Co-owner of Euroinvest Andrei Berezin: “Previously, when the country was swollen with money, you could afford excesses.” Who is the “gray cardinal” of the Leningrad region How is work going on the construction of a road interchange, which is also supervised by Management Company “Murino”
Regardless of the economic background, we need to modernize. Svetlana's equipment park is largely a Soviet legacy, and electronics production is one of the most dynamic sectors of global industry in terms of technology changes. In particular, the introduction of new technologies is important for the high-quality implementation of state defense orders. More than 60% of the products produced by our enterprises are military products. I can’t say that the economy of “Svetlana” does not allow making investments and counting on their return. As I already said, Svetlana's enterprises generate significant cash flow.
1986-1990 - Received higher education at the Leningrad Mechanical Institute named after. D. F. Ustinova (LMI) (now Voenmekh). The specialty of the future founder of Euroinvest was “engineer of automatic control systems for aircraft.” After receiving his diploma, Andrei Valerievich remained at his alma mater, but in graduate school. He had several publications on scientific topics.
Early 1990s Andrey Valerievich Berezin began his career as a businessman. The most important thing at this time was to capture the spirit of the times. And Andrei Berezin did it perfectly.
In the difficult year of 1991, Andrei Berezin managed to combine benefit to the city with the emergence of market processes, establishing food supplies from England.
In 1993, he acted as the founder of the North-West Fishing Company (NWRC). And although he has now left this business, NZRK is developing and is one of the leading Russian enterprises involved in aquaculture.
At the same time, in the early 1990s, the Investment Company "Euroinvest" was founded, which today is a diversified holding, the structure of which includes companies and projects from various sectors of the economy - from development to innovative industry.
2012-2016 - In 2012, Andrei Berezin invested about $30 million in Africa, establishing a gold mine, quarry and gold mining plant there. True, the situation soon changed, and Andrei Valerievich temporarily suspended the gold mining project.
In December 2012, Andrey Berezin, together with other shareholders, entered into the capital of Svetlana PJSC (which is part of the Russian Electronics JSC holding, and whose main shareholder is the Russian Technologies State Corporation). The Svetlana Association, whose history goes back more than 125 years, is one of the founders of the Russian electronics industry, which has gone from creating the first incandescent lamps in Russia to nanoheterostructures and unique devices based on them. Today PJSC Svetlana is an innovative, modern, highly efficient enterprise, always following market changes, open to consumers and focused on constant growth. The company has now developed a modernization program until 2020, as a result of which it should reach a completely new level.
In 2013, the “Recycling” project was fully launched in the Kemerovo region. The governor of the Kemerovo region warmly welcomed the investment project “Elimination of a hazardous facility - neutralization of waste from the Belovsky zinc plant and reclamation of disturbed land areas.” As a result, not only has the air become much cleaner in Belovo, but new jobs have also appeared.
2015 - ...: One of the most important projects, which Andrey Berezin is currently implementing jointly with partners, is the construction of the Hollywood shopping and entertainment complex with an area of more than 100 thousand square meters near the Pionerskaya metro station. For the first time Andrey Valerievich Berezin spoke about involvement in the project in 2015. Technical documentation is currently being developed; construction of the shopping and entertainment complex is planned to begin in the second half of 2017, and completion in 2019.
02.04.2017 12:24
The birthplace of the future figure was the glorious city of Leningrad, which is now called St. Petersburg. Andrei Valerievich Berezin was born on November 9, 1967 and entered a school whose profile was the study of mathematics. When the time came to decide on his future profession, Berezin decided to enter the St. Petersburg Mechanical Institute.
The birthplace of the future figure was the glorious city of Leningrad, which is now called St. Petersburg. Andrei Valerievich Berezin was born on November 9, 1967 and entered a school whose profile was the study of mathematics. When the time came to decide on his future profession, Berezin decided to enter the St. Petersburg Mechanical Institute.
Studying was easy for the young specialist, and he soon received a diploma as an engineer in automatic control systems for aircraft, after which he entered graduate school. There have been scientific publications.
Career
However, the troubled times of the late twentieth century dictated their conditions, and in order to keep up with the latest trends, Andrei Valerievich began to master the hard work of a businessman. In the nineties, there were many opportunities to organize your own business, however, not everyone achieved success. Berezin, thanks to his personal qualities and determination, managed to find his niche. The businessman’s debut was organizing food supplies from Great Britain, which was very important for the city.
