Ulyukaev vs. Sechin. The ex-minister testified in court. Sechin in the Moscow City Court - “Vladimir Putin needs consensus more than ever Sechin and Ulyukaev conflict

What did Igor Sechin and Alexey Ulyukaev talk about before the minister received a “basket” with two million dollars? Fontanka was helped to understand this by experts - an oil and gas analyst and a political scientist.

Dmitry Azarov/Kommersant

The last conversation between the head of Rosneft Igor Sechin and Alexei Ulyukaev before the arrest of the ex-Minister of Economic Development was read out by the prosecution in court. This did not make it any clearer why the minister personally went for a bribe of twenty kilos of dollars, although humanity has long invented offshore companies. Fontanka asked two experts to interpret the conversation between Ulyukaev and Sechin from two points of view: from the economic-oil and gas and from the political. Who was this text addressed to and why did they meet at all? Partner of the consulting company RusEnergy Mikhail Krutikhin and political scientist, economist, and until 2002 member of the government Vladimir Milov explain.

Let us recall the content of the previous episodes. In the summer and autumn of 2016, there was discussion about the privatization of Rosneft and Bashneft. The Ministry of Economic Development, headed by Alexey Ulyukaev, was against the scheme under which state-owned companies actually bought themselves out. Then it changed its mind, but the head of Rosneft still invited the minister to visit. It was November 14th. At the exit from the Rosneft territory, Ulyukaev’s car was blocked by a barrier. The minister sat in the car for several hours, then he was detained and then placed under house arrest.

The prosecution claims that Ulyukaev threatened to extort a bribe in exchange for approval of privatization schemes; Sechin was forced to agree, but complained to the FSB. Just by chance, General Feoktistov was working in his security service at that time (he later returned to Lubyanka). Ulyukaev was detained, according to the prosecution, at the moment when he was putting a bag with money in the trunk. Sechin gave him two million dollars in two cases.

At the next meeting of the Zamoskvoretsky District Court of the capital, where the trial of the ex-minister is taking place, the state prosecutor read out the transcript of audio recordings made in Sechin’s office on November 14, 2016. Let us emphasize: it was not the recordings themselves that were played, but the transcripts made by the investigation. You can view them on the Mediazona website.

From the records we learn that Sechin was the initiator of the meeting. He not only called Ulyukaev “to look at the company,” but also insisted on the time of the visit. Already in the office, they started talking about the “basket” that Rosneft, on someone’s instructions, had been preparing for a long time for a dear guest - and now it was finally assembled. And it was as if sausage had been packed there all this time. They say that the oil company actually has such a tradition of greeting guests with food packages. Sechin apologizes for delaying the “basket”. Who gave the very instructions to staff it remains behind the scenes.

“Ulyukaev came to listen to the editorial of the Pravda newspaper”

If you read the transcript, it’s an uninteresting conversation about Rosneft and just about oil. For the uninitiated, its content is interpreted by Mikhail Krutikhin.

- Mikhail Ivanovich, if we take the transfer of the “basket” out of the equation, why did they meet?

– It’s impossible to say, because the conversation itself represents some kind of strange political information. The head of a state oil and gas company, who is also the executive secretary of the commission on the fuel and energy complex, suddenly issues something like a press release in a conversation with the minister. Intended not for the interlocutor, but for some third person. It feels like both were working for the public.

- Why both? Ulyukaev says almost nothing, only from time to time he agrees with Sechin’s monologues.

– I suspect that Ulyukaev already knows very well what is happening at Rosneft. And with some surprise he listens to this theatrical performance. There is absolutely no information in their conversation.

Why not? Sechin complains to the minister that his tax base is “the heaviest in the world.” Maybe the person just wanted to ask for tax breaks?

– He cannot ask the Ministry of Economic Development about this, because taxation issues are resolved at the presidential level. Therefore, in everything that Sechin says about taxes, there is also neither information nor a request to the minister.

But Ulyukaev agrees: yes, they say, “we definitely need to study.” He says that he understands Sechin. What does he understand and what does he agree with?

“He agrees with what everyone now understands: the current taxation system in the industry is far from fair. The government recently approved a plan that will change the system to encourage investment in exploration and production. Companies will be able to pay taxes after making profits. All oil workers agree with this; they are supported by the Ministry of Energy. The only opposing force was not Ulyukaev’s ministry, but the Ministry of Finance. And, by the way, I understand his reasoning. The new system could lead to companies inflating costs on paper.

- In what part of the conversation does Sechin discuss this key point with Ulyukaev? I do not see.

“That’s exactly what they don’t discuss.”

– The Indian project is very dependent on oil supplies from Venezuela. And Venezuela either disrupts supplies or is completely in debt. Overall, this project has huge problems. Presenting this as a success for Rosneft is very far from reality. Sechin is simply broadcasting a propaganda version here too.

And he tells Ulyukaev that there will also be Iranian and Iraqi oil. And it produces a lot of numbers that really paint the company.

– Just Iranian and Iraqi oil is oil that does not belong to Rosneft, it must be purchased on the foreign market, that is, the company has no merit in this. But the minister should know all this anyway.

They also talk about freezing oil production: this will benefit America, its shale projects will receive “a time lag to prepare new volumes”, we will “lose markets”...

“Here are two men sitting in a pub and discussing the fact that the Volga flows into the Caspian Sea. Yes everything is correct. But why talk about this with the minister?

Maybe freezing oil production was such a pressing issue that Sechin urgently needed to discuss it with the minister? So Ulyukaev is worried: “This must be taken into account.” Sechin agrees: “We are working little by little, Lesha.”

– In fact, oil exports from Russia are not decreasing, but increasing. That is, Russian companies, including Rosneft, do not fulfill their obligations to OPEC. They are also increasing production. And why discuss this with the minister?

But they are both going to Lima for the APEC summit. Sechin says: “Yes, I will be in Lima.” Ulyukaev still thinks that he “will be there too.” Maybe before Lima there was time to discuss something that would be decided there?

