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MARCH 2021

Family Of Russia’s New Prime Minister Owns $45Million In Real Estate, While He Declares Zero Property


Family Of Russia's New Prime Minister Owns $45Million In Real Estate, While He Declares Zero Property

Click to see full-size image

Russian Prime Minister Mikhail Mishustin has been on the post for 14 days, and reports of his astounding properties have begun surfacing.

The Russian pro-opposition media outlet, Anti-Corruption Fund, released a detailed report showing Mishustin’s alleged properties. Since after he became Prime Minister, their ownership is listed as owned by the “Russian Federation” and not by him.

For starters his oldest property is his house, it can be seen on the pictures below:

Family Of Russia's New Prime Minister Owns $45Million In Real Estate, While He Declares Zero Property

Click to see full-size image

He bought the house in 2000 on income from the International Computer Club. However, it turned out that in 2000 he only bought 1/5 of the plot, under #1 on the following image:

Family Of Russia's New Prime Minister Owns $45Million In Real Estate, While He Declares Zero Property

Click to see full-size image

The first plot was purchased by Mishustin in 2000. And in 2004, the official transferred it to his young children – Alexei and Alexander. One was 5 years old, the other 4.

The official never declared it “in use”. Given that the children of Mishustin studied in Switzerland and, until recently, did not live in Russia, the house was apparently empty.

The second plot on the map, a property of 7875 m2 is in the name of Luiza Mishustina, the mother of the Prime Minister. It was bought 12 years later, in 2012. Initially, the owner was the father – Vladimir Mishustin, and then his wife inherited it. The seller of the site is also not a random person. From 2000 to 2012, the site belonged to Gennady Bukaev, a former Tax and Duties Minister. He is currently the CEO of Rosneftgaz.

The third plot on the map above belongs to Mishustin’s sister, Natalia Stenina. She combined it from 10 sites, most of which received in 2009. Out of 12 thousand square meters, 9 thousand were presented to her by Alexander Udodov. Together with the plots, 741 m2 and 147 m2 were donated to her.

Alexander Evgenievich Udodov is a Russian-based businessman and real estate and property developer. He is the founder of Aforra Group, a real estate and property development company based in Moscow. Udodov is also an investor in agriculture and is a board member of the Eurasian Pipeline Consortium

A fair bit of other properties, cars and what not are also connected to Prime Minister Mikhail Mishustin.

Below is Mishustin’s latest (the period from January 1, 2018) tax declaration. A declaration filed so that just about anybody can go to the site and see what he owns and how much money he made.

Family Of Russia's New Prime Minister Owns $45Million In Real Estate, While He Declares Zero Property

Click to see full-size image

According to it, Mishustin owns no property, not even 1 square meter. The only one with income in the household is his wife, according to his tax declaration.

However, according to the property that is tied to him and is currently listed as owned by other people in his surrounding, or by the “Russian Federation,” he allegedly has the following:

  • The massive property in Rublevka – sitting at around 1.5 billion rubles, or $23.7 million;
  • His sister’s house in Agalorov Estate – 400 million rubles, or $6.3 million;
  • His sister’s apartment in Knightsbridge Park – 200 million rubles, or $3.1 million;
  • A plot in New Riga donated by Alexander Udodov – 30 million rubles, or $474,000;
  • A building on Tversky Boulevard 1/4, in Moscow – 250 million rubles, or $3.95 million;
  • His children’s apartments on Frunzenskaya, in Moscow – 400 million rubles, or $6.3 million;
  • His children’s apartment on Trekhgorny Val, in Moscow (given to Mishustin by the president’s affairs) – 40 million rubles, or $632,00.

The total is 2 billion 820 million rubles, or $44.3 million. With the additional non-listed smaller and cheaper properties, and cars and more, the amount can easily be rounded up to 3 billion rubles, or $47.4 million.

The family of an official who spent 22 years in public service has an astounding 3 billion rubles of real estate.

Mishustin’s wife’s income is also questionable, she had an income of 800 million rubles, or $12.6 million in recent years and it is entirely unknown what she does. Her business is completely unclear. Essentially his family, of an individual who has been a public servant for 22 years, and a wife who works an undisclosed job is a family of ruble billionaires.

Mikhail Mishustin was not always a public official. He was initially one of the founders of the International Computer Club. He joined it almost immediately after graduating and assisted its founder, Levon Amdiliyan organize the first International Computer Forum.

Forum participants included Apple, Intel, Motorola, Hewlett-Packard, and IBM. In 1998, Mishustin left for the civil service, but his wife continued her business relationship with Amdilyan.

His former associates described him as a very charming guy, with a lot of guile and business talent. He officially worked in business only for about 6 years in a few IT companies, and was always a good salesman, but he officially stopped when he entered public service. How he amassed his fortune remains a ‘mystery’.

It’s hard to expect that a top level government official of the world’s largest country would live in a small communal apartment. Nonetheless, the apparent lack of transparency in income of key government officials has always been among the weak sides of the Russian government and caused a negative reaction of the society. This question becomes especially sensetive in the period before and during the announced reforms in the Russian political system.

According to sources in Russia, Vladimir Mishustin, the father of the current Russian Prime Minister, supported the career of Vladimir Alexandrov (birth name – Armen Abalyan), an Aeroflot’s deputy general director arrested for a large-scale fraud. It’s interesting to note that the Moscow city court overturned the Basmanny court’s ruling to extend the arrest of the corrupt official a few days after Mikhail Mishustin became the Prime Minister.

The approach demonstrated by the new Russian government towards small business also raises some questions. One of the first actions of the Mishustin government was to impose additional penalties on banks that refuse to arrest personal accounts of self-employed entrepreneurs in violation of the constitution. The Federal Tax Service demands from banks to arrest personal accounts of self-employed entrepreneurs on any grounds put forward by the tax service. Indeed, under the Russian law self-employed entrepreneurs can be held liable with their property in tax-related cases. Nonetheless, this becomes possible only after a resolution of the prosecutor’s office or a court ruling. In many cases, the tax service demands arrests of personal accounts for minor tax violations like the delayed tax reporting or the tax evasion in size of $30-50. Therefore, personal accounts of self-employed persons that officially register their work and aim to pay taxes appeared to be under a threat of being arrested. It should be recalled thar during the recent years, the government conducted significant efforts to reduce the real cash flow in the country. So, the pressure on small business has been increased.




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