Ru-Senter Regional Network Information Center Ru-center

Ru-Senter (Regional Network Information Center) is the Russian Internet company providing services in registration of domain names and also ensuring addressing on the Internet. Enters into the RU-Center Group group which is controlled by RBC.

Assets

The brand of RU Center integrates the organizations which are engaged in both commercial, and non-commercial activity:

• The "Regional Network Information Center" (RSITs Ltd) private company renders commercial services, in particular, registration of domains, services of secondary market of domains and a hosting;
• NIK Media LLC provides service of a parking of domain names.

Services

The RU Center is the accredited registrar of domain names:

• in the domains RU, Russian Federation — the Coordination center of the national domain of the Internet
• in the domain SU — Fund of Development the Internet
• in the domains NET, COM, ORG, BIZ, INFO — ICANN (The Internet corporation on distribution of domain names and an address space)
• in domains CC, TV — VeriSign, Inc.
• in the domain ME — doMEn, d.o.o.
• in the domain TEL — Telnic Ltd
• in the domain MOBI — dotMobi
• in the domain NAME — VeriSign, Inc.
• in the domain TRAVEL — Tralliance
• in the domain AERO — SITA

The RU Center is the registrar in Russia and Eastern Europe having a wide partner network in our country and abroad. Thanks to existence of partnership with leaders of the Russian financial sector of RU-CENTER offers various payment methods of the services.

The RU Center specializes in providing services of support of domains, including services of secondary market of domains.

History

2016

The claim against the ex-CEO Panov for 20 million rub

In September, 2016 the RBC subsidiary company — registrar of domain names Ru-Center — submitted a claim to Arbitration court of Moscow against the former CEO of the company Alexander Panov about collecting from it 20.26 million rubles.

In the statement of claim it is specified that in December, 2012 the Ru-Center signed the contract worth 20.26 million rubles with Dzhibb advertizing agency for advertizing on the website zaycev.net. According to Ru-Center, the contractor did not fulfill agreement obligation and had no contractual relations with the zaycev.net portal. The claimant claims that neither the contractor, nor at the third parties had no opportunity to post advertizing on the specified website, and the company did not need this agreement. Besides, the Dzhibb company which was liquidated had signs of a phony company. The claimant insists that these circumstances are the basis for collecting from Panov of losses. RBC confirmed submission of the claim and an essence of claims.

Panov told RNS that he did not make the decision on the conclusion of the advertizing contract, the contractor and the price of the agreement was defined by RBC.

"the Ru-Center disputes the agreement of 2012, the contractor and which cost was determined by shareholders of Ru-Center, i.e. RBC. All documentation under this agreement towards Ru-Center was provided by RBC financial service" — Panov told. He noted that he "considers submission of the claim by attempt to put pressure as on the victim on criminal case"^[1].

Panov initiates criminal case about fraud in RBC

On April 29, 2016 the Main Investigation Department of the Ministry of Internal Affairs in Moscow brought criminal case according to Article 4.159 of the Criminal Code of the Russian Federation (the fraud committed by organized group or in especially large size, the sanction — imprisonment up to 10 years) according to the statement of the former shareholder Byte Telecom (managed a data processing center, it was controlled by RBC) Alexander Panov for deprivation it and Yaroslav Karetsky of 25% of stocks of the company.

In the resolution on criminal proceedings, according to RNS, it is said that the cost of 25% of stocks Byte Telecom was $13.4 million.

Panov reported to RNS with reference to documents of the investigation that the group of people whom law enforcement agencies will check for participation in crime includes the CEO of RBC Nikolay Molibog, his first deputy Ekaterina Kruglova and other top managers of holding. In more detail (see the History of RBC).

Panov accuses RBC of deprivation of a share in Byte Telecom

In March, 2016 it became known that the CEO of RBC Nikolay Molibog and the former head of Ru-Center Alexander Panov offered explanations to prosecutor's office of Moscow concerning the deprivation of minority shareholders (Panov and Yaroslav Karetsky) of shares in Byte Telecom company which was allegedly taking place, Izvestia reported ^[2]. Alexander Panov and Yaroslav Karetsky controlled 25% of the company. Trial about change of the owner Byte Telecom is begun according to the statement of its former shareholder Panov which as Izvestia with reference to minority shareholders writes, possessed 12.5%, stocks of the company (Karetsky and Panov estimate the losses at $6.5 million everyone). Since 2007 Panov held a position of the managing partner of Hosting Community group (works under a brand of Ru-Center, for 100% belonged to RBC) where including Byte Telecom entered.

75% Byte Telecom were controlled by Aquarius Market Limited registered on the British Virgin Islands with final beneficiaries Herman Kaplun and Alexander Morgulchik, Izvestia writes. Irina Panova, Alexander Panov's spouse was the CEO of Byte Telecom at the time of organization. Herman Kaplun, Alexander Morgulchik and other tops of RBC close to them left holding in April, 2012.

In May, 2014 and Panov resigned as the CEO of Ru-Center according to the solution of shareholders of the company, its duties passed to Molibogu. In October, 2014 at Byte Telecom the CEO as Panov told was replaced, Farida Karimova became him, passed 100% of stocks of the company to her, and the legal person of Byte Telecom was reorganized into new.

