Kostygin Dmitry Valentinovich

Kostygin Dmitry Valentinovich

Biography

Dmitry Kostygin was born on May 4, 1972 in Arzamas in a family of representatives of the technical intelligentsia. As Kostygin himself likes to emphasize, the first day of his life fell between the birthdays of Karl Marx and Sigmund Freud.

While still a schoolboy, he went to Moscow for jeans and sneakers, which he then resold in Leningrad. While studying at the Military Medical Academy in the early 1990s, he helped foreigners rent hotel rooms, sold them military uniforms, boots, earflaps and even "two-liners" for telephone machines ($1 each). Then, as he himself says, "invested in one thing or another."

1993: A fascination with Ayn Rand, an acquaintance with August Meyer

In the late 80s, choosing a career as a doctor, Kostygin ended up in St. Petersburg, entering the local Military Medical Academy. Like many of his peers during his student years, he was interrupted by odd jobs, including selling jeans and selling books from trays. It should be noted that books have always played an important role in Kostygin's life - he read a lot from childhood and loved to talk about what he read.

Once, one of the books of Ayn Rand - the American founder of the philosophy of Objectivism and the ideologist of unlimited capitalism - fell into his hands - and this fundamentally turned his life around. Kostygin became an ardent devotee of Randianism.

The libertarian "truth" was "discovered" by the American tourist Ken Skuland, who came to Russia in 1993 to promote the teachings of A. Rand, recruit "followers" and create a network of local "preachers." On one of the Russian Internet sites there is a short translated autobiographical story of one of Skuland's colleagues, telling that "Ken met a man named Dmitry Kostygin and turned him into objective libertarianism exclusively by force of conviction."

The essence of the teachings of A. Rand boils down to the maximum possible exaltation of the interests of a separate "strong person" and the denial of the rights of any collectives. The dominant principle is the complete freedom of such an individual who has the right to absolute autonomy from anyone, including the autonomy of moral principles. From this comes the apologetics of business as a "free activity" and the denial of the state as an institution allegedly engaged in the oppression of an elected minority of "creators" (primarily businessmen), their theft by taxation and redistribution in favor of "parasites" - socially unprotected segments of the population. In fact, Randian doctrine preaches extreme forms of selfishness and elevates to the absolute the idea of ​ ​ money, which says that wealth is the main measure of morality.

Many are fond of various philosophical teachings and doctrines, but not all of these hobbies take on the character of obsession. The last thing happened to Kostygin - he was so imbued with the philosophy of selfishness and believed in his selectivity and the right to be a real "creator" that the career of a physician lost its attractiveness for him and he entered the St. Petersburg University of Economics and Finance. In parallel, he began translating Ayn Rand's books into Russian, hoping to spread her teachings as widely as possible in the post-Soviet space.

These efforts did not go unnoticed by Randian circles in the West - in the spring of 1993 Kostygin was invited to the United States. Traveling in America, he met with various representatives of the libertarian movement, which enjoys a rather strong influence there. In California, he was received by a certain Glenn Kreip, who invited Kostygin to start publishing Rand's novels in Russia. They say that it was on that trip that Kostygin met and made friends with another local Randian - August Meyer, who came from a wealthy family of California media moguls. He was just looking for an opportunity to perpetuate the memory of a native of St. Petersburg, opening something like a house-museum, and at the American Ayn Rand Institute he was given contacts by Kostygin, a local fan. They immediately became friends, despite the age difference.

Then the poor student D. Kostygin from somewhere had the initial capital to open his own business in Russia. Perhaps the sales of earflaps went uphill, but it was probably not without the participation of his American like-minded people and patrons. With the support of wealthier libertarians behind him, D. Kostygin began to take the first steps in business in the hope of becoming a "great creator" (as defined by A. Rand). Upon arrival from the United States in 1993, yesterday's book and hat dealer established AOZT with the loud and pathos name "Association of Businessmen of St. Petersburg." It is not known for certain whether businessmen were in this association, as well as whether Kostygin himself could rightfully be called such at that time. However, the name of the company clearly indicates that its founder was pretty inspired by the idea of ​ ​ uniting St. Petersburg "creators" into a certain professional network. Everything ended unsuccessfully and the company, without declaring itself in any way, quietly ceased to exist.

