Stroygazmontazh

Stroygazmontazh (Russian: Стро̀йга̀змонта́ж), also called the S.G.M. Group, is an infrastructure construction firm that operates in Russia primarily via its subsidiaries, specializing in the creation of oil and gas transportation systems.[4][5] The company was founded in 2008 with operations in construction—particularly of oil and gas infrastructure—in Russia.[3] According to the RBK Group, it is the 44th largest company in Russia by income, with an annual 276 billion in revenue.[6]

Stroygazmontazh
Native name
Стройгазмонтаж
TypePrivate
IndustryInfrastructure
Founded2008; 15 years ago (2008)
Headquarters,
Russia
Key people
Revenue$6.2 billion[2] (2017)
$247 million[2] (2017)
$258 million[2] (2017)
Total assets$4.45 billion[2] (2017)
Total equity$544 million[2] (2017)
Number of employees
16,000[3] (2017)
Websitewww.ooosgm.com

HistoryEdit

FoundationEdit

Stroygazmontazh was initially founded in 2008 by Russian businessman and oligarch Arkady Rotenberg after he purchased five companies under the control of Russian oil and gas giant Gazprom.[1] Rotenberg is a close friend of Russian President Vladimir Putin, which has led to the S.G.M. Group and other firms under Rotenberg's control winning a number of Russian government contracts.[7]

By January 2019, Arkady Rotenberg through his Stroygazmontazh LLC and his companies, along with Nikolai Shamalov and Yuri Kovalchuk through their Rossiya Bank have become the most important investors in Russia's development of the annexed Crimea.[8] Stroygazmontazh built the Crimean Bridge, commencing in February 2016. The road bridge was opened in October 2018, and the rail bridge opened in June 2020.

2019 buyoutEdit

In early November 2019, Rotenberg's shares in the company were reportedly sold to Gazstroyprom—an infrastructural firm under the administration of Gazprom—for a total of ₽75 billion ($1.18 billion).[9][10] Stroygazmontazh had been a subcontractor of Gazprom for some time, and had collaborated in building 320 kilometers of onshore pipelines for the Nord Stream 2 project.[11]

ProjectsEdit

Crimean BridgeEdit

 
President Vladimir Putin and Arkady Rotenberg at the opening of the Crimean Bridge in May 2018

In 2016 and 2017 it was reported that Stroygazmontazh, with evident ties to Russian President Vladimir Putin, had won a contract in January 2015 to construct the Crimean Bridge providing a two-track railway link, and a four lane automobile and truck, link between Russia and Crimea by crossing the Kerch Strait, and that it had proceeded to begin construction.[1][12][13][14] The Russian government stipulated that Stroygazmontazh was to complete the railway link by August 1, 2019, and fully complete all works on the bridge by December 1, 2019.[1] Stroygazmontazh had never built a major bridge before.[15] Because of the risks of EU sanctions applied in July 2018,[16] no international insurance company was willing to underwrite the potential $3 billion loss if the project went wrong—thus, a small Crimean insurance company underwrote it.[15] Stroygazmontazh commenced construction in February 2016. The road bridge was opened in October 2018, and the rail bridge opened in June 2020.

ReferencesEdit

  1. ^ a b c d "Putin's Shadow Cabinet and the Bridge to Crimea". The New Yorker. 29 May 2017. Retrieved 20 January 2018.
  2. ^ a b c d e "Бухгалтерская отчётность". Retrieved 24 October 2018.
  3. ^ a b «1C.Bitrix», Интернет-агентство «Артус». "SGM Group of Companies". www.ooosgm.com. Retrieved 6 November 2017.
  4. ^ "Stroygazmontazh OOO: Company Profile". Bloomberg. Retrieved 6 November 2017.
  5. ^ "Stroygazmontazh Ltd". reconnectingasia.csis.org. Retrieved 6 November 2017.
  6. ^ "РБК представляет 500 крупнейших по выручке компаний России". РБК. Retrieved 20 November 2017.
  7. ^ "Putin's Friend Profits in Purge of Schoolbooks". The New York Times. 1 November 2014. Retrieved 20 January 2018.
  8. ^ Васильев, Андрей (Vasiliev, Andrey) (25 January 2019). "После Ротенберга хоть камни с неба. Как Крым стал прибыльным бизнесом для друзей Путина" [After Rotenberg, even stones from the sky. How Crimea became a profitable business for Putin's friends]. Insider (in Russian). Archived from the original on 29 January 2019. Retrieved 20 November 2020.
  9. ^ "Russia's Gazprom Buys Out Its Biggest Subcontractor". The Moscow Times. 27 September 2019. Retrieved 17 January 2020.
  10. ^ "Blacklisted Russian businessman Rotenberg sells gas pipeline firm: spokeswoman". Reuters. 7 November 2019. Retrieved 17 January 2020.
  11. ^ "Nord Stream 2 award for Stroygazmontazh". Upstream. 23 August 2018. Retrieved 17 January 2020.
  12. ^ "Bridge to Crimea: Putin strives to complete a 'historic mission'". The Financial Times. 23 September 2016. Retrieved 15 November 2017.
  13. ^ "Sanctions, tight margins sap appetite for rail link to 'Putin's bridge'". Reuters. 16 January 2017. Retrieved 15 November 2017.
  14. ^ "Putin's Judo Partner Awarded $285M Contract For Crimea Railway'". The Moscow Times. 18 January 2017. Retrieved 15 November 2017.
  15. ^ a b Pollock, Emily (6 July 2018), Europe's Longest Bridge Spans Troubled Waters, Engineering.com, archived from the original on 2018-10-13
  16. ^ "Six Russian Firms Hit With EU Sanctions Over Kerch Strait Bridge". Radio Free Europe/Radio Liberty. 31 July 2018. Retrieved 17 January 2020.