In March, 2016 Panov claims that he sold the share in Byte Telecom to nobody and did not transfer, and learned about change of the owner of the company from representatives of FTS. Explanations in prosecutor's office do not designate initiation of proceedings and existence of offenses in general. Technically trials on illegal deprivation of shareholders of shares can lead to initiation of proceedings under the Article 159 of the Criminal Code of the Russian Federation ("Fraud").

"The prospects of case will depend on evidential base" — the managing partner of Zheleznikov and Partners Bar Alexander Zheleznikov commented on a situation to Izvestia.

The Investigative department of the Ministry of Internal Affairs is engaged in consideration of a chance of fraud. In March, 2016 Panov and the head of RBC Nikolay Molibog offered explanations on the State Office of Public Prosecutor to an occasion of this complaint.

In April, 2016 the answer about results of the inspection which is carried out by the State Office of Public Prosecutor on a request of one of minority shareholders Alexander Panov's Byte Telecom was at disposal of edition Roem.ru. In the letter it is reported that in August, 2014 the citizen of the Russian Federation Farida Karimova, working as the only shareholder of Byte Telecom, transferred to FTS documents for change of the CEO Byte Telecom from Igor Selivanov (at this time holds a post of the chief financial officer of RBC) on itself and further on liquidation of Byte Telecom Ltd in the form of accession to Investproyekt LLC which was later it is also liquidated by accession to Drok LLC. As a result Panov and Karetsky's share in the company became zero.

The State Office of Public Prosecutor based on check saw possible signs of fraud and illegal reorganization of the legal person in a situation and according to Article 37 of the Code of Criminal Procedure transferred materials to Investigative department of the Ministry of Internal Affairs. Panov specified Roem.ru that, according to him, Karimova's actions could not be performed without participation of the majority shareholder of BT which before reorganization possessed 75% of stocks of the operator — an offshore company of Caruta Investments. It agrees to one of documents signed by the CEO of RBC Nikolay Moliboga which are located by the investigation (also is at the disposal of edition), Caruta Investments through a chain of offshores for 100% belonged to RBC.

It is obvious to us, actions as a result of which we were dispossessed did not do without participation of management of RBC. I speak specifically about Nikolay Moliboga's team, to the previous commands of management of RBC to Alexander Morgulchik and Herman Kaplun, Evgeny Shishkov and Sergey Lavrukhin I and at my partner have no claims — Panov says.

For April, 2016 the data center in the same place and with the same equipment still functions, but Rekonn operator svyazi LLC belongs and offers services in placement of the equipment under the itsdata.ru brand, Panov says.

The spokesman of RBC Egor Timofeev said that the holding did not receive a request concerning the Panov's claims.

We know nothing Aleksandra Panova about the reply of prosecutor's office. If the official request concerning this case comes to RBC we are ready to participate in all procedures according to the law. By RBC public holding, information on changes in structure of group it is open and reflected in the public reporting — Timofeev told.

2014: Panov's dismissal. Molibog - the CEO

In May, 2014 Alexander Panov left a post of the CEO of Ru-Center company. As he explained on the Facebook, it had to act this way according to the solution of shareholders. Its place was taken by Nikolay Molibog, the CEO of RBC. At the same time in the standard press release based on shift the company does not thank Alexander Panov for the done work and does not note his contribution to business development of the company.

According to Panov, the Ru-Center executed all delivered financial performance, and in exchange in the face of employees the management of holding brought him out of office as criminal.

2013: A penalty for 240 million rubles

On April 2, 2013 the presidium of the Supreme Arbitration Court found registrar Ru-Center guilty in dishonest fight for domains in a zone. By the Russian Federation. it is also found guilty — on six points from seven. The previous instances alternately supported the company, agreed with anti-monopolists. The last solution after all will force to return the largest Russian registrar to the budget 240 million rubles, however it, apparently, will not entail any other effects for the market.

The dispute of Ru-Center with FAS is remarkable the fact that no legislation which would regulate work of domains in Runet for April, 2013 exists. Therefore both department, and courts had to operate with the general concepts of the law on protection of the competition and business customs. These can also explain lack of a hard line at arbitration.

The Ru-Center stated that it will not withdraw the domains registered with violation of the law. Theoretically only the person who purchased the domain can try to return the money paid for it through court (the address, however, too should be returned).

2012: RBC closes the deal on merger of Ru-Center

In March, 2012 the 9th arbitration Court of Appeal cancelled the solution of subordinate instance, at the same time having eliminated from charge of FAS one point from seven.

The conflict on it, however, did not end. The next stage — the cassation — passed in Federal arbitration court of the Moscow district. In June, 2012 this court eliminated other six points from charge of FAS and also nullified the instruction that the Ru-Center should pay the earned 240 million rubles.

On June 19, 2012 announced RBC a successful completion of the transaction on acquisition of the logger of domain names and Ru-Center hosting provider (RSITs Ltd).

