Alfa Group
Website | https://alfagroup.org/ |
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Alfa Group Consortium (Russian: Консорциум «Альфа-Групп») is Russian international privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities and special situation investments.
The group was founded in 1989 as Alfa-Eco by Israeli-Russian businessman
As a holding company, in the financial year ending December 2010 Alfa Group had total assets of US$59,900 million, total equity of US$21,790 million and profit for the financial year of US$2,810 million. Return on shareholders' equity were recorded at 13.4%.[1]
In April 2012, Altimo sold its entire 25.1% stake in MegaFon to a private investor and to MegaFon for US $5.2 bln.[2]
Ownership structure and joint ventures
Its central holding company is located in Gibraltar and under the direction of Franz Wolf, the son of Markus Wolf.[3][a] Alfa Group has ownership stakes in the following companies and joint ventures:
- ABH Holdings S.A. — a private investment holding company headquartered in Luxembourg with investments in banking groups across the CIS and Europe, which includes:[17]
- ABH Financial Limited, operates mainly through Alfa-Bank (Russia) — wholly owned commercial and investment bank and one of Russia's largest, private banks,
- Alfa-Bank (Ukraine), one of the ten largest Ukrainian banks,
- Amsterdam Trade Bank in the Netherlands — a subsidiary of Alfa-Bank (Russia),
- Alfa-Bank (Belarus),
- Alfa-Bank (Kazakhstan),
- Alfa Capital Markets, а financial subsidiary in Cyprus.
- AlfaStrakhovanie Group, one of the largest Russian insurers with a diversified portfolio of comprehensive business and retail insurance products.
- in terms of sales, Perekrestok, which runs a leading chain of supermarkets in Russia, and Karusel, one of the largest hypermarket chains in Russia. Listed on London Stock Exchange under the symbol FIVE. Alfa Group owns 47.86% of the company, 19.85% stake belongs to the founders of Pyaterochka.
- TNK-BP, one of the top ten privately owned oil companies in the world in terms of crude oil production. The company was formed in 2003 as a result of the merger of BP's Russian oil and gas assets and the oil and gas assets of Alfa Group, Access Industries and Renova Group (AAR).[18] BP and AAR each own 50% of TNK-BP. In 2013, the company was acquired by Rosneft, with Alfa Group's cut almost fourteen billion.[19]
- Weather Investments of Sawiris family.
- TeliaSonera.
- Rosvodokanal Group, a leading private operator of water utilities in Russia and CIS.
- A1 Group, former Alfa-Eco, wholly owned special situations investment company.
- LetterOne Group, an investment vehicle specialising in energy, technology and private equity.[20]
- Alfa Capital Management, an asset management company, which serves Russian as well as international institutional and private clients.
- IDS Borjomi International, the manufacturer of naturally carbonated mineral water from springs in the Borjomi Gorge of central Georgia.
There are a number of current disputes regarding Alfa's ownership of various stakes[clarification needed] in telecoms companies.[citation needed]
Alfa Group is notably involved in a commercial dispute with Norwegian mobile phone company Telenor over the control of Russian company
Legal disputes
Over 10 years, Alfa Group has found itself in legal battle with business partners from
Dispute with NoreX and BP
Alfa Group's legal disputes with
TNK gained control over 60% of Chernogorneft's debts, and the debt of US$35 million held by
Letters of protest from prime minister Tony Blair to president Vladimir Putin helped little, the legally BP-owned company was forcibly sold to TNK below market price. TNK also got approval from the Khanty-Mansijsk arbitration court to take over Chernogorneft's stakes in two joint ventures, in spite of protests from venture partners Norex and Occidental Petroleum. BP fought on for years to retrieve its rightful ownership in Chernogorneft, and in August 2001 this got its first legal approval.
