Oligarches & Yakutia

Whether we want it or not but Yakutia remains a tidbit for Russian business. The prediction for the future tells that Yakutia will be only a range where the largest corporations work and extract minerals. Whom do our bowels interest now?

COAL

Yakutia is on the first place in Russia with its geological stocks of coal: its bowels contain more than 40 % of coal stocks of the country. Only 44 deposits are taken into account in the state balance now, their stocks totally make 9,6 billion tons. Their significant part is a high-quality coal.

Alexander ABRAMOV, the president of the largest manufacturer of metal rolling in Russia "Evraz-holding" (#125, according to "Forbes", $ 4,9 billion).

In 2004 he bought 57 % of shares in "Denisovskoe" Open Society that has the block license for development of unique Denisovo deposits of coal where 70-85 million tons of high-quality coal are annually extracted. The manufacture is expected to work with a designed capacity in 2008; the coal mining will be about 2,4 million tons. It is planned to export all the coal extracted on this deposit to the enterprises of Asia and particularly to Japan .

Igor ZYUZIN, the chairman of the board of directors of metallurgical group "Mechel". According to "Forbes" magazine, that annually makes and publishes the chart of the richest world celebrities, public persons whose incomes and popularity are the highest in the world, Zyuzin holds the 451st place and has $ 1,7 billion.

In 2005 he cast the world analysts into a shock, having paid 11,578 billion roubles ($ 411 million) for 25 % of "Yakutugol" shares at the rate of the company's full cost in five its annual incomes. "Mechel" said to show to republican authorities the «diligent behaviour» and expects to purchase shares of "Elgaugol", the most perspective deposit. Rumors say that in this November the government of Yakutia plans to sale the shares of "Elgaugol" that owns the block licence for development of “Elginskoe” deposit.

Victor VEKSELBERG, the Tyumen aluminium oligarch, the co-owner of Open Society « Siberia-Ural aluminium » (SUAL), is the head of the directors board of "Renova" company, enters into the directors boards of the companies which "Renova" supervises («RUSIA Petroleum», SIDANKO, ONAKO), the sponsor of the Argentina football team (#44, according to "Forbes", $ 10 billion).

He became popular after purchasing of Faberge eggs. Konstantin Pulikovsky, the ex-chairman of Far East federal district, can easily make him a probable applicant for a post of the governor of Kamchatka . Recently the oligarch is interested in Elginsky deposit.

OIL & GAS

Yakutia is a large oil province of Russia . The reconnoitered and preliminary appreciated stock of oil of local deposits make 308,4 million tons. According to some information, the resources of oil are much bigger then the balance - about 2,25 billion tons.

The most known oil deposit of Yakutia is Talakanskoe oil-gas condensate with stocks of about 120 million tons of oil and more than 60 billion cubic meters of gas. Two Russian oligarches applied for it at once.

Michael KHODORKOVSKY, the ex-head of "YUKOS" oil company, now serves time in Ust-Kamenogorsky colony.

Through the "Sakhaneftegaz" branch in 2001 he won the competition on development of Talakanskoe deposit for 501 million dollars. However there was no many in the Yakut state oil company to pay the promised bonus in 501 million dollars so the results of competition were canceled.

Vladimir BOGDANOV, the general director of Open Society "Surgutneftegaz" (#158, according to "Forbes", $ 4,1 billion).

At the end of 2003 the Ministry of natural resources gave out to "Surgutneftegaz" the short-term operating license of Talakanskoe oil-and-gas deposit, taken from the Yakut company "Lenaneftegaz" controlled by YUKOS. The fact that the license was given without any competition, it was only said that "Surgutneftegaz" is «a diligent bowels user, it has necessary technical opportunities and financial potential».

According to an oil oligarch, for the first half-year of 2006 the volume of an oil recovery on Talakanskoe deposit has reached 32,3 million tons that makes 103,7 % for the same period last year. It is planned to invest 11 billion roubles in the development of Talakanskoe deposit by the end of this year.

GOLD

Among gold mining regions of Russia the Republic of Sakha takes the third place after the Magadan area and Krasnoyarsk region. The conditional security of the enterprises of gold mining by balance stocks of metal averages 67 years, and ore - over 200 years.

Vladimir POTANIN (#89, according to "Forbes", $ 6,4 billion), the head and the owner of a control share holding of “ Norilsk nickel”, the world's largest manufacturer of nickel and platinum.

For the symbolical sum of $ 285 million he received 99,2 % of shares of Open Company "Aldanzoloto", 50 % of shares of Open Society «Southern-Verkhoyansk mining company» (SVMC) and 100 % of shares of Open Society «Yakut mountain company». The next year he is going to invest to Yakutia not less than $ 100 million. In the long term Potanin's " Norilsk nickel" planned to buy from Yakut ALROSA all investment projects connected with extraction of gold. Recently political and business insiders look at Potanin carefully - rather frequently he is called the possible successor of the working president of Yakutia Shtyrov.

DIAMONDS

The diamond-mining industry traditionally is the leading branch of economy in republic. No wonder: in territory of republic there is about 150 diamond tubes where 98 % of all Russian diamonds are extracted. Total amount of the reconnoitered stocks of diamonds can provide the diamond-mining industry for 40 years. Last year extracted diamonds made $ 1,765,000,000.

The largest diamond-mining enterprise of Yakutia is the Joint Stock Company "ALROSA", the Republic's budget maker. Federal and republican governments have 32 % of its shares, 23 % belong to labour collective, 8 % - to administrations of Yakut regions and 5 % - to the Russia Government Fund of social guarantees to military men.

Lily SHTYROVA, the largest shareholder of the joint stock company "ALROSA" among physical persons (the prospectus of issue of shares of the company is registered on September, 18, 1997 in Irkutsk regional branch of the Federal commission on a securities market at number 1-02-40042-N). She has shares for the sum of 12 million 854 thousand 380 roubles. Now shares of "ALROSA" company are officially bought up approximately for $ 12,000 each, but the real cost of one share, according to the Ministry of economic development and trade of Russia , makes $ 32,300. If we think of this cost, then Lily Ivanovna Shtyrova is the owner of approximately $ 31 million.

// Oct. 1, 2006

Translated by Nurgun Novopriezhij
Resource: Yakutsk Vechernij Weekly Newspaper