Purchased RBC 100% shares in the company, transaction amount was about 920 million rub^[3]. The Ru-Center became the sixth business unit as a part of Hosting Community entering into RBC holding. As a result, the Hosting Community group is an absolute leader in the Russian segments of a hosting and registration of domain names.

From the moment of the declaration of intention to purchase Ru-Center in March, 2011, actually exercised of RBC operational management by the company. Since the second quarter 2012, financial results of Ru-Center are consolidated in financial results of all group of RBC. Ensuring effective integration of Ru-Center is assigned to the managing partner of Hosting Community Alexander Panov who since 2011 combines this position with a position of the CEO of RSITs Ltd. At the same time Yaroslav Karetsky who was also the managing partner in Hosting Community was dismissed from RBC.

Due to essential synergy effect between assets, in the next 1.5-2 years management expects to increase profitability of business of Hosting Community. In particular, it is going to create uniform marketing, legal, PR and HR of service, to optimize the number of production offices.

For June, 2012 RU-CENTER is the largest domain registrar in Russia. Through it 31% of domain names of a zone are registered. RU, 42% of a zone. The Russian Federation and 58% in a zone. SU^[3].

As a result, revenue of Ru-Center for 2012 made about 25 million dollars (about 790 million rubles).

2011: The conflict with CC, RBC announces purchase of Ru-Center

On January 26, 2011 at the disposal of CNews^[4] The draft decision of the commission created at the Coordination center of the national domain of the Internet (CC, the regulator of the domain zones.RU и.РФ) for investigation of potential abuses during registration of domains in зоне.РФ was^[4]. The commission into which deputies of the State Duma from United Russia Alexander Khinshtein and Alexander Kogan entered, in particular, considered hasty and not up to the end worked out the decision of council of CC on the beginning made on September 30, 2010 since November 11, 2010 open enrollment of the Cyrillic domains. And, according to the commission, the CC was forced it to make under pressure of the representative of the state in council – the Deputy Minister of Telecom and Mass Communications Alexey Soldatov of that time (is the founder of the USSR's first Internet service provider - Relcom).

During the investigation the commission found out that the sister Soldatova – Irina Rassolova – owns 14% of stocks of registrar "Regional Information Centre" (Ru-Center, data of the USRLE). Its shareholders are also two more people entering into council of CC for launch of зоны.РФ: the CEO of Ru-Center Alexey Lesnikov (23% of stocks given to the USRLE) and the CEO of "The technical center of the Internet" (maintains a root register of domain zones. RU. SU and. Russian Federation) Alexey Platonov. According to the commission, Platonov is the CEO and the owner of 50% of stocks of Fiard company which possesses 49% of stocks of Ru-Center. Platonov confirmed to the commission the affiliation with Fiard and Ru-Center, Soldatov refused to communicate with the commission.

The commission does not exclude that specified persons made impact on the management of CC "on purpose not to set in motion to investigation of abuses", thanks to which Ru-Center during registration of domains in a zone. "Capture" of a large number of domains could perform the Russian Federation. In particular, during the first hours after the beginning of open enrollment the Ru-Center registered on itself 60 thousand domain names from which then on 24 thousand the registrar held private auctions (it became if prior to open enrollment more than one preliminary application for the same domain name came to Ru-Center). According to the commission, such actions violate the rules of CC prohibiting to registrars to set the different price of registration of domains for different clients, and obliging registrars to perform registration of domains on first come of requests from clients.

Besides, as in a zone. By the Russian Federation it is forbidden change of the owner of the domain within a year after the beginning of open enrollment, after holding auctions the Ru-Center remained the administrator of the sold domains in the root register of domain names. Winners of auctions registered as administrators only in the internal register of Ru-Center that, according to the commission, does not grant them rights of possession domains and is false representation of clients. The management of CC opposed actions of Ru-Center only after the Soldatov's resignation, having tried to block the domains offered for an auction.

In the whole Ru-Center, according to outputs of the commission, works on own, internal regulations that "threatens stability of all domain zone. Russian Federation". According to the results of investigation the commission recommended to cancel registration of the domains sold to Ru-Center on private auctions and to develop the overcoming mechanism the veto which on the decision of council of CC can impose the state on behalf of the representative of the Ministry of Telecom and Mass Communications in council. The commission considers it necessary to suggest Alexey Lesnikov to leave voluntarily council (Soldatov left council in November right after the resignations a post of the Deputy Minister of Telecom and Mass Communications, Platonov left council since January 1 within planned rotation of members of council) and to pay attention to affiliation of TTsI with Ru-Center which can lead to a conflict of interest to the detriment of the state.

Also the commission considers it necessary to change rules of CC for the purpose of prevention of lobbying by members of council of CC of interests of separate registrars and prohibition to registrars to carry out registration of domains for itself. Besides, the commission found out that the technology platform of the zone.Ru "for 90% is used for working off of hunting of registrars for the released domain names" in this connection it is recommended to develop rules of secondary registration of domains when several persons apply for one released domain at once.