– Sechin is simply trying to present Rosneft as a global energy company. It's all the same puffing out of one's cheeks. Meanwhile, almost all the oil that Rosneft produces in Russia is pledged to the Chinese for many years to come. With the money given by the Chinese for the acquisition of Rosneft. And then Sechin says that the company is expanding its activities throughout the world.

-Who is he telling this to? A minister about whom he knows that in half an hour he will be arrested and he will no longer be a minister?

– I can’t make any assumptions here. Ulyukaev came to the man so that he, in fact, read to him the editorial of the Pravda newspaper. Why did he even go there? He could easily have been invited to talk about something real, but instead they began to mislead him.

- Probably, in that case, he would have asked: Igor Ivanovich, why did you call me, exactly?

- Yes, it would be better to ask that way.

“Ulyukaev had to be smoked out of the car”

Vladimir Milov takes up the baton: if the conversation about the economy and oil was not the subject of the meeting, then why did Igor Sechin invite Alexey Ulyukaev to visit? And why did the minister receive two million dollars and handcuffs upon leaving this meeting?

- Vladimir Stanislavovich, why was this strange meeting necessary?

– We don’t know anything about this story at all, except for some leaks on the part of Igor Sechin. Therefore, I suggest not to give in and analyze the entire range of possibilities. First, Ulyukaev actually took money.

- In the “basket”.

– Two million in hundred dollar bills is 20 kilograms of money.

- In a very large basket.

“This won’t fit into any basket; here you have to drag two large bales.” I think there could have been some kind of basket, but it doesn’t matter. The first option is that Ulyukaev was going to take money. Secondly, there are a number of controversial situations related to both the Ministry of Economic Development and Rosneft. In particular, they discuss tax incentives and production costs. The government talked about this all the time. If you take a look at the press at that time, you will see how Rosneft is constantly begging for tax breaks. The reason for the visit could have been an attempt to acquaint Ulyukaev with some Sechin calculations. In principle, what they discussed fits into the scheme that the Ministry of Economic Development can be an ally of Rosneft on the issue of benefits against the Ministry of Finance.

According to Mikhail Krutikhin, they did not discuss anything new there. In addition, Ulyukaev agrees with Sechin on everything, he no longer needs to be convinced.

– Before analyzing their conversation, understand basic things. One of the participants in the conversation, Sechin, simply does not understand the economic aspects. The second, Ulyukaev, is a literate person, but not very versed in the oil sector. And you shouldn’t be surprised that their conversation is superficial and consists of some kind of rubbish. In addition, we were given fragments - and we do not know how complete the conversation is.

I'm talking not only about content, but also about form. Here are quotes from Sechin: “In terms of development technology, we occupy serious leading positions; if we are not getting closer to world leaders, then we are stepping on the heels,” “Our development is proceeding, despite the wishes of OPEC, I reported to Vladimir Vladimirovich,” “This is such a project for market, unique." Is this how people talk?

“I worked in the government for six years in senior positions, and I know those involved in the conversation personally. And it doesn’t surprise me that their conversation is a mixture of officialdom and rubbish. What else can Sechin say? Such people learn phrases by heart. They mutter and cram. Moreover, here in front of us are people with a huge wall between them. They are rivals. There is no informal communication between them. This is one of the rare contacts.

But you can’t say that. Sechin calls Ulyukaev Lesha and worries that he might freeze without a jacket. He shares that he is insulating himself.

– Sechin, as we now know, had to trick Ulyukaev into doing something. But formally, Ulyukaev is the boss, whom he must convince of something.

Then why is Ulyukaev the boss going to Sechin? And it doesn't just go. Sechin invited him, even insisted on time - and Ulyukaev obeyed.

– He is a boss in the sense that the solution to some of Sechin’s issues depends on his signature. But their political weight, of course, is different. And of course, not in favor of Ulyukaev. Ulyukaev said that he did not want to go. But it was an offer that was hard to refuse. Or maybe he was just hoping that he would smooth out some corners in this conversation.

Where in this transcript are the signs that they are rivals, that there are some angles? Ulyukaev echoes all the time: “Of course, we are 100 percent in favor,” “I am completely on your side in everything with both hands.”

“I think he had something to say, but he didn’t do it.” Although I would not attach any importance to the content of the conversation. Here we need to analyze the general context at that time. And in the general context, they were precisely opponents, in particular regarding the privatization of Rosneft and Bashneft. Perhaps Ulyukaev wanted to relieve some tension.

- That is, he went to be friends, and his...

- Yes Yes. This is very typical for them. They perceive such gentleness as weakness: it means they need to finish it off. It's in their blood.

There are strange moments in the conversation. Here they are discussing taxes, Sechin gives a monologue. Ulyukaev agrees, begins the phrase: “And of course, we need several international ones like that...” Sechin cuts him off mid-sentence and moves the conversation to that same “basket.” Did he see that it was time to get down to business?

– There is such a feeling. But I believe that there is not enough information to draw conclusions. We don't see the whole picture. We only see fragments that Sechin shows us so that we start shouting “Stop the thief!” Who knows what they could actually discuss there?

One thing prevents me from agreeing with the version that this was a conversation about the economy: Sechin is saying all this to a man who will be arrested in half an hour.

– But Ulyukaev doesn’t know this. Sechin knows this, but he cannot reveal it during the conversation. Although, I repeat, we have very few details to draw conclusions.

- Are your sympathies on the side of Ulyukaev?

- Not certainly in that way. I have no sympathy for Ulyukaev. But regarding Sechin, I have complete confidence, confirmed by the facts in this case, that he carried out a provocation. This is a common secret service scam. There can be any interpretation of audio recordings. Show me real material evidence. And there is one more moment. They were unable to detain Ulyukaev in the city. This was only possible to do at the Rosneft office and by its security service. To do this, they had to actually block his exit. He sat in the car for many hours. This suggests that they did not have sufficient legal grounds. They had to lure him into the office and basically take him hostage, and then smoke him out of the car, holding him in front of the barrier.

