Sistema Board Recommends to the AGM to elect three new Independent Directors, AFK Sistema, 31 May 2012, 3 August 2021, 3 September 2017,weblink" title="web.archive.org/web/20170903211132weblink">weblink NEWS, Hoffman, David,weblink In Moscow, Business and Politics Mix, The Washington Post, 19 December 1997, 3 August 2021, WEB,weblink About Sistema: Success Story (history), Sistema website, 3 August 2021, 4 August 2021,weblink {{efn|Novitsky is alleged to be one of the treasurers of the Solntsevskaya Bratva and is very close to Semion Mogilevich.NEWS, Demydenko, Myroslav,weblink Ukraine, Vanco Energy, and the Russian mob, Eurasia Daily Monitor Volume: 5 Issue: 177, Jamestown Foundation, 16 September 2008, 16 September 2021, }}

Structure

Sistema operates a number of consumer service businesses in the areas of:

• IT and telecoms — Mobile TeleSystems, Moscow City Telephone Network, SkyLink, Sitronics (formerly known as 'Science Center Concern'), NIIME, Mikron, STROM telecom.WEB, Феликс Евтушенков увеличивает инвестиции в стартапы,weblink 2023-03-24, CNews.ru, ru,
• Banking — (:ru:МТС Банк|MTS Bank), East-West United Bank
• E-commerce – Ozon
• House-Building and Real Estate — Sistema-Gals till the end of 2010.WEB, О продаже 27,6% "Системы-Галс" АФК "Система" сообщила в пятницу. Покупателями выступили компании Blairwood Ltd. и Stoneflower Ltd, каждая из которых получила по 13,8%. Сумма сделки составила $70 млн., www.kommersant.ru, 6 December 2010,weblink In February 2019, Sistema became the largest shareholder of Etalon GroupWEB, АФК "Система" приобрела 25% акций группы Etalon у семьи основателя девелопера Вячеслава Заренкова. После сделки у нее осталось 5,7% Etalon, а АФК "Система" стала крупнейшим акционером группы, www.vedomosti.ru,weblink
• Retail — Detsky Mir Group until September 2020WEB, АФК "Система" перестала быть акционером "Детского мира": компания продала свою долю почти за 17 млрд рублей, www.forbes.ru, 2 September 2020,weblink
• Media — Sistema Mass Media until 2016WEB, АФК «Система» продаст свои медиаактивы. Уже в начале 2016 года подконтрольная корпорации компания СММ будет преобразована в фонд прямых инвестиций, который займется инвестированием в технопроекты., www.rbc.ru, 25 December 2015,weblink
• Healthcare and Pharmaceuticals — Medsi, BinnopharmWEB, Евтушенков Владимир: "Эпидемия коронавируса — это общая проблема и касается всех без исключения",weblink 2023-03-21, Ридус,
• Agroholding - Steppe () which, according to Forbes in June 2019, is the second largest land bank in Russia. It has holdings in Rostov Oblast and Stavropol Krai.NEWS, Попов, Игорь (Popov, Igor), Ляликова, Анастасия (Lyalikova, Anastasia), Плешков, Максим (Pleshkov, Maxim),weblink Хозяева земли русской: 20 самых дорогих землевладений России. Рейтинг Forbes, The owners of the Russian land: 20 most expensive land holdings in Russia. Forbes rating, ru, Forbes, 17 June 2019, 29 March 2022, 30 March 2022,weblink Alternate archiveNEWS,weblink АФК «Система» уходит в АПК: С 2011 года в российском агропромышленном комплексе появился новый активный игрок - Акционерная финансовая корпорация «Система», которая на протяжении пяти лет непрерывно наращивает своё присутствие и расширяет сферу деятельности в этом направлении., AFK "Sistema" goes to the agro-industrial complex: Since 2011, a new active player has appeared in the Russian agro-industrial complex - Sistema Joint-Stock Financial Corporation, which has been continuously increasing its presence and expanding its scope of activities in this direction for five years., ru, agroxxi.ru, 9 July 2016, 29 March 2022, 31 March 2022,weblink
• Segezha Group, a leading vertically integrated holding company in the timber industry performing a full cycle of operations from logging to advanced wood processing
• Hospitality – Cosmos Hotel Group
• Other businesses — Intourist (Travel Services), until July 2021 RTI Systems (Radio and space technology), Olympic Sistema (Sport)
• Kronstadt Group until July 2021. In addition, in 07.27.2021 AO Kronstadt acquired 80% of the shares of NPP Strela (Research and Production Enterprise, Bykovo, Moscow Region), engaged in helicopter-type UAV work.Блог Missiles.ru - Беспилотные “Стрелы” вертолетного типа. 10.10.2021г.
• The corporation also invests in innovation projects, such as green hydrogen, and venture businesses.

