History of YACONTO (more detailed)
YACONTO LLC (Russia, Moscow), is the full and the sole successor of Firm YACONTO LLP, Trade House YACONTO SE and Concern YACONTO JSC.
Since 1991, YACONTO companies and their affiliates organized their economic activity in cooperation with state-owned industrial enterprises of USSR and, consecutively, Russia. From the very start, direct participation in development of domestic industries, agriculture and science was at the core of the YACONTO activities.
In early 1994, Firm YACONTO LLP spent own money generated by its activities to purchase large shares of two industrial enterprises located in Volgodonsk city of Rostov region – Russia’s nuclear engineering flagship Atommash OJSC and a defense enterprise “Volgodonsk plant of radio-electronic equipment” OJSC (renamed into Salut JSC in 1996). Unfortunately, the production of their main profile they manufactured in USSR was not in demand in Russia due to unreasoned reforms in economy and politics. In this regard, YACONTO companies proposed promising long-term programs of economical development of Atommash OJSC and Salut JSC, defined new scope of civilian goods to be produced, which were in high demand in Russia and external markets, and took part in establishing the production.
Throughout 1990-s, Russia’s leadership and people surrounding it have been putting great effort to carving up and redistribution of property and national natural resources, so they did not care about the development of domestic enterprise, agriculture and science. Having carved up natural resources, primarily oil and gas, both mining and processing, they started exporting those with colossal damage for country’s economy but with profit for themselves. Support for Russia’s enterprises was highly selective and conditional, hence, “the rescue of the drowning was the business of the drowning”. It was during this difficult time that the heads of several large foreign companies demonstrated keen interest and established business contacts with the management of the YACONTO Corporation, seeing in it a real, trustworthy and proper business partner which owns large stakes in Russian industrial enterprises and is capable of establishing mutually beneficial long-term cooperation with all responsibility.
In mid-1990-s Atommash, in case of implementation of these plans, could have significantly affected the course of socio-economic development in Russia. Over 80% of equipment on Atommash was imported – purchased in Germany, Japan, France, UK, Italy, Austria, Sweden, USA and other countries, from concerns like Italimpianti, ESAB, Varian, Mannesmann AG. Usage of high-end domestic and foreign technologies enabled Atommash OJSC to produce over 1000 new kinds of products, including: non-standard metal equipment of large sizes, various metal containers for energy systems (heat-, hydro-, wind power), metallurgical, mining, oil and gas production and processing systems, including ready for use plants for deep processing of oil and its residual fractions on the basis of cleaner technologies and processes, compact mini oil refineries with a capacity of 50 to 500 thousand tons per year, and mini-factories for recycling and processing of by-products and waste oil, equipment for the construction industry, including equipment for launch pads for missiles and spacecraft, for sea water desalination plants, containers for transportation and disposal of nuclear waste, railroad tank cars for transportation of liquid gas, etc.
Destruction of planned economy and financial system without having a tangible plan of transition to market economy performed by the “reformers” in 1990-s in Russia resulted in a situation when funding for domestic industry, agriculture and science became a priori unprofitable and unpromising, which paved the way to undermined defense, security, and in the end to elimination of Russia’s statehood.
In 1995 a subdivision of YACONTO Corporation was opened in one of the leading countries of the Persian Gulf. The unit’s tasks included conducting market research and establishing contacts with business and political circles of the Middle East in order to ensure their long-term and mutually beneficial cooperation with Atommash OJSC, with YACONTO companies and their affiliated entities. The program of YACONTO assumed participation of Atommash in co-production of advanced technology equipment for large regional industrial, transport and energy facilities, including desalination plants, oil and gas production and processing enterprises, with equity participation in profit sharing from sales of the finished product. Moreover, Russia and the countries of the Middle East could have set agreed prices for hydrocarbons and derived products on world markets. This opened up great opportunities for Russian companies and their western partners to participate in major long-term programs aimed at economic collaboration with countries of the Middle East in cooperation with Atommash OJSC. In 1995 – 1997 YACONTO companies could (under tough competition on the world market) guarantee signing and fulfillment of orders (contracts) with these countries for the production of high-tech equipment worth at least $15 Bln (fifteen billion U.S. dollars), corresponding to approximately $72 Bln (seventy-two billion U.S. dollars) at the beginning of 2009 with an inflation factor of 4.8.
