Wednesday, March 02, 2022

ARETI International Group of Companies (Wikipedia)

From Wikipedia, profile of ARETI International, owned by Putin associate IGOR MAKAROV, whose company is headquartered at 9995 Gate Parkway, Suite 400, with a yacht based in St. Augustine, Florida: 

rom Wikipedia, the free encyclopedia

Jump to navigationJump to search

ARETI International Group
IndustryOil and gas
Number of locations
Area served
Commonwealth of Independent States
Key people
Igor Makarov (Chairman)
Vladimir Makeev (General Director)
ProductsNatural gas
ServicesGas Pipeline Transport

ARETI International Group of Companies is controlled by Russian businessman Igor Makarov and his Turkmani partner Valery Otchertsov (RussianВалерий Отчерцов) through offshore holding companies registered in CyprusVirgin IslandsCuracao, and the Netherlands and has subsidiaries involved in the energy industrycivil and industrial engineering, and finance and insurance.[1][2][3][4] The company operates primarily in Russia, the Commonwealth of Independent States (CIS) countries and Latvia. In 2013, its main subsidiary Itera Oil & Gas Company—was acquired by Russian state-controlled oil company Rosneft.[5][6]

History[edit source]

A firm which later became a part of the Itera Group was established in 1992 as a basic commodities trading company.[1][7][8] Established in 1992, the Itera International Energy Corporation headquarters in Jacksonville, Florida keeps Makarov's wealth beyond the political and financial turmoil of Russia and the former Soviet states.[1][8][9][a] In 1997, Itera Energy Corporation came under offshore ownership through four firms the Virgin Islands-based Lemar Industries (RussianЛемар Индастриз), the Nicosia, Cyprus-based Paltron Trading Ltd (RussianПалтрон Трейдинг Лтд), Omrania Trading Ltd. (RussianОмрания Трейдинг Лтд.), and Unirakon Trading Ltd. (RussianЮниракон Трейдинг Лтд.) which control the Curacao-based Itera Holding NV which controls the Netherlands-based Itera Holding B V.[1][2] Makarov's Itera is associated to Itera Group through Omrania.[1]

In 1994, it obtained the rights to sell Turkmeni natural gas as payment for its sugar transaction and started implementing gas-related projects within its subsidiary Itera Oil & Gas Company, LLC.[8] In 1995, Itera began selling Turkmeni gas to UkraineBelarusMoldova, and Georgia, as well as to the Baltic States over Gazprompipelines in exchange for hard cash, sugar, meat, and cereals to Russia.[9][13]

Registered in Wilmington, Delaware in May 1996, Itera International Energy LLS governs gas supplies and financial statements.[1]

Registered in RigaLatvia in November 1996, ITERA Latvia or ITERA Latvija, which is headed by Juris Savitskis, governs gas supplies, pipelines and underground storage in Latvia and Estonia where it holds a large stakes in both the Latvian gas company Latvijas Gaas or Latvijas Gāze and the Estonian gas company Eesti GaasGazprom through its Latvian subsidiary established on 6 April 2009 in Riga, which was headed by Vladimir Putin's classmate at KGB training school and very close friend Sergei Roldugin's older brother Yevgeny Roldugin until the elder Roldugin's death due to COVID-19 complications on 15 November 2020, also holds large stakes in both Latvijas Gāze and Eesti Gaas.[14][15][16][17][18]

In 1998, Itera launched production of natural gas in Yamalo-Nenets Autonomous Okrug in Western Siberia. It was the first private company to put gas fields into operation in the Far North of Russia: the Gubkinskoye gas field with reserves of 399 billion cubic metres (14.1 trillion cubic feet) in 1999; the Vostochno-Tarkosalinskoye field with reserves of 407 billion cubic metres (14.4 trillion cubic feet) in 2001; and the Beregovoye field with reserves of 325 billion cubic metres (11.5 trillion cubic feet) in 2003.