Randianism itself did not bring Dmitry Kostygin either fame or money - he did not manage to find a sufficient number of like-minded people in Russia and unite them into a powerful movement, and the Russian translations of Rand's novels published by him in the mid-90s with the money of American libertarians were not so in demand audience to glorify or enrich the translator.

However, Kostygin still took something out of his libertarian experience - in the ideas of Ayn Rand, he found an excuse and an ideological justification for his own excessive egocentrism. Since then, Kostygin began to increasingly see in everything only his own interests, ignoring the interests of those around him, but also began to shamelessly "saw" financial resources in the companies with which he dealt, believing it to be the "right of creators." The latter circumstance, it should be emphasized, was not part of Ms. Rand's theory and apparently became a feature of Dmitry Kostygin's "Russian translation." Among ushanki traders and later Russian libertarians, Kostygin stood out for his reading and knowledge of English, which permanently and disproportionately increased his self-esteem. So, for example, people who know him claim that Kostygin quite seriously considers himself Russian Warren Buffett and from the standpoint of economic guru everywhere actively voices his own theories.

1997: Business with Vadim Gurinov: Food

Studying at SPbGUEF (now FINEK) at one time did not pass for Kostygin for nothing. It was in this university in the mid-90s that he made a fateful acquaintance with his future partner Vadim Gurinov (later - the head of the Sibur - Russian Tires company), who also received a financial education there.

Student friendships are notoriously strong. V. Gurinov, endowed with an entrepreneurial acumen, by that time already had a small business of his own. He took Kostygin "in tow," introducing him into his LLC "Vector," LLC "Skif" and LLP "Sevzapportkulttorg." Already by 1997, Gurinov was seriously interested in the food industry, having established close relations with the owners of the St. Petersburg food importer Petroimport Dmitry Filatov and Mark Budyko. Soon he became their partner and, through his old friendship, attracted Kostygin to participate in the project to create a production holding, called the "Petroimport Industrial Group" (since 2001 - Petrosoyuz). V. Gurinov and D. Kostygin, as minority shareholders, received seats on the holding's board of directors and took positions in its management. However, if Gurinov was listed in Petroimport as deputy general director, then Kostygin was a marketing and development manager.

At a certain stage, Gurinov conceived a parallel business project in the field of "food," in which he also integrated Kostygin. Forced to be content with the second, if not third, roles in Petroimport, Kostygin enthusiastically reacted to the new undertaking: in 1999, he and his partners gained control over the Confectionery Association "Favorite Land" CJSC. In the new company, Kostygin took the position of managing director. Simultaneously with the "Favorite Land" Gurinov and Kostygin, Lirs CJSC was established, where an ardent follower Ayn Rand also took the director's chair. Lears, in turn, acted as the founder of several commercial structures in a number of Russian regions through which partners traded food. However, this structure is notable not so much for this as for its involvement in the attempt to capture one of the bakeries, in the context of which the figure of the same August Meyer resurfaced.

In 1999, Meyer settled in St. Petersburg, where he began to actively buy real estate. In 2003, he acquired "Mir" a plot previously owned by a bankrupt garment factory in Shlisselburg at 2 Krasny Trakt, which he leased to Lears (by that time Kostygin was no longer the general director of Lears, but remained its beneficiary). Following this, Randian friends launched an attack on the subleader - Vega LLC, which owned a bakery located on this site. The owner of Vega, a local resident Tatyana Lepetenina, announced a significant increase in the rental rate. After her refusal to reissue the sublease agreement, Lears demanded that Vega vacate the site and take out all the property from it. The companies began a protracted trial in the courts, and on December 10, 2004, the cassation instance satisfied the Lears claim for eviction of the sub-tenant. As many believed, the pressure that Lears exerted on T. Lepetenina was organized in order to take away her profitable business. The profile of CJSC "Lears" was also associated with "food" and a successful bakery, capable of producing not only bakery, but also pasta, would have come to D. Kostygin, while it is impossible to "go to the yard."

In the spring of 2005, the owners of PG Petrosoyuz, including its founder D. Filatov, sold a controlling stake in the American company Heinz. According to one of the top managers of Petrosoyuz, Kostygin in this company was mainly remembered for his ability to create conflicts among managers and shareholders. Kostygin continued to hone this basic skill in his further activities together with August Meyer.