Unfortunately, the crisis of the 1990s in Russia has affected not only industrial, but also the country’s defense industry enterprises, the plight of which was exacerbated by non-professional management of Rosoboronexport, which sought to preserve its monopoly on military equipment supplies. Russian defense enterprises were on the brink of survival and elimination, because there were no contracts for military goods for the Russian Armed Forces, and Russian arms exports fell to a critical minimum. Western competitors, former socialist states and CIS countries immediately took advantage of it by starting actively supplying arms to all interested countries, including the hot pockets of the planet and dictatorial regimes.
YACONTO Corporation had real opportunities to operate as an official intermediary in the sale of military equipment. From one side, some Russian defense enterprises offered to supply any required quantities of military equipment through YACONTO companies. From the other side, the subdivision of YACONTO in the Middle East received large orders for the purchase of military equipment, including armored personnel transporters, infantry fighting vehicles, tanks, aircraft, helicopters, ships, submarines, missile systems, small arms, ammunition, etc. The volume of actual orders was so great that they could meet the needs of armed forces of Asia, Africa and the Middle East. But due to the irresponsibility and improper conduct of the functionaries of Rosoboronexport, YACONTO companies, having no desire to be deceived in the role of a mediator, were forced to abandon the contracts profitable for Russia itself.
In 1991, when the whole country, and agriculture in particular, experienced a severe economic crisis, Firm YACONTO SE agreed to the suggestion of officials to participate in the creation and organization of mass production of Biomass Power Generating Units (BEU – biomass energy units) in Russia to address environmental, energy, agro-chemical and socio-economic problems in the agriculture of the country. BEU were to be deployed to agricultural enterprises to speed up processing of livestock and poultry waste into an environmentally friendly fertilizer and biogas, using the latter as a source of energy and heat. Leading experts and designers from Salyut Design Bureau of Khrunichev State Research and Production Space Center (Moscow) and scientists from Institute of Biochemistry named after A.N. Bach of the Russian Academy of Sciences (Moscow) were involved in the research and development of BEU. By early 1993, a modern product based on high-end science and advanced technology was created.
The production technology of BEU was designed in a way that rocket bodies of ballistic missiles intended for disposal or destruction at the reduction of armaments under national disarmament program could be used as reservoirs. This could be a good example of quality disarmament under the bilateral agreement between the USSR and U.S. At the same time, Russian missiles would not be “destroyed”, but rather “broken down into components” like it’s done in the U.S. Then the funds provided to Russia by the West for the economic conversion of defense industries, with the mass production of BEU, would be used for their intended purpose, ensuring the effective development of industry, agriculture and the economy of the country as a whole. But the “ruling elite” used these funds to establish a class of “monopoly business partners" in Russia, including them in the “privileged caste” and a “group of oligarchs”. Through dubious privatization and subsequent redistribution, they received liquid assets of the state (public) property. At the same time, none of the YACONTO companies received a dime from Russia’s “ruling elite” for the development and implementation of highly important, promising programs of federal significance; it goes without saying that YACONTO did not receive any financial support for acquisition of privatized enterprises in Russia, a support that the “elite” bestowed upon its future “monopoly business partners” generously. YACONTO was not offered to participate in “mortgage auctions” where liquid assets that belonged to the public were redistributed by the “ruling elite”, on behalf of the State, for the benefit of a limited number of the future “oligarchs”, for whom “special conditions” for generating exorbitant profits from the companies, illegally acquired on pseudo-auctions, were created. Besides, unlike those “privileged” persons, YACONTO companies were not involved in export – for a pittance – of hydrocarbons, ferrous and nonferrous metals (under the guise of scrap metal) and other goods.
BEU were planned to be produced on SOE IA (later OJSC) Atommash, because in 1993-1994 all design documentation was fully adapted to this unique multi-profile enterprise, which possessed necessary high-tech equipment. Research and development of BEU (in essence, economic conversion goods) and its adaptation to SOE IA (later OJSC) Atommash has been fully financed by Russian YACONTO companies without the State’s involvement (on 20.03.1996 Rospatent granted to Firm YACONTO LLP a Patent №2056393 for an invention of BEU, priority of invention since 19.03.1993). However, despite the urgent need in BEU for large-scale development of national agriculture and despite the appeal from Atommash OJSC to the Russian Ministry of Agriculture (out. №18-5-PYAA from 18.05.1995) asking for assistance in deployment and adoption of the already created and tailored device, this agency declined to support the production of BEU on Atommash by sending a rather cynical and evasive reply (out. №5-18/267 from 05.06.1995). This led to the disruption of a very promising industrial program for the production of BEU on Atommash OJSC for the successful development of country’s farms. Thus the Russian Ministry of Agriculture caused great damage to the socio-economic development of agriculture and industry in Russia, as well as its provisions and economic security.