A few years later, a fishing company was founded, which still occupies a leading position in the specialized segment, although Berezin has not been involved in this business for a long time. At the same time, the Euroinvest holding was formed, which still exists today, working in various economic areas.
Since 2012, Andrei Valerievich has taken up an activity that is exotic by local standards, gold mining in Africa. A rock processing plant was built, a mine and a quarry were created, however, the changing conditions do not allow development in this direction at the moment, and the business has been suspended.
At the moment, Berezin is fully involved in the project, which involves the construction of the Hollywood shopping and entertainment complex with an area of more than one hundred thousand square meters. All technical aspects have not yet been settled, but the second half of 2017 should mark the start of construction, which is planned to be completed within two years.
Co-owner of the Euroinvest group Andrei Berezin told in an interview with DP why industry is more promising than construction, why he created a venture fund, for what reason he will bypass the stadium on Krestovsky Island, and also shared his experience of communicating with cynical competitors and explained why the unification of St. Petersburg and Leningrad region - a sound idea for the future.
How is your main production asset, the Svetlana plant, developing?
Every year the volume of products is growing. We are still summing up the results of last year, but, for example, at the end of 2016, revenue increased by almost 200 million, to 4 billion rubles. The company has four subsidiaries. The first - "Svetlana-electronpribor" - is a leader in its field not only in Russia, but also in the world. Recently, a Center of Excellence was created there, where new technologies based on silicon carbide are being mastered. This is very promising. The second "daughter" - "Svetlana-Roentgen" is actively working for export. A third of the world's airports are equipped with X-ray tubes produced by this plant. The Svetlana-SET enterprise is engaged in vacuum microwave technologies, and Svetlana Semiconductors is, respectively, in semiconductors. So we are not going to close this plant. In general, all enterprises operate and will operate where they are located. Relocation of high-tech industries is a complex process. Because of them, you can lose your team.
More than 50% of the Svetlana territory is not used for production. What will happen to the rest of the land?
At Svetlana there have been abandoned workshops, unfinished buildings and even some greenhouses since Soviet times. It is impossible to adapt them for production, especially since microelectronics have become more compact since the times of the USSR. All these areas are empty and deteriorating. And we plan to build housing on part of this land in the future.
When?
We are currently preparing a draft site plan. There is no urgent need to do this quickly. Given the current market situation, construction will take place in a few years at best; first, you need to develop a project for planning the territory, and only then the format and volume of development will become clear. Will we build it ourselves or will we hire someone - we haven’t decided yet. But in any development of events, the development of this territory will allow Svetlana to improve production using its own financial resources, without becoming dependent on bank loans.
Do you have plans to buy out other industrial assets?
We are considering a number of industrial assets for purchase in St. Petersburg and beyond. These are serious enterprises - with a turnover of tens of billions of rubles a year. But the negotiations have not yet been completed.
Several years ago he was one of the largest landowners in the region. Why did you decide to focus on production?
The situation in development is not very rosy. You see what's happening. The state is aimed at completing shared construction. What will we get in return? People will buy housing at full price, and builders will have to take out loans from banks. In this topic, as in many others, we follow the West. But we forget that bank rates there are 2% per annum, and here they are 10% at best.
But the refusal to share is an attempt by the state to protect shareholders from unscrupulous builders...
Developers are divided into three types. The majority are conscientious and reasonable. They have clear economics and development plans, and they have a margin of safety. They fulfill their obligations to people even in large projects. The second type is also seemingly conscientious, but they either don’t like or don’t know how to count. Therefore, in their projects the economy often floats. Potentially, this is a risk group that can produce defrauded shareholders. But if this happens, it is not out of malice. And there is a third type - these are scammers. They act deliberately. And now they are becoming even more active: they will begin to advertise themselves and collect money from people. So the number of defrauded investors may increase. If the state could get rid of scammers and strictly control the second type of builders (Law 214 allows this), there would be no need to refuse additional payments. In principle, shared construction is a great achievement. Thanks to him, people in Russia have the opportunity to get affordable housing.
Are you buying less land for construction?