As for "Beloved Land," Kostygin remained its beneficiary. In this regard, it is noteworthy that during the period of Kostygin's operational management of Lenta in the summer of 2010, he instructed to make millions of prepayments to his company contrary to the terms of contracts.

At the same time, D. Kostygin's career in the food industry began to decline back in 2003. Kostygin could not free himself from the "guardianship" of his senior partner V. Gurinov and independently create any effectively working business. Gurinov's gradual withdrawal from the grocery business and the relocation of the main zone of his interests to other industries automatically entailed the "migration" of D. Kostygin's business interests.

2003-2005: Director of Yaroslavl Tire Plant

In 2003, V. Gurinov received an offer to move to Sibur's subsidiary, Sibur - Russian Tires LLC, which united the holding's tire enterprises. Having headed the company, he once again secured the patronage of D. Kostygin. V. Gurinov lobbied for the appointment of his junior business partner to the position of General Director of Yaroslavl Tire Plant OJSC (YASHZ), coordinating his candidacy with the then new head of Sibur - a native of Peter Alexander Dyukov (held this position from 2003 to 2005). Apparently, in the current arrangement of glasses, Kostygin was also added by his informal acquaintance with Dyukov, with whom they allegedly attended the gym together at one time.

After being approved as CEO in November 2003, D. Kostygin immediately made a number of statements, promising to quickly improve the situation at the enterprise, which was going through hard times. According to D. Kostygin, to correct negative financial results, it was only necessary to balance the activities of the enterprise with the head holding and introduce modern management methods. Declaring himself as the "leader of the reorganization" of the YASHZ, Kostygin expressed his readiness to provide the plant with "adequate profitability" at the level of about 300 million rubles. annually. He publicly took 6 months to himself to "show a result that satisfies shareholders."

Nevertheless, barely looking back at the enterprise, the new general director first of all became interested not in production facilities and tire sales problems at all, but... factory canteens. Kostygin brought out a whole theory of a clear relationship between the nutrition of workers and production indicators and convinced the leadership of Sibur to approve the allocation of $2 million for the reform of factory catering. The food workshop was hastily transformed into a subsidiary of YASHZ-Pita LLC, which entered into contracts for the supply of products with product companies affiliated with Kostygin. Needless to say, food raw materials were purchased at an inflated cost. Moreover, expensive equipment was purchased and installed for canteens at the expense of factory funds, after which YASHZ-Nutrition began to provide third-party enterprises of Yaroslavl with delivery dinners, including even local clinics. Naturally, this required a significant increase in the volume of purchases of products from suppliers.

The "reorganization of the enterprise" proclaimed by Kostygin started from the beginning of 2004. Its goals were to increase labor productivity, accelerate decision-making, as well as change the organizational structure of the plant. To solve the first problem, D. Kostygin formulated an indicative indicator in physical terms - 1000 tires per employee per year (for some reason Kostygin did not disclose methods for calculating this indicator). To achieve this result, the general director began to prepare a massive reduction in YASHZ employees, which was supposed to affect from 700 to 900 employees from a team of 8,000 people, as well as the withdrawal of about 400 more people for the staff of the enterprise. Rumor has it that justifying the idea of ​ ​ mass reductions, in a narrow circle D. Kostygin liked to repeat, referring to another "smart book," which "gives the dismissed new opportunities." The only problem was that in addition to the layoffs, Kostygin needed to make production processes more efficient - and he did not know how to do this.

Meanwhile, this adventure was not coordinated with either the city employment service or the management company in Moscow. Nevertheless, it was implemented throughout 2004, as a result of which over the year the average number of employees of the YSZ decreased by 1225 people (about 15% of the labor force). As a result, the number of tires produced fell from 6.3 million to 5.9 million. At the same time, the average labor productivity practically did not change and amounted to approximately 790 tires per employee.

The most important, according to D. Kostygin, direction of transformations at the enterprise was to bring its organizational structure in line with a certain "book scheme" borrowed from all the same Western management textbooks. The result of this "reform" was the emergence of a large number of new management positions and the corresponding swelling of the leadership apparatus. The tire factory has its own administrative director, research director, production director, quality director, new blocks of corporate communications, compensation policy, etc.

