October 15, 2012

Ilyumzhinov's new horizons

From left to right: O. Savchuk, V. Kolomiets, K. Ilyumzhinov

During several weeks news agencies of Russia and CIS countries spread news in which the main newsmaker was Kirsan Ilyumzhinov - the first president of Kalmykia, President of International Chess Federation (FIDE), famous Russian businessman.

July 31 the news agency Inter Right published the article written by economist Elena Kruglova the subject of which was Kirsan Ilyumzhinov.

We offer a full version of the article to your attention. "Actively news is spread that British Fund “Ashmore Group“ (one of the largest in the world) which possesses assets of $ 65.9 billion and Kirsan Ilyumzhinov have signed a partnership agreement.

Founded in 1992 as part of the Australian banking group ANZ Ashmore Group plc is the investment fund specializing in emerging markets.

As a result of the agreement a new investment project has been formed on a parity basis, half fee is the Ilyumzhinov’s money and the other half will be given by Ashmore Group. It should be noted that it’s the first time and the only case of a partnership with a private person.

Original assets of a joint fund will be 1 billion. They plan that a new fund will finance projects in Russia and CIS countries, Japan, Malaysia, Singapore and Hong Kong. The main objective is the development of fuel and energy complex, metallurgy and telecommunications. Headquarters of the Fund will be in Moscow and Singapore. "Kommersant" writes that "the partners have only to give a name to the joint structure which should include Ashmore - the name of the British group.

By the way analyst Sergey Ivashkovskiy of East Capital Fund in the same article in "Kommersant" said that "when representatives of the fund make a bargain they can only rely on themselves. And it is very important to have someone with good relations in government who knows people and the situation more deeply not just financial statements. In Russia you can run your own business in case you can contact the necessary person Western funds don’t have such an opportunity while Kirsan Ilyumzhinov has. It can be expected that it will be substantial investment in major assets. "

In addition, at the end of last year Ilyumzhinov became a partner with businessman Yevgeny Roitman who developed telecommunications networks in Southeast Asia. That’s why probably the primary financial resources of the fund will be concentrated on the creation of a strong competitive telecommunications structure. The construction of LTE-network in Vietnam is a sample of it. Recently Ilyumzhinov has acquired 50% stake of telecommunications company Vip which runs business in Poland and Ukraine. Frankly speaking the true sum of the deal has not been announced. But we can already assume that these structures will cooperate.

As for the Ilyumzhinov’s projects in the energy sector and prospects for development in this field in collaboration with the Russian-British fund an exact calculation and systematic approach of the Russian businessman can be traced. It’s well-known fact recently Kirsan Ilyumzhinov has acquired a stake in the Bulgarian oil company Petrol Holding, the assets of which are 361 petrol stations, 80 oil storage tanks, three port terminals, land in Sofiya, Varna, Bourgas, airline company, hotels (including the five-star Hotel "Pomorie" on coast of the Black Sea), the football club and stadium.

I’d like to say that Ilyumzhinov is confident in the development of the company with the help of investments. In particular, he drew media attention to the fact that all of the company's assets would be financed. It means that not only structure dealing with oil will be profitable but also the whole powerful infrastructure of the company eventually will operate at a profit.

Continuing this topic one of the latest news agency asianewsnet.net informs: «Kirsan Ilyumzhinov is going to invest $ 5.5 billion in coal assets of Pakistan." It has turned out that Ilyumzhinov plans to finance the development of coal at the field Thar in Sindh and the construction of power plant which consumes this fuel. There is very promising perspective in exploration of these deposits. According to estimates the supply of coal is175 billion tons and it’s very convincing.

During the meeting with Kirsan Ilyumzhinov in Islamabad the President of Pakistan Asif Ali Zardari offered a 30-year exemption to pay all customs duties and taxes on goods and services in the course of implementation of the Coal Project. That fact proves a deep interest of the Russian businessman and recognition of his authority all over the world.

One more Ilyumzhinov’s project became a hot midsummer news implemented in the food industry. Let’s refresh in our mind in July of this year Ilyumzhinov became a key shareholder of the French company "Sucden." The French commenting on the agreement admitted that it was part of a joint international project of Kirsan Ilyumzhinov and the largest international sugar traders Groupe Sucres & Denrees on global integration of agricultural-industrial complex in the CIS market. First of all it concerned the development and modernization of plants which belonged to Groupe Sucres & Denrees.

According to the sponsors’ plan the construction of new logistics centers, railway wagons park, grain carts, refrigerator-cars, container terminals and port infrastructure will transform the international corporation "Sucden" in the only agro-industrial company with full cycle with a developed transport network which has no analogues all over the world.

The basic idea is to attract large-scale investments to expand development of new lands in Russia, Kazakhstan, Ukraine and other CIS countries. It will significantly increase cultivation of sugar beet, wheat, barley and other crops and attract new members to the workforce in the industry, significantly increase the tax base, upgrade or re-build the infrastructure network.