The silence on the land market has been going on for a year now. The earth, of course, did not end. Some plots are in demand. As a rule, those where there is infrastructure. But everyone became cautious. We started counting better.
How has your land bank changed?
It has decreased over the past 5 years. The remaining spots belong not only to us, but also to our partners. We are also considering territories for acquisition, but carefully. Buying land is easy now. But what to do with it then?
You have created, which coordinates the work on infrastructure development in Murino-Devyatkino. How is this work progressing?
The management company is successfully engaged in water supply and sewerage - this is its main task. Although there are problems, of course. Developers (even those who have ready-made houses) pay poorly for infrastructure. But life shows that the work of one large operator is more effective than that of many small management companies. There are two problems here, the first is that if developers themselves install networks to houses, they do not always think about their quality and further operation. Networks quickly deteriorate and become a problem for residents and authorities. The second problem is that some small management companies sometimes collect money from people and disappear, and the authorities have to deal with the problems. Large management companies are responsible with their assets for both networks and payments.
How is the work going on the construction of the road junction, which is also supervised by the Murino Management Company?
It's coming. Although we do not earn anything from this and even suffered a loss. Some builders did not contribute money to the general design fund, and we had to contribute a total of 20% of its cost from our own pockets so that there were no delays. In addition, we were burdened with the topic of a single storm sewer for the region, although we should not have. This is also a complicated story. Developers often let you down. Therefore, I fully support the idea of checking companies before issuing building permits.
Where is it easier for builders to work now - in the city or in the region?
It used to be easier in the Leningrad region. But after adjustments to the law and the launch of the Traffic Light program, the situation began to level out. Now builders are more interested in land for new projects in the city.
Is the Traffic Light program a benefit for the region?
This is a way to regulate the situation. Quite effective.
What do you think about the prospects for uniting the city and the region?
This is a complex issue from a legal point of view. To solve it, we need political will on both sides and people on the ground. I don't see either one. Although the idea is sound. And in the future, we will probably come to this. The difference in the quality of infrastructure in the two regions is striking. And I constantly come across conversations from officials like “I won’t build any further road: this is not our area.” It jars.
Do you support the idea of transferring the regional administration to the Leningrad region?
As far as I remember, they discussed different options for moving - to Kudrovo, Gatchina, etc. In principle, there is a sound grain in this initiative, but the main issue here is the economics of moving. Probably 10 years ago this could have been done. Moreover, the budget would even earn money from this. But recently property values have fallen. And the money from the sale of buildings occupied by the administration of the Leningrad region in St. Petersburg may not be enough to move. In any case, this project is the competence of the regional administration.
Did Euroinvest participate in the completion of the stadium on Krestovsky Island?
Not directly. I believe that the main task of this kind of infrastructure projects is to contribute to the development of the region's economy. A stadium in this sense is a very specific object. As if after 3 years it would not be mothballed like the previous one. It is necessary to support him. This requires billions of rubles. Who will take on these expenses, which it is unclear when they will pay off? I wouldn't count on it: it's not rubber. But, since I myself am not a fan and have an even-keeled attitude towards football, I’m unlikely to be a frequent visitor to the stadium.
But the stadium cost a lot of money.
Most infrastructure facilities are expensive for the budget. And all because designers initially put the most expensive solutions into them in order to earn more money themselves. And there is no normal examination that will immediately say that a road, for example, can be built not for 10 billion rubles, but for 3 billion. Previously, when the country was swollen with money, one could afford excesses. But now is not the time: every penny counts. If the issue of building a stadium were decided today, I think it would not exist.
What about your project for the Hollywood shopping center near the Pionerskaya metro station?
We received a construction permit and identified contractors who are ready to enter the site. But a strange thing happened. Here, in my office, came Maxim Levchenko, co-owner of the FortGroup company, which has its own City Mall shopping center opposite our future center (the Hollywood project is its direct competitor). He suggested distributing tenants between our complexes in such a way that it would be beneficial for everyone. We gave him our project to comprehend. And soon a lawsuit appeared from a certain citizen Vakin, who lives in a neighboring house, an employee of FortGroup and Levchenko’s confidant in the elections to the Legislative Assembly. Allegedly, he found violations of landscaping standards in our project and filed a lawsuit against GASN (which issued us the permit). Moreover, it was possible to discern these “fleas” only after receiving the project in hand. As a result, while the trial is ongoing, the project is on pause. When the trials are over, we will still start construction. In business, of course, there are different situations. But this is one of the most cynical stories in my practice.