At the YASHZ, a follower of the Western business guru spoke as an apologist for the "project" approach to management. Its essence was to free some managers from "flow" and instruct them to conduct one or another "project" requiring material, human and temporary resources. At the same time, there could be quite a few such projects at a time. One of the famous was called "Carthage." This was a large-scale undertaking in the construction of a new fence around the enterprise.

The acceleration of decision-making, according to D. Kostygin, could be achieved by introducing electronic document management at the YShZ. This event, which covered 300 employees who were provided with computers, was also filed as a "project" called "All Online." However, the result was not so much a reduction in the time spent on meetings as a drop in performing discipline among management. This was also due to the fact that D. Kostygin personally set an example of the optional presence at the workplace and the possibility of "remote control" of the plant. He chose the Yasnye Zori boarding house as his residence, on the territory of which he spent a significant part of his working time solving certain issues using e-mail. The director general's stubborn reluctance to appear at the entrusted enterprise was reflected in the anecdote born among shinniki workers about a confectioner boss who is sick of the smell of tires.

D. Kostygin tried to compensate for the lack of a clear idea of ​ ​ the development strategy of the plant by involving a wider range of managers in its development. In the long term, he admitted that up to 200 managers of YASHZ would be involved in this process.

In the second half of 2004, the company no longer carried out high-profile transformations. Gradually accumulating problems with current management required an urgent management response aimed at increasing sales, reducing costs, optimizing suppliers and contractors.

Relations with the latter are a separate topic. Instead of attracting counterparties beneficial to the enterprise, Kostygin, as in the case of factory canteens, stuck YASHZ with a network of friendly firms and firms. Abusing the trust of Sibur and his long-time partner and patron V. Gurinov, he used his economic powers for personal enrichment through manipulation in the field of procurement and sales. Among the suppliers of the plant, new companies have appeared that sell products at prices above the market. Such unknown LLCs as MedExpo, which supplied a modifier to YASHZ and at the same time sold finished products of the enterprise, were noticed in abuses. Other LLCs (for example, Furmitreid) made purchases through several legal entities along the chain, so that the price inevitably increased. In addition, cash cashing schemes were used, when, instead of the real purchase of purchased products, only bills of exchange were received from fictitious suppliers (Forward, West, Comsoft, etc.) to the enterprise.

However, the most important innovation of Kostygin at the Yaroslavl Tire Plant was not organizational or production changes, and not a game "on your pocket," but an attempt to introduce the so-called "modern management methods," the knowledge of which he learned from literature. These methods were based on the idea that business success is ensured by the formation of a common corporate spirit among the team of the enterprise and all employees. For this Kostygin used a variety of methods and techniques.

In particular, D. Kostygin prepared a lengthy training manual entitled "Professional competencies and remuneration based on them." Its goal was to acquaint all employees of the plant with the new payment system that they were going to implement at YASHZ. This system provided, for example, increases in the salaries of employees who had never been sick or never been absent for one reason or another in the workplace for several years. In addition, "by competence," employee allowances relied on qualities such as responsibility, energy and a sense of humor. To popularize this system, the methodology began to be published in a number of issues of the serial newspaper, and acquaintance with this work was mandatory for all personnel.

The perseverance with which D. Kostygin pretended to live book truths and the incident situations that arose in this regard led to the fact that rumors about the eccentricities of the general director of YASHZ penetrated the walls of the plant and began to spread among the residents of the city. The journalists of the local media, who simply could not pass by the news, which at that time had already been discussed by the whole of Yaroslavl, did not ignore them either.

The climax of absurdity was the "walking" of YASHZ employees from Yasnykh Zorya to Yaroslavl, whose memory is still alive at the plant. At the end of May 2004, all managers, heads of workshops and heads of divisions were ordered to study the list of literature on management theory presented by D. Kostygin, having memorized some smart thoughts by heart. The general director promised to personally examine employees and dismiss those who did not give due to the inconsistency of their position. All factory management, accounting and even shop bosses were forced to crank up the sentiments of Western theorists, waiting with horror for the "doomsday."

This happened on June 24, 2004. As the Yaroslavl media wrote, that morning about forty bosses from the YASHZ "tested" at the general director came to the Yasnye Zori boarding house. Since most of the factory managers could not comprehend the depth of book wisdom, D. Kostygin told those present that the only chance for them to prove their professional suitability was to make a collective walking march from Yasnykh Zorya to Yaroslavl. The idea was also explained - this is the so-called corporate training, in the process of which they will become a real cohesive team that will be able to overcome the challenges of time.

