The Central Bank deprived of the license for the Fi associated with the Railways and the son of Prosecutor General Yury Chaika. The Bank is inappropriately assessed credit risks, and asset quality was unsatisfactory, said the regulator.
The Bank’s position has deteriorated amid the sanctions, its development could affect the resignation of Vladimir Yakunin, head of RZD.
The Bank “Millennium” never was frequently mentioned in the media, financial organizations, however, some facts from its history to attract special attention to the current decision of the Central Bank.
Connection with the Church
Bank Millennium was founded in 2002, a year later he bought the company “Statos,” wrote Forbes. Co-owner of this company is Oleksandr Melnik is the founder and President of St. Andrew Foundation from 1992 to 2006 (Chairman of the Board of Trustees is the former head of Russian Railways Vladimir Yakunin). Another shareholder of “Statos,” – the banker Mikhail Baidakov, who, according to Forbes, is the Treasurer of the Church of St. Nicholas. This temple is located near the village of Afineevo, where Miller built a house.
Baidakov became Chairman of the Board (in shares “Statos,” has also his wife). Audit Commission, “Millennium” was headed by Senator Sergei sheblygin, which in 2006 was replaced by the Miller at the head of St. Andrew Foundation. Subsequently, this position was transferred to Baidakova.
The St. Andrew Foundation is known primarily for the fact that at his own expense arrange annual delivery from Jerusalem Holy fire at Easter. A huge number of people attracted in 2011 organized by the transportation of Russian cities girdle of the virgin, one of the shrines of the Christians.
Change of ownership
In 2008, 67.4% of the Bank “Millenium” in “Statos” bought “the administration Bamtonnelstroy” is one of the largest construction companies in Russia and the contractor of Railways. The organization is a member of the UK group “the Bridge” businessmen Vladimir Kostyleva and Yevgeny sur (Forbes estimates the state of each of them 600 million dollars). In 2008, SK “the Bridge”received a major Olympic order. In 2012, controlling IC “most” buy patterns Gennady Timchenko. In July 2015 Timchenko sold the share to Ruslan Baisarov.
Subsequently, the share of “administration Bamtonnelstroy” dropped to 54,05%, and “Statos” to 26.1%. The shareholders included the company “Russian Railways – stations Development” (with a share of 19,82%), which organizes the sale of goods at railway stations, catering develops, organizes cleaning and other services. At the time of its creation in 2009 of the “RZD – Development stations” were owned railway monopoly. In two years almost 75% of the “RZD – stations Development” came under the control of its CEO, Sergey Pak – a friend of the head of the Directorate of railway stations Railways Sergei Abramov, wrote “Vedomosti”.
Image copyrightRia Novosti
Image captionСергей Abramov (far right) worked on the development of railway stations in the structure of the Railways, and his friend Sergey Pak already as a private citizen, wrote “Vedomosti”.
Friendship with Russian Railways
In 2004 Vladimir Yakunin at the time Vice-President Russian Railways – the delegation of the Russian Railways was present at the dedication of the “Millennium.” In the summer of 2005 Yakunin became the head of the railway company, while his wife Natalya was elected to the Board of Directors of “Millennium,” wrote Forbes. Filed by the newspaper “Vedomosti”, Yakunin was included in the Board of Directors in June 2004.
After the deal with the “administration Bamtonnelstroy”, the Bank has established with foreigners joint venture, which was going to engage in the production of rail fastenings for the Olympic facilities, Railways and highways. “Millennium” had given credits to customers of Russian Railways and served the payments in favour of monopoly. In 2010 the Bank won the competition on placing of available assets of the Russian Railways in the amount of up to 50 billion rubles.
In 2011, Millennium has agreed with Russian Railways about the installation of their payment terminals and ATMs at 330 stations. Such exclusive terms were also only TransCreditBank, which was controlled by Russian Railways up to 2012.
The link with the Seagull
In July 2013, Russian Railways via affilirovannye patterns bought 35,09% of the Bank “Millenium” Bamtonnelstroy, LLC “Statos” and JSC “Russian Railways – stations Development”. New shareholders of Bank became “Beteltrans”, Railway trading company and the Trading house Russian Railways (all of them bought by 11,69% of the shares).
“Beteltrans” 50% owned by RZD and 49% – CJSC “T-industry”. In turn, the owner of 30% of CJSC “T-industry” is the son of the Prosecutor General of the Russian Federation of Igor Chaika.
Image copyrightRia Novosti
Image captionВладимир Yakunin is known for his piety
After the transaction, shares were distributed as follows: affilirovannye with RZD patterns – 35,09%, “administration Bamtonnelstroy” – 35,08%, LLC “Statos” – 16,9% and JSC “Russian Railways – stations Development” is 12.8%.
Revocation of license
At the end of January customers of “Millennium” began to complain about difficulty making payments. The Bank explained that restrictions of the Central Bank. On January 29, RIA Novosti reported with reference to sources in Bank circles that the Fi has disconnected from system of Bank electronic urgent payments.
On 5 February, the Central Bank revoked the license of the “Millennium”, explaining the actions by that the Bank is inappropriately assessed credit risks taken. “Proper assessment of credit risk on demand of the Supervisory authority identified the loss of your own funds (capital) of the Bank”, – said the regulator. Also due to the loss of liquidity of the Fi could not timely fulfill its obligations to creditors, added to the Central Bank.
The state Bank began to deteriorate amid Western sanctions and crisis. Many of the projects which was supposed to enter the Millennium and have not been implemented, therefore the owners could lose interest in the development of the Bank, says “Kommersant” with reference to experts.
The revocation of licenses of the “Millennium” has been expected, says the head of the analytical Department of the Bank BKF Maxim Osadchy. According to him, December 23-the Bank violated all norms of capital adequacy; in December the Bank’s capital has declined from 1.2 billion roubles to 0.5 billion due to provisioning requirement of the Central Bank.
Another reason for the deterioration of its provisions could become the resignation of Vladimir Yakunin as head of Russian Railways last year, writes “Kommersant”. “It is not excluded that problems at the Bank started with the resignation Yakunin “, – says Osadchy. From 1 September 2015 to 1 January 2016, the funds of enterprises and organizations in the Bank decreased by 19.9%, or 1.1 billion rubles, he said.
Bank Millennium is a member of the Deposit insurance system. By total assets as of 1 January 2016 “Millennium” was ranked 282nd place in the Russian banking system.