In November 2021, “Sistema” was included in “Khabarovsky Project” (in Khabarovsk Krai) for pilot production of green hydrogen with projected 350 thousand tons per year, according to Ministry of Industry and Trade (Russia).WEB,weblink АФК Система включена в хабаровский проект по производству зелёного водорода, ru, 2021-11-17, Интерфакс,

Interests and subsidiaries

Banking

In February 2005, AFK Sistema owned a 49% stake in East-West United Bank (Luxembourg), which was established in June 1974 as a "daughter" bank of the Central Bank of Russia and is one of the five Russian foreign banks of the VTB network.NEWS,weblink "Дочерние" российские зарубежные банки и сеть ВТБ: доли ЦБ, ВТБ и др., Russian Foreign "Daughter" Banks and the VTB Network: stakes held by Central Bank, VTB, others, compromat.ru, February 2005, 15 July 2021, NEWS, Бирман, Александр (Birman, Alexander),weblink В советских сетях: Нефтедоллары пойдут по проверенным каналам загранбанков, In Soviet networks: Oil dollars will go through proven channels of foreign banks, (:ru:Компания (журнал), Компании Деловой Еженедельник) (ko.ru), 21 February 2005, 15 July 2021, 13 March 2005,weblink NEWS,weblink Les 45 ans d'East-West United Bank célébrés, Celebrating 45 Years of East-West United Bank, fr, paperjam.lu, 19 September 2019, 3 August 2021, 4 August 2021,weblink NEWS,weblink Étienne Schneider élu administrateur chez Sistema, Étienne Schneider elected director at Sistema, fr, (:lb:paperJam, paperJam) (paperjam.lu), 3 July 2020, 3 August 2021, 4 August 2021,weblink {{efn|With the support of Mr. Pierre Werner, who was the Prime Minister of the Grand Duchy of Luxembourg, on 12 June 1974, the East-West United Bank (EWUB) (Luxembourg) was formed with both the State Bank of the USSR or Gosbank and after the end of the Soviet Union, the Central Bank of Russia, and Russia's Foreign Trade Bank Vneshtorgbank (VTB) as the main shareholders from founding until 1992.NEWS,weblink East-West United Bank (EWUB). Our History: Ownership History, East-West United Bank S.A., April 2022, 5 April 2022, 6 April 2022,weblink NEWS,weblink East-West United Bank (EWUB). Our History: Ownership History, East-West United Bank S.A., April 2022, 5 April 2022, 6 April 2022,weblink NEWS, SABIR, USMAN,weblink SUBSIDIARY BANK OF SISTEMA PJSFC: EAST-WEST UNITED BANK IN LUXEMBOURG, International Press Service News Agency (IPS) (ipsnews.net), 14 May 2021, 5 April 2022, 6 April 2022,weblink From 1992 to 2000, Imperial Bank had a major stake in EWUB of 49% and Tokobank held a 28% stake in EWUB in 1998,NEWS,weblink "Дочерние" российские зарубежные банки и сеть ВТБ: доли ЦБ, ВТБ и др., Russian Foreign "Daughter" Banks and the VTB Network: stakes held by Central Bank, VTB, others, compromat.ru, February 2005, 5 April 2022, NEWS, Бирман, Александр (Birman, Alexander),weblink В советских сетях: Нефтедоллары пойдут по проверенным каналам загранбанков, In Soviet networks: Oil dollars will go through proven channels of foreign banks, (:ru:Компания (журнал), ООО Журнал «КО») (ko.ru), 21 February 2005, 5 April 2022, 13 March 2005,weblink but, on 17 April 2000, Imperial Bank was dissolved.NEWS, Юрьев, Виктор (Yuryev, Viktor),weblink ВСЕМИРНАЯ ИСТОРИЯ БАНКРОТСТВ-3: Новое руководство "Империала" возвращается на рынок банковских операций, WORLD HISTORY OF BANKRUPTCY-3: The new management of "Imperial" returns to the banking market, ru, Nezavisimaya Gazeta (ng.ru), 26 May 2000, 5 April 2022, 20 June 