The Yaroslavl newspaper "Golden Ring" in one of the July issues of 2004 described this action very colorfully: "We moved immediately. He walked barefoot in front of him. At the beginning of the journey, some non-advanced managers still hoped that the director joked and would soon allow everyone to get into the cars, especially since the cars were moving next. However, the campaign was not a joke at all. Only one of the forty members of the team was released - a man of pre-retirement age, who began to complain of poor health and really looked very unimportant. But the deputy for social issues, despite the fact that after the first kilometer she erased her legs with new shoes in high heels, did not indulge. The only thing that was allowed was to send a car for sneakers. A column of solid, ceremoniously dressed people moving along the side of the Kostroma highway caused considerable surprise among passing motorists and villagers. Some even mockingly honked and twirled their fingers at their temple. Nevertheless, everyone covered the distance of 12 kilometers from Yasnykh Zorya to the Yaroslavl sign near the village of Pribrezhny. It took a little over three hours. When the coveted pointer loomed, the exhausted tire workers even got emboldened - now they will scatter on their cars, stretch their tired legs, get to the bath and shower. However, even here they were disappointed. At the very end of the journey, Dmitry Kostygin announced to his subordinates that now they will all return to the boarding house. And there he will personally tell them what they should have learned. And only after a two-hour lecture, everyone was released in peace. "

After massive cuts, the YASHZ management went to optimize vacations. The 2005 work schedule provided for UIO holidays in the first decade of January and the first decade of May, with working days on these dates also considered vacation. Feeling growing resistance to his policies, Kostygin tried to get rid of the YASHZ trade union leaders. He initiated the re-election of the chairmen of the shop committees of trade unions in August 2004, but the attitude towards the management policy has not changed.

As the psychological situation at the Yaroslavl Tire Plant became more and more tense, D. Kostygin switched from non-working methods of "forming a team spirit" to the traditional scheme of buying the loyalty of the management team by providing its representatives with various benefits at the expense of the enterprise. This meant a direct infringement on the interests of a shareholder who was waiting to fulfill promises to increase the yield of YSZ, and instead faced with unjustified growth in costs.

One of the main items of spending was the payment for business trips of the factory management. In late November - early December 2004, Kostygin and about 40 other YASHZ managers traveled to Singapore and Malaysia. This trip, according to some reports, cost the company 5 million rubles. At the same time, the management of Sibur learned about the departure of the plant management immediately before departure. In his usual manner, Kostygin designated this visit as a "training project," called "Home Alone." Allegedly, his goal was not only an internship of management in Singapore, but also a practice for mid-level factory managers who were "left on the farm."

Other trips took place in Russia, where Kostygin and his colleagues visited companies so far from the YASHZ by industry affiliation as VimpelCom, Severstal, Borsk Glass Plant, Mosfilm, Independent Media Publishing House. The justifications for these visits were invented retroactively, for example, at the Bor Glass Plant, the work of the dining room attracted the attention of visitors, and at Independent Media, "ethical principles of doing business." Such explanations were not linked to the problem of the development of the enterprise in any way, and the continuing unreasonable increase in costs caused a sharp dissatisfaction with Sibur.

Gradually, during 2004, economic difficulties increased at the plant due to rising costs and lower production. Trying to correct his reputation, Kostygin used PR tools, starting to publish theoretical articles on new management methods in the Yaroslavl media, and also began to regularly invite delegations of well-known foreign consulting companies to the YASHZ (in particular, representatives of Roland Berger, McKinsey, CISS, Innovation & Kosten, etc.). The visits of the latter, as Kostygin believed, could raise his personal authority and confirm the correctness of his managerial developments.

Contrary to the loudly announced plans to receive 300 million rubles of profit, the profit from sales amounted to only 72 million rubles - 20 million less than in 2003. The main reason is an increase in management expenses by almost one and a half times, from 305 million to 445 million rubles.

