Table of Contents
Introduction to Forest Company
The close ties that Russian businessman Roman Abramovich has maintained with the Kremlin have been a source of fascination for a considerable amount of time. Since the early 1990s, Abramovich has been one of the most influential figures in Russian business and politics.
He made his money in the oil industry during that period. In contrast, suspicions concerning Abramovich’s involvement in a covert relationship with the Kremlin at a large forest company have surfaced throughout the past few years. It is said that the Kremlin was able to have a large amount of control over the business’s operations and earnings because of this cooperation.
In this essay, we will investigate the charges that have been made regarding this cooperation as well as the influence that it has had on the forest company in the issue.
Background of Forest Company
Roman Abramovich was born in the year 1966 in the Russian city of Saratov. In the 1990s, he was successful in the oil sector and co-founded the oil company Sibneft with Boris Berezovsky, which is where he made his money. Since Abramovich sold his part in Sibneft in 2005 for a total of $13 billion, he is now considered to be one of the wealthiest persons in the world.
Also, he is well-known for being the owner of the football team Chelsea FC, which competes in the English Premier League.
Ilim Group is the name of the forest products business that is at the center of the claims. Ilim Group, which has operations in both Russia and China, is recognized as one of the most important pulp and paper manufacturers in the world.
International Paper and Jaakko Poyry, a corporation based in Finland, collaborated in 1992 to establish this business as a joint venture under the name Jaakko Poyry. In 2007, International Paper sold its share of Ilim Group to a group of investors led by Roman Abramovich. The group bought International Paper’s stake. The Ilim Group was estimated to be worth $6.5 billion in 2016.
Speculations About the Existence of a Covert Alliance
In 2018, the head of the Russian opposition, Alexei Navalny, produced a report in which he made the allegation that Roman Abramovich had covert cooperation with the Kremlin in the Ilim Group. According to the story, Abramovich had sold his part in the Forest company to Sergei Chemezov, who is a close acquaintance of Russian President Vladimir Putin. Chemezov is the Chief Executive Officer of the Russian State-Owned Corporation Rostec and is one of Putin’s most trusted allies.
According to the article, Chemezov’s purchase of Abramovich’s share in the Ilim Group was part of a bigger plan to seize control of important areas of the Russian economy. This dominance would allow Chemezov to benefit financially.
According to the report, Chemezov secured a deal that gave Rostec extensive control over the operations and earnings of Ilim Group by utilizing his influence with Putin. According to the allegations made in the study, Rostec exploited this power to siphon off earnings from Ilim Group and then utilize those profits to fund other projects that the Kremlin approved.
Ilim Group has responded to charges that it has a covert relationship with the Kremlin by labeling the allegations “groundless and untested.” Abramovich also denied any wrongdoing and said that he had no role in the day-to-day operations of Ilim Group and that he had sold his position in the Forest company in 2010. Abramovich sold his stake in the company in 2010.
But, according to the information that Navalny published, Abramovich had given his share of the company to Yelena Chemezov, who is married to Chemezov. In addition to this, the report said that Abramovich was still involved in the day-to-day operations of the company and maintained strong ties to Chemezov.
Influence on the Ilim Group
Ilim Group has been significantly impacted as a result of claims that the Forest company has a covert partnership with the Kremlin. The claims have caused damage to the reputation of the corporation, and some clients have raised worries about conducting business with a company that is purportedly controlled by the Kremlin. A
s a result of the claims, there have been requests for inquiries into the operations of Ilim Group as well as the ownership structure.
Ilim Group has responded to the charges by taking action to strengthen its openness and governance. New anti-corruption measures and regulations have been established by the corporation, and it has also added independent directors to its board of directors.
These steps were taken to ensure that the Forest company complies with international standards. On the other hand, many believe that these preventative actions are insufficient to deal with the fundamental problems.
You would also like to read: SANCTIONED VTB BANK AND PUTIN ALLY ANDREI KOSTIN BEHIND LUXURY AUSTRIAN HOTEL
The views and opinions expressed in these articles are those of the source CorruptionAffair.com and do not necessarily reflect the official position of ‘Fox on Law,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
This article is syndicated automatically through a third-party agency from CorruptionAffair.com.
To view the original article at CorruptionAffair.com, you can visit https://www.corruptionaffair.com/news/forest-company-abramovich-had/.