Kostygin Dmitry Valentinovich

Kostygin Dmitry Valentinovich

Biography

Dmitry Kostygin was born on May 4, 1972 in Arzamas in family of representatives of the technical intellectuals. As Kostygin likes to emphasize, the first day of his life dropped out between birthdays of Karl Marx and Siegmund Freud.

Still being a school student, it went to Moscow behind jeans and sneakers which then resold in Leningrad. Studying in Army medical college in the early nineties, he helped foreigners to have hotel rooms, sold them a military uniform, boots, caps with ear-flaps and even "two-room flats" for public telephones (at $1). Then, as he speaks, "invested in one, in another".

1993: Ayn Rand's hobby, acquaintance to Augustus Meyer

In the late eighties, having selected career of the physician, Kostygin appeared in St. Petersburg, having entered local Army medical college. As well as his many peers in days of students he was interrupted by accidental earnings, including trade in jeans and sale of books from trays. It should be noted that books always played an important role in Kostygin's life — he since the childhood read much and liked to tell about read.

Once one of books by Ayn Rand — the American founder of philosophy of objectivism and the ideologist of unlimited capitalism fell into his hands — and it radically changed his life. Kostygin became the ardent adherent of a rendianstvo.

The American tourist Ken Skuland coming to Russia in 1993 for promotion of the doctrine A. Rand, recruitments of "followers" and creation of network of local "preachers" "opened" for the Russian medical student libertarian "truth". On one of the Russian websites there is a short translated autobiographical story by one of Skuland's colleagues narrating that "Ken met the person by the name of Dmitry Kostygin and turned it into objective libertarianism only power of persuasion".

The doctrine essence A. Rand comes down to the greatest possible extolment of interests of certain "strong personality" and denial of the rights of any collectives. Complete freedom of such individual who has the right to absolute autonomy from somebody including autonomy of the moral principles is considered the ruling principle. From this the apologetics of business as "free activity" and denial of the state as the institute which is allegedly engaged in oppression of the elected minority of "creators" (first of all businessmen), by their burglarizing by taxation and redistribution for benefit of "parasites" — socially unprotected segments of the population is displaid. In fact, the rendiansky doctrine preaches extreme forms of egoism and builds the idea of money-making saying that wealth — the main measure of morality in the absolute.

Many are fond of different philosophical doctrines and doctrines, but not at all these hobbies accept the nature of obsession. To Kostygin there was just the last — he so like philosophy of egoism and believed in the chosenness and the right to be this "creator" that the career of the physician lost for it attractiveness and it entered St. Petersburg University of Economics and Finance. In parallel he was engaged in the translations of books of Ayn Rand into Russian, hoping to distribute most widely her doctrine in the former Soviet Union.

These efforts did not remain are unnoticed by rendiansky circles in the West — in the spring of 1993 invited Kostygin in the USA. Traveling around America, it met different representatives of the libertarian movement having there quite strong influence. In California it was accepted by somebody Glenn Krayp who suggested to Kostygin to be engaged in the edition of novels of Rand in Russia. They say that in that trip Kostygin got acquainted and made friends with other local rendianets — Augustus Meyer coming from rich family of the Californian media moguls. That just looked for an opportunity to immortalize memory of the native of St. Petersburg, having opened something like house museum, and at the American Institute of Ayn Rand it was given contacts of Kostygin, the local admirer. They made friends at once, despite an age difference.

Then the poor student D. Kostygin from where had an original capital on opening of own business in Russia. Perhaps, sales of caps with ear-flaps went uphill, but also here for certain it was not without participation of his American adherents and patrons. Having support of more wealthy libertarians behind the back, D. Kostygin began to take the first steps in business in hope to become "the great creator" (by determination A. Rand). On arrival from the USA in 1993 the yesterday's bookseller and headings founded closed joint stock company with the loud and pathos name "Association of Businessmen of St. Petersburg". Whether there were in this association businessmen for certain not it is known, as well as whether it is possible by the right to call at that time like that and Kostygin. However, the company name accurately indicates that her founder was fairly inspired with the idea to integrate St. Petersburg "creators" in a certain professional network. Everything ended unsuccessfully and firm, in any way and without having declared oneself, quietly stopped the existence.

