The “Delovoy Peterburg” newspaper published comments made by Konstantin Krutilnikov to an article dedicated to how Vladislav Piotrovsky, the ex-head of the Directorate of Internal Affairs of St. Petersburg, began working for JSFC “Sistema”.

27 October 2011
Piotrovsky swapped the system for “Sistema”

Vladislav Piotrovsky, the former head of the Directorate of Internal Affairs of St. Petersburg and Leningrad region, will be in charge of security service of JSFC “Sistema”. He is still in Petersburg, but should move to Moscow soon.

Currently Vladislav Piotrovsky is holding an office of deputy director of Northwest branch of the Moscow Bank for Reconstruction and Development (MBRD, part of JSFC “Sistema”) located at Dobrolyubov avenue.

A source at the bank has informed “DP” that Vladislav Piotrovsky cannot answer questions of “DP” as he is away at the moment, however, he will have a secretary one of these days, who is a former employee of the Directorate of Internal Affairs. The bank asked the “DP” reporter to apply for comments tomorrow.

By the time when the paper went to press, JSFC “Sistema” was still unable to answer the question asked by “DP” and to indicate the exact job title of Vladislav Piotrovsky.

One of the reasons why the ex-head of the former head of the Directorate of Internal Affairs is staying in the Northern capital, instead of moving into Moscow headquarters of JSFC “Sistema”, may be that Piotrovsky is called on to testify before a court in relation to corporate raid of the Frunzensky fruit and vegetable production plant, which occurred in 2005.

The change of the owner of the plant was assisted by Piotrovsky‘s former subordinates. They helped raiders to forge documents related to transfer of company’s shares to other parties.

According to Yury Veselov, a lawyer participating in proceedings, “A witnesses has declared that Piotrovsky was allegedly involved in the raid. He was already interrogated, however, no direct evidence of the former head of the Directorate of Internal Affairs being implicated in the crime was not discovered.” He also disposed rumours that Vladislav Piotrovsky is on recognizance not to leave.

Remained a militiaman

Russian militia is called police from March 1, 2011. To obtain the status of policemen, all the staff were obliged to undergo an unscheduled certification by the end of this summer.

In the beginning of June, 2011, lieutenant general Vladislav Piotrovsky, the former head of the Directorate of Internal Affairs of St. Petersburg and Leningrad region, has submitted the letter of intent to resign “due to restructuring and transfer to other work” to Rashid Nurgaliev, the Minister of the Interior without waiting for completion of certification process.

Vladislav Piotrovsky's professional activities didn’t raise doubts in members of the Personnel Review Board. Rashid Nurgaliev explained that the board had a bone to pick with Piotrovsky as a person, however, during discussion of this candidate, the board members get no well founded comprehensive answers to their questions.

Where did he take the money?

One of private matters which could appeal to the board, especially in the context of the anti-corruption campaign initiated by the President of the Russian Federation, were incomes of the former head of the Directorate of Internal Affairs.

In May, 2010, the Ministry of Internal Affairs published the statement of incomes of some employees; it was found out that in 2009 it was Piotrovsky who earned the greatest amount of money, i. e. 23.8 million roubles. To put this in perspective, the income of Vladimir Kolokoltsev, the head of the Moscow Directorate of Internal Affairs was 1.4 million roubles. The chief militiaman was bound to explain that the income was generated by selling an apartment and a cottage left to him by his parents.

Recruiting experts estimate that official yearly income of a chief security officer at a major federal holding can amount to 2 million rubles. Such expert is usually paid 150 – 200 thousand rubles per month. If a candidate can speak English, they may expect for a salary of 250 thousand roubles. However, a person with connections, such as Vladislav Piotrovsky, may be offered a salary several times over the average one.

Illogical system

The conglomerate controlled by Vladimir Yevtushenkov (he holds 67 % shares in JSFC “Sistema”) includes telecommunication and fuel and power companies. The company became famous in St. Petersburg due to their ambitious developer projects which sometimes had controversial image with the community.

One of the latest and famous projects of JSFC “Sistema” is reconstruction of “Lenfilm”. “Sistema mass media” which is a part of the holding, wanted to unite the old motion-picture studio with Russian World Studios owned by “Sistema mass media”. The latter controls a new film-making complex of 11 thousand m2 located in the north of St. Petersburg.

In August, 2011, the Ministry of Economic Development and Trade has approved the project of privatization of the St. Petersburg motion-picture studio prepared by the Ministry of Culture. According to this project, 75 % minus 1 share stake in the motion-picture studio should be transferred to “Sistema”.