For reference: Since 1994 the group of companies "Sucden" has been operating in Russia. The company has three sugar factories: "Tbilisi Sugar Factory" (Krasnodar region), "Dobrinsky Sugar Factory" (Lipetsk region) and "Atmis-Sugar" (Penza region) and three large agricultural companies.

"The integration of land Partner States will intensify economic cooperation in the agricultural sector, provide thousands of new jobs and supply the CIS countries with high quality food products", - the press-service of Kirsan Ilyumzhinov informs.

Still, the key sense of the Ilyumzhinov’s bargains is unknown to mass media and public in general. Although it concerns neither where he concentrates his interests and succeeds in it nor the sums of his contracts and agreements. It’s just a part of a global plan, the strategic development of which has begun since the early 21th century.

At that time Kirsan Ilyumzhinov began to take seriously the idea of ​​creating a unique business model. Then, in 2002, Ilyumzhinov was the first to introduce the concept of "quality of life" in business because today's standards of life have different approaches in determining the criteria for the effective management of business-structures and the tactics of the accumulation of business opportunities that should give way to a development strategy and sustained improvement of life standards.

Kirsan Ilyumzhinov stated his primary task: improvement of performance, that is, the profitability of the enterprise, plant, factory, etc. – First of all it has to improve the quality of life. And it's not just how it will affect the material side of life. It is important to take into account factors such as environmental safety, life expectancy, social lifting, level and availability of health and education.

In other words, the new "Ilyumzhinov's model in business" provides huge opportunity for the implementation of wishes and skills. Production and economy, culture and spiritual world should be oriented at promotion of wishes and skills. Ilyumzhinov thinks only a humanistic approach defines a "well-being of people." People need to feel comfortable and happy. From the moment of birth a person should get an opportunity to enjoy high standards for quality of life.

This is a direct relationship: efficient business platform and people who feel successful in life. It should be the assessment criterion for success and achievements of a new model of a global business. I won’t exaggerate stating that Ilyumzhinov has replaced the concept of "benefit" (referring to pecuniary success for themselves), common to all business to another concept - the "usefulness" (success of the whole population).

For this reason Kirsan Ilyumzhinov has chosen a special way: developing and supporting socially useful business projects he participates in setting up the lives of ordinary people. As a result of his activities new jobs are created, in social policy modern approaches are formed with the help of development and expansion of infrastructure. Thereby he improves living standards regardless of a place of residence.

And more over making bargains all around the world Kirsan Ilyumzhinov realizes an idea of ​​a single business project operating in all parts of the world, the assets of which operates as a single mechanism in the stage of establishment, development and modernization.

Significantly, in July of the year David Yakobashvili, vice-president of the Russian Union of Industrialists and Entrepreneurs, a board member AFK "Sistema", the founder of "Wimm-Bill-Dann" officially became the largest taxpayer in Kalmykia having transferred to State coffers 2,5 billion rubles. This amount is actually equal to the entire budget of the republic for the past year. In Kalmykia such a large amount of tax payments has been declared for the first time.

Being interviewed by the press of Kalmykia David Yakobashvili stated that Kirsan Ilyumzhinov and he have been friends for over 20 years and Ilyumzhinov convinced him to ​​pay taxes in Kalmykia to promote the economy of the country. He was confident that the money would be used to create jobs, the construction of new production facilities, the social needs that actually improved  living standards and welfare of the residents of Kalmykia.

A great deal of respect should be given to Ilyumzhinov's decision about the use of the assets recently acquired in Bulgaria. As it’s already mentioned along with gas stations and oil storage company Petrol Holding Kirsan Ilyumzhinov has acquired a five star hotel on the shores of the Black Sea and a few lower class hotel. Though this is not the core business of the company but nevertheless it will be promoted and of course, in terms of an economic crisis gripping Europe and a strict regime of saving funds it’s amazing.

To Ilyumzhinov’s mind it’s a great opportunity to provide a good rest and care for residents of Kalmykia at reasonable price on resorts of the Black Sea. By the way, the infrastructure of the company will be supported with a part of investments which focuses on the information promotion of holding. As a result, employees will save jobs and wages, the level of host services will be improved, and residents of Russia can afford to spend good vacations at reasonable price.

Kirsan Ilyumzhinov is a person who deals with several spheres: business, chess, politics and religion and therefore possesses unique features of the character. As a successful businessman and famous man he is well informed that’s why he is able to predict future perspectives of business which he deals with, and he is ready to take responsibility for its consequences. As a chess player - he has a mathematical logic and the ability to see and calculate the long term, sees both risks and benefits of future business. As an experienced politician and diplomat he is used to take non-standard decisions. As a Buddhist, he is involved in spiritual quest and he follows traditions of his countrymen, holds canons which his faith requires.

Therefore it is difficult to disagree with the fact that such a complex combination of characteristics in a person allows to implement a completely extraordinary way out of the crisis which is urgent for the whole humanity nowadays. "

UA REGNUM