2000,weblink" title="web.archive.org/web/20000620083906weblink">weblink Imperial Bank focused on oil and natural gas supplies to East Germany and later to Germany including the oil-for-pipes program.NEWS, Седунов, Александр (Sedunov, Alexander),weblink 25 лет Всемирной Истории с Банком Империал, 25 years of World History with Imperial Bank, ru, Information Agency InterRight, 17 August 2015, 5 April 2022, 23 March 2022,weblink NEWS, leptosis.org staff,weblink Столяренко, Владимир Михайлович, Stolyarenko, Vladimir Mikhailovich, ru, (:ru:Экономическая летопись, АНО «Экономическая летопись») (leptosis.org), February 2020, 5 April 2022, 11 February 2020,weblink" title="web.archive.org/web/20200211023600weblink">weblink With Vnesheconombank managing Soviet debt, Imperial Bank speculated in GKOs but collapsed with the demise of the GKO market following the 1998 financial collapse in Russia. From 2000 to 2007, VTB had a major stake in EWUB. Beginning in 2001, the Vladimir Yevtushenkov led Sistema gained a stake in EWUB and since 2007 Sistema has had the majority stake in EWUB.}} In 2018, Sistema held a 100% stake in East-West United Bank (EWUB) with Sergei Pchelintsev () as the CEO.NEWS,weblink EWUB – история, EWUB - history, ru, ewub.lu website, 3 August 2021, 27 April 2021,weblink NEWS,weblink Управляющие директора, Managing directors, ru, ewub.lu website, 3 August 2021, 28 April 2021,weblink In 2021, the company's revenue amounted to 24 billion rubles.WEB, ПАО АФК "Система",weblink 2023-10-27, www.rusprofile.ru, ru, Following the February and March 2022 sanctions issued against VTB and its subsidiaries which include the former daughter banks of the Soviet Union's State Bank Gosbank and later the Central Bank of Russia, EWUB in Luxembourg has become the principal Russian overseas bank in Europe after Gazprombank ceased operations in the region.NEWS, Fassone, Marc,weblink SANCTIONS AGAINST RUSSIAN INTERESTS: East-West United Bank is in the clear for now, (:lb:Delano (Zäitschrëft), Delano) (delano.lu), 28 February 2022, 26 March 2022, 27 March 2022,weblink WEB, Mishra, Shivam, 2022-10-11, Russia's Gazprombank to cease operation in Switzerland,weblink 2023-05-24, Retail Banker International, en-US, As of the end of March 2022, the Vladimir Yevtushenkov (в) controlled Sistema and its subsidiary East-West United Bank (EWUB) in Luxembourg have not been sanctioned due to Russian invasion of Ukraine.NEWS, Strohecker, Karin,weblink Explainer: How Western sanctions target Russia, Reuters, 25 February 2022, 26 March 2022, NEWS, Auge, Louis,weblink Russian oligarch who makes drone bombers to destroy Ukraine still not sanctioned: Evtushenko Makes Putin's Weapons. As the West looks to impose further sanctions on Russia and President Vladimir Putin's cronies more targets are being added to the "blacklist". Planes, boats and bank accounts - the prized assets of oligarchs around the world - are being squeezed tighter and tighter by a relentless America, United Kingdom, and EU. However, one billionaire appears to have slipped through - so far., EU Reporter (eureporter.co), 23 March 2022, 31 March 2022, He is no longer controls Sistema after reducing his stake in the Corporation below control (49.2%), and voluntary resignation from its board of directors in April 2022.WEB, Евтушенков сократил долю в АФК "Система" ниже контроля на фоне британских санкций, www.interfax.ru,weblink WEB, Владимир Евтушенков вышел из совета директоров АФК "Система", www.interfax.ru,weblink

