Keep up with the news by installing RT’s extension for . Never miss a story with this clean and simple app that delivers the latest headlines to you.

 

Sanctioned Rotenberg brothers stop Gazprom pipeline sales

Published time: April 23, 2014 11:21
Arkady Rotenberg (RIA Novosti / Maksim Blinov)

Arkady Rotenberg (RIA Novosti / Maksim Blinov)

Russian businessmen Arkady and Boris Rotenberg, who were hit with US sanctions after Crimea joined Russia, will stop selling pipelines to Gazprom, the country’s largest gas producer.

“We have decided to close the project because shareholders have decided to focus efforts on the development of infrastructure construction,” Itar-Tass reported a representative as saying.

The decision to close the North European Pipe Project, announced Tuesday, was reportedly taken over a year ago, Reuters reported.

By the end of 2014, the project will either be closed or transformed into other projects. A Reuters source said the axing of pipe sales to Gazprom may be politically motivated, in order to avoid affiliation rumors.

The decision follows a series of probes by Russia’s Federal Antimonopoly Service (FAS), which has advised Gazprom to purchase directly from manufacturers, and not through traders such as North European Pipe Project.

In April 2013, the FAS filed a case against Gazprom and the Northern European Pipe Project for restricting market competition for large pipes. In July 2013, the case was dropped, but Gazprom began to buy pipes directly from manufacturers.

Forbes estimates that between 2008 and 20012, Rotenberg companies received over $28 billion (900 billion rubles) in government contracts.

The Rotenbergs own a controlling share of Stroygazmontazh Corporation (SGM Group), Russia’s largest gas pipeline construction and electrical power lines supplier.

SGM is Gazprom’s largest contractor, and is currently in charge of three sections of construction on the South Stream pipeline. The brothers were also in charge of construction of the Druzhba pipeline project for the Sochi Olympics.

The Rotenbergs began to acquire subsidiaries of Gazprom in 2008. The brothers are known to have good relations with Russian President Vladimir Putin.

The US has placed sanctions on one bank, Bank Rossiya, and 27 individuals, including Arkady and Boris Rotenberg, following Crimea’s decision to join Russia, which the West has condemned as an 'illegal annexation'. Also sanctioned were businessman Gennady Timchenko, Yurky Kovalchuk, the head of Bank Rossiya, and Russian Railways chief Vladimir Putin.

In March, US credit card companies Visa and Mastercard blocked payment transactions at three Russian banks, including SMP Bank, where the brothers are major shareholders. Services were resumed shortly afterward, when the action was deemed to be unlawful as it is the shareholders, not the bank, who have been targeted by the US sanctions.

Comments (5)

 

Bozz Larsson 13.05.2014 10:06

DoAskDoTell 23.04.2014 11:33

people should start give news in their own currency in the news, not just in dollars so local people learn to relate their own economy to the world

if it's about Russia & China => rubbles, yuans besides dollars...

  


Yes agree - mentally and Media-wise, from RT and others - begin to ignore the Dollar. Go around that currency - dump it!

 

Max 24.04.2014 03:09

A new study has found that a quarter of a century on, red deer on the border between the Czech Republic and old West Germany still do not cross the divide.

Aft er tracking 300 deer, researchers said the animals are intent on maintaining the old boundaries.

One of the scientists involved told the BBC the deer are not ideological, "they are just very conservative in their habits."

During the Cold War, electric fences made the Czech-German boundary impossible to pass.

Czech oslovakia, where the Communists took power in 1948, had three parallel electrified fences, patrolled by heavily armed guards.

 

William Cocker 23.04.2014 15:22

There appears to be some confusion here. The Russian currency is the RUBLE, note one B, a commodity backed currency. I wish I had some. The US dollar, a currency backed by hot air and high speed printing presses, is or soon will be rubble (note 2 b's) also known as trash!

View all comments (5)
Add comment

Authorization required for adding comments

Register or

Name

Password

Show password

Register

or Register

Request a new password

Send

or Register

To complete a registration check
your Email:

OK

or Register

A password has been sent to your email address

Edit profile

X

Name

New password

Retype new password

Current password

Save

Cancel

Follow us

Follow us