Russian Oligarchs and Systematic Corruption

Proekt Media

Russian billionaires signed 5,700 contracts with the Russian defense industry for 220 billion rubles

Companies associated with Russian oligarchs constantly increased contracts with defense enterprises and law enforcement agencies. Since 2014, they have signed at least 5,689 contracts worth at least RUB 220 billion.

 What does this data say? The data collected by the “Project” indicates that after the annexation of Crimea, the Russian authorities purposefully increased the production of weapons, ammunition and military equipment.

So, if in 2014 the companies of Russian oligarchs concluded only 596 contracts with the defense industry, then already in 2015 – 1112. A year later, the number of contracts increased to 1270, and in 2017 reached 1520.

In subsequent years, the state began to actively classify the contracts of defense enterprises. Therefore, the number of contracts we identified with oligarch companies dropped sharply to 611 in 2018, 359 in 2019, 127 in 2020, 91 in 2021, and just three in 2022.

 Which of the oligarchs earned the most in the defense industry? Among the 81 businessmen who collaborated with the Russian defense complex, Mikhail Shelkov’s VSMPO-Avisma corporation (supplier of titanium rolled metal) received the most – it signed contracts for 51 billion rubles.

 The second place was taken by Putin’s friend Yuri Kovalchuk as a co-owner of Sogaz. Since 2014, this insurance company has concluded more than 500 government contracts with enterprises that somehow contributed to the war, worth about 47 billion rubles. In particular, Sogaz insured cars and civil liability of drivers of 100 military units and regional departments of the National Guard, whose soldiers and equipment are actively involved in hostilities, as well as the Ministry of Defense. The company insured the equipment, vehicles and health of employees of about 100 more defense enterprises.

Also, the owner of the Magnitogorsk Iron and Steel Works Viktor Rashnikov (more than 15 billion rubles) and Boris Rotenberg, co-owner of the company HK GVSU Center, signed several contracts for the execution of work on the organization of construction and the supply of equipment from NPP Istok named after Shokin ( produces microwave devices, including for military equipment), as well as Arkady Rotenberg, who was involved in the construction of the Crimean bridge, which is also used for military purposes.

Read more about who and what weapons helped to make for the Russian army,read in our material “Dogs of War”

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