The rendianstvo in itself did not bring to Dmitry Kostygin either glory, or money — it did not manage to find enough adherents in Russia and to integrate them in the powerful movement, and Russian translations of novels published by it in the mid-nineties on money of the American libertarians Rand were not so demanded by audience to glorify or enrich the translator.

However Kostygin nevertheless took out something from the libertarian experience — it found justification and ideological justification of own excessive egocentrism in Ayn Rand's ideas. Since then Kostygin began to see more and more in everything only own interests, ignoring the interests of people around, but also began "saw" impudently financial resources in the companies with which dealt, believing it "the right of creators". The last circumstance, it is necessary to emphasize, did not enter the theory of Mrs. Rand and became, apparently, feature of "the Russian translation" of Dmitry Kostygin. Among dealers in caps with ear-flaps, and then the Russian libertarians, Kostygin was selected with erudition and knowledge of English that permanently and disproportionately raised its self-assessment. So, for example, the people knowing it claim that Kostygin absolutely seriously considers himself by the Russian Warren Buffett and from positions of the economic guru everywhere actively reads own theories.

1997: Business with Vadim Gurinov: food industry

Study in SPBGUEF (nowadays — FINEK) was not for Kostygin in vain in due time. In this higher education institution its fatal acquaintance to future partner Vadim Gurinov (later — the head of The Sibur — the Russian Buses company) who was also getting there a financial education in the mid-nineties took place.

Student's friendship, as we know, is strong. V. Gurinov allocated with an entrepreneurial grasp already had by then small own business. It also took Kostygin "on the tow", having entered it into the structure of the Vektor LLC, Skif LLC and Sevzapsportkulttorg LLP. By 1997 Gurinov became in the food industry seriously interested, having improved the close relations with owners of the St. Petersburg importer of food Petroimport Dmitry Filatov and Mark Budyko. Soon he became their partner and in old friendship recruited Kostygin in the project of creation of the production holding which received the name "Petroimport Industrial Group" (since 2001 — Petrosoyuz). V. Gurinov and D. Kostygin as minority shareholders received places in Board of Directors of holding and held positions in its management. However if Gurinov was registered in Petroimport as the deputy CEO, then Kostygin the marketing manager and to development.

At a certain stage Gurinov conceived the parallel business project in the field of "food industry" into which it also integrated Kostygin. Forced to be content the second if not the third, roles in Petroimport Kostygin with enthusiasm treated new undertaking: in 1999 it and his partners received control over Lyubimy kray Confectionery Union Ltd. Held a position of the managing director in new company Kostygin. Along with Beloved land Gurinov and Kostygin founded Lirs Ltd where the ardent follower of Ayn Rand also occupied a management chair. "Лирс" in turn acted as the founder of several commercial structures in a number of Russian regions through which partners performed trade in food. However this structure not so much it how many its participation in attempt of capture of one of bakeries in the context of which the same Augustus Meyer's figure emerged again is remarkable.

In 1999 Meyer settled in St. Petersburg where began to buy up the real estate actively. In 2003 it purchased the section which was earlier belonging to bankrupt garment factory "Mir" in Shlisselburg to the address the Red path, 2 which leased Lirs companies (by that moment Kostygin was not the CEO of Lirs any more, but remained his beneficiary). After this, friends-rendiantsami undertook an attack on the subtenant — Vega LLC owning the bakery located on this section. To the owner of Vega — the local resident Tatyana Lepetenina — it was announced significant increase in a rental rate. After its failure to renew the agreement of sublease "Lirs" demanded from Vega to release section and to export from it all property. The companies began long trial in courts, and on December 10, 2004 the cassation instance satisfied the claim Lirs for eviction of the subtenant. As considered many, pressure which "Lirs" put upon T. Lepetenina was organized with the purpose to take away from it profitable business. The profile of Lirs Ltd was also connected with "food industry" and the successful bakery capable to release not only bakery, but also pasta, would have to D. Kostygin whereas it is impossible "to the yard".