In the 1970s the U.S. planned to build more than 20 nuclear power plants (NPPs) in Iran in exchange for the supply of quality crude oil at bargain prices. However, because of political opposition of the parties (after the overthrow of Mohammad Rezā Shāh Pahlavi in Iran) these plans cannot be implemented to the present day. Russia has decided to occupy the resulting promising market niche. Atommash got involved in the production of equipment for nuclear power plant in Bushehr. Atommash OJSC was supposed to receive an order worth 27% of the total contract amount, but only got about 7%, which also had a negative impact on industrial and economic activities of the industrial giant on the construction of Bushehr NPP in general.
On confidential agreements with authorized representatives of the Russian Federal Space Agency (RSA) from 1995 to 1997, Firm YACONTO LLP and consecutively Concern YACONTO JSC focused efforts on the selection of the most efficient platform for the construction of a new international Space Launch Complex (SLC) near the equator. One of the “relevant parties” interested in this large-scale collaboration, offered to YACONTO Corporation a choice of areas for the promising new SLC, which are geographically and economically more beneficial than the existing launch pad in Baikonur in Kazakhstan. According to calculations, same launch vehicles would be able to carry 2.4 times more cargo to the orbit from the new SLC rather than from Baikonur, thus increasing payload greatly.
International space program would allow very effective use of the new SLC for the exploration of outer space for scientific and commercial purposes, and the in-depth study of the Moon, as well as for production, processing and delivery to Earth of extremely valuable raw materials (helium-3), for solving the overall energy and environmental problems of our planet in the near future.
During thermonuclear fusion, when 1 ton of helium-3 reacts with 0.67 tons of deuterium, energy equal to burning of 15 million tons of petroleum is released. Despite the planned expenditure amount of U.S. $1.2 Trillion at the exchange rate at the beginning of 2008, the Moon Program, based on the intensive development of aerospace and other advanced industries, justifies itself completely, having very high cost-effectiveness. As for the non-renewable hydrocarbon resources on earth, the volume of production of raw materials and prices will be eventually adjusted, without prejudice to the interests of exporting countries for the benefit of the future generations.
All expenses for the work on space related topics in the Middle East were covered solely by YACONTO enterprises. A new international SLC could have given not only tremendous economic and political, but also military and strategic benefits to all parties of this ambitious Program. Countries of Middle East were, and still are capable of providing complete funding for the construction of the new SLC with the respective infrastructure. YACONTO Program assumed engaging Atommash OJSC for the creation of large-size and bulky high-tech equipment and metallic constructions. Implementation of promising large-scale international projects and programs with the involvement of countries of the Middle East would have contributed to the development of the world economy, science, culture and human civilization in general, as well as the peaceful settlement of the Arab-Israeli conflict. But the intentional bankruptcy of Atommash disrupted the implementation of YACONTO Space Program.
Non-partnering countries and members of an OCG (organized crime group), acting in the interests of the opponents of industrial, agricultural and scientific development of Russia, deliberately destroyed Atommash OJSC to thwart it and many other industrial enterprises of the country from carrying out industrial programs aimed at long-term, large-scale economic partnership between Russia and the countries of the Middle East. Same people, who actively opposed the convergence of YACONTO enterprises with business and political circles of the Middle East in the 1990s, by smearing them hypocritically and cynically, today shamelessly establish contacts with them for cheap loans, markets for products and access to natural resources.
Russian hydrocarbons, which they cannot even process anymore, having destroyed their industry, cannot anymore satisfy their insatiable hunger. Exorbitant greed pushes them to employment, processing and what’s most important, selling of natural resources of the Middle East and Latin America, under the guise of mutually beneficial partnership, where domestic industrial enterprises are placed “in the rear of the global business”. Despite that, “Russian nomenklatura elite” and their “monopoly business partners”, through cunning schemes, acquire real estate and liquid assets there. Those assets will bring them fabulous profits, while Russia itself will become a guarantor for their large-scale “commercial operations” but will only receive a “donut hole” from it. But what’s interesting, “Russian tricksters” will not be able to achieve anything without modern foreign equipment, because they have already ruined all that was prospective and progressive in Russia.
