Distribution of spheres of influence in the new Russian government, President’s Administration and military and policing branch indicates that no one has been placed out. Petroleum traders and people from Gazprom, allies of President Dmitry Medvedev and Prime Minister Vladimir Putin, and even members of the still influential Boris Yeltsin’s family have opportunities for lobbying their interests. It is likely that the key positions in the enforcement area will be taken by Medvedev’s people. However, the appearance of other two state structures is also possible as a counterbalance: the renewed Investigative Committee, uniting not only prosecutor’s investigation but also the police investigation, and the Counter-Corruption Committee controlled by the Prime Minister Vladimir Putin.   

The portraits of the new head of the President’s Administration Sergei Naryshkin first appeared in some Kremlin’s offices last year when he was a mere deputy Prime Minister. He also chaired in the board of the Pervy Kanal TV station, and was deputy chair of the board in Rosneft, and was one of the board directors in Sovkomflot Company specializing in sea transportation of oil, oil products and liquefied gas. In the past, Naryshkin was not only Putin’s colleague in the St Petersburg City Hall; he also used to be an intelligence service officer: after graduating from the KGB institute he worked in Belgium under the cover of soviet State Committee for science and technics till 1992.    

Our experts, former employees from the security services, suppose that Naryshkin must be acquainted well with another intelligence agent Vyacheslav Rovneiko, who worked in Belgium during same period. Afterwards, Rovneiko was one of the founders of the structures of the Russian-British joint venture Urals (Urals Chemicals, U-Tra, Urals Oil) that processed the oil products of Kirishinefteorgsintez situated in the Leningrad region. A well-known oil trader and Putin’s friend, Gennady Timchenko, whose Gunvor group is now the main trader for Rosneft, was included in the Finnish branch of Urals – that’s International Petroleum Products (IPP). Later IPP came to KINEX Company where Timchenko was one of the co-owners.    

At the time being Vyacheslav Rovneiko owns the British oil and gas holding Urals Energy jointly with Leonid Dyachenko, former Yeltsin’s son-in-law. The holding possesses Russian companies licensed for developing Botuobinsky and Dulisminsky oil and gas deposits in the Eastern Siberia.   

If Sergei Naryshkin is related to the oil traders, former intelligence services officers, who know personally not only Putin, but also members of the Yeltsin’s family, that means the head of the President’s Administration is able to provide for balancing interests of all those groups.  

Novaya Gazeta information

Following persons were co-founders of URALS enterprises (like Urals Chemicals): the first oil trader Andrei Pannikov (former officer of soviet intelligence service in Sweden), Georgy Ramzaitsev, the co-owner of the British Urals Energy, Aivar Lembergs, former mayor of Lithuanian Ventspils, one of the key players in the history of the largest in the Baltic Sea oil terminal Ventspils NAFTA, Artemy Osipyan, former head of the Moscow Representative Office of Solvalub Company, afterwards he was the Vice-President of Sibur, and Boris Titov, a member of the Public Chamber, the Executive Director of the Solvalub Group trading in oil, petroleum products and gas, and chemical products in Europe.    

Vyacheslav Rovneiko was the General Manager of the New URALS Company from 1995-1999. Then up to 2002 he was the first vice-president of Komi Oil Urals Company. In 2001-2003 he was the chair of board at Tebukneft, and then the General Manager of Interregional Fuel Union. 

A former advisor to the Russian government told anonymously to Novaya Gazeta that Leonid Dyachenko got acquainted with Andrei Pannikov’s partners in the 90’s within the framework of the Russian state program Oil For Baby Food. Participation in that program secured some tax benefits. Approximately at same period an investigation regarding some Russian companies registered in New York was started within the framework of the Bank Of New York case and that of East Coast Petroleum. Those companies traded in Russian oil and transferred money to Dyachenko’s accounts in particular. It was reported that another well known trader for Sibneft, Runikom of Roman Abramovich, also had relation to the scheme. However, the case of Bank Of New York resulted in out-of-court settlement by Bank Of New York and American Prosecutor’s Office. No member of the Russian elite was admitted guilty and no serious investigation was held in Russia.     

Sergei Shmatko, newly appointed energy minister and former president of Atomstroiexport, used to be the director of the German consulting firm RFI GmbH. That firm cooperated with Russian Fund of Federal Property (RFFP) about attracting the investments. Novaya Gazeta has found out that a German lawyer Alexander de Faria (De Faria & Partner), the specialist in the field of real estate, broker’s legislation and investments, took part in creation of that firm. We got in touch with Mr. Faria and he told us that Sergei Shmatko got acquainted with him when he was a student at the Economics Department at Marburg’s University. The lawyer chaired then in the Association for developing Russia-Germany economic cooperation.  