They understood that the Minister of Economy would not immediately put his hands into a suitcase with money in order to smear himself in paint.

– My version is that the money was not intended for Ulyukaev personally. This could have been some kind of bonus for the ministry employees who carried out work on the Rosneft deal. Then a lot of logical things immediately appear. They understood that Ulyukaev himself would not take the money. He can only act as such an intermediary courier. Therefore, it had to be taken only here and now.

- As long as he and the money are in at least one car?

“In any case, this explains why they took him specifically from the Rosneft office.” Perhaps, in another case, Ulyukaev would not have gone to Sechin, but he said: I am ready to pay your employees, but you come to me personally. And it was Ulyukaev’s mistake. Although it cannot be ruled out that he still took the money for himself.

- The Minister of Economy who does not know how to receive money by bank transfer?

- Yes, this is an implausible version. But do not forget that Ulyukaev is a representative of the “old guard”. Anything can happen. But we need to demand concrete evidence, but there is none. But there are a lot of signs that indicate that not everything here is clean.

Interviewed by Irina Tumakova, Fontanka.ru

Sechin: Ulyukaev himself determined the size of the bribe

The head of Rosneft, Igor Sechin, who is a witness in the criminal case against ex-Minister of Economic Development Alexei Ulyukaev, on Wednesday for the first time commented to journalists about his attitude to the investigation.

Sechin said he was convinced that Ulyukaev committed a crime. “While in the position of minister, he demanded an illegal reward, determined its size himself, came for it himself, took it with his own hands, loaded it into a car and drove away. In accordance with the Criminal Code, this is a crime. So there is nothing to talk about here,” - The head of Rosneft answered a question from journalists in Vladivostok.

Media representatives asked Sechin if he was ready to testify against Ulyukaev in court. To which he replied that he would testify “right now” and stated the above.

Let us recall that in August, the press secretary of the Zamoskvoretsky District Court of Moscow, where the “Ulyukaev case” is currently being heard, Emilia Khil reported that the head of Rosneft, Igor Sechin, was included in the list of prosecution witnesses. According to the law, he can either be summoned to court to testify in person, or the testimony he gave at the preliminary investigation stage can be read out.

A day earlier, in the Zamoskvoretsky court, prosecution witnesses were interrogated - the director of the Rosneft investor relations department Andrei Baranov and the director of the corporate governance department of the Ministry of Economic Development of the Russian Federation Oksana Tarasenko. In addition, prosecutor Boris Neporozhny read out in court a printout of the negotiations between Ulyukaev and Sechin. In the printout, Ulyukaev and Sechin do not talk about money, and the bag with money is called a basket with sausage.

The state prosecution considers these statements to be a veiled discussion of bribery. The prosecutor recalled that Sechin transferred the money to Ulyukaev as part of an operational investigative experiment.

On November 15, 2016, the Investigative Committee initiated a criminal case against Ulyukaev. The first detention of a federal minister in modern Russia took place on November 14. The next day, the court sent him under house arrest to a Moscow apartment on Minskaya Street.

The investigation believes that Ulyukaev demanded a bribe from Rosneft in exchange for issuing a positive conclusion on Rosneft’s purchase of a state-owned stake in the oil company Bashneft.

Ulyukaev was charged under Part 6 of Art. 290 of the Criminal Code of the Russian Federation (“receipt of a bribe by an official on an especially large scale”). According to it, he faces imprisonment for a term of 8 to 15 years. In November 2016, Russian President Vladimir Putin Ulyukaeva resigned due to loss of trust.

Experts on the appearance of the head of Rosneft at the trial of Ulyukaev

Today, Igor Sechin finally came to the Moscow City Court, where they began to consider an appeal against the verdict of Alexey Ulyukaev. The head of Rosneft was interrogated behind closed doors. Initially, the defendant’s lawyers asked to cancel the sentence, but the Prosecutor General’s Office opposed, calling the punishment legal and justified. Why Sechin changed his decision and under whose influence - read more in the comments of Realnoe Vremya experts.

Sechin: “For me it was a matter of honor”

This morning the Moscow City Court began considering an appeal against the verdict of ex-Minister of Economic Development Alexey Ulyukaev. Let us remember that at the end of the year, the court of first instance found him guilty of accepting a bribe in the amount of $2 million and sentenced him to 8 years in a maximum security colony, as well as paying a fine of 130 million rubles.

The defense of the convicted person asked to cancel the verdict due to the refusal of the main witness, the head of Rosneft Igor Sechin, to come to court. However, today the matter took an unexpected turn: the chief executive officer of the state-owned company nevertheless appeared at the trial. Sechin was interrogated for an hour and a half behind closed doors. Afterwards, the press was again allowed into the courtroom, but Ulyukaev’s lawyers took time to prepare their position, taking into account the appearance of the witness. The court adjourned until 2:30 p.m. After the interrogation, Igor Sechin told TASS that for him, appearing in court was “a matter of honor,” and he considers the ex-minister’s case a new impetus in the fight against corruption in Russia:

I hoped that the trial court would accept my written testimony, unfortunately, this did not happen. Therefore, as soon as the opportunity arose, I came to court. For me this was a fundamental issue, because I wanted my testimony to be taken into account by the court. “I am the main witness, and for me it was a matter of honor,” said the head of Rosneft after the interrogation.

“Sechin’s testimony does not shed light on what happened, but only gives rise to contradictions and ambiguities,” Ulyukaev’s defense believes. Photo ntv.ru

Ulyukaev’s defense: “Sechin’s testimony does not shed any light”

During the debate between the parties, the former minister said that Sechin changed his original testimony - they say that he demanded a bribe not during a game of billiards at the BRICS summit in Goa, but when all the summit participants went to the event. Defense attorneys continued to insist on overturning the verdict:

It is very difficult for me to imagine how, while climbing the stairs in a crowd of people to the eighth floor (it took 10 minutes, according to Sechin), Ulyukaev extorts a bribe from Sechin. Sechin’s testimony does not shed any light on what happened, but only gives rise to contradictions and ambiguities. This is already enough to overturn the sentence,” said Ulyukaev’s lawyer Timofey Gridnev.