The Ru-Center said that agree with the commission only that the decision of council of CC on the beginning of open enrollment was hasty. "But time for study of this solution and its approval of state bodies was more than enough, - the representative of the company Andrey Vorobyov claims. - There was an option when at first after the beginning of open enrollment domain names are offered for "the Dutch auction" with reduction in price that would allow to avoid conflict situations. But it was opposed by the director of CC Andrey Kolesnikov".

At the same time the management of CC knew about intention of Ru-Center to hold private auctions and did not state to it claims, insist in the company, and canceling of their registration will break integrity of the Russian segment of the Internet. "Moreover, at a personal request of Kolesnikov we removed the domain names matching names of municipalities from auctions", - Vorobyov says. The Ru-Center confirmed that Alexey Soldatov's sister is a shareholder of the company, having assured that the Deputy Minister of Telecom and Mass Communications in no way did not lobby the interests of the company in council of CC. The Ru-Center notes that some other members of council is also affiliated with registrars, in particular, the Marina Nikerova elected recently by the chairman of the board of CC is a founder of registrar.Mastername. Kolesnikov did not begin to comment on outputs of the commission before their official publication. Representatives of the Ministry of Telecom and Mass Communications were on Wednesday evening unavailable for comments.

Late at night on January 26 council of CC considered outputs of the commission, and in general agreed with them, having admitted the violation fact from Ru-Center. According to a source of CNews, close to CC, council nevertheless expressed disagreement with two recommendations of the commission, the requirement to the CEO of Ru-Center Alexey Lesnikov to voluntarily leave council became first of which. Besides, there was unresolved a question how to arrive with the domains sold to Ru-Center at auctions. Consideration of this problem is postponed until March first.

"Prohibit representatives of registrars to be a part of council of CC not rationally as these people it is better than the others understand specifics of domain business", - the managing partner of Hosting Community, the member of council of CC and the above-mentioned commission Alexander Panov considers. In a situation with Ru-Center the reason of problems is that three of 13 members of council were affiliated with this company at once, Panov in this connection more than one person, affiliated with any registrar are reasonable to impose a ban on existence in council notes.

• At the beginning of March, 2011 Kolesnikov suggested to withdraw the domains sold at auctions and to return money to winning bidders, however council of CC decided to finish these offers. Meanwhile over Ru-Center also more serious threat hung: accreditation loss. The procedure of deprivation of the registrar of accreditation just earned in CC at the beginning of 2011, for consideration of appropriate questions the special commission was created.

As of March, 2011 RSITs Ltd is one of the largest registrars in the market of domain names, in its management more than 900 thousand domain names.

• On March 17, 2011 it became known that the Hosting Community company entering into group of RBC buys the Ru-Center group. The deal was going to be closed until the end of 2011, but it happened only in June, 2012.

$35 million – at such price the former shareholders of Ru-Center sold the company to the Hosting Community group, told the source close to shareholders of RBC. According to him, it is approximately twice the low price discussed before scandal in a zone.rf. It was confirmed by two sources close to sellers and buyers^[5].

Who exactly sells shares, the party is not specified. At the time of the declaration of the transaction of 49% Fiard Ltd had RSITs, and 46% — at the former CEO of RSITs Alexey Lesnikov. But in January, 2011 in this database there was other information: in particular, it was said that 14% of RSITs belong to Irina Rassolova, the sister of the former Deputy Minister of Telecom and Mass Communications Alexey Soldatov. The fact that Rassolova is a co-owner of Ru-Center was confirmed also by the representative of registrar. The lawyer of Ru-Center Elena Gertseva (14%) and Alexey Lesnikov (23%) were shareholders of RSITs Ltd, according to the USRLE, in the same time.

Besides, a share in Ru-Center (49%) through Fiard Ltd the member of council of the Coordination center of the national domain of the Internet (CC) and the CEO of TTsI Alexey Platonov owned. Fiard belonged to Forpost company which in the USRLE is registered on Alexander Kashelevsky, but later Alexey Platonov recognized himself by the owner of 50% of the stocks "Fiard".

The agreement on the transaction was reached in 2010. Now Hosting Community needed to book audit of assets of target company, Panov said. It is supposed that Hosting Community will become the only owner of all assets of the Ru-Center group, at the same time further activity of Hosting Community in the field of registration of domain names will be performed based on Ru-Center.

Within preparation of the transaction the managing partner of Hosting Community Alexander Panov became the external administrator of Ru-Center, and the CEO of Ru-Center Alexey Lesnikov passed to a position of his adviser. Panov will be engaged in observance of interests of Hosting Community in the course of merge, control of financial flows and any essential events of Ru-Center.

Scandal with a domain zone. The Russian Federation in which the Ru-Center was involved did not affect assessment of the company: the basic decision on the transaction of the party was made till its beginning, Panov and the representative of Ru-Center Andrey Vorobyov specify.

For trial in the conflict around Ru-Center the commission of deputies of the State Duma and representatives of the Internet public was created. The commission considered that the Ru-Center violated rules of registration, and the former Deputy Minister of Communications Alexey Soldatov who was included into council of CC with the veto lobbied the interests of the company. However a question to select or not the domains sold at auctions, still it is not solved.