How do you feel about the initiative to clear out stalls near the metro?
This has been a long time coming. This is a question not only of beauty and safety, but also of tax collection. The trend is inevitable and civilized.
Six months ago, Euroinvest created a venture fund. For what? And how is this project developing?
They bring us many different topics. Usually it's innovation. But not in real estate, but in the technical field. The Foundation is an expert group for their understanding. There are currently about a dozen interesting ideas in the works, including five in the active stage. For example, there is a unique development in the field of medicine. Specialists from Svetlana, together with LETI, are creating a prototype of a device to fight cancer. We want to bring it to the production stage within a year and launch it into series. The device has no analogues, so we will move it to the European market. Same with other topics. The fund will be a co-owner of new production facilities with a fixed share of profits.
How do you assess the state of national science and education?
They are in deep crisis. The level of personnel and education in general in the country is falling. The state must solve this problem, and quickly, otherwise it will be left without hands and brains. And business should help - invest in bright minds, support them with scholarships and grants. We are already doing this: starting this year, we are launching a personal scholarship named after cosmonaut Georgy Grechko at Voenmech.
What do you think about cryptocurrency?
It is necessary to distinguish between cryptocurrency and blockchain technology. The technology itself is interesting. We are following its development and consider it promising. But I definitely won’t buy bitcoins. I don't see the point.
Are you satisfied with the investment climate in the country?
He's not good, of course. But where else are we needed with our investments? There are very few positive examples of domestic business investing abroad. It’s not for nothing that they say: where you were born, that’s where you came in handy. It would be nice, of course, for the state to support its investors. But if it doesn’t interfere, that will suit us too.
Person
Andrey" Berezin
> Born in 1967 in Leningrad. In 1990 he graduated from the Leningrad Mechanical Institute ("Voenmech"). Has scientific publications.
> In 1993, with Yuri Vasiliev (50% to 50%) he created the Euroinvest company and since then has been the chairman of the board. The company is engaged in property development, territory development and industrial production.
> Ranks 103rd in the 2017 DP Billionaires Rating with a fortune of 9.15 billion rubles.
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What the ex-prosecutor of the 47th region Ivanov did not share with the friends of Governor Alexander Drozdenko
Alexander TrushkovAt the end of last week, the Dzerzhinsky District Court of St. Petersburg changed the preventive measure for businessman Semyon Kuzmin, who has been in pre-trial detention since July of this year, sending him under house arrest. This week the court is to consider the issue of changing the preventive measure for Alexei Varichev, arrested in the same criminal case, the former chairman of the board of directors of the regional Waste Management Company (UK OOLO).
The change in the preventive measure was the result of a deal concluded by Varichev and Kuzmin with the investigation, within the framework of which the businessmen gave testimony that brought the now former prosecutor of the Leningrad region to the dock Stanislava Ivanov.
It is worth noting that among the narrow circle of businessmen considered close to the head of the region and performing the functions of so-called “wallets” for him, in addition to Berezin, this includes the owner of the outdoor advertising operator “VolgobaltMedia” Oleg Zevakov and the head of the “EFESK” group Evgeny Bobylev - the owner of “ Euroinvest" is the closest and most trusted. Apparently, therefore, Andrei Berezin’s wish to become the “mistress of the sea” - from a large, but far from the only regional developer, will actually turn into a monopolist - the goldfish in the person of Governor Drozdenok undertook to fulfill with amazing zeal, regardless of the possible consequences.
The main development projects of the Euroinvest holding are concentrated in the Vsevolozhsk district of the region, which is the main construction site not only of the Leningrad region, but also of St. Petersburg with a population of five million - it accounts for about a third of the housing being built in both regions. For this reason, almost all major players in the St. Petersburg construction market have their own projects in the region, including Andrey Molchanov’s LSR group and other influential structures. But the existing balance of interests was grossly upset almost immediately after the 2015 gubernatorial elections, in which Drozdenko won a landslide victory, which allowed him to distance himself from the influential business groups whose support secured his first term as governor.