In the spring of 2005 owners of PG "Petrosoyuz", including its founder D. Filatov, sold a controlling stake of the American company Heinz. According to one of top managers of Petrosoyuz, Kostygin in this company was remembered generally by ability to create the conflicts in the circle of managers and shareholders. Kostygin continued to perfect this main skill in the further activity already together with Augustus Meyer.

As for Beloved land, Kostygin remained his beneficiary. In this regard it is remarkable that during implementation of operational management by Kostygin by Tape of summer of 2010, he instructed to carry out million prepayments to the enterprise contrary to conditions of contracts.

At the same time, D. Kostygin's career in the food industry declined in 2003 Kostygin could not be exempted from "guardianship" of the senior partner V. Gurinov and independently create any effectively working business. A gradual exit of Gurinov from product business and moving of the main zone of its interests to other industries automatically caused also "migration" of business interests of D. Kostygin.

2003-2005: Director of Yaroslavl Tire Plant

In 2003 Gurinov received the offer on transition to the "subsidiary" of Sibur, The Sibur — the Russian Buses LLC who integrated the tire enterprises of holding. Having headed the company, it once again provided protection to D. Kostygin. V. Gurinov lobbied appointment of the younger business partner to a position of the CEO of JSC Yaroslavl Tire Plant (YTP), having agreed his candidacy with the head of Sibur new at that time — the native of St. Petersburg Alexander Dyukov (held this position from 2003 to 2005). Apparently, in the developed deal of points Kostygina was added also by his informal acquaintance to Dyukov with which they as if jointly visited in due time the gym.

After confirmation to a post of the CEO in November, 2003 D. Kostygin made a number of statements at once, having promised to improve quickly a situation in the enterprise which had not the best times. According to D. Kostygin, for correction of negative financial results it was only required to balance activity of the enterprise with head holding and to implement modern methods of management. Having declared oneself as about "the leader of reorganization" of YaShZ, Kostygin expressed readiness to provide to the plant "adequate profitability" at the level of about 300 million rubles annually. It publicly allocated for itself(himself) 6 months on that "show the result satisfying shareholders".

Nevertheless, having hardly looked round at the enterprise, the new CEO first of all became interested not in so production capacities and sales problems of buses, and … in factory dining rooms. Kostygin output the whole theory of accurate interrelation of a power supply of workers and production indicators and convinced the management of Sibur to approve selection of $2 million for reform of a factory public catering. The workshop of a power supply was hastily transformed to child YaShZ-Pitaniye LLC which signed delivery contracts of products with the product companies affiliated with Kostygin. Needless to say that food raw materials were bought at the overstated cost. Moreover, for dining rooms at the expense of factory means the expensive equipment then "YaShZ-Pitaniye" began to provide with delivery lunches the third-party enterprises of Yaroslavl was purchased and mounted, including even local clinics. Naturally, it demanded significant increase in purchasing amounts of products from suppliers.

The "reorganization of the enterprise" proclaimed Kostygin started since the beginning of 2004. Its purposes proclaimed work performance improvement, decision making acceleration and also change of an organization structure of the plant. For the solution of the first task D. Kostygin formulated an indicative indicator in kind — 1000 buses on one worker a year (Kostygin for some reason did not open methods of calculation of this indicator). To achieve this result, the CEO began to prepare mass reduction of staff of YaShZ which had to affect from 700 to 900 workers from collective in 8000 people and also an output about 400 more people for staff of the enterprise. Say that justifying the idea of mass reductions, in a narrow circle D. Kostygin liked to repeat, referring to the next "smart book" that "gives dismissed new opportunities". The problem was only that except dismissals Kostygin needed to make production processes more effective — and as to make it, he did not know.