On soldiers and the Ministry of Telecom and Mass Communications these assumptions did not comment. Philipp Gross — the co-owner of the main competitor of Ru-Center of the Court company Рег.ру prepared documents for deputies^[6].

Alexander Panov was included into this commission. "My position differs from that which was still occupied by Ru-Center: abuses of regulations of accreditation from the company were, but the facts of exclusive collusion it is not revealed, - Panov told CNews. - In the nearest future I as the member of council of CC intend to initiate a meeting and to make the proposal on resolving the situation". Koleniskov welcomed emergence of an initiative of an exit from the conflict.

• On April 8, 2011 it became known that Council of the coordination center of the national domain of the Internet (CC) approved proposals of the managing partner of Hosting Community company (enters into RBC) Aleksandra Panova concerning permission of a disputable situation around domains in a zone. And then sold the Russian Federation which the Ru-Center registered on itself during the private auctions. Panov who for quite some time now is also external administrator of Ru-Center admitted the fact of abuses of regulations of registration of domain names and accreditation of registrars from the companies entering into Ru-Center autonomous nonprofit organization "Regional Network Information Center" (RNIC) and RSITs Ltd.

In compliance with the Panov's proposals, the domains sold at auctions will have to undergo audit which will be performed by the Garant-Park-telecom company entering into Hosting Community and the certifying authority NPO Eshel certified by FSTEC. It is necessary that to check last auctions regarding violations, in particular, for use of auction robots for the purpose of wrapping of the price, the representative of Hosting Community explains.

At the same time the CC will begin to collect complaints of users of Ru-Center and to transfer them in Hosting Community for consideration in an individual order. Upon termination of audit of the right of administration of domains will be rewritten on winners of auctions (formally now the Ru-Center remains their administrators). If desired the users who won auctions will be able to demand a refund. Such domain names will be delivered on a quarantine, their future is not decided yet. Before Ru-Center more tough sanctions threatened.

• On July 1, 2011 the Federal Antimonopoly Service (FAS) determined the fact of unfair competition from Regional Network Information Center Ltd (RSITs, a brand of Ru-Center) during primary registration of domains in a zone.rf in November, 2010. The deputy administrator of FAS Anatoly Golomolzin^[5] told^[5] to Vedomosti about it^[5].

Also, according to him, Ru-Center coordinated operations of other loggers. It is about the scheme used by Ru-Center with the purpose to bypass the restrictions for registration of domains entered by the Coordination center of the national domain of the Internet (CC). By rules of CC one company could register no more than 4800 domains per hour. But Ru-Center agreed with other registrars which registered domain names for the benefit of her clients, and thus took control more than 65,000 names. It much more what could be registered in the conditions of the fair competition is noticed by Golomolzin.

According to him, FAS revealed and still violation: RSITs Ltd signed the agreement with the autonomous nonprofit organization of the same name under which they sold the domain names registered with violation of the law at auctions. Income of Ru-Center from all illegal transactions was, by calculations of FAS, 239.9 million rubles and will be entirely transferred into the federal budget. In addition the additional penalty — up to 15% of its revenue for 2010 can be imposed on the registrar. In the nearest future FAS will send results of checks to law enforcement agencies and those can detect in actions of Ru-Center also other violations, Golomolzin does not exclude.

The representative of Ru-Center Andrey Vorobyov found it difficult to tell whether the company will appeal against a verdict of FAS: it will be solved by the shareholder of registrar — the Hosting Community group (RBC is controlled). The Ru-Center disputed the solution in arbitration court.

• On November 1, 2011 it became known that the Moscow arbitration court cancelled the decision of the Federal Antimonopoly Service (FAS) which in July, 2011 recognized registrar of domains Ru-Center by the violator of the law "About Protection of the Competition" and which obliged him to pay 239.36 million rubles in the budget. The representative of Ru-Center Andrey Vorobyov told that the court completely satisfied the claim of Ru-Center to FAS, Vedomosti. It confirms also the RAPSI agency whose correspondent was present at a court session (it ended on November 1 late at night)^[6].

What the court specifically was guided by, canceling the FAS decision, is not clear yet — only the substantive provisions are announced, the CEO of Ru-Center Alexander Panov says. Lawyers of Ru-Center during this process gave several main arguments. First, FAS incorrectly counted the size of the market of registration of domains and did not consider the international standards regulating this activity, Panov says. Secondly, coordinated actions of registrars were absent: each of them first of all processed requests of the clients, and only then — requests from Ru-Center. During the auction the cost of domain names was set not by Ru-Center, and the users participating in biddings. And the large number of the domains (more than 65000) registered in the first day is explained, according to Panov, by a big flow of preorders — more than 120,000.

• In December, 2011 it became known that contradictions between Ru-Center and CC settled, but for a while: in the fall of 2011 of CC adopted new rules of registration of domains in the zones.Ru and. The Russian Federation which oblige registrars to provide a possibility of registration of the released domains to clients of the competitors and prohibit to offer them for auctions. Such approach is not profitable, first of all, Ru-Center which, being the largest registrar, using auctions had an opportunity to save service of many of the released domains.

