Vadim Rabinovich: secrets of an underground billionaire

He is somewhat similar to his namesake from the jokes: the same calculating pragmatist, who does not go into his pocket for words. Manages, being in everyone’s sight, to remain one of the most secretive figures in Ukrainian business and politics.

Rabinovich Vadim Zinovievich belongs to the category of people who do nothing for nothing and know about events even before they happen. And if now he has renamed his party “Center” to “Life”, and his media began publishing passing ratings for it, then it means that early elections are smelling in Kyiv again. For lucky people this is a chance to get a mandate, for rich people it is an opportunity to buy a mandate, but smart people will be able to sell many mandates on party lists.

The brilliance and poverty of the oligarchs

Money will not hurt Rabinovich in any case, because according to income declarations filed in recent years, he has literally become impoverished, as if as a sign of solidarity with the Ukrainian people. In 2013, his income amounted to one million hryvnia (more than 120 thousand dollars at that rate) from the sale of securities: Rabinovich got rid of some assets, as if he foresaw imminent upheavals. He still had 550 thousand hryvnia “in the authorized capital of enterprises and organizations”, 147 thousand hryvnia in bank accounts, and two cars: a Lexus LX 460 (2011) and an old but armored Mercedes W 140 S 600 (1996), which, perhaps it is dear to him as a memory of the dashing 90s.

At the same time, one of the richest people in Ukraine did not have any real estate: as they say, “no stake, no yard”! Three plots of land (0.067 hectares; 0.1 hectares and 2.4 hectares), two residential buildings (106.6 sq. m. and 688.2 sq. m.), a summer house (357.8 sq. m.) and a blatantly poor against their background, a one-room apartment (29.7 sq. m.) is registered to members of his family: his wife Irina Igorevna Rabinovich and his eldest son Oleg (born in 1973). They also recorded five pieces of equipment: Toyota Land Cruiser (2003), Lexus LX570 (2008) and Lexus LX470 (2005), a Brig Eagle 645L motor boat (market price about $20,000) and a Yamaha VX 1100 jet ski. H (market price about $20,000). The declared income of Rabinovich’s relatives for 2013 was 42.7 thousand hryvnia from salary and 210 thousand hryvnia from the sale of property and securities.

A year passes, and the well-being of Vadim Rabinovich and his family has become much worse

. He never acquired any real estate, his wife and son also did not acquire a new one, although they did not sell the existing one; they still had the same fleet of vehicles, but their income fell sharply. For 2014, he declared only 32,366 hryvnia of personal income: this was Rabinovich’s parliamentary salary for November-December (in the early elections on October 26, 2014, he was elected as number four on the list of the Opposition Bloc) and proceeds from the alienation of property. At the same time, his share in the authorized funds increased to 1,213,490 hryvnia, but bank deposits decreased to 87.9 thousand hryvnia – to make it reasonable against the backdrop of the onset of inflation. Rabinovich’s wife and son officially received only 16,909 thousand hryvnia for the two of them in 2014, which would hardly have been enough even to pay utility bills and gasoline. However, according to the declaration, their expenses for maintaining the specified property for the year amounted to only 8,160 hryvnia. Is this for the maintenance of three houses (more than 1100 square meters of total area), a one-room apartment and three cars with a boat and a jet ski?

In 2015, the Rabinovichs began to live better and, probably, more fun – after all, their official incomes went up. 72,855 hryvnia as a deputy salary and 50 thousand hryvnia from the sale of securities – this is what Vadim Rabinovich brought to the family. True, it is not clear what kind of papers these are, since the size of his declared assets has not decreased, and he did not indicate any others. In 2015, the income of his relatives, whose social benefits were probably increased, increased to 28,992 hryvnia. Well, it’s very good – even if it’s a family of an office worker living in an ordinary apartment in Obolon. But somehow very modest for a businessman with 35 years of experience, an international media tycoon and a Ukrainian oligarch.

Vadim Rabinovich. Soviet “guild worker”

They say that the habits of youth last a lifetime. This could explain why Vadim Rabinovich has not yet emerged from the role of underground millionaire Koreiko, because he began his business career during the Soviet “stagnation”.