Last fall, the governor introduced an indefinite moratorium on the transfer of agricultural land for development, which stepped on the throat of all major developers except Berezin - it quickly became clear that the regional government was ready to make an unspoken exception for projects of the Euroinvest holding. In addition, participants in the construction market have discovered that recently the solution to any issues in the area, be it the construction of roads, connections to wastewater treatment plants or heating networks, depends on structures or people close to the owner of the Euroinvest holding. His sphere of influence even included OJSC Vsevolozhsk Heating Networks - formally the enterprise is municipally owned and belongs to the administration of the city of Vsevolozhsk, the head of which Sergei Garmash is actually on Berezin’s payroll. As a result, in addition to social facilities, the responsibility for the construction of which has been shifted to the developer from this year, builders are invited to chip in for engineering infrastructure facilities that are formally being built at the expense of the budget. And do it for yourself and for that guy, by financing the construction of infrastructure in the interests of the Euroinvest holding. The final step was the appointment at the end of October as the new head of the administration of the former chairman of the public procurement committee, and in the past the head of the regional department of Rosreestr, Andrei Nizovsky, who is closely associated with both Drozdenko and Berezin.
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Garbage kings of St. Petersburg
The waste management market in St. Petersburg has always been a highly profitable and criminalized area. According to experts, no more than half of city garbage is disposed of legally; several million tons of waste are annually transported to unauthorized landfills in the Leningrad region. The last high-profile redistribution in this area occurred in 2006 at the beginning of Valentina Matvienko’s governorship, when city authorities, with the support of riot police, established control over the MPBO processing plant. In 2014, the VTB Group announced plans to engage in waste processing in St. Petersburg, but the project of a waste incineration plant in Levashovo met with sharp public resistance and was postponed until better times.However, from January 1, 2017, all regions of Russia begin to live according to new rules for waste management, which creates the preconditions for the next redistribution of spheres of influence in the industry. In each region, an authorized organization will be responsible for the collection, removal and disposal of waste, and accordingly control the corresponding financial flows - a regional operator, determined on a competitive basis. There will be two such operators in St. Petersburg, serving the north and south of the city, respectively, and one in the region. Today, several influential business groups in the city are vying for the status of a regional operator. Among them are the current “garbage kings”: OJSC Avtopark No. 1 Spetstrans, owned by Anatoly Yazev, the largest waste removal operator in St. Petersburg, and LLC Waste Recycling Company No. 1, owned by the main owner of the Talion holding, Alexander Ebralidze. And also newcomers, such as Tekhnoresurs LLC, which previously announced a joint venture with Set Group Gennady Timchenko waste technology park project in the Leningrad region. However, the unofficial favorite in this race is considered to be OJSC Waste Management Company of the Leningrad Region (UK OOLO), owned by KUGI of the Leningrad Region and which manages five landfills.
The post of chairman of the board of directors of this structure until July of this year was held by Alexey Varichev, who with his business partner Kuzmin had certain plans for developing the garbage market of two regions. Varichev and Kuzmin’s interest in the field of waste management, apparently, was not accidental. According to some reports, in addition to the “cash out” business, the partners had some involvement in the operation of a number of unauthorized landfills in the Vsevolozhsk region. Moreover, according to one version, the assistance of ex-prosecutor Ivanov consisted precisely in covering up this business, simultaneously with the organization of raids by the prosecutor’s office on competitors, which may explain the activity of the prosecutor’s office in the fight against unauthorized landfills around the village named after. Sverdlov at the beginning of the year. However, when assessing the prospects associated with Management Company OOLO, Varichev and Kuzmin did not take into account that the expansion of this structure into the St. Petersburg garbage market was being prepared by regional officials in the interests of completely different individuals.