According to the investigation, the convict demanded money from the witness in exchange for a positive conclusion from the Ministry of Economic Development on the privatization of Bashneft. However, Sechin himself admitted that Ulyukaev could not influence this decision under any circumstances. The statement about extortion of a bribe was written from his words by the former head of the Rosneft security service, FSB General Oleg Feoktistov. The applicant himself ignored summonses for the trial in the Zamoskvoretsky court four times, citing being busy.

The statement about extortion of a bribe was written from his words by the former head of the Rosneft security service, FSB General Oleg Feoktistov. Photo dailystorm.ru

“Now, it is quite possible that Ulyukaev can be saved from imprisonment”

The head of the Center for Regional Policy Development, Ilya Grashchenkov, called the situation of Sechin and Ulyukaev quite complex and confusing from the point of view of public policy. But if we look at it through the prism of a conflict of interest, then it is obvious that the head of Rosneft won a victory, which should now be consolidated.

The arrest and imprisonment of Ulyukaev is not a mandatory procedure. It is clear who turned out to be strong and whose plans were realized and whose were not. Now, it is quite possible that Ulyukaev can be saved from imprisonment, since, after all, he is a man of the system, his arrest affects too many interests. Now Russia is in a very difficult international situation, and internal conflicts do not help strengthen the external situation. Vladimir Putin needs consensus more than ever, which means he may well influence businessmen close to him, such as Igor Sechin, encouraging him to reconcile with his enemies. Therefore, my forecast: it is quite possible to expect actions that will lead to a lighter sentence,” says Grashchenkov.

However, Ufa economist, Ph.D. in Economics, Associate Professor of the Department of Economics and Management at USNTU Rustem Shayakhmetov does not see much reason for Sechin’s appearance in the Moscow City Court:

This means that he considered it necessary to come, he is a fairly independent person. If he didn’t want to, it would be difficult to force him, given his status. Most likely, this is his personal decision. I don’t think it was the president who gave the command to Sechin. Although the matter is resonant, this is not its level. Moreover, the decision has already been made, and I don’t think that Sechin’s visit will change anything much. The fact that he came does not mean anything. Perhaps he really physically could not come earlier, since he did not consider this matter a priority for himself. But since there was time, I decided: “Let’s go, so that there is no unnecessary talk that I am shirking the duties of a witness to speak in court,” Shayakhmetov believes.

The publication’s interlocutor urges not to look for any big background in this case and does not believe that Sechin’s testimony will strengthen the position of the prosecution, or even more so, the defense. Andrey Kolyadin, board member of the Russian Association of Political Consultants, shares a similar point of view:

- I think this is correct, because everyone is equal before the law. It shouldn't be that someone is more equal. I think Sechin understood this too. Because a state in which there are untouchable people, after a while begins to dislike these people. It is quite possible that someone advised him, but he definitely made the decision himself. I consulted because, being in this position, you are always surrounded by a certain number of people who give you PR recommendations. I think it was the same here,” says Kolyadin.

According to him, the sanctions will undoubtedly affect the position of the head of Rosneft and his holding company, and will not affect them in the best way, “but they are already both morally and financially prepared for this. Believe me, unlike you and me, these people will not die of hunger.” Theoretically, Kolyadin argues, Sechin can take away Bashkiria’s 25% share in Bashneft, but in any case the issue will be resolved in a consolidated manner: “The state is interested in ensuring that there are no conflicts in the private market zone, and there is the same injustice, as well as going to court. If he has grounds to take this interest, then the flag is in his hands. If not, everyone should be equal before the court.”

P.S. The Moscow City Court upheld the verdict against Alexey Ulyukaev. On December 15, 2017, the former Minister of Economic Development was found guilty of accepting a $2 million bribe from the head of Rosneft, Igor Sechin, and was sentenced to 8 years in a maximum security colony, as well as paying a fine of 130 million rubles. The court also retained the seizure of Ulyukaev’s real estate, his accounts, a car, a silver bar and a collection of precious metal coins.

Vasil Shirshov

New details are emerging in the high-profile corruption case at the Ministry of Economic Development. Alexey Ulyukaev, the first federal minister in Russian history to be detained for taking a bribe, accuses the FSB and Rosneft of provocation and does not want to admit guilt. He could be jailed for 15 years. This is the maximum punishment provided for under the article charged against him.

What's happening

On Wednesday, August 16, the Zamoskvoretsky Court of Moscow began to consider the merits of the case of the former Minister of Economic Development of Russia Alexei Ulyukaev. He is accused of receiving a bribe of $2 million for approving Rosneft’s deal to purchase a state-owned stake in Bashneft. During the meeting, the parties had the opportunity to express their versions of what happened.

What Ulyukaev spoke about

The ex-minister considers himself innocent. According to him, the FSB staged a provocation.

“The FSB prepared for several weeks, waited for me to arrive, but I did not come. Without waiting for me to arrive to receive the money, Sechin personally called me and persuaded me to come,” the former head of the Ministry of Economic Development voiced his version.

What did the prosecution say?

The prosecutor said that in October 2016, at the summit of the BRICS heads of state in the Indian state of Goa, Alexey Ulyukaev demanded $2 million from Igor Sechin. He valued his gratitude for the positive conclusion on the deal to purchase Bashneft shares at this amount, the prosecution points out.

In addition, Ulyukaev put pressure on Sechin. In case of refusal of “gratitude”, he promised to hinder the further work of Rosneft, using the tools available to him - the Ministry of Economic Development will not give positive opinions on other transactions of the company.