In 2000, according to NoreX, TNK started to undermine Yugraneft's oil transports through the national semi-monopolistic pipeline system Transneft. On 11 April and 26 June 2001, TNK again got two legal victories in the Khanty-Mansijsk arbitration court, first through a reversal of earlier regulation regarding Chernogorneft's stock capital in the joint-venture, and thereafter through a nullification of the voting powers in 497,142 out of the 600,000 shares held by NoreX. At an extraordinary annual assembly of Yugraneft on 28 June, NoreX' candidate for the CEO position was elected, but the day after TNK's security executive and 20 heavily armed guards appeared at the Yugraneft office with a false annual assembly protocol, installing Mr. A. Berman as CEO of Yugraneft. In June 2001, Yugraneft's owner Alex Rotzang contended that two British Virgin Islands shell companies Quenon investments limited and Shapburg limited which are closely associated with Mikhail Fridman and Alfa Group illegally gained control of Yugraneft through an armed seizure of Yugraneft's offices.[26][27][28] In 1998, both Quenon and Shapburg formed the Luxembourg based Compagnie Financiere pour l'Atlantique du Nord which changed its name to Gaumur Holding in March 2000 and was entirely controlled by the Baugur Group of Iceland.[29] Both Shapburg limited and the Gibraltar based AB Holdings limited, which is owned by Mikhail Fridman, co-founded the Alfa Bank subsidiary Alfa finance holdings SA based in Luxembourg.[29] In March 2000, Alfa finance holdings SA succeeded AB Holdings limited as the parent holding of Alfa Bank Group.[30] Norex' demands for investigation and nullification remained fruitless. Norex brought the case before a U.S. Federal court in New York in February 2002, demanding US$1.5 bn in redemption from TNK and Alfa Group.[31]
The year after, BP and Alfa Group merged all their oil and gas interests into a 50/50 joint venture, in spite of BP's legal and financial losses in the Yugraneft disputes since 1999. The new venture controlled both Sidanko og TNK from 11 February 2003.
For a summary of the battle of control over TNK, BP, see: TNK-BP.
Dispute with Telenor
Alfa started investing in VimpelCom in summer, 2001.
In May 2005, the Alfa Group filed a lawsuit against Telenor, via Alfa's daughter company Eco Telecom Ltd, contesting the declination of Telenor's three VimpelCom board members to approve the URS acquisition. Eco Telecom especially contested Telenor's vetoing power in the VimpelCom shareholder agreement.[39] After the trial, Alfa Group declined during four years to take part in the board of managers meetings in Ukrainian Kyivstar, thereby blocking the normal procedures of annual assemblies, approval of accounts, and payments of dividends. In 2008 Telenor achieved several legal approvals in the U.S. Federal Court of Appeal in New York, and in 2009 the Alfa Group submitted to the rulings and took up normal shareholder activity in Kyivstar. In Russian VimpelCom, however, the Alfa Group geared up its legal battle with Telenor by nominating more directors than Alfa's capital share implied. In January 2007, a court of appeal in Geneva, Switzerland ruled that Alfa Group had violated the shareholder agreement of VimpelCom.
In November 2005, VimpelCom acquired 100% of URS, after having got approval from VimpelComs annual assembly. Thereby, the Alfa Group owns shares in both URS (Beeline Ukraina) via VimpelCom, and in
In 2004, Alfa Group's daughter company «Storm» filed a number of lawsuits against Telenor, to nullify a number of provisions in the Kyivstar charter and shareholder agreement. Alfa Group especially wanted to nullify an arbitration case that Telenor had lodged in New York, but was rejected. Alfa reacted to their legal loss by boycotting all normal shareholder activity in Kyivstar, for four years from 2004, effectively blocking the business of annual assemblies, and avoiding the consolidation and ratification of Kyivstar's annual accounts.[38] No dividends were paid after 2003. In February 2006, Telenor took the issue to a U.S Federal court in New York. On 16 December 2008, Alfa Group resumed normal shareholder activities, joined in the election of a new board of directors, and agreed to pay accumulated dividends. On 11 March 2009, the Federal district court in New York ruled for the second time that Alfa companies Altimo, Storm, Alpren and Hardlake had revealed contempt for the court by not depositing their Kyivstar shares in the United States.[41] Alfa Group was convicted to daily penalties of US$100,000 from 12 March, and a further 100,000 daily if not either Alfa's shares in Kyivstar be sold, or ownership in competing business be reduced to a maximum 5%. NeOn 28 April 2009, the New York court ruled that Alfa Group had submitted to the legal rulings. Judge Gerard E. Lynch established that Alfa Group had reduced their ownership in competing mobile operations in Ukraine.