Due to enormous reserves, Makarov's Itera was the fourth largest natural gas company in the world in 2000.[19]

In 2002, there was an agreement to merge the newly created gas company Novatek with Itera, but the deal was cancelled.

After the 5 December 2002 establishment of Eural Trans Gas, Itera was no longer the dominant natural gas provider to Ukraine.[20]

In 2010, India-based Sun Group sold its 26% stake in Itera Holdings back to Itera Group.[21] In 2011, TNK-BP planned to acquire a 50% stake in Itera.[22] This transaction failed.[23] In 2012, Rosneft announced a plan to acquire up to 51% in Itera Oil & Gas.[24] In 2013, Rosneft acquired all shares in Itera Oil & Gas.[5][6]

By mid-2015, Mr. Makarov had restructured and reenergized his remaining companies to enter a new stage of development. The Group was rebranded as the ARETI International Group (ARETI IG) to signal a new direction. Today, ARETI IG is composed of subsidiaries and affiliated companies with business interests in Russia, the CIS Countries, Baltic States, United States, Canada, Western Europe and in the Middle East. ARETI IG has offices located in Switzerland (Geneva), Russia (Moscow), Cyprus (Limassol), Belarus (Minsk), Turkmenistan (Ashgabat), Canada (Calgary) and the United States (Jacksonville).

Operations[edit source]

Itera Oil & Gas Company[edit source]

The main subsidiary of Itera was Itera Oil & Gas Company. It had aggregate proved reserves of 510 billion cubic metres (18 trillion cubic feet) of natural gas, over 2 million tons of gas condensate and 7 million tons of crude oil. By 2011, more than 325 billion cubic metres (11.5 trillion cubic feet) of natural gas had been produced in eight fields.[25] It had 49% stake in Sibneftegaz (another shareholder is Novatek), which holds licences for exploration and production in the Yamal-Nenets region, including the Beregovoye fieldPyreinoye fieldZapadno-Zapolyarnoye field, and the Khadyryakhinskiy licence area.[26]

Sibneftegaz owns the rights to develop oil and gas condensate fields with a total resource of 395.53 billion cubic metres (13.968 trillion cubic feet) of natural gas and 8.44 million tonnes of gas condensate.[27] In Sverdlovsk Oblast, the company operates through ZAO Uralsevergaz, a joint venture with the oblast administration.[28]Together with Zarubezhneft, Itera carried out a development of block 21 in the Turkmen sector of the Caspian Sea.[29] The reserves of this block are 219 million tons of oil, 100 billion cubic metres (3.5 trillion cubic feet) of natural gas and 92 billion cubic metres (3.2 trillion cubic feet) of associated gas. Together with Zarubezhneft and Rosneft, it developed blocks 29, 30 and 31.[30]

Other activities[edit source]

Since the mid-2000s, Itera group has been involved in civil and industrial engineering in Russia, Belarus and Turkmenistan. Among the projects are an office complex for the 2014 Winter Olympic Games in Sochi, Russia, a skyscraper and a business center in Minsk, and sport facilities and pipelines in Turkmenistan and Russia.[31]The company has commenced construction of a steam-gas power cogeneration plant with a capacity of 900 MW in the Nizhny Novgorod Region. The company plans are underway for construction of a gas and petrochemical complex in the Urals with a capacity of 600,000 tons of methanol per year.[32] In 2009, Itera's subsidiary MPK Engineering was contracted to build the 198.5-kilometre (123.3 mi) Central Kara Kum–CS Yilanly gas pipeline in Turkmenistan. The pipeline was completed in 2010.[33]

Since 2008, Itera, through its subsidiary Arkticheskiye razrabotki, developed Apsatskoe mineral coal mine, one of the largest in Russia, in Zabaykalsky Krai.[34]Through its 72% stake in Stavropolstroynerud, it develops the Malkinsky quarry, located in Stavropol Region, with production capacity exceeding 1 million cubic meters of crushed stone, sand, and gravel per year.[35] In 2011 100% of Arkticheskiye razrabotki were sold to SUEK, which became the new owner of Apsatskoe.[citation needed]