Mr. de Faria spoke very positively of Sergei Shmatko and made a note about his ability for strategic thinking. 

After RFI GmbH appeared (it is still working in the market) Alexander De Faria became RFFP representative in Europe, and in Germany in particular, regarding the questions of privatization and attracting investments to Russia. Alexander De Faria is also the chair of East-West Development, that’s a Dutch Association developing projects in Russia, Ukraine and other Eastern European countries. 

In the early 90’s De Faria owned half of the stock of a Moscow firm “Interuraudit de Faria and Tikhonov”. A former KGB officer Konstantin Chuychenko was the Executive Director there in 1992-1994. Later he became the board director at Gazprom, the chief of its juridical department, and also the executive director of the Russia-Ukraine gas mediator Rosukrenergo. It was reported that Chuychenko has been on friendly terms with Dmitry Medvedev and with today’s deputy chair of Gazprombank Ilia Eliseev since their studentship times. In Medvedev’s administration Chuychenko has been appointed the chief of the President’s Control Department.   

Mr. De Faria confirmed to Novaya Gazeta he knows well Chuychenko and Shmatkov and he said he is glad those two got promoted so much. Konstantin Chuychenko did not deny either his acquaintance with Alexander De Faria. We failed to get in contact with Sergei Shmatko.

Long before Alexander Bortnikov was appointed the Director of FSB, our sources reported he was Dmitry Medvedev’s man and had direct meetings with him and not with his supervisor, now former FSB director Nikolai Patrushev.

Former chief of UFSB for St Petersburg and the region, Alexander Bortnikov was moved to the central apparatus of FSB in 2004. Till recently he has been the chief of Economic Security Service of FSB. It is said offstage that once during some party Bortnikov allegedly said “We don’t need anybody else’s property, but we shall never give up ours, whoever it belonged to”.   

Celebrated cases of contraband where FSB was involved affected not only Patrushev’s people (who was associated with Igor Sechin) but also Bortnikov’s subordinates.

After reports made to Putin by the head of Traffic Control Agency Viktor Cherkesov saying about contraband ways, Putin summoned Alexander Bortnikov and gave it to him.  However, in December 2006 he was promoted to the rank of General of the Army. And Cherkesov’s reports’ consequence was that he affected the interests of two influential groups in FSB and got an asymmetrical response: his deputy, General Bulbov, who exercised the operative supervision of the above mentioned contraband cases, got arrested and started a criminal case against him.    

While Nikolai Patrushev’s son, Andrei, became the advisor to Igor Sechin in Rosneft, the 33-year-old son of Alexander Bortnikov, Denis by name, made a rapid career in Vneshtorgbank. On 20 November 2007 he became the deputy chair of board at VTB Severo-Zapad which is the new name of the former Promstroibank received after affiliating it to the VTB Group. Denis Bortnikov did not give any comment on the situation.    

Promstroibank (or VTB Severo-Zapad) is known not also with the fact Vladimir Putin’s account was registered there. Today’s head of the President’s Administration Sergei Naryshkin was the chief of Foreign Investment Division there in 1995-1996. At the time being, the supervisory board of the bank has Tamara Stepashina as one of its members. Tamara Stepashina is the spouse of Sergei Stepashin, the chair of the Chamber of Accounts. Besides, he is the head of the Russian Bar Association which was called to be the “campaigning headquarters” for Dmitry Medvedev. 

The experts believe that with today’s promotion of Bortnikov the previous criminal cases regarding smuggling may be changed so to provide for ousting Nikolai Patrushev’s people from FSB. This wave might also reach the Investigative Committee at the Prosecutor General’s Office. Its head Alexander Bastrykin is on holiday now which is amazing as the time of personnel reshuffling does not seem to be the best time for taking rest. Probably, the Committee at the Prosecution office will be united with the MVD one headed by Putin’s student-fellow Alexei Anichkin, which would inevitably lead to another round of struggle and reshuffling.   

However, it is likely that Dmitry Medvedev’s people at the key positions in the military and policing branch will be counterbalanced with the appearance of a new state structure, intended for fighting against corruption. Creation of such an organization is provided for by the bill prepared under supervision of the President’s Assistant Viktor Ivanov. Supposedly, this counter-corruption agency will be receiving not only reports by officials about their property, but also about properties of their family members, as it is required in the European practice. It is designed that this structure will be accountable to the head of government, i.e. to Vladimir Putin which is going to give him a powerful additional resource. If such an organization appears on the base of the Security Council, one may assume that Putin’s old acquaintance, Nikolai Patrushev will not be left out.