Meanwhile, this adventure was not approved neither with city service of employment, nor with management company in Moscow. Nevertheless, it was realized for all 2004 therefore in a year the average number of employees of YaShZ was reduced by 1225 people (about 15% of labor collective). As a result the number of the made buses fell from 6.3 million to 5.9 million. Average labor productivity at the same time practically did not change and was about 790 buses on one worker.

The major, according to D. Kostygin, the direction of conversions at the enterprise was reduction of its organization structure in compliance to the certain "book scheme" borrowed from the same western textbooks on management. Emergence of a large number of new managerial positions and the corresponding swelling of the leading device became result of this "reform". At tire plant there was the administrative director, the director of research, the director of production, the director of quality, new blocks of corporate communications, compensation policy, etc.

On YaShZ the follower of the western business gurus acted as the apologist of "project" approach to management. Its essence consisted in release of some managers from "routine" and order to them of maintaining this or that "project" requiring material, human and time resources. At the same time such projects once there could be very much. One of become known carried the name "Carthage". This large-scale undertaking consisted in construction of a new fence around the enterprise.

Decision making acceleration, according to D. Kostygin, could be reached by implementation on YaShZ of electronic document management. This action which covered 300 employees to whom provided computers also was given as the "project" called "All in network". However reduction of time which is spent for meetings, how many falling of performing discipline among management became result not so much. It was connected and with the fact that D. Kostygin personally set an example to non-obligation of presence in a workplace and a possibility of "remote control" of the plant. It elected the residence Clear Dawns boarding house in the territory of which spent a considerable part of working hours, resolving these or those issues by means of e-mail. The persistent unwillingness of the CEO to appear at the entrusted enterprise found reflection in the joke which was born among hard workers Shinniki about the chief-confectioner whom feels sick from a smell of buses.

D. Kostygin tried to compensate lack of a fair idea of the development strategy of the plant by involvement of more wide range of managers in its development. In the remote perspective it assumed that about 200 managers of YaShZ will be involved in this process.

In the second half of 2004 at the enterprise it was not carried out loud conversions any more. Gradually collecting problems with the current management required urgent reaction of the management directed to sales growth, cost reduction, optimization of suppliers and contractors.

The relations with the last — a separate subject. Instead of attraction profitable to the enterprise of partners, Kostygin, as well as in a case with factory dining rooms, stuck around YaShZ network of friendly firms and firmochek. Abusing trust of Sibur and the old partner and patron V. Gurinov, he used the economic powers for personal enrichment by manipulations in the field of purchases and sales. Among suppliers of the plant there were new companies selling products at the prices above the market. In abuses the known Ltd companies as Medekspo, delivering the modifier on YaShZ and at the same time selling finished goods of the enterprise were noticed such to nobody. Other Ltd companies (for example, Furmitreyd) conducted procurement through several legal entities on a chain so the price inevitably increased. Besides, schemes on cashing in of money when instead of real acquisition of the purchased products, from dummy suppliers (Forvard LLC, Vest, Comsoft, etc.) on the enterprise only bills of exchange arrived were used.

However not organizational or production changes, and not a game "on the pocket" became the most important innovation of Kostygin at Yaroslavl Tire Plant, and attempt of implementation of so-called "modern methods of management", knowledge of which was obtained by it from literature. The idea that success of business is provided with formation at a command of the enterprise and all workers of uniform corporate spirit was the cornerstone of these methods. For this purpose Kostygin used the most different methods and acceptances.

In particular, D. Kostygin prepared the extensive textbook of methodics under the name "Professional Competence and the Compensation Based on Them". Its purpose was to acquaint all staff of the plant with a new payment system which was going to be implemented for "YaShZ". This system provided, for example, increases to the salaries of employees which never hurt or were never absent for any of several reasons in a workplace within several years. Besides, "on kompetentnost", allowances relied workers for such qualities as responsibility, vigor and sense of humour. For promoting of this system the textbook of methodics began to be published in a number of issues of the factory large-circulation newspaper, and acquaintance to this work was obligatory for all personnel.