The collapse of the Soviet Union led to a shortage of port capacity in Russian Black Sea, as several major commercial ports moved under the jurisdiction of Ukraine and Georgia. Loss of sea ports annually causes great damage to Russia and holds it dependent on political and economic interests of the former Soviet republics, on the territory of which naval bases and commercial ports are. Insufficient capacity of Russian ports is particularly acute in the Azov-Black Sea Basin, which has an advantageous geographical location and favorable conditions for sea and river transportation. More detailed information can be found in the Letter from YACONTO LLC to Russian President Vladimir Putin (ref. №80116-1 from 16.01.2008), which has been concealed from him.
In 1993, the YACONTO Corporation has developed a nongovernmental investment program to build a large new dry cargo and container port complex together with a new modern city in the free economic zone in the Black Sea coast of Krasnodar region. The program took into account the interests of the Russian Navy. YACONTO companies and their business partners had a real opportunity to bring major financial and material resources to this project. For successful implementation of the proposed program, as well as today, political and administrative support from the senior management of the State was needed. Atommash OJSC, possessing most advanced Western technologies, was considered by YACONTO companies as the primary producer of custom oversized metal equipment, steel, containers and other products for the objects of YACONTO Program. Besides, Atommash OJSC, possessing its own special berth on Tsimlyansk Reservoir, could ship the production through River Don, Azov and Black seas to the construction site of this promising Program, via Atommash’s own water transport facility. But because of the bankruptcy of Atommash OJSC, which dragged on for four years – from 29.11.1995 to 25.11.1999, the Program activities have been put to a halt.
In November 2000, YACONTO LLC resumed the development of the previously halted YACONTO Program, but under a different name – nongovernmental investment YACONTO Integrated Program for the construction of the “Commercial Black Sea port YACONTO" in the Tuapse district of Krasnodar region. The new port has been designed for handling over 100 mln tons of freight per year. The Program also included a creation of a Tuapse Naval Base as a basing and repair point for the Black Sea Fleet of Russia; the port and the base were designed to have single production, transport and social infrastructure. The Program was aimed at socio-economic development and bolstering of Russia’s defense in the Azov-Black Sea basin, solution of energy security issues in the industrial world, strengthening Russia’s position in the international division of labor, prevention of: military threats, acts of terrorism, smuggling of goods, weapons and drugs. Implementation of the large-scale multi-integrated YACONTO Integrated Program will significantly increase trade with Asia, the Americas, Africa, Australia and Europe, including CIS and Middle East, and strengthen long-term mutually beneficial cooperation with them. More information about the YACONTO Integrated Program can be found in the Explanatory Note of YACONTO from 09.05.2008 to the YACONTO List of Projects from 09.05.2005.
Construction of a large “YACONTO Port” fully corresponds to the construction of a new 45 – 60 km long waterway canal in Turkey, along the narrowest section of existing water transport artery through the Bosporus, the Sea of Marmara and the Dardanelles. Plans to build this canal date back to the Byzantine and Ottoman Empire times. This will dramatically increase the capacity of maritime transport and thereby increase the volume of transit goods, reduce the delivery time and provide significant economic benefits to all stakeholders.
The YACONTO Integrated Program, claimed to be realized in Russia, is a part of a YACONTO International Program, a much bigger program which spans across multiple industries and includes progressive, highly profitable, interrelated, complementary and synergistic projects and programs. For the time being, YACONTO LLC refrains from exposing the Program details due to a risk of seizure and appropriation of the Program by “Russian nomenklatura elite” and its “monopoly business partners”.
In line with existing practice in Russia, Federal Targeted Programs (FTP) are being designed at the expense of the federal budget and with the support of the State, but the country’s officials are not responsible for the implementation of FTPs, as well as their intermediate and final results. The development of nongovernmental investment YACONTO Integrated Program of federal and national importance is funded fully by YACONTO LLC which takes the responsibility for the economic effectiveness of the Program (including the risks) under the condition of having administrative support on highest level. Intensive innovative development of Russia requires Public-Private Partnerships (PPP), which would ensure balance of interests between the State and the business. YACONTO Integrated Program provides an actionable example of such long-term, mutually beneficial partnerships.
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