Farimex vs. Telenor
In 2009 a small, Russian-owned company, Farimex Ltd, wholly owned by a Dimitrij Fridman, lodged a claim of US$5.7 bn from Telenor in compensation for Telenor's refusal to approve VimpelCom's acquisition of URS and market entry in Ukraine. Courts in Khanty-Mansiysk[42] and Omsk have approved Farimex' claims and arrested Telenor's US$1,8 bn worth shares in VimpelCom in March 2009,[43] but Telenor refuses to accept the legal premises and appeals the verdicts to the regional court of Tyumen, which is the last court of appeal before the federal level in Moscow.[44]
Telenor Executive vice president Jan Edvard Thygesen has repeatedly said that a swap of shares in VimpelCom and Kyivstar between Telenor and Alfa Group is an option, but hard to achieve in practice.[45]
When Minister of Foreign Affairs Jonas Gahr Støre visited his Russian counterpart Sergej Lavrov in Moscow on 24 March 2009, the strife between Alfa and Telenor was elevated to become the prime issue.[46] Still, Telenor was presented by a claim from the Russian bailiff of US$1.7 bn, on 3 April, via a Norwegian district bailiff. Three days later, Telenor asked the federal arbitration court in Moscow to sustain this action until the Tyumen court had negotiated the substantial issue.
The case between Farimex and Telenor has aroused widespread, international concern. Roland Nash, Chief of research at
Agreement
In early October 2009, it became evident that Altimo (Alfa) and Telenor had for some time conducted negotiations for a solution to their conflicts. On 5 October, it was communicated that written agreement had been reached, to establish a joint holding company for VimpelCom and Kyivstar, named
Dispute with TeliaSonera
Alfa Group and Swedish-Finnish
.In Turkey, TeliaSonera has acquired 47% of the shares in Turkcell Holding, which controlled 51% of Turkcell. Telia's partner was the Turkish company
Links to the Icelandic financial crisis
Alfa-Bank has a Luxembourg-registered subsidiary Alfa Finance Holdings. The company's document trail shows that Shapburg Limited was a shareholder of Alfa Finance Holdings. Shapburg Limited is an anonymous Luxembourg-registered company which has been suspected of controlling important Icelandic companies. The finding was reported in 2005.[55]
Sanctions
In December 2023 the EU sanctioned AlfaStrakhovanie Group.[56]
See also
Notes
References
- ^ PricewaterhouseCoopers Moscow (18 October 2011). "Alfa Group Consortium Annual Report 2010"(PDF). Alfa Group Consortium. Retrieved 2011-11-13.
- ^ "History of Alfa Group Consortium". Archived from the original on 2017-03-21. Retrieved 2012-04-27.
- ISBN 978-0374238711. p. 190, see note 27.
- ^ "Die Geschichte der Familie Wolf" [The story of the Wolf family]. NDR.de (in German). 10 April 2013. Archived from the original on 18 June 2014. Retrieved 8 February 2021.
- ^ Gürtler, Lena; Webermann, Jürgen (10 April 2013). "Deutscher Helfer für russischen Oligarchen" [German helper for Russian oligarchs]. NDR.de (in German). Archived from the original on 12 April 2013. Retrieved 8 February 2021.
- ^ Сигал, Лев (Sigal, Lev) (25 May 1999). "Глава "Альфа-групп" Михаил Фридман и колумбийские наркобароны: Что может их связывать?" [Head of Alfa Group Mikhail Fridman and Colombian drug lords: What can connect them?] (in Russian). Агентство политических новостей (АПН) Agency of Political News (APN). Archived from the original on 1 September 1999. Retrieved 8 February 2021.
{{cite news}}
: CS1 maint: multiple names: authors list (link) - ^ "Relationships Chart of Franz Wolf to Michail Fridman, German Khan, Alexej Kusmitschow" [Relationships Chart of Franz Wolf to Mikhail Fridman, German Khan, Alexey Kuzmichev]. NDR.de (in German). 10 April 2013. Archived from the original on 12 April 2013. Retrieved 8 February 2021.
- ^ Leyendecker, Hans; Obermaier, Frederik (11 April 2013). "Sohn des DDR-Spions Markus Wolf: Diskrete Geschäfte am Affenfelsen" [Son of the GDR spy Markus Wolf: Discrete shops on monkey rock]. Süddeutsche Zeitung (in German). Archived from the original on 29 April 2013. Retrieved 8 February 2021.
