YACONTO.COM

About the intentional bankruptcy

of Atommash OJSC, Russia's nuclear engineering flagship

 YACONTO LLC (Russia, Moscow), is the full and the sole successor of Firm YACONTO LLP, Trade House YACONTO SE and Concern YACONTO JSC.

Hasty destruction of planned economy and financial system in 1990-s in Russia, carried out without a well-planned transition period to market economy, led to a devastation of domestic industry, agriculture and science. By late 1990-s it paved the way to undermined defense and security, to genocide of the people (in a veiled form, of course), and in the end to a collapse of Russia’s statehood. All this happened at a time when the efforts of the unskilled “reformers” and their “advisors” led to chaos, and in the higher echelons of power lawlessness reigned. At the same time the countries of the capitalist world with developed market economies, learned from the experience of planning in the USSR and utilized it for their own development, as the prosperity of a civilized society is impossible without long-term economic planning. This is particularly important during a financial and economic crisis.

One specific example of an elimination of one of Russia’s biggest industrial enterprises, carefully planned by an organized group of corrupt officials (OCG) is the bankruptcy of Russia’s nuclear engineering flagship Atommash OJSC (Volgodonsk, Rostov region), where the state owned a 30% stake and Concern YACONTO JSC owned a 28.5% stake.

Equipped with unique, often one-of-a-kind modern high-tech equipment, Atommash was capable of manufacturing a wide range of goods (over 1000 kinds of items) for various industries and agriculture, for Russian and foreign customers alike. Over 80% of the equipment on Atommash was imported – purchased in Germany, Japan, France, UK, Italy, Austria, Sweden, USA and other countries, from leading concerns like Italimpianti, ESAB, Varian, Mannesmann AG. More information about the disruption of the participation of Atommash OJSC in the implementation of major Programs can be found in the “Organization” section of this website.

Multiple photos of Atommash published on this website are an irrefutable evidence of the scale and significance of Atommash, the flagship of domestic nuclear engineering. Production Association of nuclear energy engineering “Atommash” and its infrastructure were built in the period of 1976-1985. In order to support the activities of Atommash a new well-arranged city for 100 thousand people was build. Today Volgodonsk has around 200 thousand residents.

In order to accomplish the criminal plot for the synthetic bankruptcy of Atommash OJSC and give it an appearance of legitimacy, in 1994 the company was forced to take in the Volgodonsk branch of Commercial Bank “Doninvest” loans at 216% interest per annum. From June to September 1994, VB CB “Doninvest” issued suspicious loans for a large sum to Atommash. This is confirmed by an Act of Reconciliation of the debt settlement between Atommash OJSC and VB CB “Doninvest” from 22.07.1995 and the Letter from VB CB “Doninvest” to the Board of Directors of Atommash OJSC (out. №1891 from 31.07.1995). As a result of these manipulations, the total company’s debt reached 243.1 Billion rubles by 01.10.1995. In this way, participants of OGIO and OCG achieved rapid growth in accounts payable by “Atommash” to the creditors-intermediaries for leading the nuclear industry giant to intentional bankruptcy. Some of the companies involved in those schemes were: CB “Yauza-bank”, “Veles” CJSC, Concern “Sibyr-Zoloto” CJSC, CB “Megastarbank”, VB CB “Doninvest” and other dishonest banks and enterprises. Although the amount of debt to VB CB “Doninvest” was a tiny fraction of the net book value of assets of Atommash OJSC, it served as a pretext for initiation of a bankruptcy procedure for the industrial giant by the Federal Office for Insolvency (Bankruptcy) Proceedings for Rostov region. It’s important to mention that the market price of Atommash was dozens of times greater than its book value.

A topic of special interest is the “inexhaustible sources” of financial assets at the disposal of CB “Doninvest”, their conditions of issue, earnings from financial transactions on loans, transactions of funds to foreign bank accounts, as well as the names of "mysterious almighty benefactors" of CB “Doninvest” who supplied it with unlimited funds at low interest rates and covered anti-state crimes. When the State had no funds for lending to domestic industry and agriculture, commercial banks had plenty. Where did those come from is a matter of an in-depth investigation. But what’s equally interesting is the fact that the chief executive of CB “Doninvest” was Mikhail Paramonov, the so called Vladimir Chub’s “son in law” who attempted to settle in Western Europe, living off the income of the “Rostov celestial’s” family after the collapse of the economy of Rostov region.

