A friend of Putin profits off of the junior camp in Crimea

Artek Artek

Russian activist, Member of the Public Chamber of Ekaterinburg Ekaterina Petrova has published results of an investigation on a Crimean project of businessman Arkady Rotenberg who is called a friend of Russian President Vladimir Putin.

It is about a State contract of design and renovation of several buildings located on the territory of the children’s camp Artek in Crimea. The contract was signed by a Rotenberg’s company Strojgazmontazh and Artek in June last year and was valued at sum of slightly less than 2.3 billion rubles.

Petrova notes that the contract was signed without a competitive process, with a sole provider directly. “The law on the contract system allows this, especially when it is about the contracts with Rotenberg’s companies (The Kerch Bridge, the Platon system, etc.). In such cases a government regulation serves as a basis. In that case such a regulation exists, and there is a Federal Program on development of Artek valued at sum of 5.4 billion rubles,” said Petrova.

Duration of works under the contract was defined January – December 2015. However, the terms were infringed, so the contract card on the public procurement website was updated with a new agreement in July 2016. According to that agreement the term of works was extended till December 2020. The adjusted contract value after the State expertise grew about six times and now is 13.3 billion rubles ($200 million).

According to the law, the contract price can be changed up to a maximum of 10%. Also the terms cannot be extended.

The activist informs that she has sent a statement to the Prosecutor’s Office and the Federal Antimonopoly Service on this fact. According to the Russian legislation, changing terms of contract, including an increase in prices of goods, works and services, which has led to additional spending of budgetary funds, is subject to a fine twice the amount of spent money. “In simple words, if my arguments are confirmed, the money must be returned at twice the amount to the budget. That is 22 billion rubles,” concluded the activist.


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