The persistence with which D. Kostygin realized the book truth and the arising with respect thereto unusual situations was led to the fact that rumors about eccentricities of the CEO of YaShZ got for walls of the plant and began to extend among residents. Did not disregard them and journalists of local media which simply could not pass by news which were already discussed at that time by all Yaroslavl.

"the pedestrian course" of the staff of YaShZ from "Clear dawns" to Yaroslavl, memory of which is alive at the plant still, became apogee of absurdity. At the end of May, 2004 all managers, chiefs of workshops and heads of divisions were told to study the list of references provided by D. Kostygin according to the theory of management, having learned some smart thoughts by heart. The CEO promised to examine personally employees and to dismiss not handed over on mismatch of a post. All plant management, accounting and even chiefs of workshops were forced to cram maxims of the western theorists, with horror expecting "Doomsday".

Like that happened on June 24, 2004. According to the Yaroslavl media, in Clear Dawns boarding house gathered about forty chiefs with YaShZ "be tested" at the CEO in that morning. As most of factory managers could not comprehend depth of book knowledge, D. Kostygin said to attendees that the only chance for them to prove professional suitability — to make collective pedestrian battle march from Clear Dawns to Yaroslavl. Also the idea was explained - it is a so-called corporate training in the course of which they will become this united collective which will be capable to overcome time calls.

The Yaroslavl newspaper "Golden Ring" in one of July issues of 2004 very colourfully described this action: "Moved without delay. Ahead barefoot walked. At the beginning of a way some unadvanced managers still hoped that the director joked and will permit all to get soon into cars especially as cars moved afterwards. However the campaign was not a joke at all. Released only one of forty members of collective — the man of a pre-retirement age who began to complain of feeling sick indeed looked very shaky. And here to the assistant on social problems in spite of the fact that she after the first kilometer erased legs new shoes high-heeled, the indulgence was not made. The only thing that was permitted — to send the machine behind sneakers. The column solid, a parabottom of the dressed people, moving on Kostromskoye Highway roadside, was considerable surprising to the motorists and villagers passing by. Some even floutingly signaled and turned fingers at a temple. Nevertheless, the distance in 12 kilometers from "Clear dawns" to the pointer "Yaroslavl" near the settlement Coastal was overcome by all. This slightly more than three hours borrowed. When the desired pointer loomed, the become exhausted Shinniki even cheered up — now they will seat on the machines, will extend tired legs, will reach a bathtub and a shower. However and here they were waited by disappointment. At the very end of a way Dmitry Kostygin announced the subordinate that now all of them will return to boarding house. And there he will personally tell them what they had to acquire. And only after a two-hour lecture all were let go in peace".

After mass reductions the directorate of YaShZ went for optimization of holidays. The working schedule of 2005 provided manufacturing holidays in the first decade of January and the first decade of May, at the same time the working days in these numbers were also considered as a vacation pay. Feeling the increasing resistance to the policy, Kostygin tried to get rid of trade-union leaders of YaShZ. It initiated re-elections of chairmen of shop trade-union committees of labor unions in August, 2004, but the attitude to the pursued managerial policy was not changed.

As the psychological situation developing at Yaroslavl Tire Plant became more and more intense, D. Kostygin passed from idle methods "formations of command spirit" to the traditional scheme of purchase of loyalty of management team by providing the various benefits to her representatives at the expense of the enterprise. It meant direct infringement of interests of the shareholder expecting execution of promises about growth of profitability of YaShZ and instead facing the unjustified growth of costs.

Payment of business trips of the factory management became one of main articles of expenditure of means. At the end of November — the beginning of December, 2004 Kostygin and about 40 more managers of YaShZ went to Singapore and to Malaysia. This trip, according to some information, cost the enterprise 5 million rubles. At the same time the management of Sibur learned about departure of management of the plant just before a departure. In a manner inherent to it Kostygin designated this visit as the "training project" which received the name "Home Alone". Allegedly its purpose was not only the training of the management in Singapore, but also practice for factory middle managers who "were left on economy".