“Sechin, realistically perceiving the threat of Ulyukaev, who was a member of the Government of the Russian Federation, in order to prevent negative consequences for the company, agreed to Ulyukaev’s illegal demands,” the prosecutor said.

At the end of October 2016, Igor Sechin contacted the FSB and was recruited to participate in operational search activities.

How they took Ulyukaev

On November 15, a former federal official was caught red-handed while accepting a bribe at the Rosneft office. Then the media, citing sources in law enforcement agencies, wrote that Ulyukaev had been under development by the security forces for more than a year. It was also reported that during his arrest he tried to call some patrons, but he was unable to do so.

Why Ulyukaev wanted gratitude

On October 12, Rosneft bought the state stake in Bashneft for 330 billion rubles. The money went to the federal budget. The Ministry of Economic Development approved this deal.

Alexey Ulyukaev, as head of the Ministry of Economic Development, actively advocated the sale of state assets. In his opinion, privatization would improve the efficiency of their management. The government, the ex-minister believed, was not capable of this.

He considered the privatization of Bashneft useful, as well as the sale of state-owned stakes in Sberbank, VTB, Sovcomflot and Rosneft.

Who is Alexey Ulyukaev

Alexey Ulyukaev is 61 years old.

Graduated from the Faculty of Economics of Moscow State University (1979), Doctor of Economics.

From 1988 to 1991 he worked as a journalist: he headed the editorial department of the Kommunist magazine, and was a political observer at Moscow News.

In 1991, Ulyukaev became an economic adviser to the government and was a member of the team of reformers led by Yegor Gaidar. In 1993–1994 he worked as an assistant to First Deputy Prime Minister Gaidar. At the beginning of the 2000s, he served as Deputy Minister of Finance (the head of the Ministry of Finance was then Alexey Kudrin).

From 2004 until June 2013, Alexey Ulyukaev was Deputy Chairman of the Bank of Russia (the regulator was headed by Sergei Ignatiev).

In June 2013, he was appointed head of the Ministry of Economic Development, replacing Andrei Belousov (now he works as an assistant to the President of Russia).

Awarded the Order of Merit for the Fatherland, IV degree. Writes poems.

Considers corruption to be one of the main obstacles to the normal development of the state. “Corruption is a problem. The level of corruption is high. But just making a statement that there is corruption is not enough. Need to do something. And, as I said, transparency is the best way to improve the situation,” said Ulyukaev.

current position

Now the ex-minister is under house arrest. The trial in his case will continue on September 1.

Ulyukaev is under Part 6 of Art. 290 of the Criminal Code - “Receipt of a bribe by a person holding a public office in the Russian Federation on an especially large scale.” It provides for several types of punishment.

Firstly, it could be a fine of 3–5 million rubles or in the amount of the convicted person’s income for 3–5 years, or 80 times or 100 times the amount of the bribe with deprivation of the right to hold certain positions for a period of 15 years.

Secondly, anyone convicted under this article faces imprisonment for 8–15 years. He may also be charged with a fine (70 times the size of the bribe) or deprived of his right to hold certain positions.

Ulyukaev himself tries not to lose his cheerful mood and goes for a run. On August 8, he even thanked Russian justice for the opportunity to improve his physical fitness. “I lost 14 kg, thanks to our justice for this,” said the ex-minister.

On Tuesday, the Zamoskvoretsky court continued to consider the bribery case of former Russian Minister of Economic Development Alexey Ulyukaev. During the trial, the prosecutor's office presented, as evidence of the ex-minister's guilt, transcripts of conversations between the defendant and the head of Rosneft, Igor Sechin, which were recorded using audio recording devices issued by FSB officers before the arrest. “Kommersant” cites the text read out in the courtroom, which was published by “Mediazona” ( “Kommersant” apologizes to “Mediazona” for the fact that, due to a misunderstanding, the link was not provided immediately upon publication).

Telephone conversation between Sechin and Ulyukaev

Sechin: Hello, Alexey Valentinovich?

Reception employee Ulyukaeva: Igor Ivanovich, good afternoon, I’m connecting now.

Ulyukaev: Hello.

Sechin (grins): Alexey Valentinovich, dear?

Ulyukaev: Yes, Igor Ivanovich? All attention, how glad I am to hear from you.

Sechin: Don't tell me, me too. Well, firstly, I had unfulfilled assignments there, but I have readiness based on the results of my work there...

Ulyukaev: Yes.

Sechin: And that means, secondly, a lot of questions have accumulated there, both on the boards of directors and on everything.

Ulyukaev: Well, let's discuss everything.

Sechin: I have only one request - if you can, come to us for a second, because here, maybe... Well, I’ll show you in general. And take a look at the company in general.

Ulyukaev: Yes, I will be happy to look at the company. Why?

Sechin: And according to the time, I now have big negotiations that will begin at 2 p.m., for about two hours.

Ulyukaev: Yes.

Sechin: Around 4:30 p.m., is that possible?

Ulyukaev: Quite possible. Yes, I'm flying tomorrow. By the way, will you be in Lima?

Sechin: I'll be in Lima.

Ulyukaev: Well, I will also be in Lima, we can continue there.

Sechin: Let's work.

Ulyukaev: Continue working? Come on, this is it, now.

Sechin: At 17 here.

Ulyukaev: Now just a second. No, a little later, if possible.

Sechin: Let's.

Ulyukaev: Yes, because it starts at 16 for me.

Sechin: At what time? At 18?

Ulyukaev: It's 17 now, let's go to 18?

Sechin: A little earlier. Early.

Ulyukaev: At 17:30?

Sechin: Well, come on at 17.

Ulyukaev: A?

Sechin: Can you do it at 17?

Ulyukaev (sighs): Yes, I have here, including yours, in my opinion, different procurement companies. That's where I collect them. Well, come on at 17.

Sechin: At 17? Thanks a lot.

Ulyukaev: Let's.

Sechin: That's it, hugs, thank you.