Many companies of Rostov region were forced to take ruinous loans in order to lead them to bankruptcy. The promises of the regional authorities to support domestic producers were bluffing and deception. Moreover, it initiated a massive redistribution of property rights in the region through intentional bankruptcy of joint-stock companies via hostile takeovers and fiscal stranglehold to paralyze their industrial and economic activity.Corrupt officials, formally under control of Russian Government’s, actively supplied foreign companies which were direct competitors of Atommash OJSC, with massive profitable orders for the manufacture and supply of equipment for industrial enterprises in Russia. This equipment has been designed primarily for mining and processing of natural resources of the country. With appropriate funding, Atommash OJSC could have produced same equipment in a shorter time, with high quality and 30–40% cheaper than their foreign counterparts. Atommash would have partnered and competed with companies like Areva / Siemens, Toshiba / Westinghouse, General Electric / Hitachi.

In 1996 the top management of YACONTO had confidential meetings with the Russian Minister for Atomic Energy Viktor Mikhailov and his First Deputy Lev Ryabev regarding formulation of common policies and joint action plan aimed at preservation and development of Atommash OJSC as a single production facility. To achieve this goal, YACONTO offered to consolidate the shares of Atommash OJSC owned by the State and YACONTO companies. But agreements from Viktor Mikhailov and Lev Ryabev were not enough because the State-owned stake in Atommash OJSC was at the disposal of the State Property Committee of Russia. OGIO and OCG members from the Government of Russia and the State Property Committee of Russia strictly refused to pass the control over 30% shares of Atommash OJSC to the Ministry of Atomic Energy, as requested by the latter.

Explanatory Note of YACONTO regarding necessary measures for overcoming the industrial and economic crisis on Atommash OJSC provided the basis for the Letter by Lev Ryabev (out. №03-2739 of 12.09.1996) addressed to: General Director of the Federal Office for Insolvency (Bankruptcy) Proceedings of the Russian State Property Committee Peter Mostovoy, the First Deputy Minister of Finance of Russia Andrey Vavilov, First Deputy Minister of Economy of Russia Jakov Urinson, Head of Administration of the Rostov region Vladimir Chub and the Chairman of the Federation of Trade Unions of Rostov Region Vasily Voronin. However, Governor Vladimir Chub utilized the suggestions of Ministry of Atomic Energy of Russia in the interests of OGIO and OCG, who took over management of Atommash OJSC in the autumn of 1995 and engaged in markdown and sale of its property for a pittance. Vladimir Chub addressed Peter Mostovoy (out. №1/6049 from 19.09.1996) with a request to assist him in the implementation of a program for stabilizing the financial and economic situation of Atommash OJSC. This program, according to the letter, has been allegedly “developed” according to “Orders” of the Government of Russia by the Federal Office for Insolvency (Bankruptcy) Proceedings of Rostov region “in co-authorship” with the bankruptcy referee Alexander Stepanov and the management of Atommash OJSC. In particular, Vladimir Chub asks to allow, through reducing the capital surplus, “writing off” fixed assets and allegedly “under construction” sites of Atommash OJSC (according to the list) worth 878 Billion rubles. And that’s while the value of those objects has already been repeatedly discounted and later “sold for a song” in the interests of OGIO and OCG members, which dealt colossal material damage to the State, Atommash and its shareholders.

Tatyana Gramotenko, the head of Federal Office for Insolvency (Bankruptcy) Proceedings for Rostov region (FOIP, former FUDN), was the initiator of the premeditated bankruptcy of Atommash OJSC in 1995. Being the trusted person of the “Rostov celestial” Chub, she carried out his will, aimed at mass bankruptcy of major industrial and defense enterprises. Under Tatyana Gramotenko’s “leadership”, the Territorial Agency of FOIP in Rostov region deliberately bankrupted 300 large companies; this fact has documented evidence. However, Tatyana Gramotenko managed to avoid an investigation of her criminal activities due to her “high patronage” and a hasty liquidation of the Territorial Agency of FOIP in Rostov region in March 2002.

