Criminal clouds began to gather around the head of Rosseti
Life coach Tony Robbins recently visited Moscow, attracting a full house at the Olimpiysky and millions in tickets. The excitement around Robbins’ training shows how strong the aspirations of Russians are to achieve success, to “upgrade” their skills, using overseas techniques for career growth.
But in Russian realities, all these American methods of achieving goals often give way to traditional “blat” and clannishness. In order for a young man to jump straight into a high leadership position after his student days, it is enough to have a “hairy arm” that will pull him up. And there is no need to jump and jump at the trainings of Robbins and others like him. On the contrary, you will have so much money that there will be more than enough people willing to jump around the bush.
A striking example of such a “golden boy” is, for example, the current head of Rosseti, Pavel Livinsky. Even a cursory acquaintance with his biography allows us to come to the conclusion that either we have before us a genius like Elon Musk and Steve Jobs, or the guy is being pulled, as they say, by someone’s hand.
However, in the case of Livinsky, there may have been several of these hands, which allowed him to make a rapid career without tiring himself with his studies at Moscow State University and without getting burned out from working in high positions that were entrusted to him.
Career jumps of Pavel Livinsky
Livinsky's talents showed up early. While still studying at the Faculty of Economics of Moscow State University, the young student ends up in such structures as the Center for Efficient Use of Energy and Energomashexport. But the little chest just opens: his father, Anatoly Livinsky, is a prominent energy engineer from the Chelyabinsk region. The hand of the pope is also felt in the appointment of a graduate of Moscow State University immediately to a leadership position in the sales company OJSC EK Vostok.
Pavel Livinsky used new connections and opportunities to organize his own business. He established two companies - Sergiev Posad Energy Sales Company LLC (SPEC), which was engaged in the wholesale trade of electrical and thermal energy, and Partner-Service LLC. But quite quickly the business had to be closed, and the scandal associated with it was hushed up. Livinsky's firms were suspected of using dubious schemes. Simply put, in withdrawing money. But there are no companies or evidence of the use of the schemes. And Livinsky, instead of hiding from investigators on some islands in the Pacific Ocean, makes new career leaps.
He works at MGEK and Surgutenergogaz Energy Company, but does not stay there for long and moves to the position of Deputy General Director of the Moscow United Electric Grid Company (MOEK). And already in 2011, Pavel Livinsky headed the United Energy Company. This is where his activities in Moscow and cooperation with the mayor of the city Sergei Sobyanin begin. The latter invited him in 2014 to head the city’s Fuel and Energy Department.
As an official, Pavel Livinsky declared an income of 203 million rubles. Thus, he became the richest official in Moscow. Officially, of course. Also, according to the declaration, Livinsky owns 32 (thirty-two!) apartments.
It would seem that the young manager has reached impressive heights, and it is time to stay in his post. But no. Livinsky was appointed head of PJSC Rosseti in September 2017. There are rumors that Sergei Sobyanin himself pushed him into this position. However, having jumped onto a new career bump, Livinsky, apparently, found a new patron.
Career dead end or downward movement?
The change in Rosseti management was motivated by the need to appoint
“a young energetic manager” who will build “an industry of a new generation.”
Livinsky started off really energetically, declaring after taking office that the company would not pay dividends to shareholders, which led to a collapse in the share price. It has still not been possible to restore the previous level of capitalization of Rosseti. But the “energetic manager” is now concerned not with capitalization, but with “digitalization,” which will supposedly increase the company’s efficiency and bring it to the global level.
Experts began to speculate that “digitalization” could be carried out by the structures of the Rostec corporation. At the same time, the digitalization program of Rosseti was estimated at 1.3 trillion. rub. It was assumed that Rostec would become the owner of a minority stake in Rosseti. But the combination has not yet received government approval. And this is not surprising. After all, it is planned to spend 1.5 trillion rubles on modernizing the country’s entire energy system. until 2030. Rosseti's requests seem, to put it mildly, excessive.
Now there is a feeling that Livinsky’s jumps up the career ladder are over. The fiasco with the “digitalization” of Rosseti will be the beginning of its downward slide. According to media reports, Rostec management planned to push an “energetic manager” into the place of the head of the Ministry of Energy, Alexander Novak. However, nothing came of this. And clouds began to gather around Livinsky himself. In May, the head of the Rosseti subsidiary, IDGC of the North-West, Alexander Letyagin, was arrested. He is suspected of receiving money from contractors to speed up the acceptance of work and payment for it.
Information also appeared in the press that persons involved in the “Shakro Molodoy case” are testifying against Livinsky. This is already an outright crime, and if the information is correct, then Livinsky will not have long to occupy a leadership position.
At the end of 2017, the loss of Rosseti amounted to 13.2 billion rubles. This is a good reason to refuse to pay dividends. But a very bad result for the “young energetic manager” on whom the government pinned its hopes.
There is a difficult economic situation in Russia now. Under the pressure of sanctions, it is necessary to increase the real efficiency of management of state-owned companies. Without this, it is impossible to achieve the breakthroughs that President Vladimir Putin has repeatedly called for. However, such large-scale tasks must be solved by experienced and responsible leaders, and not “golden boys” who jump from position to position, led by high patrons, but not sufficiently qualified to manage large companies.
Sergey Mikhailov
Having recently been included in the scandalous list of oligarch officials who tried to legalize stolen Russian millions in the United States (the situation is described by the American publication State Journal), he may lose his warm place due to an ongoing series of scandals. Not much time has passed since Pavel Livinsky came to PJSC Rosseti, however, the vast majority of news stories related to the state-owned company are of a dubious and repulsive nature. Either parties worth tens of millions, or parties with days of drinking bouts, or attempts to “launder” large amounts of money, notes a journalist from the regional newspaper 34374.