2010: Swindle with domains in a zone. Russian Federation. Revenue of $20 million

In the fall of 2010, before open enrollment in the domain of the Russian Federation when the Coordination center and personally Andrey Kolesnikov asked the management of RU-CENTER to provide a priority to those municipal requests which emergence was provoked by RU-CENTER, Alexey Lesnikov refused to make it, and all these domain names got on the internal RU-CENTER auction. And these domains were transferred to municipal entities only after mass emergence to media of letters from representatives of these bodies – i.e. in any way not of own will, and "under pressure of the public".

If to look at chronology of events, then a situation with an auction in the domain. The Russian Federation developed as follows: in 2009, after acceptance in ICANN of the request of Russia for the domain of the Russian Federation, the Coordination center was going to implement this domain in several stages, including prior to open enrollment to spend the period of bonus registration (the period with step-by-step reduction in cost of services in registration of domain names of the second level in the domain. Russian Federation), i.e. that notorious "Dutch auction". And till fall of 2010 it was talked of such method of distribution of domain names in the Russian Federation. But at the end of summer it was opposed by the Federal Antimonopoly Service (FAS), i.e. the state therefore at the beginning of September, 2010 council of CC and made the decision not to hold an auction – on it, by the way, also the representative of the state of that time in council Alexey Soldatov insisted. It is remarkable that the member of council of CC and the director of RU-CENTER Alexey Lesnikov also voted for benefit of the decision on canceling of an auction. He prefers to hold back it, he holds back and that, according to regulations of council of the Coordination center, it as the member of council, had an opportunity to organize an unplanned meeting of council and to argue the point of view which it so actively propagandized later.

After this event of RU-CENTER, having officially opposed a "big" auction, began to prepare holding the auction "at himself at home", so to speak, in a private order. It and is clear: the general auction for this company was simply unprofitable, and here after its canceling chances of RU-CENTER of receiving a large number of "tasty" domains and further enrichment due to their actual resale at the company considerably increased. The coordination center knew about the preparing auctions therefore it posted at itself on the website the open letter to users which was published right there by many media. Attempts of the management of RU-CENTER to find justification to the actions in the words of the director of CC Andrey Kolesnikov do not maintain any criticism: the only news in which it is said that Kolesnikov allegedly himself supported holding auctions by registrars has no confirmation. Any journalist who was present at a press conference based on which news is written did not cite these words any more – only the representative of this reputable news agency who whether misunderstood something "caused a stir", whether failed to hear, whether in general mixed the author of the quote. In all interviews which before start of registration in a domain zone of the Russian Federation was published much Andrey Kolesnikov consistently spoke against holding own auctions by separate registrars and warned both registrars, and users about possible unpleasant effects.

Preparation for own auctions was conducted by RU-CENTER and earlier: for example, in May, 2010, in attempt of RU-CENTER to organize private auctions for owners of trademarks, the Coordination center was forced to freeze controversial domains before elimination of violations. Then RU-CENTER explained it with "technical failure" and stopped violations, having rehearsed start of the auction and having counted possible effects of such actions.

The unsolved rules of holding the auction in the domain of the Russian Federation – here that most often is called one of basic reasons of failure from holding the auction and is reproached with the director of CC. But there is one cunning part here: the director of RU-CENTER Alexey Lesnikov who abused these rules later and called them "curves" was one of members of that working group of committee of registrars of CC which also developed these rules. That prevented Lesnikov to make rules better and "pryamy" - is unclear. Unless personal greed: according to information from some members of council and from the staff of CC, Lesnikov demanded 40000 dollars for participation in development of these rules on what he was refused: it is not provided in the budget of the Coordination center of funds for such purposes.

Claiming that the RU-CENTER company when holding auctions was guided only by the interests of the users, her representatives, to put it mildly, dissembled. For example, to take the same list of "auction" domains. When at RU-CENTER asked to provide the list of unfortunate "owners" of the domain names won at an auction to have information on these actual administrators and if something happens to have an opportunity to recover their right to domain names, RU-CENTER sent … the plate with names of more than sixty thousand domains in the XN format--: without parts, contacts, names or though some signs on which these "owners" could be set. So today these "owners" are written only in the local register of RU-CENTER, and in the main register where data on all administrators of domain names in the domain of the Russian Federation are collected, there is only one administrator on 62000 domains - RU-CENTER. Also there is no opportunity to learn who all these people who won at auctions how many they paid whether was deception from organizers of an auction. And, besides, the list of domain names which was registered by RU-CENTER on itself(himself) hardly reflected the interests of ordinary users: the domains "проститутки.рф" and some more hundreds of similar, registered RU-CENTER, will obviously not be required to the normal Runet-user.