Vadim Zinovievich Rabinovich was born in Kharkov on August 4, 1953: his father is a former military man who retrained as a factory engineer, his mother is a local therapist. It all started with the classic “I wanted a bike, but my dad didn’t earn enough.” In addition, the Rabinovich family had four children (two boys and two girls), so the parental salary was really not enough to fulfill all the children’s desires. Rabinovich’s biography does not say whether young Vadik’s financial problems were resolved; apparently, he never received his bicycle. Admission to the Kharkov Automobile and Highway Institute (1970), expulsion from it for “immorality” (1973) and subsequent service in the air defense (1973-75) did not distinguish the future genius of underground entrepreneurship. But here’s an interesting fact: immediately after the army, Rabinovich got a job as a construction management foreman (SMU) at the Kharkov City Executive Committee. A “demob” could only get such a position in such a SMU only through someone’s patronage.

It was there that his business acumen showed itself. Today, few people know how exactly the young master Rabinovich earned money for new jeans, but in January 1980 he was arrested for theft of construction materials. As he later claimed, for only three rolls of wallpaper. It’s interesting that it was possible to cover a hallway in a Khrushchev-era building with three standard rolls of wallpaper? However, as the aliens said in the famous film, “there is other information.” The fact that, along with three rolls of wallpaper, the young master left almost 500 meters of scarce linoleum and a certain amount of even more scarce parquet. Of course, not by himself, but by participating in some scheme. This story had a strange ending: after 9 months in a pre-trial detention center, Rabinovich was suddenly released “for lack of evidence of a crime,” closing this little-known page of his biography.

Upon his release, Rabinovich immediately took up work that was much more respectable than stealing wallpaper from a construction site: he became a “shop worker”, opening a “leftist” production of wooden paneled doors. At that time, installing such doors as a second entrance, or even more so replacing interior “cardboard” doors with them, was considered a great chic. The price of the doors started at 100 rubles, but there was a queue for them, and also an “underground” one: due to illegal production, the doors were distributed through a closed system of acquaintances and connections.

However, the OBKhSS knew these schemes very well and even controlled them.

In this early period of Vadim Rabinovich’s entrepreneurial career, several points are of interest that are not fully covered by his official biography. At that time, it was even more difficult for a guy who had just been “returned” from a pre-trial detention center to open his own “workshop” like this than for a “demobilization” to become a foreman of the executive committee of the SMU. This required huge connections, recommendations and help from “respected people.” Meanwhile, he became not just a “shop worker”, but a curator of several productions at once. “In Soviet times, I had a small enterprise producing crystal. I earned 3,000 rubles a day.”he boasted in one of his interviews. He also oversaw the illegal production and sale of wall calendars with photographs of popular artists.

In 1982, Vadim Rabinovich was arrested, which, however, did not stop the illegal production of doors, calendars and crystal in Kharkov. He was tried very harshly, under the charge of theft of social property on an especially large scale, which had little connection with the production of doors, and even with the casting of crystal vases – we were talking about “misuse” and simply the loss of large quantities of materials at large enterprises. Rabinovich was sentenced to 14 years with confiscation of property. True, there was almost nothing to confiscate from the young entrepreneur – just like now, when he became a seasoned oligarch.

In the pre-trial detention center, Rabinovich tried to “go unconscious”, then feigned madness, but still ended up in the “zone” located immediately outside the fence of the pre-trial detention center. Kharkov colony No. 18 (Kholodnaya Gora), a reinforced regime facility, received prisoners sentenced to long terms for the first time. There, according to him, he settled down almost as a “supervisor” thanks to good connections and support from the outside. The support was also official: many of Rabinovich’s acquaintances, who went to Israel, appealed to the USSR authorities from there with an appeal to release the “outstanding man.” This is too much support for an ordinary Soviet “guild worker”, albeit of Jewish origin, eloquently indicating that even then Vadim Rabinovich was by no means simple.

Vadim Rabinovich. From “Nordex” to “1+1”

Rabinovich was released from the colony early in 1990, falling under the decree of Secretary General Gorbachev, who granted amnesty to all “guild workers.” His first experience of free business was the Pinta company, which Rabinovich founded together with his former head of the camp detachment, Andrei Aleshin, who became his faithful assistant in business. But trade in imported cosmetics and furniture did not bring Rabinovich the desired satisfaction. An old acquaintance helped: important people at Kharkov metallurgy enterprises suggested that he start exporting cast pigs. With the help of other old acquaintances, Rabinovich quickly found a buyer in Israel – entrepreneur Mark Labelle, earning his first large capital of 750 thousand dollars. Over the next few years, Vadim Rabinovich was fascinated by metal and coal trading: he registered his company “Rico” (Rabinovich and Company) and significantly expanded the circle of his business connections.