If we conducted a thorough investigation and calculate the damage dealt by Chub and his “team members” to the Rostov region, its inhabitants and Russia as a whole, we would see a crime of a gargantuan scale. The investigation will confirm the facts of crimes committed against the state, including treason.

The same OCG members who bankrupted Atommash OJSC used a completely identical scheme (intentional bankruptcy) to seize the defense enterprise Salut JSC (previously known as “Volgodonsk plant of radio-electronic equipment” JSC), where Concern YACONTO JSC owned a 67% share. Salut JSC produced specialty items for submarines and surface warships of the Russian Navy.

Inspired by their impunity after the lawless seizure of Salut JSC, the members of OCG cynically decided to fabricate a case against YACONTO LLC. They appealed to the Arbitration Court of Moscow (ACM) with a lawsuit to recover an amount of 350 000 rubles. ACM took up the case number №A40-41697/00-100-402. However, during the trial, YACONTO LLC proved wrong the vicious arguments brought by OGIO and OCG, and has filed a “counterclaim” for a small amount of 524 000 rubles for a start, hoping that certain facts will be uncovered and criminal acts of OGIO and OCG participants will be exposed during the review of the “counterclaim”, which will provide ACM with a basis to initiate a criminal case against them and start a major lawsuit. Cunning representatives of the seized Salut JSC understood that YACONTO LLC prepared a trap for them, so they didn’t attend the meeting of the Arbitration Court of Moscow on 22.05.2001 and decided not to defend their false claim. On the same day they all disappeared from Moscow. YACONTO LLC planned to transfer the proceedings for intended bankruptcies of the Volgodonsk-located enterprises Salut JSC and Atommash OJSC to the Moscow Arbitration court. This was driven by the impossibility for YACONTO enterprises to achieve a fair and unprejudiced review of the case in the Arbitration Court of Rostov region (AC RR), because the activities of AC RR, police and Prosecutor’s Office of Rostov region were under control of Vladimir Chub, the Governor of Rostov region, and his “team”, including Tatyana Gramotenko. If YACONTO LLC won its “counterclaim” in ACM, the small amount of 524 thousand rubles in dispute would have increased together with the amount of damage caused to YACONTO LLC, Salut JSC and Atommash OJSC, equivalent to several billions of U.S. dollars. And the deal itself would have become a criminal trial of an unprecedented scale. Not only Vladimir Chub and Tatyana Gramotenko would have found themselves on the dock, but also those who stood behind those figurants in the Russian Government and the Presidential Executive Office.

Prime Minister Mikhail Kasyanov, by his Order from 15.03.2001 №349-p awarded Tatyana Gramotenko with a Diploma of the Government of Russia “For great personal contribution to solving the issues of financial recovery and preventing bankruptcy of the Rostov region enterprises...” In March 2002, as a reward for a successful economic collapse of the Rostov region, the head of Russian Federal Service for Financial Recovery (FSFR) Tatyana Trefilova was actively trying to organize for Tatyana Gramotenko a transition to a “gainful” assignment as Head of Inter-Regional Territorial Authority of Russian FSFR for Far East Federal District (FEFD).

Having learned about the antics of Tatyana Gramotenko in the Rostov region, Konstantin Pulikovskiy, the Plenipotentiary Representative of the President of Russia, categorically rejected her transition to FEFD. Then Tatyana Trefilova and high patrons of Tatyana Gramotenko, violating the established order, found her a place of the deputy head of Territorial Authority of FSFR of Russia in Moscow. Upon hearing this, YACONTO LLC appealed to the Central Federal District, Moscow City Duma and the law enforcement agencies urging them to investigate criminal actions of Tatyana Gramotenko. In order to avoid the investigation, that “combat friend of the Rostov celestial” hastily resigned on 12.09.2002 and fled from Moscow, ostensibly in a direction unknown to Russian FSFR management. As it turned out later, she successfully settled in Rostov region.