As for the international experience to which RU-CENTER and its representatives so likes to refer, there is practically no international experiment on holding auctions in new country (ccTLD) domains. Reasons here two: first, the vast majority of the national domains existing for today "was started" long before the domain space began to interest the public and business of these countries and therefore all "the most tasty" domains quite according to rules and ICANN, and national registries received those who the first took advantage of the opportunity and understood that the domain name is not just entry in the register, and a real source of an additional income, popularity and a possibility of influence on people around. Secondly, according to the recommendations of ICANN, "the applicant should show readiness to manage a root domain on the principles of equality and fairness for local the Internet of the public. In rules of registration it has to be accurately specified that all people should have an opportunity to register domains with equal conditions, without providing any preferences to a certain segment the Internet of the public. It is not considered not correct if registration of domains is limited only to people of that country which services the domain". Constantly given example with restart of the Colombian domain CO and the fact that the auction held at restart helped to avoid scandals and trials in this domain zone is absolutely incorrect. The state which took active part in formation as rules of holding the auction, and (that is important) rules for apportionment of the profits got from an auction supported holding the auction in this domain zone first of all. More examples with holding auctions in country domains are not present – in the domain of EU to which also like to refer in RU-CENTER, the auction as such was not held, a row "especially valuable" domain names was implemented by the domain administrator at the increased price. As for an example with the domain. ASIA, it in general is the public domain (gTLD) and was selected to the operator from ICANN on quite commercial conditions.

On November 11, 2010 the period of priority registration of domains in the Cyrillic zone expired. The Russian Federation also began free registration — from 12 o'clock in the afternoon on November 11 to purchase the domain in a zone. The Russian Federation anyone could.

In such situation cybersquatters — the companies and the people "taking" domains for their subsequent resale usually become more active. To prevent, ANO Coordination Center of the National Domain of the Internet (CC),.ru setting rules of work of domains and. The Russian Federation, introduced several restrictions. In particular, to the administrators purchasing domains for the first time prohibited to transfer the addresses to other persons within a year. Restrictions concerned also registrars: selected with each of two tens accredited companies a quota in 4800 processed requests per hour. Moreover, the first year only the Russian companies and citizens could buy domains.

In spite of the fact that a part of professional community belonged to creation of the Cyrillic zone with scepticism (among counterarguments the impossibility to work with the website address on computers without the corresponding layout was called, for example), start took place successfully. In the first 12 hours 207 thousand addresses were registered, and by November 18, 2010 their quantity passed for half a million. Then the first claims to Ru-Center also appeared: the greatest share of registration in a new zone fell on it.

In start time of the procedure of open enrollment of domains in a zone. The Ru-Center collected by the Russian Federation preliminary applications for 25 thousand domains and offered them for auctions, having gained thus 366 million rubles. The CEO of CC Andrey Kolesnikov considered such actions abuse of regulations as the domain should be registered for the benefit of persons, the first submitted the application, besides the registrar has no right to register domains on himself. But ignored Kolesnikov's requirement to stop auctions of Ru-Center.

The director of the Center of the strategic researches "Other Europe" Pavel Levushkan in July, 2011 commented^[5]:

"Actions of Ru-Center are a classical example of cybersquatting. Having paid for the most popular domain names only 70 rub at cost, the company bought up them and sold not less than 25 thousand domains on private auctions at the price on average of 5-7 thousand rubles for everyone".

Already on November 19, 2010, a week later after the beginning of open enrollment, FAS initiated proceedings about violation of the competition act by registrars during the work with domains in a zone. Russian Federation. As Kommersant wrote, the situation was studied at a mezhvedmstvenny meeting with participation of representatives of the Ministry of Telecom and Mass Communications, FSB, the Ministry of Internal Affairs and even Presidential Administration.

The events which were taking place on November 11 after investigation FULL FACE described so: that closed joint stock company which works under a brand of Ru-Center, agreed to six companies accredited by CC that those registered domains on his name (was among participants of collusion including ANO RSITs — the organization liquidated in 2011 which worked under a brand of Ru-Center in parallel with closed joint stock company of the same name). In the first 12 hours seven companies registered in total 115 thousand addresses, and nearly 71 thousand from them fell to the share of RSITs Ltd. As a result of Ru-Center, already being the largest registrar of Runet, received the biggest share of domains in. Russian Federation.

The registrar, naturally, not just like that "reserved" tens of thousands of the addresses. The Ru-Center organized private auctions on which the cost of domains was limited only to solvency of the users applying for them and the companies (for example, the Russian Standard bank paid 5.8 million rubles for 24 addresses — on average in 242 thousand rubles for everyone). Thus, FAS emphasized, the registrar increased demand for the services: the user who wanted to purchase the domain "hammered" for Ru-Center was forced to participate in an auction. And as according to the rules set to CC, the domain administrator could not assign the right within a year, the Ru-Center entered a concept of "owner". In practice it meant that the buyer made out the agreement with the registrar, received the status of the owner of the address, but did not become his formal administrator (however, a year when limits were lifted later, the registrar gave the administration right to buyers).

Antimonopoly department pointed also that none of competitors of Ru-Center registered the address in such scales, and it, according to FAS, demonstrates violation by the registrar of the principles of respectability, rationality and justice.

In November, 2010 when information on initiation of proceedings appeared, representatives of registrar provided the vision of the situation. The company recognized that it really registered on itself through competitors a large number of domains, but emphasized that it did it for the sake of the benefit of the clients. Receiving on several preliminary applications for the same domain, the Ru-Center preferred not to issue it to the one who was the first in queue, and to organize private auction. According to the company, it allowed to distribute fairly domains among persons interested, without giving them in a charge of bright speculators.