- ^ Michel, Anne (11 April 2013). "Steueroasen: So helfen Banken Superreichen" [Tax havens: This is how banks help the super-rich]. Süddeutsche Zeitung (in German). Retrieved 8 February 2021 – via Le Monde.
- ^ Leyendecker, Hans; Obermaier, Frederik (11 April 2013). "Sohn des DDR-Spions Markus Wolf: Das Phantom Franz Wolf" [Son of the GDR spy Markus Wolf: Phantom spy Franz Wolf]. Süddeutsche Zeitung (in German). Archived from the original on 18 June 2014. Retrieved 8 February 2021.
- ^ Beise, Marc [in German] (11 April 2013). "Summa summarum zu Offshore-Leaks: Wirtschaft wie ein Kriminalroman" [All in all, on offshore leaks: Economy like a detective novel]. Süddeutsche Zeitung (in German). Retrieved 8 February 2021 – via Marc Beise.
- ^ "Wer ist Michail Fridman?" [Who is Mikhail Fridman?]. NDR.de (in German). 10 April 2013. Archived from the original on 14 April 2013. Retrieved 8 February 2021.
- ^ "Справка по материалам в отношении руководства финансово-промышленной группы "Альфа"" [Help on materials regarding the management of the financial and industrial group "Alpha"]. Грани.ру (Grani.ru) (in Russian). 21 April 2005. Archived from the original on 23 May 2019. Retrieved 9 February 2021.
- ^ "Справка по материалам в отношении руководства финансово-промышленной группы "Альфа"" [Help on materials regarding the management of the financial and industrial group "Alpha"]. Грани.ру (Grani.ru) (in Russian). 21 April 2005. Archived from the original on 22 April 2005. Retrieved 9 February 2021.
Compromat.ru archive
Alt URL - ^ "Почему российского олигарха Фридмана не любят в Испании: Испанцы неоднозначно отнеслись к покупке группой российского миллиардера Михаила Фридмана пакета акций местной розничной сети АСВ. Чем они недовольны, выяснил DW" [Why the Russian oligarch Fridman is disliked in Spain: The Spaniards were ambivalent about the purchase by the group of Russian billionaire Mikhail Fridman of a block of shares in the local DIA retail chain. What are they unhappy with, DW found out.]. DW (in Russian). 11 August 2017. Archived from the original on 12 August 2017. Retrieved 10 February 2021.
- ^ Hollenstein, Pascal (24 November 2002). "Ölige Verbindungen nach Zug" [Oily connections to Zug]. Neue Zürcher Zeitung (in German). Archived from the original on 27 March 2016. Retrieved 8 February 2021.
- ^ "The Banking Group". ABH Holdings S.A. Retrieved April 9, 2021.[permanent dead link]
- ^ "BP, Russian billionaires, and the Kremlin: a Power Triangle that never was" Oxford Energy Comment, November 2011 Accessed 24 November 2011
- ^ Dexter Filkins (8 October 2018). "Was There a Connection Between a Russian Bank and the Trump Campaign? A team of computer scientists sifted through records of unusual Web traffic in search of answers". NewYorker.com. Archived from the original on 7 October 2021. Retrieved 12 October 2018.
- ^ ""L1 Group"". Archived from the original on 2015-10-09. Retrieved 2016-03-03.
- ^ Wall Street Journal, Norway seeks caution in Telenor battle
- ^ a b c d e f g Javers, Eamon (25 February 2007). "Spies, Lies & KPMG: An inside look at how the accounting giant was infiltrated by private intelligence firm Diligence". Bloomberg. Archived from the original on 4 July 2017. Retrieved 12 December 2019.
- ^ a b c d e f Hotten, Russell (27 June 2008). ""BP antagonist has Altimo ambitions"". The Telegraph. Archived from the original on 11 November 2012. Retrieved 28 November 2018.
- ^ Vina, Gonzalo (19 June 2006). "Shakers: Former Tory leader to head risk firm". International Herald Tribune. Archived from the original on 2 December 2008. Retrieved 28 November 2018.
- ^ a b NoreX Archived 2008-11-21 at the Wayback Machine - «History of Conflict».