Meeting between Sechin and Ulyukaev. First recording device

Sechin: Tell Shokina (deputy manager of Rosneft Olga Shokina - MZ), let her put the basket in 206 and prepare tea for now. Yes, everything is great. Listen, are you without a jacket?

Ulyukaev: Yes.

Sechin: How do you even walk like that?

Ulyukaev: A?

Sechin: I need some kind of jacket.

Ulyukaev: No, no, no, why?

Sechin: Yes?

Ulyukaev: Certainly.

Sechin: Well, one second, okay, you sit for now.

Ulyukaev:... (reading out the transcript, the prosecutor says: “Ulyukaev - ellipsis”; this probably means the interlocutor’s inaudible mooing)

Sechin: Well, first of all, I apologize for delaying the execution of the assignment, well, I was on business trips.

Ulyukaev: Certainly.

Sechin: Yes, so far back and forth, we have collected the volume. Well, you can, consider the task completed.

Ulyukaev: Yes.

Sechin: ...

Ulyukaev: ...

Sechin: I'm warming myself.

Ulyukaev: ...

Sechin: Don't say it.

Ulyukaev: You need to find out when the car, and this is the most important thing, whether it is overheating, always when the distance is short.

Sechin: Well, yes.

Ulyukaev: They think it's just a little bit.

Sechin: Right.

Ulyukaev: Green hedge.

Sechin: So, will Shokin bring tea?

Man: Yes Yes.

Sechin: And a basket of sausage.

Man: Eat.

Sechin: So, a few words. Learn more about the company. This means that in 1998, when they started working, the company was producing 4 million tons of oil. 4 million tons. Actually, no one needed her. So it slipped into the era of privatization.

Ulyukaev: Well, yes, abroad.

Sechin: So, well, then the courts, the return of the withdrawn assets began. Here is an interesting page, fourth.

Ulyukaev: Yes.

Sechin: What have we created during this time? Here are the main indicators of oil companies whose shares are traded on the stock exchange. This means the resource base, current production and production costs. Only public companies were compared. This means that we are the first in the world in terms of resource base and geological exploration. In terms of current production, it ranks first among companies. The cost price is also the most highly competitive. But here we need...

Ulyukaev: If you look, I’ll interrupt, at the capitalization of the company. These positions, it will be clear that the asset costs two, two and a half times cheaper than other assets comparable in characteristics.

Sechin: We are. With the exception of one nuance - the tax base. Our tax base is the heaviest compared to any other company. The heaviest in the world, that is. Now you can easily add 25 to these two and three, this will take into account the tax base. And plus transport. So, relatively speaking, 35 is the lower limit for us.

Ulyukaev: Operating profitability?

Sechin: No, I mean the lower price level.

Ulyukaev: As I say, it ensures operating break-even, without taking into account loan servicing and everything else.

Sechin: Yes, which will allow us to provide additional operating profitability. Therefore, the situation is not so simple; we need to deal with the tax base.

Ulyukaev: You definitely have to do it. Ours is not only large, but growing and growing.

Sechin: Growing and killing. I talked there with the same ENI, they donate 2 billion euros to the Italian budget. We are 50 billion. This is a plus to the fact that you are asking us to add 17 there today. We have already given some of them, and we are already generating 50 billion annually. Therefore, of course, we need to think about it. Exxon has a total fiscal burden of 43%, of course, and the stock is expensive. Understand?

Ulyukaev: Well, of course.

Sechin: Because it is consistently 43, and I have 80. This means that we are counting on an increase in interest there. It's hard, yes. This means that it’s interesting, for example, BP. That’s why I’m working with shareholders now, telling them about undervalued elements that they must take into account. Here the bi-writers were in the first column beyond the first ten. As soon as they bought our shares, they became fourth. And why? Because we allowed the resource base to be put on the balance sheet, in proportion to ownership.

Ulyukaev: So they have 20%? Fifth part?

Sechin: Yes. And they immediately jumped to another level.

Ulyukaev: Wait, if they put your resource base on their balance sheet, you don’t have a balance left?

Sechin: Remains, remains. Oil remains. But for us it costs nothing at all. It's just permission to use it. And they report back to our geological exploration. We replace them there by 150%, and they also count 20% of this replacement for themselves. And this covenants improves for them there. The same goes for production. They would never have gone beyond this level of production if they had not provided our projects too.

Ulyukaev: If without, then it would be 20 or so, which means they would be below ten.

Sechin: Yes, yes, yes, absolutely. Of course, we took a very serious step, as you know, in India to acquire Essar. I wanted to ask, I will apply, it will be necessary to support project financing...

Ulyukaev: …

Sechin: This project…

Ulyukaev: Listen, will the oil there be Iranian?

Sechin: Some are Iraqi, some are Venezuelan, some are Iranian. 20 million tons of processing, very high Nelson index - 11.8. Deep-water port and 2700 gas stations. This is such a project for this market - simply unique.

Ulyukaev: But here are your own gas stations through them. How much of the processing goes through its network of gas stations?

Sechin: I can tell you approximately, approximately. About the fourth part.

Ulyukaev: Fourth part.

Sechin: Yes, part four. They have a plant there, maybe a terminal that allows export-import operations with crude oil.

Ulyukaev: No. Because visiting Indians is a big deal.

Sechin: Yes.

Ulyukaev: This is essentially the first such major attempt; no one has succeeded.