For the purpose of a raider seizure of the assets of Atommash OJSC and its subsequent elimination, Energomashcorporatsiya OJSC (abbreviated EMK OJSC) accumulated 10.8% of the shares and over 40% of the accounts payable of Atommash OJSC, including those to VB CB “Doninvest”, in 1995 and 1996. According to the fictitious plan of the external management of Atommash OJSC, approved by the Arbitration Court of the Rostov region, EMK OJSC, gradually stealing the tremendous assets of Atommash OJSC for 4 years, brought it to bankruptcy and official termination on 25.11.1999. On the basis of the liquid assets of Atommash OJSC, EMK-Atommash JSC was established, 100% stake in which was received by EMK OJSC. Later EMK OJSC was re-registered into Energomashcorporation JSC (EMK JSC) from Moscow to Velsk town of Arkhangelsk Oblast (region), and then withdrew the assets in an offshore zone. More detailed information can be found in the Resolution of the Audit Chamber of Russia (out. №6(289) of 22.02.2002).

Mikhail Fradkov, having been the First Deputy Secretary of the Security Council of Russian Federation, addressed the Deputy Prime Minister of Russia Victor Khristenko with an important Letter (out. №A21-1175 from 28.03.2001) with a proposal to conduct an investigation of the premeditated bankruptcy of Atommash OJSC and other enterprises of Volgodonsk city. However, proper investigations of Atommash OJSC, Salut JSC and other industrial enterprises of the city were deliberately never conducted, and all “verifications” and “replies” were formally bureaucratic.As a result of their anti-state activities, OCG participants destroyed Atommash, the most modern enterprise in Russia, designed for the production of complete sets of equipment for nuclear power plants, and the State was deprived of its 30% stake. Because of the deliberate elimination of this “plant of the plants”, Russia has to purchase complex, high-tech, massive and oversized equipment abroad, while Atommash OJSC could have successfully produced it. At the same time, none of the OCG members has paid for the crimes yet. More detailed information can be found in the Letter of YACONTO LLC to President of Russia Vladimir Putin (out. №80116-1 from 16.01.2008) which was concealed from him.

Already in 1996, in his Letter to the State Duma of Russia (out. №D-M-27/4-01 from 21.05.1996) Russian Minister of Atomic Energy Viktor Mikhailov placed the entire responsibility for the consequences of bringing Atommash OJSC to deliberate bankruptcy on the State Property Committee of Russia, and specifically, the Federal Office for Insolvency (Bankruptcy) Proceedings for Rostov region. This is fully confirmed, in particular, by the Resolution of the College of the Audit Chamber of Russia (out. №6(289) from 22.02.2002), issued based on an appeal from the Russian State Duma (out. №3.11-21/1322 from 21.10.2000). However, the OCG participants prevented a thorough investigation and an initiation of criminal proceedings on the fact of intentional bankruptcy and elimination of this nuclear industry giant of strategic importance to Russia.

In 2008, while planning the itinerary of the candidate for President of Russia Dmitry Medvedev’s visit to Rostov region, his arrival to Volgodonsk city and visit to the former nuclear engineering giant Atommash OJSC were excluded from the agenda. All assets of this enterprise, as a result of the premeditated bankruptcy, were moved to EMK-Atommash JSC, of which the State didn’t receive a single share. Many former and current officials on federal and local level were dissatisfied with and frightened by the resignation of Vladimir Chub from the post of Governor of Rostov region, as a political decision of the Russian Government can lead to a total verification of the “fruitful work” of the “Rostov celestial” since the fall of 1991, when he was appointed to the post by President of Russia Boris Yeltsin – and not his alone. And who would dare to touch the “supervisor” who enabled the capture and redistribution of property in the interests of “nomenklatura elite” and their “business partners” and knew a great deal about backstage intrigues and negative activities of the “ruling elite”. Therefore, for his “long, productive and selfless work” for the benefit of the Rostov region, V.F. Chub can expect another medal for his “services” to the country, becoming an “untouchable” member of one of the chambers of the Federal Assembly of Russia, or an appointment of an ambassador to one of the foreign countries from which it is convenient to preserve and boost the goods “acquired by overwork”.