The situation did not change in 2005, which, despite the growth of the market, also became extremely unsuccessful for YAZZ. These results overflowed the cup of patience at Sibur, and on October 28, 2005, D. Kostygin was dismissed ahead of schedule. The petrochemical holding decided not to repeat mistakes and appointed V. Ionov in his place - a professional industry specialist without a craving for Western theorems, but with extensive experience in practical work. D. Kostygin himself, obviously, no longer had illusions about the possibilities of his future career both at Sibur and as the head of a large enterprise, since he openly announced his intention "to write books on enterprise management at his leisure."

The failure of D. Kostygin at the YASHZ also led to the cooling of his relationship with V. Gurinov, whom he actually "framed" before the leadership of Sibur, but soon Kostygin began to spend more time with his other patron and "guardian" in the person of extravagant money American August Meyer^[1].

2001-2011: Lenta retailer shareholder

Since 2001 - Dmitry Kostygin Member of the Board of Directors of Lenta LLC. Founded "Lenta" St. Petersburg entrepreneur Oleg Zherebtsov, who has been engaged in trade since 1993. At first, he opened the small wholesale warehouses usual for that time, by the end of the 1990s he had acquired a supermarket, and in 2001 he decided to build a really large store, the first of its kind in the northern capital, but he did not have enough money for the project. Familiar entrepreneur Dmitry Kostygin then brought Zherebtsov with August Meyer, who had recently arrived in Russia from the United States, who readily acquired 49% of the company.

Having brought the American together with Zherebtsov and organized the deal, Kostygin received, according to Forbes, a 5% stake in the network, which he subsequently partially sold, having raised about $20 million.

2012: Conflict with partners at Dream Industries

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

In December 2012, a conflict broke out between the company's shareholders. More See Dream Industries

Hidden recording of negotiations with partners of Dmitry Kostygin:

What is the basis for the change of director? - Deviation from the answer

What is the basis for stopping cash flows? - Response bias ('because the business is not profitable')

On what basis is the delay in salaries for employees? - 'Everyone who needs everything is paid' (while more than half of employees have not yet received a salary for November)

Why was the director appointed without coordination with the managing partners (Simon and Alexei)? Let's choose a new director together - We have already thought over everything, Ilyichev suits us, they do not agree to choose another, it will take three months.

Let's buy us - I can offer one dollar for everything, I am ready to raise the rate to two

Let's buy you back - Ready to get out for half of the initial investment, but we will block new buyers, convincing them to abandon the transaction, the redemption should also take place in the context of a company raid

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

2016: Conflict with shareholders at Ulmart

The corporate conflict in Ulmart erupted in 2016, when Dmitry Kostygin and his partner August Meyer, who own 61.5% of the online retailer, diverged views on business development with Mikhail Vasinkevich (controls 38.5% of the company through the Donna Union Foundation). Majority shareholders offered to continue investments in infrastructure and new products, while Mr. Vasinkevich insisted on optimizing the business and taking it to break even. As a result, the latter asked the London Arbitration Court to oblige partners to buy out his share at a fair price.

2018

Criminal case on charges of embezzlement of a loan of Sberbank for 1 billion rubles and house arrest

A criminal case against Dmitry Kostygin was initiated under Art. 159.1 of the Criminal Code of the Russian Federation (fraud in the field of lending). According to investigators, the businessman fraudulently received a loan for the company for 1 billion rubles from Sberbank, misleading him. The entrepreneur himself insists on his innocence.

In April 2018, in St. Petersburg, Dmitry Kostygin, co-owner of one of the largest online retailers in Russia, Ulmart, who is accused of embezzling 1 billion rubles from Sberbank, was again sent under house arrest. Such a decision at the request of the investigation, as specified in the joint press service of the courts of St. Petersburg, was made by the Smolninsky District Court. In addition, the court found it possible to expand the merchant to four hours of walking time and allow four nannies to five children who live together with Dmitry Kostygin and his wife.

The defense of the accused called the criminal case an instrument of pressure on Dmitry Kostygin from his opponent in the joint-stock conflict Mikhail Vasinkevich and the investment company A1 (an investment unit of Alfa Group advising Mr. Vasinkevich). A1 denied this, claiming that they had nothing to do with the litigation between the bank and Mr. Kostygin^[2].

Earlier, the Dzerzhinsky District Court of St. Petersburg satisfied the requirements of VTB Bank and ordered to recover debt from Kostygin under a surety agreement in the amount of 653 million rubles.

