The corporation ‘Togliattiazot’ has appointed Ilyumzhinov its President after the announcement of the transaction. This step was necessary to ensure that Credit Mediterranee SA survey the financial status of the company and its position in the market.

According to media reports, the revenue of ‘Togliattiazot’ amounted to 48.5 billion roubles in 2014. The net profit was 15 billion roubles. The revenue was 29.2 billion roubles and the net profit was 9.5 billion roubles for the first half of 2015.
The international investment fund Credit Mediterranee SA belongs to Kirsan Ilyumzhinov, who commented on the deal in the interview to RBC.
– ‘Togliattiazot’ announces that you became the owner of 51 per cent shares of the company.
– Actually, I signed the agreement that provides for more than 51 per cent of the shares.
– At the same time, ‘Uralchem’ being the minority shareholder of ‘Togliattiazot’ states that this transaction is not legal because the shares are arrested.
– On the 2nd of September, we signed the agreement using my lawyers with the shareholders of 'Togliattiazot’ where it is stipulated that it sell its stake to my fund. This document is signed, and in order to finally clarify the situation, the shareholders appointed me as the President. I confirm what is written in the press release. The ‘Uralchem’ statement is correct. However, we have been carrying out the negotiations for a long time. We know that some of the equipment and some shares are arrested and about ten court cases is being continued.
– But the deal is not possible if the property is under arrest.
– In principle, I do not want this information to spread; however, perhaps, the shareholders themselves gave the official press release. This is not my press release. Well, all they wrote is that ‘Togliattiazot’ entered into the agreement with me to sell the majority stake. They are aware of what is arrested, etc. but it somehow it must end.
– Do I understand you correctly: the transaction is not completed yet?
– We have entered into the agreement and there are many legal conflicts, which is why I became the President of ‘Togliattiazot’ to carry out the negotiations. As for shares, we have the agreement that specifies all its aspects.
– Would you be able to outline the details?
– I do not want to advertise it. The agreement defines everything. I have no right to make any statements particularly for the reason that the shareholders are located outside Russia: one in the Europe and another in America.
– Why were you interested in this business?
– I was approached by the shareholders last year. They needed the connections and partners because they decided to expand the export to the Southeast Asia, Vietnam and China. I have good relations with some countries and resolved the issues of the investments and credits to allow the enterprise to work at its full capacity. At same time, the problems of the modernization and the port were fixed.
I have carried out negotiations, the shareholders met with the proper people and the leaders of the countries of the Southeast Asia. As far as the loan is concerned, they have met with the management of one of the Arab Banks. Well, I was told in the end: "Kirsan, everything there is in the courts and full of controversies." After that, they had suspended the cooperation. However, recently they requested me about the possibility of the acquisition again.
– There is an opinion that you are the only one who would help to restore the order and put an end to the corporate wars.
– Yes, it is in a mess. The company is the one of the state budget contributors and is among the largest taxpayers. Moreover, there is such a war, according to some publications ... I got the complete set of the documents showing that some fighting is going on; it’s an ugly situation. All this deteriorate the investment attractiveness of not only the company, but also the country as a whole.
By the way, I know a lot of the participants on the international market, the owners of almost all companies operating in the production of fertilizers. I held talks in Algeria helping one of the Russian companies to enable it to establish the businesses relations in North Africa. Of course, I had the proposal to end this mess.
– Have you not yet contacted the owners of the ‘Uralchem’?
– No, I did not communicate with the other shareholders. Although Dima Mazepin, as far as I know, studied at the Moscow State Institute of International Relations and I am a member of the Board of Trustees of the Institute.

P.S. OJSC ‘Togliattiazot’ pays great attention to chess. Last spring, the chemical giant was one of the key sponsors of FIDE.

Petr Kiryan,
Mikhail Safonov