- ^ Канадский предприниматель обвинил главу "Альфа-групп" Михаила Фридмана в краже нефтяной компании
- ^ Фридман и "Альфа-групп" требуют взыскать с журналистов и издателей парижских газет Le Parisien и Les Echos более 1 млн евро за клевету: За слово - в карман. "Альфа-групп" защищает репутацию от журналистов
- ^ ТНК обвиняется в организации преступной группы: Рэкетиры Кукес и Вексельберг
- ^ )
- ^ Alfa Group: CONSOLIDATED FINANCIAL STATEMENTS AND REPORT OF THE AUDITORS (31 December 2001). See page 8.
- ^ Norex Petroleum Ltd. v. Access Industries, et al., No. 02-CV-1499 (LTS)(KNF) (S.D.N.Y.).
- ^ Pravda - «Alfa Group, Access/Renova and BP to create new company», 11. February 2003.
- ^ Moscow Times Archived 2011-07-14 at the Wayback Machine - «Norex Petroleum Sues For BP's Dirt on TNK», 13, February 2002, referred at the NoreX web page.
- ^ Extract Archived 2011-07-14 at the Wayback Machine of NoreX' appeal of 18 February 2003.
- ^ Unger 2018, pp. 216–7.
- ^ U.S. Court of Appeal, New York Archived 2011-07-14 at the Wayback Machine - extract of rulings on NoreX' right to further appeal and repartiation of funds, 21 July 2005.
- ^ IPR Strategic Business: «VimpelCom shareholders approve Alfa Group investment», 2 August 2001.
- ^ a b Telenor Archived 2009-05-27 at the Wayback Machine - Background on Russia and the Ukraine, 2009.
- ^ Forbes Magazine[dead link], Bente Bjørndal, «Telenor to fight new Alfa Group lawsuit over Ukraine's WellCom», 24 May 2005.
- ^ Forbes Magazine[dead link], Bente Bjørndal,«Telenor to fight new Alfa Group lawsuit over Ukraine's WellCom», 24 May 2005.
- ^ Telenor Archived 2009-03-26 at the Wayback Machine - «Alfa Held in Contempt for Second Time by US Court; Telenor's VimpelCom Shares Arrested in Russia», 12 March 2009.
- ^ Times Online - «Telenor to fight Siberian court order», 18 August 2008.
- ^ Norwegian business daily Dagens Næringsliv Archived 2009-05-17 at the Wayback Machine - «Telenors Vimpelcom-aksjer i arrest», 12 March 2009.
- ^ IT Examiner Archived 2012-05-27 at archive.today - «Telenor appeals Farimex decision», 4 March 2009.
- ^ Reuters - «Telenor confident as Alfa bows to U.S. court», 18 March 2009.
- ^ Aftenposten - «Støre ga klar melding til russerne», 24 March 2009.
- ^ St. Petersburg Times - «Investors See Major Implications in Telenor Case», 17 March 2009.
- ^ The New York Times - «Telenor Ruling Stirs Fear of Court Shopping in Russia», 10 April 2009.
- ^ The New York Times - «Telenor Ruling Stirs Fear of Court Shopping in Russia», 10 April 2009.
- ^ Telenor Archived October 8, 2009, at the Wayback Machine - «Telenor and Altimo to Create a Leading Emerging Markets Mobile Operator», 5. oktober 2009. The following bases on this joint press release.
- ^ "TeliaSonera - press release". Cision Wire. Archived from the original on 2009-08-10. Retrieved 2005-03-25.
- ^ TeliaSonera Archived 2008-11-21 at the Wayback Machine - «Significant events after Year-end 2007».
- ^ TeliaSonera[permanent dead link] - «Delårsrapport Januari-juni 2006», page 16.
- ^ "TeliaSonera - press release". Cision Wire. Archived from the original on 2009-08-10. Retrieved 2009-08-07.
- ^ "Россия желает спасать Исландию из-за давних офшорных связей чиновников и бизнесменов". The New Times. 2008-10-21.. Another copy: "Зачем Россия спасает Исландию". Rususa. 2008-10-21. Archived from the original on 2011-07-15.. An automatic translation: "Discussion of the relationship between Iceland and Russia from the Russian newspaper". Archived from the original on 2008-10-23. Retrieved 2010-04-07.
- ^ "EU Issues 12th Sanctions Package Targeting Russia". 19 December 2023.
- ISBN 978-1524743505.
External links
- (in English) Alfa Group official website Archived 2007-06-07 at the Wayback Machine