In the United States, Itera focuses on oil and real estate, in addition to renewable energy sourceschemicals and bioenergy technologies.[36] In 2008, Itera put a bioethanol refinery into operation in Pennsylvania. The construction of a similar facility in Louisiana is planned, as well.[36]

Corporate affairs[edit source]

Structure[edit source]

Itera Group Ltd. is registered in Cyprus. It owns Itera Holdings Limited, also registered in Cyprus, which owned 99.99% of Itera Oil and Gas Company, the main company of the group.[37] In 2012 51% of Itera Oil & Gas were included into a joint-venture with Russian state-owned oil company Rosneft, which in 2013 also bought out remaining 49% from Itera Holdings Limited[38] Altogether, Itera Group has dozens of subsidiaries in Russia, CIS, Asia, Europe and in the US.[39] Its main shareholder, chairman of the board of directors and president is Igor Makarov, its first vice president is Vladimir Makeev.

Financials[edit source]

In 2010, Itera had a gross profit of US$435.9 million and a net profit under IAS of US$226.9 million.  Net sales amounted to US$1.6 billion, compared to US$1.15 billion in the previous year, and natural gas sales were RUR1.58 billion, compared to RUR1.13 billion in the previous year.[40]

Sponsorships[edit source]

Itera is a sponsor of the European Cycling Union (UEC). In March 2011, the UEC President Wojciech Walkiewicz and Igor Makarov, the chairman of the board of directors for Itera, signed a contract for financial support until the end of 2011, with the possibility of contract renewal.[41]

In Russia, Itera is a long-term primary sponsor of the Russian Cycling Federation and it is one of the three key sponsors (along with Gazprom and Rostechnologii) of Russian cycling teams Katusha ProTour[42] and Itera-Katusha continental,[43] and two youth cycling teams, Itera-Katusha Under 21 and Itera-Katusha Under 23.[44]With financial support from the Israeli-Canadian billionaire Sylvan Adams, the Makarov backed Swiss-based Katusha–Alpecin was taken over by the Israel Cycling Academy including its World Tour license in October 2019.[45][46][47] From 2009 until October 2019, Makarov's ITERA had been a sponsor of Team Katyusha (RussianКатюша).[45]

Itera Latvia, a subsidiary of Itera with a 66% stake, is one of the major sponsors of the Latvian hockey club Dinamo Riga.[48]

Itera signed an agreement with Gubkin Russian State University of Oil and Gas. According to the agreement, Itera provides grants to the best-performing students. The company also finances a number of scientific projects, and assists in providing technical equipment for the curricula.[49]

Itera is one of the trustees of the Saint Petersburg Mining Institute, providing assistance in developing its educational and scientific base, preserving and renewing a group of historical buildings, repairing and constructing student dormitories and introducing innovative programs and technologies.[50] Itera provides financial backing for constructing the Skolkovo Moscow School of Management.[51]

Controversies[edit source]

According to Bloomberg BusinessWeek, in the late 1990s, the Russian state-controlled company Gazprom conducted dubious transactions with Itera and a Gazprom/Itera joint-venture, Purgaz. Billions of dollars of Russian natural gas resources were transferred from Gazprom to Itera for artificially low prices, then sold to the markets by Itera, allegedly profiting Gazprom managers who were also beneficiaries of Itera. In 2002, Bill Browder, manager of the Hermitage Capital Managementinvestment fund, accused Itera and Gazprom of colluding to depress natural gas prices and also stock prices in a scheme that PricewaterhouseCoopers (PwC), which had been the in house auditor for Gazprom since 1996, could not uncover after PwC had produced dangerously lax audits of Gazprom.[52] In February 2002, Boris Fyodorov, as an independent director of Gazprom, stated that PricewaterhouseCoopers (PwC) signed off on poorly performed audits of natural gas firm interactions such as Gazprom-Itera because PwC wanted to keep the account with Gazprom adding "If an auditor knows it cannot do a proper review, then it is just doing it for the money." Further, he said that any audits by Deloitte & Touche into the Gazprom-Itera interactions were strongly opposed by Gazprom management.[52]