Sechin: Yes it's true. So what else can I say. In terms of development technology, we occupy serious leading positions; if we are not getting closer to the world leaders, then we are stepping on the heels very seriously. But it also depends on us... it has to do with our equipment. For example, in the States, hydraulic fracturing equipment allows you to make up to 30 or more breaks at a time. We do 12–15, up to 20. But they have different compressors, there is more pressure, other proppants are a special fraction that is pumped into a fracture during hydraulic fracturing and does not allow the rock to collapse, creating a reservoir base for collecting oil or gas. Previously, we used sand, but sand is washed away with water; Americans are now using new types of proppants with a changing center of gravity, they cling, they have all sorts of sharp edges, they cling and are not washed out of the rock. There are many nuances, but our development is progressing despite the wishes of OPEC, I think that we should still be prepared for deceit, and I also reported to Vladimir Vladimirovich about this. The fact is that they are all preparing the development of production, that’s all. This means that Venezuela, well, I just know absolutely for sure, has now held a tender, and Schlumberger won by $3.6 billion to increase drilling services. That is, they plan to increase production by 250 thousand barrels per day within six months. So, first. Second. Iran will increase, they are now already 3.9 - 4.9, their plan is to reach, add a million tons of barrels.

Ulyukaev: They and 4 are somewhere ready to freeze.

Sechin: 3.9 now, but they want 4.9.

Ulyukaev: 4. No, no, they are ready to freeze at 4.3.

Sechin: Well.

Ulyukaev: Well, probably yes.

Sechin: Yes. I think no one is telling the truth. And they all need, I think, Iraq, Nigeria, they all need about six months to issue additional volumes. And these six months, if we freeze, will give the Americans the opportunity to give the oil shale a little oxygen. And here, it seems to me, the slyness lies in this: to support shale oil here now.

Ulyukaev: Yes.

Ulyukaev: They will take advantage of this.

Ulyukaev: Plus, during this time, the Trump administration, and he is very pro traditional sources, he is very much going to support production.

Sechin: Yes. He wants to support his prey, that's true. He stated this.

Ulyukaev: He will be ready for tax...

Sechin:...benefits and financing. He has stated this several times; this is the thesis of his election program.

Ulyukaev: This must be taken into account. It will take some time because the administration will need to adapt. This is perhaps his central point.

Sechin: This must be taken into account. But in general, we are working slowly, Lesha.

Ulyukaev: Look, when it comes to taxes, I am completely on your side in everything. I believe that we are acting short-sighted, and therefore absurd. We distort the completely future picture of the world. We want to attract investment. We will not attract investment and will undermine our own investment climate. And this is a completely dead-end path, especially when it comes to old fields. There you just need to drill and pump, drill and fill with water. This process cannot be stopped. And if you fall...

Sechin: Well...

Ulyukaev: Well, are you going to do it at a loss? This is weird.

Sechin: Certainly.

Ulyukaev: It means strange logic, good for nothing. Therefore, of course, we are, of course, 100% in favor. And of course, we need several international ones...

Sechin: Lesha, I beg you. Don't be offended by us for all these delays.

Ulyukaev: No, Igor, what?

Sechin: I felt like it was a little stormy, yes.

Ulyukaev: No, you tell me...

Sechin: We are working on privatization, that is. I met today, tomorrow I’m flying to Europe. The main thing, I’ll tell you, is the following: they are ready to lend in full, they don’t really want to buy. That’s why we make different offers there, we create different carrots in order to draw them into the action. This means that progress is being made in Asia, the Japanese - you know, they have now made changes to the legislation, after all, the emperor must sign there now, but they have already submitted them to parliament, we are also working with them.

Ulyukaev: With whom with them?

Sechin: Well with everyone there.

Ulyukaev: OK then.

Sechin: There are more young people there.

Ulyukaev: More with young people?

Sechin: Yes. Well, we work and don’t relax. And, in general, I don’t want to say anything yet, but we are persistently working to complete the task in full.

Ulyukaev: To be honest, for today’s reasons I would really like to attract the Japanese. All these Indians are not the same, you won’t get anything from the Indians.

Sechin: We work with Koreans. No, neither the Chinese nor the Indians, these are...

Ulyukaev: I don't need them at all.

Sechin: There will be no synergy with them anymore.

Ulyukaev: Absolutely, but you can get it from them.

Sechin: These can, yes, and I also think that these can. They are so very pragmatic, they, of course, want to fulfill their main task - to move to... to get political advantages there, on the territory there, such questions were put to us even during the negotiations, but we rejected it.

Ulyukaev: Well, of course.

Sechin: They immediately said: guys, no.

Ulyukaev: They're doing well now. What does it mean to decide... Abe must show his people something, they tell him, you are making constant concessions to the Russians. He will say: why, I am acquiring very interesting assets, this is a guaranteed supply of energy resources to our country for decades to come. I create for the Japanese.

Sechin: So how is it?

Ulyukaev: It was quite profitable for them.

Sechin: You know, we, I tell them that, guys, the essence of our proposals is this: you get a share, a share in the company, this is the first condition for the development of joint projects. This means that our second proposal, after the share, is the creation of a joint venture (joint venture.- “Kommersant”) for production, transportation and collaboration in markets. We gave them an offer that if you do this, then you will gain access to the central Tatar section of the Verkhnechonskaya share and a number of other deposits that we are developing together with you. True, you get a minority stake here, but if you agree to this, then in the event of force majeure, we undertake an obligation to supply only to the Japanese market.

Ulyukaev: This is very important for them; they have a very large dependence on the Gulf. They need to balance.

Sechin: This is exactly what we are saying, if force majeure, and what is force majeure, we can prescribe a price change of 20%, for example, a price increase by 20% or a decrease by 20%, a sharp change in market conditions, that’s all, then this the enterprise begins to supply the entire volume of production only to your address, and you reduce any dependence on other suppliers, in general, our offers are very decent and balanced, we are working. There are risks of delays, so deadlines are of fundamental importance here. They are trying to get the ball rolling about tender procedures there and so on, but they themselves are waiting for the results of the visit. Therefore, we told them: the government has issued an order, so we don’t know anything - we ourselves are already in such a situation, we must sign by the fifth. Keep this in mind, this is no longer our competence, it was the government’s competence. Please, we can announce it on the 15th if everything works out for you. This means, yes, on the date of signing we told them - transfer a 10% advance to us here, which, if you do not conclude a deal, it becomes the property of the company. Well, these are the conditions.