Other trips took place in the territory of Russia where Kostygin with colleagues visited such far from YaShZ on industry accessory of the company as VimpelCom, Severstal, Bor Glassworks, Mosfilm, Independent Media publishing house. Justifications of these visits were thought out backdating, for example, on Bor Glassworks the attention of visitors was drawn by work as the dining room, and in Independent Media — "ethical principles of business". Similar explanations did not coordinate with a problem of development of the enterprise in any way, and the continuing unreasonable growth of costs caused sharp discontent of Sibur.

Gradually during 2004 at the plant economic difficulties because of growth of costs and decrease in production increased. Trying to correct the reputation, Kostygin involved PR-tools, having begun to publish theoretical articles about new methods of management in the Yaroslavl media and also began to invite regularly to YaShZ of delegation of the known foreign consulting companies (in particular, the enterprise was visited by representatives of Roland Berger, McKinsey, CISS, Innovation&Kosten, etc.). Visits of the last as Kostygin considered, could lift his personal authority and validate his managerial practices.

Contrary to loudly stated plans of receiving 300 million rubles profit, profit on implementation was only 72 million rubles — 20 million less, than in 2003. A basic reason — honor increase in management expenses by one and a half times, from 305 million to 445 million rubles.

The situation did not change also in 2005 which, despite market growth, also became extremely unsuccessful for YaShZ. These results exhausted all patience in Sibur, and on October 28, 2005 D. Kostygin was ahead of schedule dismissed. The petrochemical holding decided not to repeat errors and appointed to its place V. Ionov — the professional industry specialist without thirst for the western theorems, but with wide experience of practical work. Itself D. Kostygin, obviously, any more did not create illusions concerning opportunities of the further career both in Sibur, and as the head of large enterprise as he openly expressed the intention "at a leisure to be engaged in writing of books on management of the enterprises".

D. Kostygin's failure on YaShZ led also to cooling of its relations with V. Gurinov whom it actually "set up" before the management of Sibur, but soon Kostygin began to spend more time with other patron and "trustee" on behalf of the extravagant monetary American Augustus^[1].

2001-2011: Shareholder of retailer "Lenta"

Since 2001 — Dmitry Kostygin the board member of Lenta LLC. The St. Petersburg entrepreneur Oleg Zherebtsov who was engaged in trade since 1993 founded Lenta. First he opened small wholesale warehouses normal for those times, by the end of the 1990th got supermarket, and in the 2001st decided to construct really large shop, the first in own way in the Northern Capital, but it did not have enough money for the project. The familiar entrepreneur Dmitry Kostygin brought together then Zherebtsov with Augustus Meyer who recently arrived in Russia from the USA who readily purchased 49% of the company.

Having brought together the American with Stallion and having organized the transaction, Kostygin in an award for services received, according to Forbes, 5% of stocks of network which he partially sold out afterwards, having gained about $20 million.

2012: Conflict with partners in Dream Industries

In December, 2011 Augustus Meyer (the former deputy prosecutor of San Diego, the USA) and Dmitry Kostygin, both citizens Saint Kitts and Nevis, invested Dream Industries company in the amount of $25 million.

In December, 2012 the conflict between shareholders of the company erupted. For more details see Dream Industries

Hidden record of negotiations with Dmitry Kostygin's partners:

On what basis change of the director? — A bias from the answer

On what basis stop of cash flows? — A bias from the answer ('because business does not make profit')

On what basis delay of salaries to employees? — 'Everything is paid to all for whom it is necessary' (at the same time more than a half of employees still did not get paid for November)

Why the director was appointed without approval of managing partners (Simon and Alexey)? Let's select the new director together — We already thought over everything, Ilyichev suits us, another to select do not agree, three months will leave.

