“In light of recent events related to the lifting of EU sanctions by court decision on Farhad Akhmedov, I would like to recall some episodes of his stormy biography.
Firstly, this is the well-known status in business circles of a near-state entrepreneur associated with various projects of Gazprom PJSC, headed by Alexey Miller. This is also confirmed by the documents of the “Kremlin Report” submitted to the US Congress by the US Department of the Treasury in accordance with the Countering America’s Adversaries Through Sanctions Act (CAATSA). In addition, his presence in the upper house of the Federal Assembly of the Russian Federation speaks volumes – from December 2004 to July 2009, he was a member (senator) of the Federation Council of the Federal Assembly of the Russian Federation, first from the Krasnodar Territory, where he represented the interests of the local Azerbaijani diaspora, and then from the Nenets Autonomous Okrug, where the economic activities of his companies were carried out.
Secondly, this is the notorious sale of a block of shares amounting to 49% of the authorized capital of JSC Northgas, PJSC Novatek for a fabulous $1.375 billion in 2012 after the gratuitous transfer of a controlling stake (51%) by structures of PJSC Gazprom after the scandal 2005. The amount of the transaction is especially confusing. Then he received 1 billion 375 million US dollars for a minority stake (49%) from PJSC Novatek, close to the Kremlin elite.
This transaction cannot be called a market transaction at all, if you look at the reporting. According to the open accounting data of Northgas CJSC (TIN: 8904045666), we learn that the revenue was 11.4 billion rubles (about $370 million), and the profit was 2.4 billion rubles ($77 million). There are several approaches to valuing a company. If we count by revenue, then the price should be according to the RevenueX2 form up to $740 million for the entire company and no more than $362 million for Akhmedov’s minority stake. If we count by profit, then according to the ProfitX5 formula, the value of the company can reach $385 million, and the value of Akhmedov’s stake is no more than $188 million. However, let’s look at the assessment of a professional market participant Sbis, published on their website. In their opinion, the value of the company by 2013, that is, by the end of the transaction, is 6.2 billion rubles or $200 million, and the value of Akhmedov’s 49% share is generally no more than $98 million. The Akhmedovs spoke about non-market relations related to the sale of Northgas and many experts in 2012-2013. It remains unclear why, while allegedly conducting business legally, Farhad Akhmedov managed to miraculously sell an experienced businessman and billionaire Leonid Mikhelson a dubious company for at least 10 times its real value.”
“ВЧК ОГПУ”