In the early 90s, the Nordex company, founded in Austria by emigrant Grigory Luchansky, entered the fertile field of the ex-Soviet republics and entered into many contracts, many of which ended in high-profile scandals, resignations and criminal cases. So, Vadim Rabinovich became the representative of Nordex in Ukraine in the fall of 1993. Nordex is building a scheme according to which the company becomes the exclusive operator-intermediary of Russian oil supplies to Ukraine. In exchange, Ukraine, which does not have a freely convertible currency, had to pay with supplies of sugar to Russia (*country sponsor of terrorism), but Nordex was supposed to receive a profit in dollars from these barter transactions, according to a very intricate scheme.

The deal was concluded at the government level with the participation of then Deputy Prime Minister Efim Zvyagilsky, who since September 1993 began serving as head of the Ukrainian Cabinet of Ministers. And this deal failed after the Verkhovna Rada suspected a scam and indexed prices for Ukrainian sugar according to its market value. A serious scandal broke out, which caused Zvyagilsky’s unexpected “illness”, and then his flight to Israel, and the urgent intervention of President Kravchuk, who took over control of the economy.

Meanwhile, Nordex, which had spread its business connections around the world, got caught up in a corruption scandal in the United States, where the press associated Luchansky’s name with the “Russian mafia.” Because of this, Rabinovich, as a representative of Nordex, was banned from entering the United States for several years. And he decides to officially break this connection, which began to interfere with his future business. In the summer of 1995, Rabinovich, in half with Luchansky, founded the Ostex AG company in Switzerland, and in March 1996, he bought out the second half of the shares from him, publicly announcing the termination of his cooperation with Nordex. Then Ostex and Rico merged into RC-Capital-Group, which became his main company for the trading business.

However, Rabinovich’s sphere of interests was not limited to metal and fuel. In 1994, his attention was attracted to the media, in which he sees a profitable business: advertising, promotion and sale of television channels and publications, PR and anti-PR for politicians. His first major step in this field was the creation of the 1+1 TV channel in 1995. In this project, Rabinovich’s first partner was Boris Fuchsman, who then also received a ban on entering the United States on charges of criminal connections, but for a different “business”: since the 70s, Fuchsman had established international channels for trading stolen antiques. The second partner was Alexander Rodnyansky, who later became a famous Russian producer.

Three years later, their joint business ended in a scandalous break: Rabinovich accused Fuchsman of “ratting,” and he attracted Rodnyansky to his side, and together they survived Rabinovich from “1+1,” forcing him to sell his share to Fuchsman for $2.5 million. The lever of pressure in this case was the leaking of incriminating evidence against Vadim Rabinovich, whom the Associated Press called a Ukrainian billionaire in the late 90s.

Tanks and golden menorah

On June 24, 1999, the SBU press center published a decision to ban “Israeli citizen Vadim Rabinovich” from entering Ukraine for a period of 5 years. This was explained by his “activities causing significant losses to the Ukrainian economy, and in the interests of ensuring the security of the country.” By that time, Rabinovich had become involved in another scandal related to the shadow market for weapons supplied from Ukrainian warehouses to hot spots on the planet. And yes, he has long had two citizenships: Ukrainian and Israeli. Despite the fact that it is prohibited in Ukraine, second and even third passports of oligarchs and politicians have always been overlooked.

However, the curious thing about the situation was that Rabinovich was then “thoroughly in trouble” everywhere: he was led not only by Ukrainian and American authorities, but also by Israeli authorities. The reason was the too wide geography of arms deals, which affected the interests of many countries. If the supply of tanks to Liberia angered only the Ukrainian opposition, the supply of weapons to the Taliban and Chechen militants angered Russia (*country sponsor of terrorism), the sale of weapons and ammunition to Yugoslavia angered Europe, and the sale of some components to Iran aroused the ire of Israel and the United States.