Revenue of Ru-Center in 2010 made about $20 million, knows a source, familiar with his managers,^[5].

2009: Fast loss of a market share

The situation began to change only with arrival on a post of the director of CC Andrey Kolesnikov. He stood at the origins of creation of a system of the distributed registration in the domain RU in due time and was one of "founding fathers" of the Coordination center. And its activity was in many respects directed to somehow to reduce monopoly of RU-CENTER and to provide conditions for emergence of the new registrars and more intensive development which were already existing at that time. In one and a half years of its work there were 5 new registrars, and the market share which was occupied at that time by RU-CENTER in the domain RU decreased to 33%. It is clear, that such policy strongly disturbed the management of RU-CENTER – same not only blow to the image of the company which actually till 2009 in the opinion of Runet-users looked the main and nearly only carrier of the domain RU, but also very notable decline in income.

Start of the new domain of Russia by the Russian Federation was considered by the guide of this registrar as an opportunity to take a revenge and to recover both the monopoly for the national domain, and level of the income. And for this purpose, of course, it was necessary to achieve by hook or by crook that the domain of the Russian Federation was associated at users of Runet only with RU-CENTER, but not with other registrars and especially not with the Coordination center.

For this RU-CENTER began the most active promotion of the domain of the Russian Federation as by quite legal and open methods, not absolutely fair ways of which it will be a question below. Actually, till a certain moment this registrar behaved as any other company wishing to be ahead of the competitors and to occupy the maximum market share. But here it is not always possible to call methods with which RU-CENTER worked fair.

For example, spring of 2009 of RU-CENTER sent several thousands of letters to different government and municipal institutions with offers to select RU-CENTER as the registrar where specified that requests for domains should be sent to the Coordination center, and to send copies to RU-CENTER. As a result the Coordination center received 864 applications with a request to register 7161 domains, from them 491 for municipal bodies. At the same time the same Lesnikov as the member of council knew that regulations on reservation of domains for the state needs are not accepted council of CC yet and that this list will be limited only to federal authorities, and municipal entities will not get any advantages. The coordination center then had to select a considerable part of resources of CC for processing of these letters requests and for an explanation of impossibility to satisfy their most part. RU-CENTER thus tried to receive clients whose presence significantly would raise the status of this registrar as "state".

2008: Parking of domains. Revenue of 80 million rub, profit - 34 million

Financial performance (RAS, 2008)^[5]:

• revenue – 80.8 million rubles,
• net profit – 34.3 million rubles.

In 2008 RU-CENTER started new service — Parking of Domains.

2003: The company owns 87% of the market of domain names

Within the first years of work of the Coordination center its activity did not contradict the business interests of RU-CENTER at all: despite emergence in the market and other registrars, RU-CENTER together with RIPN (which kept a part of domains) at the end of 2003 owned 87.4% of the market of domain names in the domain RU. Increase in number of registrars not too influenced market repartition – all attempts of the Coordination center to somehow change a situation and to give the chance to new registrars normally to work at the market encountered the pure resistance of members of council and board of CC which represented RU-CENTER.

2001: Ru-Center and CC instead of RIPN

Since 2001 process of demonopolization of the domain market began: RIPN stopped being engaged in registration and transferred the corresponding functions to Ru-Center company, and for accreditation of registrars the Coordination Center (CC) of the domain was created . RU.

According to the solution of the Coordination panel the scheme of registration of domains in the zone RU was also changed: RIPN, having remained the technical center of the Russian national domain, transferred registration functions to the independent companies. But at the same time the members of KG who had a direct bearing to RIPN among whom there was also Alexey Lesnikov, future director of RU-CENTER created RSITs Ltd (RU-CENTER trademark) where they were safely and without any tenders all assets RIPN, the concerning bases (register) of domain names in the zone RU are transferred in 2001. RIPN thus tried to save the monopoly for the zone RU, having been called one more name. Among these assets there was, by the way, also a domain name of nic.ru which administrator as the world practice shows, the national registry, and not one of registrars usually is. So RU-CENTER read out itself from the moment of the education and positioned in the market as national registry, including the Coordination center of the national domain peculiar "tribute" of network democracy.

Activities of RU-CENTER for registration of domains since 2001 are insured by OSAO "Ingosstrakh".

1994-2000: RIPN is the only registrar of domains

The history of Ru-Center begins with the Russian scientific research institute of development of public relations (RIPN) which in 1994 became the administrator and the only registrar in the domain zone.Ru.

In the late nineties the question of creation of institute of independent registrars in the zone RU rose to the utmost [The Coordination panel of http://www.cgroup.ru/index.html] which then informally supervised the zone RU, expanded from 7 to 28 participants, and increasing number of the companies the monopoly did not arrange RIPN on the Russian domain business.

Awards

RU-CENTER is conferred "Runet Prize 2007" in the Technologies and Innovations nomination for the Auction.nic.ru project — the first Russian auction of domain names providing to users civilized services of secondary market of domains.

See Also

Registration of domains (market of Russia)

Notes