Ulyukaev: It's clear. Well, it will be important now in Lima on the 20th (November 20 of last year in Peru the APEC-MZ summit was held), the boss will meet with Abe there, this is a must.

Sechin: Yes, I will be in Lima.

Ulyukaev: That's right, I will too. And even before that, the day before, I met with this Seko (Hiroshige Seko - Minister of Economy, Trade and Industry in the government of Shinzo Abe - MZ), there, too, I still need to put pressure on him, the same minister responsible for Russia.

Sechin: Well, yes, yes. So they take steps. I can’t say that they somehow completely leave us out there...

Ulyukaev: Uh-huh.

Sechin: No, they have a plan, they are making attempts, they directly said, “It will be difficult for us if there is no progress.” I told them, no, guys, don’t contact me about these issues. We are soldiers, we do what we are told, and this is no longer our diocese. Lesha, thank you very much, I won’t delay you, you have a difficult schedule.

Ulyukaev: Yes, now I’ll stop by the courses on the way.

Sechin: Let's go to?

Man: From Ivanovich? (laughs)

Sechin: Yes, you need to go to that entrance there.

Ulyukaev: …

Meeting between Sechin and Ulyukaev. Second recording device

Engine noise.

Sechin: Well, okay, heh... with him (the prosecutor says: “heh with him”, what exactly Sechin said is unclear - MOH). But here you can... there, as it were... and well, yeah...

Man: Should I come here?

Sechin: Yes, go tell Shokina, let her put the basket in 206 and prepare the tea for now. Yeah, that's enough.

There is noise and rustling.

Sechin: Listen, are you without a jacket, huh? How do you even walk like that?

Ulyukaev: ...

Sechin: Exactly this. I need some kind of jacket.

Ulyukaev: No, no, no, why?

Sechin: Yes? Well, one second, sit still, okay.

Rustle and steps are heard.

Sechin: So, you just need a second, just a second, yeah, I’ll be so short then so that you don’t freeze. Well, first of all, I apologize for delaying the completion of this assignment. We were on a business trip.

Ulyukaev: Well, life, of course.

Sechin: So while back and forth, we collected the volume. But in general, you can consider the task completed. Here, take it, put it down and let’s go have some tea.

Ulyukaev: Yes?

Sechin: So, here is the key for every fireman (the key was marked with the same special solution as the bag and money used in the operational experiment; the words about the key and “take it, put it down” were especially emphasized by the prosecutor during the announcement of the decryption - MOH).

Ulyukaev: Yes, let's go.

Sechin: Yeah.

Knocking, stomping, sounds of zippers and rustling clothes.

Sechin: My body can no longer tolerate the cold at all, so I’m warming up.

Ulyukaev: You need to find out when the car is at its worst, overheating...

Sechin: A?

Ulyukaev: Always when the distance is short.

Sechin: Well, yes.

Ulyukaev: <нрзб>

Sechin: Right.

Ulyukaev: Green...

Sechin: So Shokina will bring tea?

Unnamed Man: Yes Yes.

Sechin: And a basket there.

Man: Yes, yes.

Sechin: ...

Man: Bring some tea.

Man: Hello, yes. Oh, let me clarify now. Everything is fine there. Drinking tea, here. Here, simply, according to your order, no cars are allowed out of the territory, we are under security. Or can it be released? A? And yes, yes. Well, he drinks tea with a visitor. Yes, yeah. That's it, I understand, yes, okay, it's there, that's it, it's there. Okay, okay, yeah, there is. Hello Hello? Well, is everything okay? Yes. Do you mean the regime has been preserved? Come on, everyone. Hello Hello? Yes? Everything is fine, it’s there, but I’ll just type it and that’s it. Yes, yes, I understand, okay, yes, yes, yeah.

The noise of a car engine and a telephone call are heard.

Man: Yes. Well, here I am, yes, yes, hello, hello. The car arrived, I got ready.

The noise of the engine is heard.

Man (on phone): Yes?

Sechin: ...

Man (laughs): From Ivanovich?

Sechin: Yes, there is an entrance there.

The rustle of clothes.

Sechin: Yeah

Ulyukaev: A little basket.

Sechin: Yes, take the basket.

Ulyukaev: ...

Sechin: Everything is happy, thank you very much.

Ulyukaev: ...

Sechin: Goodbye.

Meeting between Sechin and Ulyukaev. Third recording device

Engine noise.

Sechin: Get in the parking lot, get there, yes, get in the parking lot, get in the parking lot, get in the parking lot. Okay, God bless him. He stands aside there. And so do we now.

Man: <нрзб>, please park it.

Sechin: Yes, great, I’ll park it now.

The sound of the engine, the door, the rustle of clothes.

Sechin: Does he know where to go?

Unnamed Man: I posted security there.

Sechin: A?

Man: I put people on the street to give directions.

Sechin: Oh good.

Man: ...

Sechin: OK. Is it possible to go here? There. Oh, that's it, yes.

Man: ...

Sechin: Tell Shokina to put the basket in 206 and make some tea for now. (To Ulyukaev who entered - MOH) Oh, listen, you’re not wearing a jacket, huh? How do you even walk like that?

Ulyukaev: A?

Sechin: Exactly this. I need some kind of jacket.

Ulyukaev: No need, no need.

Sechin: Yes, yes, yes, just sit there for a second, okay? So, you are now, oh, well... I’m doing this, briefly, so that you don’t freeze. Well, first of all, I apologize for delaying the completion of this assignment. Well, there were business trips.

Ulyukaev: Well, life of course.

Sechin: So far we have collected the volume back and forth. But you can consider the task completed. Here, take your luggage and let’s go and have some tea. So, here is the key for every fireman (The prosecutor especially emphasized these words during the announcement of the transcript - MOH).

Ulyukaev: ...

Sechin: Yeah. My body can no longer tolerate the cold.

At this point, the third recording read by the prosecutor is interrupted.