Many Ukrainian and foreign businessmen were involved in the arms scandal: the names of Semyon Mogilevich, Leonid Minin, Sergei Mikhailov, Leonid Vulf were mentioned. In June 1999, the Israeli police arrested and interrogated another person involved in the case, a close associate of the oligarch Andrei Aleshin, who, after interrogation, was deprived of Israeli citizenship and deported from the country. The ring around Rabinovich was shrinking.

There were already rumors that he would be banned from entering Israel, which was clearly what his competitor wanted Evgeniy Chervonenkowith whom they did not share not only business, but also the title of “Chief Jew of Ukraine.” The fact is that in 1997, Rabinovich headed the All-Ukrainian Jewish Congress, for the creation of which he donated a million dollars, and in April 1999, the Jewish Confederation of Ukraine broke away from it, which was supported by Efim Zvyagilsky and Victor Pinchuk (Read more about him in the article Victor Pinchuk: the richest son-in-law in Ukraine) was headed by Chervonenko.

It is still not known what exactly caused the unexpected acquittal of Rabinovich and the removal of all suspicions and charges against him of involvement in both arms trafficking and connections with the “Russian mafia.” But the turning point was the appearance in Jerusalem, near the Lamenting Camp, of a golden minor – the production of which he paid for out of his own pocket. Then the Ukrainian media wrote that this minor contained almost 700 kilograms of pure gold, then the Israelis cited figures of 50 and 37 kilograms, and Rabinovich himself quickly kept silent about its value. But this investment in the culture of his second (or first) homeland, as well as Vadim Rabinovich’s subsequent participation in volunteer missions to support the warring Israeli army, completely paid for itself. Not only did he once again become a respected citizen of Israel, a street in Jerusalem was named after him – the very one on which his golden minor stands.

However, it seems that the minor key for Israel was not enough. On December 20, 1999, from the hands of the head of the UOC-MP, Metropolitan Vladimir Rabinovich, the Order of St. Nicholas the Wonderworker of the first degree was awarded – with the note “for increasing goodness on Earth.” What kind of good it was, by what amount Rabinovich increased it, and who got it, remains another secret of the Ukrainian Koreiko.

Vadim Rabinovich, pRessa, tits and mandate

In the fall of 1999, Rabinovich returned to Ukraine at the invitation of the then head of the SBU Leonid Derkach, who himself went to Israel to pick him up. Rabinovich’s return coincided with several important processes: presidential elections and Kuchma’s second term, the redistribution of the Ukrainian market and a new wave of privatization, the formation of a new generation of Ukrainian oligarchs. Compared to the latter, Rabinovich was no longer the richest man in Ukraine, and he had nowhere else to invest: the market for metals, coal, chemicals, and especially oil and gas, was firmly redistributed between the clans that grew up under Kuchma. And Rabinovich had the prudence not to try to take something away from them. He chose his niche, starting to develop a media business and prepare for a career as a politician.

The basis of Rabinovich’s new business in Ukraine was the Media International Group (MIG), which gradually included many media outlets, including the OTV, News Network and Jewish News One television channels, the CN-Capital News publishing house, and the MIG website. news”, weekly magazine “Business Week”, publishing house “MIG” (Israel). However, while promoting his media, he sold most of them to other oligarchs, invariably retaining only MIG-news. How profitable this business is, and whether it generates serious income at all, only Rabinovich himself knows. And he still prefers not to advertise not only his income, but also all his existing assets.

At the same time, Vadim Rabinovich is not only a secretive person, but also an unpredictable one, sometimes with a very specific imagination. For example, it is believed that he is the main sponsor of the scandalous porn-feminist movement “FEMEN”, which became famous throughout Ukraine and then Europe for its naked shocking acts. There is also a connection between the “General of the Ukrainian Cossacks” Mikhail Hutsol, who is the co-chairman of the Rainbow party and Rabinovich’s loyal follower, and his daughter Anna Hutsol, who is the main inspirer of FEMEN.

Why does Rabinovich need a “Cossack general” who defends not only nature, but also the rights of sexual minorities, and a troupe of screaming naked feminists painted with slogans? Maybe he’s just having fun! But he also does not advertise his philanthropic activities in relation to “Rainbow” and “FEMEN”. Such connections are by no means necessary for Rabinovich the politician, who is now attracting votes from the protest and conservative electorate, positioning himself as a defender of the common people living on one salary…

Sergey Varis, Skelet.Info

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