In March 2002, the U.S. Trade and Development Agency cancelled a $868,000 grant to Itera as questions were raised about its legitimacy. In May, Representative Curt Weldon led a congressional delegation to Russia and visited Itera. After his return, he publicly supported Itera's efforts. In the beginning of September 2002, Itera paid the expenses for Weldon to travel to New York City. The following week, Itera told Karen Weldon, the congressman's daughter, that it would sign a public relations contract for $500,000-a-year with her newly formed lobbying firm, Solutions North America, Inc. (SNA) which was signed on 30 September 2002. On 24 September 2002, Curt Weldon co-hosted an event at the Library of Congress honoring Itera's chairman. On 26 September, Weldon gave a floor speech praising Itera. On 30 September, SNA received a $500,000 annual contract with Itera, with $170,000 up front. In November 2002, Itera paid for Karen Weldon to join Rep. Weldon on a trip to Eastern Europe and Russia. In January 2003, Itera opened its newly expanded U.S. offices at Jacksonville, Florida, and paid for Rep. Weldon to attend the opening.[53]

Notes[edit source]

  1. ^ During détente in July 1972, Armand Hammer negotiated a twenty year agreement with Brezhnev of the Soviet Union that was signed by Hammer in April 1973 in which the Hammer controlled firms Occidental Petroleum and Tower International would export to the Soviet Union, and later Russia, phosphate, which Occidental mined in northern Florida near Jacksonville, in return for the Soviet Union, and later Russia, exporting to Hammer's firms natural gas that would be converted into ammoniapotash, and urea.[10] This fertilizer deal was to continue until Hammer's 100th birthday in 1998.[11] JaxPort at the Port of Jacksonville in Jacksonville, Florida, was the United States port through which this trade occurred.[12]

References[edit source]

