Russian Oligarchs Hyde Behind The Rafo Oil Refinery Deal

The fight opposing the Balkan Petroleum (BkP) and the Dutch Calder-A International companies for the ownership over Rafo Onesti oil refinery reached new points in the past days.

Last year both companies conducted important financial deals, with Romanian authorities not being able to do anything about it.

In early November Jurnalul National published documents with the Dutch Registry of Companies showing that behind Calder-A International, the company taking over Rafo, was the Austrian KRU-Holding, managed by controversial Russian oligarchs, one of which is Iskandar Makhmudov.

According to Forbes magazine, Makhmudov is one of the most secluded Russian businessmen. He was born in Bukhara, Uzbekistan, and a member of the Soviet Union military in Iraq and Libya. Currently, Makhmudov controls UGMK, the second largest group operating on the Russian non-ferrous metals market.

The other interesting name leading the Austrian holding is Andrey Bokarev. On February 15, Bokarev was elected member on the board of the Union of Russian Investors and Industrialists (RSPP). On the board were also elected Vagit Alekperov, president of Lukoil, and Alisher Usmanov, president of Gazprom Invest Holding.

Mikhail Khodorkovsky, the former owner of YUKOS, once held one of the places now taken by the three men. Khodorkovsky is now arrested. This may be an indication that Bokarev is now well liked by the leadership in Moscow, as Khodorkovsky once was.

Starting with January 31, 2006, Calder-A changed its entry in the Dutch Registry of Companies, being now listed as an Austrian-owned PMG-Privatstiftung, which in fact is a private foundation set up in Vienna.

Experts with Baker & McKenzie say that funneling operations through a foundation allows to some extent keeping secret the actual aims and activities of a company. However, they also added that such aims should not be necessarily illegal or immoral.

Also, setting the foundation on Austrian soil brings in fiscal benefits. Baker & McKenzie explained that "many foundations act as holdings for companies, managing the stock, while the founders of the companies keep their executive positions and run the companies."

So, in spite of change in shareholders identity, Calder-A International BV is led by the same Bulgarian lawyer, Todor Batkov, who represents the interests of the Russian oligarch Mikhail Chernoi.

Batkov took over from Chernoi the Bulgarian soccer team Levski Sofia, since the Russian may not enter Bulgaria after being labeled a threat to the country’s national security.

Recently, the fight between Calder-A and BkP took over the soccer realm in Romania. Calder-A sponsors the Bucharest team Steaua, while BkP sponsors Poli Timisoara.