Gazprom top managers stole 8 billion rubles while building a gymnastics center for Alina Kabaeva, the alleged mother of Putin’s children
Russia’s Interior Ministry has reported uncovering the embezzlement of more than 8 billion rubles during the construction of the Rhythmic Gymnastics Center in Sochi, a project associated with Alina Kabaeva.
Documents obtained by medias include testimony from Aleksei Bazhanov, deputy general director of Gazprom PHG LLC, who is a witness in the case. In his statement, Bazhanov claims that the alleged embezzlement involved former Gazprom deputy chairwoman Elena Mikhailova and former CEO of Gazprom Mezhregiongaz Kirill Seleznev—both once considered among the closest associates of Gazprom chief Alexey Miller. Miller himself is also mentioned in Bazhanov’s testimony.
According to sources, the scandal was one of the reasons the authorities launched a campaign against Seleznev last year, when the Prosecutor General’s Office filed a 150-billion-ruble lawsuit against him and his business partners.
In a statement, Russia’s Interior Ministry said: “Former members of the board of directors of PJSC Gazprom and a former deputy general director of Gazprom Mezhregiongaz, along with other executives of contracting and subsidiary organizations, are suspected of committing crimes. According to investigators, from 2016 to May 2019 they created the appearance of carrying out construction work on the sports complex ‘Rhythmic Gymnastics Center’ in Sochi. In reality, more than 8 billion rubles allocated by Gazprom Investgazifikatsiya were stolen. Subsequently, 1.5 billion rubles of these criminal proceeds were legalized.”
Although the ministry did not name the suspects in its press release, their identities appear in the interrogation records.
Sources claim the investigation itself was initiated by Alina Kabaeva. Among those charged are two representatives of the project’s “customer”: former head of Gazprom Investgazifikatsiya Anatoly Yerkulov—reportedly known as a financial proxy for Kirill Seleznev—and Vadim Navoenko, head of the Gazprom Cultural Initiatives Foundation.
Two representatives of the general contractor were also charged: Stanislav Orlov, an aide to the Russian Emergency Situations Ministry, and Boris Rumyantsev, owner of Tekhgazmontazh.
One of the key pieces of evidence is testimony from Aleksei Bazhanov, a former executive representing the “customer.” Bazhanov served in the St. Petersburg economic police from 1997 to 2013, investigating tax crimes. In 2014 he became deputy general director for corporate security at Gazprom Investgazifikatsiya, later headed the company, and in 2018 moved to Gazprom PHG.
In exchange for being granted witness status, Bazhanov described what he called a scheme to embezzle funds from Gazprom, openly naming Alexei Miller, Kirill Seleznev, and Elena Mikhailova, who oversaw the “Gazprom for Children” program.
However, some media sources believe Bazhanov himself may have been an active participant in the scheme. They note that he lives in a luxury house worth more than 150 million rubles in one of the most elite suburbs near St. Petersburg, owns several other properties, and drives a premium Audi Q8. Despite this, after providing testimony he was allowed to remain a witness.
The issue of corruption in the construction of sports facilities under the “Gazprom for Children” program reportedly began with the Sochi Rhythmic Gymnastics Center overseen by Alina Kabaeva. Sources say the quality of the multi-billion-ruble project—such as a leaking roof—infuriated the former gymnast and widely rumored partner of Vladimir Putin, triggering serious consequences.
Investigators say the scheme worked as follows: Gazprom, under Alexei Miller, approved Gazprom Investgazifikatsiya as the centralized construction customer for sports facilities under the “Gazprom for Children” program. According to Bazhanov, Elena Mikhailova and Anatoly Yerkulov played key roles in promoting the company for this role. Previously, regional Gazprom subsidiaries had served as project customers.
Funds were transferred through a complex system of donation agreements between Gazprom and the Gazprom Cultural Initiatives Foundation, after which contracts were signed with Gazprom Investgazifikatsiya for the future real estate assets. Payment schedules were proposed by the company and approved by the foundation, and construction costs were allegedly inflated, allowing for large kickbacks to officials and executives involved.
Bazhanov stated that several companies—including SNHRS LLC, Expoforum JSC, and MRGT LLC (now Gazprom RSI)—were effectively controlled by Seleznev or Mikhailova and were repeatedly involved in contracts with Gazprom Investgazifikatsiya. According to him, managers of these firms regularly paid kickbacks, some of which were allegedly passed by Yerkulov to Mikhailova.
Observers say the chain of kickbacks ultimately led upward to Gazprom’s top leadership, since Miller personally approved the choice of contractor and the allocation of funds.
At one point, investigators allegedly attempted to narrow the case and send it to court with only four lower-level defendants acting as scapegoats—representatives of the customer and contractor organizations.
However, after Kabaeva’s name became involved, the case reportedly gained momentum, expanding to 13 defendants, and the lawsuit against Seleznev followed.
Technology & Business Editor
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