Also, the Petrograd District Court of St. Petersburg is considering the claim of Globex Bank against Kostygin to recover 15 million rubles under a surety agreement.

House arrest extension until June 14

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

The court ordered to recover from Dmitry Kostygin 15 million rubles in favor of Globex Bank

In May 2018, the court ordered to recover 15 million rubles from Ulmart co-owner Dmitry Kostygin in favor of Globex Bank, the United Press Service of the Courts (OPS) of St. Petersburg reported.

"In addition to Kostygin, a lawsuit to recover funds under an agreement on warranty operations and under surety agreements was brought by the bank against NAO Ulmart, Yulmart Development LLC, Ulmart Grocery and Procurement Company LLC. The Petrograd District Court of St. Petersburg indicated that 412.6 million rubles are jointly subject to collection from legal entities, "the OPS said.

As follows from the materials of the case, on January 27, 2017, Globex Bank and Kostygin entered into a surety agreement, according to which the co-owner of Ulmart pledged to bear joint responsibility to Globex for the fulfillment of obligations by Ulmart with a liability limit of 15 million rubles as part of the amount of funds in the amount of 382.6 million rubles payable to the bank until September 15 inclusive.

"On September 19, the defendant was sent a claim for compensation, but to date it has not been fulfilled," the representative of the bank justified the claim.

The court satisfied the plaintiff's claims in full.

2020

Co-owner of Ulmart received a year in prison

Russian businessman Dmitry Kostygin was sentenced in absentia to imprisonment for contempt of court. Such a verdict was passed by a court in the British Virgin Islands (BVI), reports "Businessman Co-owner^[3].

Kostygin received a year in prison not only for contempt of court, but also in connection with the violation of a previously issued court order obliging him to disclose all his assets without exception (not only in Russia, but also in other countries of the world), VTB Bank. This is one of the businessman's creditors.

Contempt of court in this case is a combination of actions that Kostygin took in order not to pay debts to his creditors. And it all started in 2017, when Dmitry Kostygin took a loan from VTB, according to which he provided the bank with a personal guarantee. Due to the collapse of Ulmart, he owed the bank 650 million rubles, but could not return this amount.

VTB appealed to the court for compensation of the debt, and the Dzerzhinsky District Court of St. Petersburg satisfied his demand to collect the debt directly from Kostygin. The businessman, however, decided not to rush to execute the court decision, which prompted VTB to start searching for his property in Russia and other countries with its subsequent arrest and sale.

In 2019, the bank, in search of Kostygin's property, appealed to the High Court of Justice of the BVI, and he ordered the businessman to provide the bank with all the necessary information about his assets worth more than $1000 (78.6 thousand rubles at the Central Bank rate as of October 5, 2020). In addition, the court imposed interim measures on all Kostygin's assets of this kind.

The Ulmart again evaded the execution of the court decision. The fact that the businessman still hides his expensive assets was proved directly by VTB lawyers - they found ten gold bars belonging to Kostygin's company in La Banque Richelieu Monako in Monaco.

On this property of a Russian businessman in August 2020, by the decision of the court of the Principality of Monaco, an arrest was imposed with the aim of its further transfer to VTB. Also, at present, the court of the Republic of Cyprus is considering VTB's application to challenge the transaction on the withdrawal of shares of companies owned by the Riv Ghosh and Wild Orchid chains. Securities are also included in the list of Kostygin's assets, and he, VTB believes, re-registered them as the wife of one of his business partners.

The listed facts of Kostygin's violation of court orders turned out to be enough for the High Court of the BVI to issue a decision on his absentee imprisonment for a period of one year. The businessman himself did not appear at the hearing.

The decision of the High Court of BVO will entail a number of other consequences for the co-owner of Ulmart. In particular, he will not be able to conduct any financial transactions outside Russia - even obtaining loans from large foreign banks is no longer available to him.

Bankruptcy at the claim of VTB

On November 24, 2020, the Arbitration Court of St. Petersburg and the Leningrad Region declared Dmitry Kostygin bankrupt at the suit of VTB. The bank announced the debt of the co-owner of the bankrupt Internet retailer Ulmart in the amount of 644.28 million rubles.

Information about the adopted judicial act is a determination on the recognition of an application for declaring a citizen bankrupt and the introduction of debt restructuring, - quotes the materials of the RIA Novosti court.