  1. Jump up to: a b c d e f Степовой, Сергей (Stepovoy, Sergey) (March 2000). "Труба зовет. Туркменский след украинских событий" [The Trumpet Calls. Turkmen trace of Ukrainian events]. "Стрингер" ( (in Russian). Retrieved 20 August2021. Archived on as Свадебный велосипедист во главе Итеры: Нажми на Рема – получишь результат (Wedding cyclist at the head of Itera: Click on Rem - you will get the result).
  2. Jump up to: a b Степовой, Сергей (Stepovoy, Sergey) (March 2000). "Схема Итера Холдинг" [Diagram Itera Holding]. "Стрингер" ( (in Russian). Retrieved 20 August 2021The diagram is from the article Труба зовет. Туркменский след украинских событий (The Trumpet Calls. Turkmen trace of Ukrainian events). {{cite news}}External link in |quote= (help) Archived on as Свадебный велосипедист во главе Итеры: Нажми на Рема – получишь результат (Wedding cyclist at the head of Itera: Click on Rem - you will get the result).
  3. ^ Федоров, Б. (Fedorov, B.) (2000). "Приложение №4" [Appendix No. 4]. FreeLance Bureau ( (in Russian). Archived from the original on 5 March 2001. Retrieved 11 September 2021This is from the Семейные тайны приватизации "Газпрома": "Кошелек" газпромовской "Семьи" (Family secrets of Gazprom privatization: "Wallet" of the Gazprom "Family"). {{cite news}}External link in |quote= (help)
  4. ^ Федоров, Б. (Fedorov, B.) (2000). "Семейные тайны приватизации "Газпрома": "Кошелек" газпромовской "Семьи"" [Family secrets of Gazprom privatization: "Wallet" of the Gazprom "Family"]. FreeLance Bureau ( (in Russian). Archived from the original on 11 November 2000. Retrieved 11 September 2021.
  5. Jump up to: a b Devitt, Polina; Golubkova, Katya (2 July 2013). "Rosneft buys rest of Itera from founder for $2.9 billion"Reuters.
  6. Jump up to: a b "Rosneft buys control of Itera Oil & Gas"Oil & Gas JournalPennWell Corporation. 3 July 2013.
  7. ^ "Itera: The Company"Itera website. Archived from the original on 25 March 2004. Retrieved 14 November 2020.
  8. Jump up to: a b c "Itera: Who Are We and What Do We Do"Itera website. Archived from the original on 26 September 2011. Retrieved 14 November 2020.
  9. Jump up to: a b "Tinker, tailor, cyclist, spy"INRNG. The Inner Ring. 29 December 2011. Archived from the original on 9 January 2012. Retrieved 13 November 2020.
  10. ^ Epstein 1996, pp. 267–276.
  11. ^ Epstein 1996, p. 267.
  12. ^ Cristy, Matt (31 March 1997). "Phosphate treasure draws little interest"Jacksonville Business JournalJacksonville, Florida. Retrieved 17 August 2021.
  13. ^ History. Archived 26 September 2011 at the Wayback Machine
  14. ^ "Läti tagab gaasitarneid" [Latvia guarantees gas supplies]. Äripäev ( (in Latvian). 5 May 1999. Archived from the original on 12 September 2021. Retrieved 11 September 2021.
  15. ^ Oja, Anne (6 August 2010). "Gazprom ei kavatse Balti torudest vaikides loobuda: Gazprom pole ettevõte, mis vaikides ootaks, millal varad ära võetakse, kommenteeris ITERA Latvija president Juris Savitskis Eesti ja Leedu soovi kohandada end ELi gaasidirektiiviga" [Gazprom does not intend to abandon the Baltic pipes in silence: Gazprom is not a company that would wait in silence when the assets will be confiscated, commented Juris Savitskis, President of ITERA Latvija, on the wish of Estonia and Lithuania to adapt to the EU gas directive.]. Äripäev ( (in Latvian). Archived from the original on 12 September 2021. Retrieved 11 September2021.
  16. ^ "От Covid-19 умер Евгений Ролдугин. За ним в Ригу присылали "летающий госпиталь" МЧС" [Eugene Roldugin died from Covid-19. He was followed to Riga by the "flying hospital" of the Ministry of Emergency Situations]. website(in Russian). 15 November 2020. Archived from the original on 16 November 2020. Retrieved 11 September 2021.
  17. ^ "Газпром купил старинный особняк в Риге для друга Путина" [Gazprom bought an old mansion in Riga for Putin's friend]. РУ Строй: Строительный Портал(in Russian). 19 June 2010. Archived from the original on 9 April 2016. Retrieved 11 September 2021.
  18. ^ Петрова, Алла (Petrova, Alla) (6 April 2009). "Газпром открыл в Риге латвийское представительство" [Gazprom opened a Latvian representative office in Riga]. The Baltic Course (in Russian). Retrieved 11 September 2021.