Let's redeem us — I Can offer one dollar for everything, it is ready to raise a rate to two

Let's redeem you — Are ready to go beyond a half of initial investments, but we will block new buyers, convincing them to refuse the transaction, the redemption also should pass in conditions of raid of the company

Kostygin: If the company disappears, we will lose money, you will lose much more

2016: Conflict with shareholders in Ulmart

The corporate conflict in Ulmart erupted in 2016 when at Dmitry Kostygin and his partner Augustus Meyer whom 61.5% of the online retailer belong views of business development dispersed from Mikhail Vasinkevich (controls 38.5% of the company through Donna Union Foundation). Majority shareholders suggested to continue investments into infrastructure and new products whereas mister Vasinkevich insisted on business optimization and his output to profitability. As a result the last asked the London arbitration court to oblige partners to redeem its share at the fair price.

2018

Criminal case on a charge of plunder of the credit of Sberbank for 1 billion rub and house arrest

Criminal case concerning Dmitry Kostygin was brought according to Article 159.1 of the Criminal Code of the Russian Federation (fraud in the field of crediting). According to the investigators, the businessman fraudulently received in Sberbank, having misled him, the credit for the company for 1 billion rubles. The entrepreneur insists on the innocence.

In April, 2018 in St. Petersburg Dmitry Kostygin, the co-owner of one of the largest online retailers of Russia Ulmart which accuse of plunder at Sberbank of 1 billion rub is sent under house arrest again. Such solution on the petition of the investigation as specified in the joint press service of courts of St. Petersburg, was taken out by Smolninsky district court. Besides, the court found it possible to expand to the businessman till four o'clock time of walks and to allow four five children nurses who live together with Dmitry Kostygin and his spouse.

Protection of the defendant called criminal case the tool of pressure upon Dmitry Kostygin from his opponent on the joint-stock conflict Mikhail Vasinkevich and A1 investment company (the investment division of Alfa Group advising mister Vasinkevich). In A1 it was disproved, claiming that have no relation to judicial proceedings between bank and^[2].

Earlier Dzerzhinsky district court of St. Petersburg met requirements of VTB bank and obliged to collect from Kostygin debt on the guarantee agreement for the amount of 653 million rubles.

Also Petrograd district court of St. Petersburg considers the claim of Globex bank to Kostygin about collecting 15 million rubles according to the guarantee agreement.

Prolongation of house arrest till June 14

According to RBC, the Smolninsky court of St. Petersburg prolonged house arrest to the co-owner of Ulmart Dmitry Kostygin accused of fraud till June 14, 2018.

The court obliged to exact from Dmitry Kostygin 15 million rubles for benefit of Globex bank

In May, 2018 the court obliged to exact from the co-owner of Ulmart Dmitry Kostygin 15 million rubles for benefit of Globex bank, reported in the Joint press service of courts (RPE) of St. Petersburg.

"Except Kostygin the action for recovery of money of the agreement on carrying out warranty transactions and of guarantee agreements was shown by bank to the NAO Ulmart, Ulmart development LLC, Ulmart Product and Purchasing Company LLC. The Petrograd district court of St. Petersburg pointed that it from legal entities solidary is subject to collecting 412.6 million rubles" — told in RPE.

As it appears from case papers, on January 27, 2017 between Globex bank and Kostygin the guarantee agreement according to which the co-owner of Ulmart undertook to bear joint liability to Globex for execution of the NAO Ulmart of obligations with a responsibility limit in the amount of 15 million rubles as a part of a cash amount in the amount of 382.6 million rubles which are subject to payment to bank till September 15 inclusive was signed.

"on September 19 the requirement about compensation was sent to the defendant, however so far it is not performed" — the bank representative proved the claim.

Requirements of the claimant were met by court in full.

2020

The co-owner of Ulmart received year of prison

The Russian businessman Dmitry Kostygin was in absentia sentenced to imprisonment for disrespect for court. Such sentence was pronounced by court on the British Virgin Islands (BVI), Kommersant^[3] reports ^[4].

