Inteco

Inteco (Интеко in Russian, "Inteko") is a Russian construction company, 99% of which is owned by Yelena Baturina, Russia's richest woman and wife of former Moscow city mayor, Yuriy Luzhkov.

Early years

Inteco was founded by Baturina along with her brother Viktor Baturin, in 1991. Originally it was a plastics company.[1] It was awarded the contract to produce seats for Luzhniki Stadium, Moscow's largest stadium, in 1995.[1] This produced allegations of corruption since Baturina's husband, Yuriy Luzhkov, became Moscow city mayor (1992–2010). Also in 1995 Inteco was awarded the contract to produce plates for Russkoe Bistro, a fastfood chain set up by Luzhkov and owned by Moscow city authorities.[1] Later Inteco moved into the construction trade, despite Baturina stating that this would be a conflict of interests: "as the mayor’s wife I have to be very careful not to hurt my company’s reputation".[1] Inteco became very successful and at one time produced 20% of all new buildings in the capital.[2] Inteco have stated however that: "All tenders won by Inteko were awarded according to federal and municipal laws."[1]

Development

In 2005 Inteco sold its concrete works (which accounted for a third of company revenues[3]) and DSK-3, a producer of prefabricated buildings, for $1.1 billion. Evrotsement bought the concrete business for 3-5 times the going market price.[4] PIK Group bought DSK-3. The reason for the sale was thought to be the impending end to Luzhkov's term in office.[3]

Baturin's legal action

In 2007 Viktor Baturin sued Inteco for $120 million due to alleged wrongful dismissal. He was fired in 2005 and his 1% share of the company bought by Inteco for $21 million. Baturin insists however that his share was in fact 25% - until it mysteriously disappeared in 2002 or 2003.[2]

Subject of violence

On October 9, 2005 executive director of Inteko-agro Alexander Annenkov was attacked by three assailants armed with axes. He survived.[5]

On October 13, 2005, Inteco lawyer Dmitry Steinberg was shot at the entrance to his house. Baturina attended his funeral.[6]

Period following Baturina's husband's dismissal

In November 2010 Luzhkov gave an interview to the Telegraph newspaper stating that the Russian authorities were planning to break up Baturina's business empire and that the couple would fight the attempt: "We will not give up. My wife will battle for her business and for her honour and self-worth. That is for sure."[7]

References

  1. 1 2 3 4 5 Moscow turns on the mayor’s wife in a billion - Times Online
  2. 1 2 Tycoon sues billionaire little sister for £120m - Times Online
  3. 1 2 The Moscow News
  4. ↑ The great fortune of Russia's only female billionaire grows still - Pravda.Ru
  5. ↑ http://www.washingtonpost.com/wp-dyn/content/article/2006/01/15/AR2006011501020.html?nav=rss_world Washington Post article
  6. ↑ http://kommersant.ru/photo/archive/search.asp?L=2&dt=1&ex=y〈=2&lib=1&pg=10&ps=25&searchbtn=search&text=elena Kommersant photo archive
  7. ↑ Former Moscow mayor Yuri Luzhkov: 'I fear for my family', Telegraph

External links

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