All the rubbish in one hand
Over the past year, Governor Alexander Drozdenko purposefully created the conditions for transferring control over the waste management market into the sensitive hands of Andrei Berezin, simultaneously bringing the waste management system of the Leningrad region into a state of chaos. Thus, from January 1, 2016, powers in the field of control over waste management were transferred to the State Environmental Supervision Committee of the Leningrad Region, which had the experience and resources to organize this type of work. But just three months later, Governor Drozdenko created a separate Office for Organization and Control of Waste Management Activities (UOKDOO) under the government of the Leningrad Region. Alexey Pimenov, who came from the structures of the Euroinvest holding, became the Deputy Head of the Department. From 2011 to 2014, Alexey Pimenov headed the Emo Plant CJSC, half of which belongs to Berezin, and until April 2013 he headed the Emo Plant LLC of the same name.The decision to transfer powers to UOKDOO had catastrophic consequences, since the department, which existed only on paper, was unable to organize even the appearance of any activity for at least six months. And this is against the backdrop of scandals shaking the region related to unauthorized dumps on the border with the city. In the spring, Drozdenko had to personally go to the village named after. Sverdlova in the same Vsevolozhsk district, where residents out of despair blocked the road to garbage trucks dumping waste around the clock into the quarries surrounding the village. However, the promises made by the governor to the residents had nothing to do with reality. The task of the new department of OKDOO was not to restore order in the industry, but to monitor the progress of the development of a regional waste management scheme in the interests of the Euroinvest holding.
Actually, the further logic of what is happening is quite simple. It is UOKDOO that will have to determine the requirements for applicants for the status of a regional operator and hold a competition to select an authorized organization. In this regard, there is no doubt that the choice will fall to UK OOLO, which is directly subordinate to UOKDOO. Moreover, after the arrest of Varichev, Alexey Pimenov took the post of chairman of the board of directors of the management company, and also lobbied for the appointment as director of the company of another person from the Euroinvest structures - Evgeniy Le, who, according to SPARK-Interfax, in 2013 replaced Pimenov in the post Head of Emo Plant LLC.
At the same time, in July of this year, the government of the Leningrad region decided to put up for sale a blocking stake of 25.1% of shares in the company UK OOLO. If we take into account the mentioned personnel appointments and the fact that such competitions are usually held for a specific interested party, it is not difficult to guess that the buyer will be structures close to the Euroinvest holding. By the way, according to the same scheme, in 2015, the government of the 47th region put up for sale 25.1% of the shares of OJSC LOT (Leningrad Regional Television), the buyer of which was the company Regional Electronic Media, affiliated with Andrei Berezina and the famous political strategist Leonid Davydov (adviser and head of the election headquarters of Alexander Drozdenko).
Land question
However, transferring control over Management Company OOLO and the regional waste management market to Andrey Berezin is only the first step. The main goal is to gain control of the St. Petersburg market, the volume of which is many times larger. And right now the regional authorities have trump cards that allow them to dictate terms to the city. The reason is simple. St. Petersburg, with its population of five million, produces a huge amount of waste, but the existing landfills have long exhausted their designed capacity, and there is no free land to accommodate new processing complexes in the city. The regional waste management scheme, judging by reviews, does not take into account where it will be disposed of. And all regional testing grounds automatically become dependent on the regional operator, that is, UK OOLO, which under these conditions has a high chance of receiving a similar status in St. Petersburg.In addition, the St. Petersburg authorities will again have to coordinate the location of new landfills and processing plants, and it will not be possible to avoid resolving this issue, with the regional operator and UOKDOO. Already on the agenda is the issue of locating a new facility for processing hazardous waste, designed to replace the Krasny Bor landfill, which is subject to closure. And since 2017, a partial ban on waste disposal has come into effect in Russia: quotas are established for different categories of waste, determining what proportion of it must be sent for recycling. According to experts, this will require the construction of at least six reloading points with waste sorting complexes in the area of the main exits from the Ring Road to the Leningrad region, and two new landfills with modern equipment.
The city has long been trying to agree on the allocation of land for these purposes, but all attempts to resolve this issue with enviable consistency turn into protests from local residents, public scandals and ultimately end in nothing. Moreover, the assumption that the leadership of the Leningrad region, represented by Governor Alexander Drozdenko, is deliberately sabotaging the process, taking into account all the circumstances, does not look overly fantastic.
Apparently, the St. Petersburg authorities are pushing people to realize that there are vacant municipal lands suitable for locating such facilities. But the largest regional “landlord” Andrei Berezin probably has plots in mind that he would be willing to offer to the city authorities at a reasonable price. Especially with the prospect of transferring management of new facilities to UK OOLO. Fortunately, while Alexander Drozdenko remains the governor of the Leningrad region, nothing is impossible for the owner of the Euroinvest holding.