Leadership of one of the states of the Persian Gulf was interested in buying state-owned 30% stake in Atommash OJSC in order to utilize the production facilities of the latter to construct major modern industrial, transport and power objects in their country and friendly countries of Asia, Africa, Near East and Latin America. It could have allowed engaging the production facilities of Atommash OJSC and its numerous affiliates fully, which would have been economically beneficial for Russia itself. However, having learned about it, participants of an OCG did everything to prevent the acquisition of the shares of Atommash OJSC by the interested party, actively contributing to an artificial increase in accounts payable of the enterprise. Due to the premeditated bankruptcy of Atommash OJSC, Russia lost many profitable contracts for construction of NPPs abroad, and in UAE in particular, where the West disposed of Russia as a competitor. A similar situation with the construction of NPPs can be seen beyond the Near East as well. With this background, contracts for the construction of NPPs around the world signed by Russia look absurdly. But the State Corporation “Rosatom”, headed by the very crafty and greedy General Director S.V. Kiriyenko, has queer explanations for these contracts – leading Western companies will be attracted for the production of the high-tech equipment for the construction of NPPs abroad. The place of West in these “combinations” is another story about Kiriyenko.

There are legitimate questions. Why hasn’t any OCG member been incurred administrative and criminal penalties for extensive damage dealt, especially to the State, through repeated devaluation, discarding, selling for a song and diverting huge assets of Atommash OJSC in the process of intentional bankruptcy? In whose interests Atommash OJSC has been destroyed and its multi-thousand team of highly qualified workers and specialists lost their jobs? Unfortunately, today anti-state activities of the officials are not “rewarded” with capital punishment without any red tape. But for the sake of saving Russia from the destructive activities of the traitors of the fatherland there should come a time of imminent retribution for state criminals. Otherwise, instead of the fatherland, its defenders will actually protect an army of corrupt official and their “business partners”, fortune-hunters and rogues, who, being in power or close to it, cynically seized the national wealth and subsoil of Russia, which belong to its multinational folk. Successfully developing China is a compelling example of a real fight against corruption.

Russian nuclear engineering flagship Atommash OJSC was intentionally bankrupted and ceased to exist with the complicity of the former Governor of Rostov region Vladimir Chub. For 10 years that passed since the liquidation of Atommash, corrupt officials disrupted the investigation of this biggest anti-state crime in Russia. Even the was inspection conducted by the Audit Chamber of Russian Federation (ref. №3.11-21/1322 of 21.10.2000)  at the request of the State Duma of Russian Federation and the Resolution №6(289) issued by its College on 22.02.2002 didn’t bring any result. Opponents of the investigation of this nation-scale crime did everything to ensure that the inspection materials received from the Audit Chamber of Russian Federation are ignored in the State Duma, in the Government and in the Presidential Executive Office. And this lawless mayhem continues to-date. Some reasons for such an active opposition from the “parties concerned” are presented in an article “Nuclear passions around Atommash” (in Russian) published on www.yaconto.ru.

Chub knows all too well, what happens to him if the supreme leadership of Russia initiates a meticulous inspection of his activity as a Governor of his Rostov patrimony. That’s why such powers were engaged in “confidential conversations” for choosing a successor for Chub who occupied the position of a Governor of a once prosperous region for improperly long. Time will show, what value brings the newly (14.06.2010) appointed Governor Vasiliy Golubev. One thing that can be said for sure, this choice was far from random. The question of a successor of a regional governor amidst a financial crisis is quite complex.During the period of “limitless ruling” that started on October 1991 and with practically unlimited authority of an “overseer” that Chub received from “Tzar Boris” (Yeltsin), the Rostov region fell into total ruin and decay, if we see the trend of an economic performance of the region from 1992 to 2009 in natural, rather than absurd money equivalent. For such “activity”, in the past times, Chub and his “team members” would have been sentenced to capital punishment with a full confiscation of property. But times have changed, and democratic reforms in the country made drastic corrections in the development of the society, but brought “bitter fruit” with them. The paradox is – he who steals “large scale” earns respect and honor, while those who steal a loaf of bread go to jail.

Chub has many “roads to future”. Today, being free as a bird, he can fully dedicate himself to politics, business, or even start writing memoirs. He surely knows much, and about many, from the “slashing nineties”, provided that he writes “democratically” in freedom and not from his cell in the Lefortovo prison. Bu even if Chub decides to quietly “reap the harvest” of his unrighteous deeds, those will be sufficient for hundreds of years of quiet, prosperous life. On top of his own income, his spouse contributes to the family budget plentifully. However, even this contribution is not even remotely comparable with the income and concealed assets of the “Rostov celestial” himself.

