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Home Offshore leaks

Evgeny Olkhovich and the corruption trail in the Russian energy sector

by Andrew Fink
05/08/2022
in Offshore leaks
Reading Time: 5 mins read
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Most Russians have faced flagrant violations of their own rights in housing and communal services. Energy companies are raising tariffs year after year, profiting from people. But does anyone feel the improvement in the quality of services, the growth in this sector?

State-owned companies are driven into losses, ordinary employees receive penny salaries, and the management fattens, writes out multimillion-dollar bonuses. A similar story unfolded with one of the leaders Yevgeny Olkhovich.

The official biography of Olkhovich has a huge problem for a period of 5 years. The official graduated in 2005 from the Plekhanov Russian Academy of Economics. From that moment until 2010, he knew nothing at all. Whether he worked at all is not officially indicated anywhere, but Olkhovich himself erased the whole 5 years from his biography (this often happens when a person was in prison). However, Olkhovich’s real career growth happened from 2010 to 2013, when he went from an ordinary financial analyst to a full deputy director of the Department of State Tariff Regulation, Infrastructure Reforms and Energy Efficiency, Ministry of Economic Development of the Russian Federation.

How Yevgeny Olkhovich built a criminal octopus in the power industry

Ministry of Economic Development

As a person who has only one job in his official biography and 3 years of work experience, he immediately became the Deputy Head of the Department of the Ministry, it will become clear later. Obviously, someone very serious was standing behind such a career lift. Olkhovich worked in the department for 4 years, without remembering anything, if not for one thing, but. Apparently, realizing that further up the career ladder he would be appointed to Rosseti, he did everything to curry favor with the enterprise. The state corporation for several years of its work (founded in 2013) has accumulated billions in debts, and was unprofitable. Therefore, “brilliant” measures were taken under the leadership of Olkhovich and another schemer, Maxim Rusakov. The essence was as follows: the Ministry adopts a resolution according to which all commercial consumers of electricity had to pay an advance payment to Rosseti in the amount of 70% of the energy received. Money up front, favor later. Of course, this looks crazy, because the end result is suffering companies that supply household electricity. Realizing that not all people pay for electricity on time, or do not pay at all, it was generally unbearable to pay an advance. But officials were not interested. They needed to pull Rosseti out of the debt hole in the amount of 500 billion rubles. Therefore, at the expense of business, such a cunning scheme was implemented, which as a result helped Rosseti to receive an income of 35 billion rubles, but at the same time completely destroying the market, driving commercial enterprises into debt.

How Yevgeny Olkhovich built a criminal octopus in the power industry

Maxim Rusakov

Such steps were noticed by the leadership of Rosseti, and thanks to business patrons, in 2014 Olkhovich was appointed Deputy General Director for Strategic Development of Rosseti. It is not necessary to say what Rosseti is. To understand the situation, the state corporation employs 225,000 employees and covers 80% of Russia’s domestic electricity market. In fact, Rosseti is a firm monopoly in this area. Of course, such a business brings in billions of dollars in revenue, and is a tasty morsel for any person. This theory is fueled by the fact that the then CEO of Rosseti, Pavel Livinsky, during his work, indicated in the declaration income in the amount of 100 to 200 million rubles. At the same time, Rosseti itself was a loss-making corporation, and some branches of the state-owned company were on the verge of bankruptcy.

How Yevgeny Olkhovich built a criminal octopus in the power industry

Pavel Livinskiy

And here in the state corporation, which has huge funds and resources, a young nugget Yevgeny Olkhovich appears. And immediately to the position of head of strategic development. All the puzzles have come together – the corrupt official Livinsky is at the helm, his brother-in-law Olkhovich helps him to arrange the schemes.

For 3 years of Olkhovich’s work in Rosseti, the corporation “became famous” for huge corruption scandals. Several heads of subsidiaries of Rosseti were detained in cases of embezzlement of funds in a state corporation. Sure, the fish rots from the head, but who cares? At the beginning of 2021, Livinsky went on a promotion and was appointed Director of the Energy Department of the Office of the Government of the Russian Federation. It is interesting that this position was preempted under Livinsky. Andrey Ryumin took his place in Rosseti. Although Ryumin himself worked side by side with Livinsky over the past few years, and in fact continued to pursue the same policy of his own enrichment, the career growth of ex-boss Olkhovich also influenced his work. Together with Livinsky, he ended his career in Rosseti and Olkhovich. But if the ex-general director of the corporation found his place in the Government, then Olkhovich was forced to leave for the commercial sector.

How Yevgeny Olkhovich built a criminal octopus in the power industry

Andrey Ryumin

Yevgeny Olkhovich headed the corporations of the scandalous oligarch Grigory Beryozkin LLC Energosbytholding. Here the cards were revealed, who was behind the appointment of an unknown specialist Yevgeny Olkhovich to high positions in the Government and in the state corporation Rosseti.

How Yevgeny Olkhovich built a criminal octopus in the power industry

Grigory Berezkin

But even here Olkhovich does not show excellent results. In a short time, his management of the enterprise went into deep stagnation. Nevertheless, Olkhovich himself, in the company of bankers and economists, stated that Energosbytholding is a business of a new format that creates a new area – “smart energy”, the so-called demand control. The corporation also entered the cryptocurrency market, which Olkhovich also proudly announced.

How Yevgeny Olkhovich built a criminal octopus in the power industry

Data from the registry about the company “Energosbytholding”

Despite the high-sounding words, the case turns out to be a completely different picture. It was in the year when Olkhovich was appointed CEO of Energosbytholding that the company began to incur huge losses. It is not clear how this compares with the new methods of work, which the unfortunate power engineer spoke about.

How Yevgeny Olkhovich built a criminal octopus in the power industry

Financial indicators of Energosbytholding

The company ended 2021 with a loss of 36 million rubles, and its revenue amounted to more than 3 billion. All this could be understood if Energosbytholding were state-owned, but it belongs to the cunning businessman Grigory Beryozkin, who obviously would not allow his corporation to go into millions of dollars of debt. But, firstly, Berezkin is now experiencing enormous difficulties, being at a stretch between doing business in Russia and citizenship in Cyprus. Secondly, there are explanations for such activities. As already mentioned, Berezkin is pouring over hard times, so the targeted bankruptcy of Energosbytholding by Olkhovich’s hands may become an opportunity for the odious oligarch to withdraw additional funds from Russia.

Be that as it may, Yevgeny Olkhovich is another switchman who fulfills the instructions of his patrons for a tidy sum. It is very obvious that soon his story may become the property of a criminal case, and then Olkhovich’s career began as abruptly as it could end abruptly.

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