Creative community opposed to privatization of “Lenfilm”. In August, directors Aleksei German and Aleksandr Sokurov wrote to the Chairman of the Government of the Russian Federation Vladimir Putin. As a result, in September the project of public-private partnership (which was previously approved by all the government agencies) was withdrawn from the government. Prospects for the project remain clouded till now.

Earlier on, due to Vladimir Putin's intervention, “Sistema” didn't succeed in establishing control over “Dom Veteranov Stseny” (board and care facility for retired actors), located at Petrovsky Ostrov.

In 2005 the companies of “Sistema” accumulated 28.7 % shares in the the All-Russian scientific research Institute of Pulp and Paper Industry (VNIIB), which occupies a 10 ha land plot at Muzhestva Square, St. Petersburg, considered attractive by numerous developers.

However, “Sistema” failed to arrange for the sale of other shares with Peter Osipov, the main owner of VNIIB and director general of the institute, who controls about 70 % shares. Then “Sistema” sold their shares to St. Petersburg construction and investment company “Phoenix”.

“Sistema” closed the transaction with OAO Popov's Institute For Broadcasting Reception And Acoustics, which later became part of “Rostekhnologii” corporation, after much the same pattern. Besides, the holding built “Leto” shopping and entertainment centre on Pulkovsky Highway.

In 2010 Vladimir Yevtushenkov sold controlling share in OAO “Sistema-Gals” (which specialises in real estate transactions) to VTB bank.

“Sistema” had no clear strategy at St. Petersburg real estate market, the company was not public,” said Igor Gorsky, the managing partner of ARIN.

“There's houseroom for everybody Vladislav Piotrovsky is not the first high-ranking St. Petersburger employed by JSFC “Sistema”. For instance, in the beginning of 2010 Andrei Likhachev, the former head of “Lenenergo” was assigned to the position of vice-chairman of the board at OAO “Bashkirenergo”, which is a part of “Sistema”. Moreover, Vladislav Piotrovsky not the first militiaman, who was employed at security service of a Moscow company, after the reform of the Ministry of Internal Affairs. For instance, Vitaly Nikishaev, the ex-head of Krasnogvardeysky regional office of internal affairs, and Vladislav Piotrovsky's subordinate became the head of corporate interest protection service at Moskva Bank in this June.

“Actually, what will Piotrovsky do there, I can’t figure that out. “Sistema” is a very big company, and there are lots of work for everyone. And Vladislav Yurievich will get his share of work, too,” believes Andrei Likhachev, the head of OAO “Moscovskaya Obyedinennaya Energeticheskaya Kompania” from this spring.

Thanks to his experience and knowledge, Vladislav Piotrovsky may not only be involved in safety issues, but also engage in strategic planning. And the fact that “Sistema” employs a manager with good connections at all levels for the key position can imply that the company has great plans in St. Petersburg.

The stake placed on St-Petersburg


Igor Yeliseyev
The director general of OOO “RosRazvitie-SPb”

Should Vladislav Yurevich Piotrovsky be employed by a St. Petersburg company playing the market for mergers and acquisitions, be it “Imperia”, “Muzey” or any other company, the community shall equate such employment to his confession in maintaining informal relations with such entity while still holding the office the head of the Directorate of Internal Affairs. It is as if a vice- governor was employed by a big development company. Getting employed by a federal organization is a totally different matter. Everyone is positive that it is a promotion rather than a down-grading.

Konstantin Dabrynin
managing partner at Pen&Paper

Vladislav Piotrovsky's resignation was initially a mistake. It resulted from complete lack of understanding and aversion on the part of Alexander Bastrykin. He is a professional, which is a rarity in police nowadays. His leaving for big business is a loss for the state, because he could provide benefit to society and to the state, though in some other position. A serious corporation may employ an expert of such scope in security, analytics and GR matters. However, in this context it is like squirrel hunting with a howitzer.

Konstantin Krutilnikov
Senior partner at S&K Vertical

Piotrovsky can be involved in security issues, as well as in strategic planning. His knowledge may well be strongly sought-for in business in our country. The St. Petersburg branch of “Sistema” is hardly noticeable today. That’s why, if he remains there, one may believe that "Sistema" places some stake on St. Petersburg. Then it would be quite logical: his experience and connections will be very useful there. At the same time, all roads lead to St. Petersburg and from St. Petersburg, therefore his connections will be good support when solving issues throughout our country.

Pavel Gorshkov

“Delovoy Peterburg” no. 178 of October, 27 , 2011.

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