The judicial act itself has not yet been published by November 24, 2020. The financial manager's report is set for March 16, 2021.

Debt restructuring is a procedure used in a bankruptcy case in order to restore a citizen's solvency and pay off debts to creditors.

The court declared bankrupt co-owner of "Ulmart" Yuri Kostygin

At the end of September 2020, the Arbitration Court of St. Petersburg and the Leningrad Region satisfied Dmitry Kostygin's claims against Ulmart and included it in the register of creditors' claims. The company must pay 256.3 million rubles to Kostyagin.

Ulmart was previously a major online retailer in Russia, but in early 2020 it curtailed its business due to a corporate conflict. By November 2020, a number of Ulmart structures are in bankruptcy. In addition, several lawsuits have been filed against the company.

VTB is suing Kostygin in Cyprus over transactions to withdraw large assets. The bank accuses the businessman of re-registering the shares of companies that own the Riv Ghosh and Wild Orchid store chains with the wife of his business partner.

In Russia, a criminal case was opened against Kostygin on especially large-scale fraud (part 4 of article 159 of the Criminal Code), which was later retrained for causing damage without signs of theft (part 2 of article 165 of the Criminal Code). The reason was that Kostygin received a large loan from Sberbank, but hid his obligations to other creditors. In a lawsuit against the main co-owners of Yulmart, the bank demanded to recover a total of 1 billion rubles from them.^[4]

2024

The state prosecution requested 8 years in prison for Dmitry Kostygin in the case of embezzlement of 3.14 billion rubles from VTB and Sberbank

On September 12, 2024, it became known that during a meeting in the Moscow District Court of St. Petersburg, the prosecutor's office requested as punishment for the co-owners of the company "Ulmart" Dmitry Kostygin and August Meyer for 8 years in a general regime colony. They are suspected of committing fraud on an especially large scale (Article 159 of the Criminal Code of the Russian Federation).

The named persons are charged with embezzlement of funds from VTB and Sber banks, as well as from Sberbank for a total of 3.14 billion rubles. According to "Business Petersburg," referring to the information received from the head of the joint press service of the courts of St. Petersburg Daria Lebedeva, the guilt of Kostygin and Meyer "is confirmed by the studied case materials."

source = Sergey Konkov/Kommersant

The state prosecution calls the full compensation for property damage caused by the crimes as mitigating circumstances. In addition, the prosecutor's office draws attention to Meyer's serious illness. At the same time, an aggravating circumstance is also indicated - the "particularly active role" of Kostygin in committing crimes.

As previously reported, according to the investigation, Kostygin in 2016 took a loan of 1 billion rubles from Sberbank, while not intending to fulfill the terms of the agreement and providing the bank with false information about the financial condition of Ulmart. In turn, Meyer and his wife Inna are suspected of embezzling 2.3 billion rubles. A loan was received from Sberbank for business development shortly before the collapse of Ulmart. The organization stopped servicing its loans, after which the bankruptcies of the main legal entity, NAO Ulmart, and the beneficiary of Internet retailer Kostygin were initiated. In addition to imprisonment, the state prosecution asks to impose a fine of 900 thousand rubles on Kostygin and Meyer for each. The co-owners of Ulmart do not admit their guilt.^[5]

"They accuse that we killed Ivan, and he walks alive and well along Nevsky Prospekt." Final say in court

In mid-September 2024, the Moscow District Court ended the debate on the case of the owners and top managers of the Ulmart retailer, who are suspected of missing more than 3 billion rubles issued in the form of bank loans. The prosecutor's office requested terms of imprisonment from six to eight years for entrepreneurs Dmitry Kostygin and August Meyer, as well as top managers and partner of the company: Meyer's wife Inna, Sergei Fedorinov, Vladimir Shonurov and general director of Big Box LLC Elena Streltsova. Read more here

Sentence - 4 years in prison in the case of embezzlement of 3 billion rubles

On September 30, 2024, the Moscow District Court St. Petersburg announced the verdict against the former co-owners of the bankrupt Internet retailer Ulmart Dmitry Kostygin and August Meyer. They received prison sentences in the case of embezzlement of more than 3 billion rubles from and, banksVTB "Sber" as well as from the company "Sberbank." More here

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