Kostygin received year of prison not only for disrespect for court, but also in connection with violation of earlier issued court order obliging to open its all the assets without exception (not only in Russia, but also in other countries of the world), to VTB bank. This is one of the businessman's creditors.

Disrespect for court in this case is a set of actions which Kostygin took not to pay debt to the creditors. And everything began in 2017 when Dmitry Kostygin took the loan on which granted to bank the personal guarantee in VTB. Because of crash of Ulmart it remained owes bank of 650 million rubles, however could not return this amount.

VTB took legal action behind compensation of a debt, and Dzerzhinsky district court of St. Petersburg met its requirement for debt collection directly from Kostygin. The businessman, however, decided not to hurry with performance of the judgment that induced VTB to begin search of its property in Russia and other countries with the subsequent his arrest and implementation.

In 2019 the bank in search of Kostygin's property addressed to High Court of Justice of BVO, and that obliged the businessman to provide to bank all necessary information on the assets worth more than $1000 which are available for it (78.6 thousand rubles at the rate of the Central Bank for October 5, 2020). In addition the court imposed such interim measures on all assets of Kostygin.

The co-owner of Ulmart repeatedly evaded from court's decision execution. The fact that the businessman still hides the expensive assets was proved directly by lawyers of VTB – they detected in La Banque Richelieu Monako bank in Monaco ten gold bullions belonging to Kostygin's company.

VTB was seized this property of the Russian businessman in August, 2020 by a court decision of the Principality of Monaco for the purpose of its further transfer. Also now the court of the Republic of Cyprus considers the application of VTB for contest of the transaction on an output of stocks of the companies – owners Rive Gauche and Wild Orchid networks. Securities are included into the list of assets of Kostygin too, and it, consider VTB, renewed them on the wife of one of the business partners.

The listed facts of violation of writs by Kostygin were enough for removal High court of BVO of the resolution on its correspondence imprisonment for a period of one year. The businessman on listening was not.

The decision of the High Court of BVO will cause also some other effects for the co-owner of Ulmart. In particular, he will not be able to perform any financial transactions outside Russia – even receiving the credits in large foreign banks is unavailable to it now.

Recognition by the bankrupt in the claim of VTB

On November 24, 2020 the Arbitration court of St. Petersburg and the Leningrad Region declared Dmitry Kostygin bankrupt in the claim of VTB. Bank declared the debt of the co-owner of bankrupt online retailer "Ulmart" in the amount of 644.28 million rubles.

Information on the adopted judicial act — determination about recognition of the statement for recognition of the citizen by the bankrupt and introduction of debt restructuring — quotes materials the vessels "RIA Novosti".

The judicial act by November 24, 2020 is not published yet. The report of the financial manager is appointed to March 16, 2021.

Debt restructuring is the procedure applied in the case of bankruptcy for the purpose of recovery of solvency of the citizen and debt repayment before creditors.

The court declared bankrupt the co-owner of Ulmart Yury Kostygin

At the end of September, 2020 the Arbitration court of St. Petersburg and the Leningrad Region met Dmitry Kostygin's requirements to Ulmart and included it in the register of the requirement of creditors. The company should pay to Kostyagin 256.3 million rubles.

Ulmart was large online retailer of Russia earlier, however at the beginning of 2020 contracted business because of the corporate conflict. By November, 2020 a number of structures of Ulmart are in a bankruptcy stage. Besides, to the company several claims are submitted.

VTB has legal proceedings with Kostygin on Cyprus because of transactions on an output of large assets. The bank accuses the businessman that he renewed stocks of the companies owning retail networks "Rive Gauche" and "Wild orchid" on the wife of the business partner.

In Russia concerning Kostygin brought criminal case about especially large fraud (Part 4 of Article 159 of UK) which was requalified late on damnification without signs of plunder (Part 2 of Article 165 of UK). The reason was the fact that Kostygin obtained the large credit in Sberbank, but hid the obligations to other creditors. In the claim to the main co-owners of Ulmart the bank demanded to exact from them to exact totally 1 billion rubles.^[5]

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