Today it is finally admitted that careless appointments of people like Chub to high positions in the government, who looted and robbed Russia and its people, led to tragic consequences. Those “exemplars” should be fully accountable for the collapse of the economy, undermining the defense and security, as well as for the genocide of the peoples of Russia. It is therefore necessary to begin a thorough verification of their financial status and find out the nature of the wealth of not only those odious personalities, but also their relatives and friends to identify the nominees, which formally own vast property in Russia and abroad, including tangible and intangible assets, movable values, real estate, securities , anonymous bank accounts and other funds, some of which is already able to penetrate the Russian economy under the guise of foreign investment. This test would clearly confirm the illegality of the capital of the defendants, their accomplices and supporters, and will also unveil the mechanism established to destroy Russia as a state in the interest of hostile countries, using an army of bureaucrats and the greed of corrupt officials. A more detailed information about Chub can be found in the Letter of YACONTO LLC to President of Russia V.V. Putin (out. №80116-1 from 16.01.2008) which was concealed from him.

Today the Russian “ruling elite” and their “monopoly business partners” are actively looking for ways to lure Western investors and partners in the web of their business. Interests of the common folk, fleeced to the bone and left to their own in their own country are not taken into account. For them, Russian people play the role of faceless cattle and a herd of sheep. The only thing that is required from the folk is cheap working force and votes on elections collected by deceptive promises of “bright future” in another five years or in the distant and a very vague future. We might ask a legitimate question. When unemployment benefits in the West are bigger than average salary in Russia, what is the better place to live for children, grandchildren and great-grandchildren of those who won in the Great Patriotic War? Today the said “herd of sheep” is required to accomplish their sacred duty to protect the homeland, which is represented by same cynical “public elite” and their monopoly business partners. Among those whose personal well-being and health is to be protected by the defenders of the fatherland, treated as cannon fodder, which is always “in demand” in the political games and economic skirmishes, there are very well-known people, “special privileged caste leaders”, including Chub, life and property of which, allegedly acquired by “overwork”, is also in need of protection, both within Russia and abroad.

Governor of Rostov region Vasiliy Golubev will not undertake any action against Vladimir Chub and the members of his team until he receives according orders from the supreme leadership of Russia. This is not an easy matter. Investigation of Chub’s activity will lead to unrest beyond the region. Quietly moving Chub to retirement from his position of the regional head is one thing, but to revise his “deeds” during the period of his ruling in his patrimony, make conclusions and hold him accountable for his deeds, is something totally different. But in this case, Chub can still count on some officials on federal level who will cover him up, because they enjoyed huge personal profits during the ruling of the “Rostov celestial”.

Premeditated bankruptcy of Atommash OJSC that was carried out with the complicity of corrupt officials of Rostov region controlled by Chub and his inner circle, was conducted in the interests of officials on federal level. They covered up this lawless mayhem, cynically ignoring Russian Law. Investigation of the bankruptcy of Atommash OJSC will undoubtedly lead to those people who, even if not directly in power, are standing close to it and can leverage it. This is one of the main reasons why the supreme leadership of Russia, influenced by “parties concerned”, avoids taking a political decision to investigate this crime of unprecedented scale in Russia. The investigation will undoubtedly bring many corrupt officials to the dock.

Joint and several administrative, criminal and material liability of officials for the activities of their departments, agencies and authorities must be instituted. Today we hear hysterical voices of those who wrought lawlessness in Russia, in support of the legal norms of “statute of limitation for the crimes they previously committed”, which can save them from the retribution. They scream about “undermining the democratic achievements”, although in fact the society seeks to restore justice in a completely democratic and legal way, judging those “servants of the people” according to their merits. Therefore, in principle, the question is not about the expiration of the statute of limitations for crimes committed, but rather about the inevitability of punishment for committing them, especially when it comes to large scale anti-state crimes.

(Detailed information, materials and documents on activities and bankruptcy of Atommash OJSC can be found on www.yaconto.ru.)

See also:

 Atommash on Wikipedia

 An article in Executive Intelligence Review (U.S.) on Atommash of 17.07.1979

 A booklet of Atommash OJSC in English (1993)

 An Atommash photo gallery (large size photos) 

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