  19. ^ Weiss, Michael (19 March 2014). "Married to the Ukrainian Mob: Meet Dmytro Firtash, the shady billionaire at the heart of Russia's energy stranglehold over Kiev"Foreign Policy. Archived from the original on 11 July 2020. Retrieved 18 November2020.
  20. ^ Global Witness 2006, pp. 33–36, 40–41.
  21. ^ P B Jayakumar (7 October 2010). "Sun Group to exit Itera"Business Standard. Retrieved 21 July 2012.
  22. ^ "TNK-BP Mulls Itera Stake to Up Gas Output"The Moscow TimesBloomberg. 10 August 2011. Retrieved 21 July 2012.
  23. ^ Kristalinskaya, Svetlana (April 2012). "Itera Aims to Get Back Its Own New Rosneft-Itera JV to Challenge NOVATEK for Top Spot on the Independent Gas Producers Market"Oil & Gas Eurasia. Archived from the original on 22 July 2012. Retrieved 22 July 2012.
  24. ^ "Rosneft takes Itera slice"Upstream OnlineNHST Media Group. 20 July 2012. Retrieved 21 July 2012.
  25. ^ Developing Far North & Western Siberia.
  26. ^ "Novatek seals Sibneftegaz stake"Upstream Online. NHST Media Group. 17 December 2010. Retrieved 21 July 2012.
  27. ^ Soldatkin, Vladimir (16 November 2010). "Russia's Novatek to pay $900 mln for Sibneftegaz"Reuters. Retrieved 21 July 2012.
  28. ^ ITERA: a course to a vertically integrated business.
  29. ^ "Itera sees big spend on Block 21"Upstream OnlineNHST Media Group. 14 April 2010. (subscription required). Retrieved 21 July 2012.
  30. ^ Afanasiev, Vladimir (22 May 2008). "Hidden jewels likely to lie offshore but warnings sounded that treasure chest may not be complete"Upstream OnlineNHST Media Group(subscription required). Retrieved 21 July 2012.
  31. ^ Itera.
  32. ^ ITERA: orientation to vertically integrated business, 9 June 2010.
  33. ^ "Itera ends Turkmen pipe test"Upstream OnlineNHST Media Group. 13 August 2010. (subscription required). Retrieved 21 July 2012.
  34. ^ ITERA is in active development stage of Apsatski field, 15 June 2010.
  35. ^ Malkinsky quarry.
  36. Jump up to: a b ITERA announced completion of financing for ethanol biorefinery in the USA, 28 February 2008.
  37. ^ "ITERA GROUP completed the deal to buy out a participation of SUN, an Indian company, with ITERA HOLDING" (Press release). Itera. 28 January 2011. Retrieved 21 July 2012.
  38. ^
  39. ^
  40. ^ ITERA Increased the 2010 Net Profit Under IAS by 43 Percent up to US$ 226.9 MillionPrime-TASS, 25 July 2011.
  41. ^ New sponsor of European Cycling Union! Archived 26 September 2011 at the Wayback Machine, 23 February 2011.
  42. ^ Katusha Team  Archived 23 August 2011 at the Wayback Machine
  43. ^ Itera-Katusha Continental Archived 23 August 2011 at the Wayback Machine
  44. ^ Katusha Youth. Archived 23 August 2011 at the Wayback Machine
  45. Jump up to: a b Malach, Pat; Farrand, Stephen (2 October 2019). "Israel Cycling Academy complete Katusha-Alpecin takeover: Dan Martin and Nils Politt set to lead new-look WorldTour team in 2020"VeloNews. Retrieved 13 November 2020.
  46. ^ Hood, Andrew (10 July 2019). "Azevedo denies reports that Katusha-Alpecin could disband: With important sponsors leaving, the future of Katusha-Alpecin is far from secure, but staffers deny the team has given up hope"VeloNews. Retrieved 10 December 2019.
  47. ^ Trembley, Philippe (26 September 2019). "Israel Cycling Academy set to acquire Katusha's WorldTour license: Israeli-Canadian Sylvan Adams has been motivated to get his team to the Tour de France report"Canadian Cycling Magazine. Retrieved 13 November 2020.
  48. ^ Itera Latvia & Dinamo Riga. (17 October 2012).
  49. ^ Gubkin State University. Business Organizations.
  50. ^ Cooperation agreement, 8 February 2006.
  51. ^ Support for science and education.
  52. Jump up to: a b Starobin, Paul; Belton, Catherine (18 February 2002). "Gazprom: Russia's Enron? Gazprom and PricewaterhouseCoopers are under fire"Bloomberg BusinessWeek. Archived from the original on 15 February 2002. Retrieved 17 August 2021.
  53. ^ "Lucrative Deals for a Daughter of Politics"Los Angeles Times. 20 February 2004. Archived from the original on 2 November 2009. Retrieved 18 August 2021.

External links[edit source]

No comments: