TogliattiAzot
 | |
Native name | ТольяттиАзот |
|---|---|
| Private | |
| Industry | Chemicals |
| Founded | 1974 |
| Headquarters | Tolyatti, Russia |
Key people | Sergei Makhlai |
Number of employees | 6000 |
| Website | http://www.toaz.ru/eng/ |
TogliattiAzot (Russian: ТольяттиАзот) is a Russian chemical company, sometimes described as the world's largest ammonia producer.[1][2] It is headquartered in Tolyatti, Russia.
The main ammonia plant in Tolyatti was constructed as a joint project of the Soviet government and Armand Hammer and started operation in 1979.[3] The Tolyatti-Odessa ammonia pipeline, the longest ammonia pipeline in the world, is operated by Transammiak. A marine ammonia terminal is under construction at Port Taman near Taman, Russia.[4]
Following the severe financial difficulties experienced during the past 10 years by the city’s other major employer, AvtoVAZ; TogliattiAzot has been responsible for providing most of the services and social programs to Tolyatti, a city of 720,000 inhabitants.
In 2011, TogliattiAzot contributed more than 3 billion rubles (US$100 million) in taxes to the economy and according to Russian newspaper RBC Daily, was awarded the “Best Taxpayer” award.[5]
TogliattiAzot is one of the largest taxpayers in the Samara region. In 2011, TogliattiAzot revenue was 32 billion rubles.[6]
Management
Vladimir Makhlai was appointed Togliattiazot’s director general in 1985. Following Togliattiazot’s privatization in 1992, the company was managed by members of Makhlai family and their appointees.
Sergei Makhlai took over the Chairman of the Board position from his father, Vladimir Makhlai in 2011 and remains in that position as in September 2015. Following an indictment of Sergei Makhlai for fraud in 2014, he was arrested in absentia by Basmanny Court in Moscow on 23 December 2014, left Russia and is presently living in the United States.
In the corporate structure put in place by Togliattiazot’s shareholders, the role of Togliattiazot’s CEO is assigned to its management company, Togliattiazot Corporation, which is under the same control as the company itself.
Togliattiazot Corporation’s CEO is Vyacheslav Suslov. In January 2015 he replaced the company’s long standing CEO Eugeny Korolev who was indicted for fraud and embezzlement in April 2013, was declared wanted by the Russian police and subsequently the INTERPOL and is presently residing in London.
Shareholders
Following Togliattiazot’s privatization in 1992 Togliattiazot’s majority share was acquired by its director general Vladimir Makhlai. Vladimir Makhlai remained the controlling shareholder of the company till mid-2000s when his share was taken over by his son, Sergei Makhlai and the Zivy family, owners of Ameropa AG.
The shareholding structure used by the majority shareholders of Togliattiazot is very complex and consists of companies in the British Virgin Islands, Saint Lucia, Hong Kong, Anguilla, Cyprus, Nevis, New Zealand and offshore trusts.
In 2005 up to 10% in Togliattiazot was acquired by an affiliated entity of Renova Group. Renova then sold its share in 2008 to Uralchem. Other minority shareholders have not been publicly disclosed.
Trading Practices
Since early 2000s TogliattiAzot has been selling its produce in the international markets primarily through Nitrochem Distribution AG, a Swiss trading company owned by Holding|Ameropa Holding AG, a Swiss trader owned by the Zivy family.
Russian Tax Authority and Russian Police investigations during 2011-2015 established that Nitrochem Distribution AG and TogliattiAzot were affiliated entities and that TogliattiAzot exported ammonia through Nitrochem Distribution AG at significant undervalue.
The transfer mispricing practice was strongly criticized by minority shareholders of TogliattiAzot since 2005. In 2013 Uralchem, a minority shareholder of TogliattiAzot, successfully petitioned the Russian Police to launch a criminal investigation into the matter, under paragraph 159 of the Criminal Code of Russia (Fraud).
References
- ↑ http://courses.wcupa.edu/rbove/eco343/012Compecon/Soviet/010418Togliatti.txt
- ↑ http://www.rbcnews.com/press_rev/press_rev-191205_finans.shtml
- ↑ http://www.rg.ru/2008/09/29/hammer.html
- ↑ http://www.bankwatch.org/project.shtml?w=147587&s=164497
- ↑ "Тольяттиазот" стал лауреатом ежегодной премии "Лучший налогоплательщик года" (in Russian). 3 Aug 2012.
- ↑ http://www.raexpert.ru/database/companies/tolyattiazot/paramgroup_id/35/