Hotels

According to (:ru:Спиваковский, Арнольд Арнольдович|Arnold Tamm (Spivakovsky)),{{efn|(:ru:Спиваковский, Арнольд Арнольдович|Arnold Tamm (Spivakovsky)) (; death March 2019, age 51), also known as Arnosha, a member of the Solntsevskaya Bratva, was involved with finances and is the right hand man of Sergei Mikhailov also known as Mikhas. Tamm's attorney was Dmitry Yakubovsky () also known as "General Dima" ().NEWS, Скворцова, Елена (Skvortsova, Elena),weblink Кража века: 11 лет назад в Питере украли рукописей почти на 150 миллионов долларов. Тогда это называли "делом Якубовского", Theft of the century: 11 years ago, nearly $150 million worth of manuscripts were stolen in St. Petersburg. Then it was called the "Yakubovsky case", ru, (:ru:Собеседник, «Собеседник») (sobesednik.ru), 18 January 2006, 29 March 2022, {{dead link|date=April 2023|bot=medic}}{{cbignore|bot=medic}} Alt URLNEWS, Хинштейн, Александр (Khinshtein, Alexander),weblink Солнцевское затмение 2, Solntsevo eclipse 2, ru, Moskovsky Komsomolets, Московский комсомолец, 3 June 2002, 29 March 2022, In the early 2000s, Tamm was a deputy director of the Peking Hotel and Oleg Voropaev () managed the Dolls club.NEWS, Кириленко, Анастасия (Anastasia, Kirilenko),weblink On the death of Tamm: Solntsevskaya gang's ties to FSB and United Russia, The Insider (website), The Insider (theins.ru), 2 April 2019, 29 March 2022, NEWS, Старостин, Дмитрий (Starostin, Dmitry),weblink Кокаин и "Газпромнейт", Cocaine and GazpromNate, ru, (:ru:Вести.ру, «Вести.Ру») (vesti.ru), 24 March 2002, 29 March 2022, {{dead link|date=April 2023|bot=medic}}{{cbignore|bot=medic}} Alt URL Archived as "Газпромовские" круче "солнцевских": "Правая рука" Михася Арноша Спаваковский может не дожить до суда ("Gazpromovskie" is cooler than "Solntsevo": "Right hand" Mikhas Arnosh Spavakovsky may not live to see the trial).NEWS, Хинштейн, Александр (Khinshtein, Alexander),weblink Солнцевское затмение, Solntsevo eclipse, ru, Moskovsky Komsomolets, Московский комсомолец, 31 May 2002, 29 March 2022, Archived as Арноша (Спиваковский) подсаживал танцовщиц из стриптиз-клуба Dolls на кокаин (Arnosha (Spivakovsky) hooked dancers from the Dolls strip club on cocaine). Gazpromgate which occurred before Alexei Miller became head of Gazprom in 2001, allegedly involved stolen money from the CEO Rem Vyakhirev () led Gazprom and was laundered through the Union Development Bank (), which Evgeny Suvorov () was a vice president and was also a member of the Dolls club, using Motor Technology JSC () in which Gazprom owned a 49% stake. In September 2017, Tamm was arrested in Marbella, Spain, during the Spanish operation Oligarch () under suspicion of tax evasion, money laundering, and involvement in the activities of the Solntsevskaya organized crime group.NEWS, RUIZ FÁJULA, DAMIÁN,weblink La Guardia Civil estrecha el cerco a la mafia rusa en la Costa del Sol, The Civil Guard narrows the siege of the Russian mafia on the Costa del Sol, es, El Mundo (Spain), El Mundo, 26 September 2017, 29 March 2022, 4 October 2017,weblink weblink" title="archive.today/20220330000429weblink">Alternate archiveNEWS, Ortega Dolz, Patricia,weblink La silenciosa mafia rusa: así opera en España. Oligarcas amparados por Putin se han asentado por el territorio con millones de euros del crimen organizado o de empresas estratégicas privatizadas tras caer la URSS, The silent Russian mafia: this is how it operates in Spain. Oligarchs protected by Putin have settled in the territory with millions of euros from organized crime or strategic companies privatized after the fall of the USSR, es, El Pais, 28 March 2022, 29 March 2022, 30 March 2022,weblink NEWS,weblink Sergey Dozhdev's statement on Gref and Sechin – Spain, Transborder Corruption Archives (tbarchives.org), 17 October 2018, 29 March 2022, NEWS,weblink Report on the SOLNTSEVSKAYA criminal organization, ru, Transborder Corruption Archives (tbarchives.org), 5 November 2018, 29 March 2022, NEWS,weblink Report on the SOLNTSEVSKAYA criminal organization, es, Transborder Corruption Archives (tbarchives.org), 18 October 2018, 29 March 2022, Arnold Spivakovsky was the son of Arnold Tamm, who was a writer and Estonian translator of Russian materials, obtained his lastname Spivakovsky from a former wife, and had a civil marriage with Lolita Milyavskaya.NEWS,weblink Spanish police arrest Estonian head of Russian mafia group, Baltic Times, 29 September 2017, 29 March 2022, 30 March 2022,weblink NEWS,weblink В Испании пока не выяснили причину смерти бывшего гражданского мужа Лолиты, Spain has not yet found out the cause of death of Lolita's ex-civil husband, ru, RIA Novosti, 13 March 2019, 29 March 2022, 12 March 2022,weblink }} both the Peking Hotel at Bol'shaya Sadovaya Ulitsa, 5 in Moscow, where Oleg Kuznetsov () was the administrator from 2002 to 2016, and the Cosmos Hotel at 150 Mira Avenue in Moscow, are owned by Sistema.

Aerospace and defence

Until July 2021WEB, АФК "Система" больше не контролирует два актива, связанных с оборонной промышленностью – концерн "РТИ" и группу "Кронштадт".,weblink AFK Sistema PAO had an aerospace and defence subsidiary, Kronstadt Group, which was acquired in 2015 and developed unmanned aerial vehicles, and flight simulators. AFK Sistema no longer controls any assets related to the defense industry.

Bashneft interest seizure and Rosneft lawsuit

In 2014, 72% of Sistema's interest in Bashneft was seized by the Russian government.NEWS, Natasha Doff and Ksenia Galouchko, Sistema Shares Soar as Putin Says Evtushenkov Charges Not Proven,weblinkweblink" title="archive.today/20141227183135weblink">weblink dead, December 27, 2014, December 27, 2014, Bloomberg News, Bloomberg Business News, December 18, 2014, Russia has seized 71.6 percent of OAO Bashneft from Sistema since ordering Evtushenkov's arrest on Sept. 16 in a money-laundering investigation linked to the state's sale of the oil company in the previous decade., NEWS, Steven Lee Myersand Jo Becker, Even Loyalty No Guarantee Against Putin,weblink December 27, 2014, The New York Times, December 26, 2014, Mr. Rakhimov's government privatized Bashneft, wilth most of its shares ending up in the hands of a company called Bashkir Capital, On May 3, 2017, Sistema shares plunged about 37% following a $1.9 billion lawsuit filed by Rosneft.NEWS, Reuters, Sistema shares plunge a third after $1.9 billion Rosneft lawsuit,weblink Moscow, 2017-05-03, 2017-05-04, On 15 May 2017, the Arbitration Court of Bashkortostan registered a RUB 106.6bn claim filed by Rosneft and Bashneft against Sistema, a preliminary hearing of the case was scheduled for 6 June, Irina Nurislamova was appointed as a judge for the case.WEB,weblink Предварительное заседание суда по иску "Роснефти" к АФК "Система" назначено на 6 июня, Ведомости, WEB,weblink "Система" не признала обвинения "Роснефти", Ведомости, In December 2017, AFK Sistema reached an amicable agreement with Rosneft and agreed to pay out 100 billion roubles ($1.7 billion) to resolve the dispute.NEWS,weblink Russia's Rosneft reaches $1.7 billion settlement with Sistema, Reuters, 22 December 2017, According to a declaration given on 18 October 2018 in Spanish court by Sergey Dozhdev (), Igor Sechin uses his offshore companies to control Sistema through MTS and Bashneft.{{efn|Sergey Dozhdev () stated "The real Russian mafia is those who rule the world. In particular, it includes Igor Sechin, a man who took over Sistema through Bashneft and MTS using his offshore companies. The Rotenberg brothers, who control the Platon Company, are in the mafia too. 75 percent of Platon belongs to offshore companies, which the Rotenbergs use to siphon off money to Europe. Arnold Tamm used to co-own Sistema. However, he had a disagreement with the Rotenberg brothers, and Herman Gref ceased the refinancing of loans through his son Arkady. The company incurred artificial liabilities, and Sechin bought it at a low price through offshore companies."}}

Management

On 27 June 2020, Etienne Schneider became an independent director of Sistema at which his close political friend Jeannot Krecké had been a director at Sistema since May 2012. Positions they resigned in February 2022.

Notes

{{Notelist}}

References

{{Reflist}}

External links

• {{Official websiteweblink}}
• Google Finance: Sistema

{{Moscow Exchange Index}}{{Authority control}}