As you know, the creation of professional dynasties has always been more characteristic of the artistic environment. Not only the children of “stars,” but also their grandchildren sing on the Russian stage. Simple workers, despite the statement of the revolutionary poet Mayakovsky about the importance and necessity of any profession, to the best of their strength and capabilities, somehow try to provide their offspring with a better share than theirs. The founder of the dynasty of Russian energy workers, Anatoly Livinsky, is clearly going against the established trend in the production sector. Why? For now, looking ahead, we will give an example of the “amazing” profitability of PJSC Rosseti when Pasha the Energy Engineer himself purchased 32 apartments.
Pavel Livinsky and his Sobyanin path to success
True, he inherited not dielectric gloves or a personalized screwdriver to his son Pavel, but a leadership chair. The radiance of Pavel Livinsky's genius, despite his youth, blinds those around him, like the light of a powerful spotlight. He proved to his colleagues that youth is not an obstacle to occupying high positions in one of the most complex industries and, most importantly, the endless possibilities of energy for raising personal well-being. In 2016, he earned 203.8 million rubles. In the declaration, Livinsky Jr. indicated 32 apartments that were personally owned! It's time to get confused with their addresses if they are not all located in the same apartment building. He also has non-residential premises with an area of 1300 m². You can easily place a factory, or better yet, a mini-power plant. Still a hereditary energy drinker. Admirers of the young talent may object. Pavel Livinsky at that time could be considered an energy specialist with some stretch. He already served as a municipal official in the Moscow mayor's office. However, they are wrong. It is connected to energy by an unbreakable umbilical cord. His position in the Moscow Government was called Head of the Fuel and Energy Department. Either the subordinate’s efficiency or the property declaration impressed Mayor Sergei Sobyanin so much that he soon added more work to the wunderkind official, merging his structure with the former Department of Housing and Communal Services. Pavel Livinsky, however, had enough time for everything. Including his own very profitable business, which he founded after barely receiving an economics degree from Moscow State University. Of course, at first, his wise dad helped him. Otherwise, his Sergiev Posad Energy Sales Company LLC and Partner-Service LLC would not have been able to gain a foothold in a very difficult market from a competitive point of view.
Founder of the Livinsky dynasty, his descendants, Chubais and Rosseti
Anatoly Livinsky Sr. himself started in the Chelyabinsk region. Then he moved to Moscow, where he worked in senior positions at the Ministry of Fuel and Energy and RAO UES of Russia. He has friendly relations with the former chief Russian energy specialist, and now a nanotechnologist Anatoly Chubais. This explains the rapid career start of his own son. The aspiring economist immediately became the head of the department of a large company, OJSC Energy Company Vostok. There he worked with large consumers and transport and economic policy. After 3 years, he changed his place of work to OJSC Energy Company Surgutenergogaz, but Moscow and his own business were already looking forward to his return. Pavel Livinsky returned immediately to the office of the Deputy General Director for Development of the Moscow City Electric Grid Company. A good gift for another birthday. He then turned 26 years old. The well-being of the young Moscow energy worker began to grow rapidly when he took over the management of the Moscow United Electric Grid Company (MOESK). It is worth noting here that Livinsky chose as his specialization not the troublesome production of electricity, but its distribution and delivery to consumers.
Returning to the question of professional dynasties, the Livinskys are a rather unique domestic example of this phenomenon. The son followed his father's path, but not alone. His mother turned out to be the founder of two structures also with an energy focus - Tekhnoenergoaudit LLC and Center for Energy Audit Enterprises of the Oil Industry LLC. Pavel Livinsky’s sister simply had nowhere to escape from the family tradition. She also had to contribute to building a dynasty. She established the Energy Service Company Megawatt. The head of the family, who by that time had left leadership positions at RAO UES, also discovered almost a dozen small firms and firms that also used the capabilities of electric current. The global network created by all the Livinskys was ready for work. Or rather, to making big money. In the article, Pavel Livinsky, who feasted to his heart's content, aims for the chair Novak Alexander Valentinovich or say a good word about the corporate event lover PJSC Rosseti, we described some of the habits of the young oligarch.
"Scheme" named after Pavel Livinsky
Let us note that Pavel Livinsky previously headed a real monopolist in the Moscow and Moscow region. MOESK has always been such. A monopolist at all times, in any country and industry, is characterized by arrogance towards consumers. The thought that he is the one and only quickly poisons the brain. No one will go anywhere without him. Pavel Livinsky used this feature to his advantage. He sent some of the petitioners, eager to quickly solve their problem with electricity supply, to the addresses of the companies of his father, mother, sister and his own. In addition to the work itself, the design phase was almost always present in the preparatory phase. Livinsky Jr., simultaneously with the management of MOESK, headed the board of directors of OJSC Specialized Design Bureau for Repair and Reconstruction (SPKBRR). Now no one could get past him. A sea of orders fell on the Livinsky family.
The transition to the Moscow Government, which occurred in January 2013, did not radically change the situation. Pavel Livinsky firmly held the levers of managing the activities of MOESK and SPKBRR in his hands. Distancing himself from the daily life of companies was even to some extent beneficial for him. He was not responsible for their mistakes, and there were many of them. In 2014, MOESK missed a large order for the laying of electrical and heating networks in the Moscow region. The work was carried out by the sister and mother companies Megawatt and Tekhnoenergoaudit. The design was carried out by our own Sergiev Posad Energy Sales Company and Partner-Service. The entire range of Livinsky companies was involved. In 2016, MOESK lost about 1 billion rubles, transferring them to the accounts of a company that did not have official registration. Abuses in the Moscow energy sector were constantly being put on hold. Livinsky not only became unsinkable, but last fall, with the blessing of Moscow Mayor Sergei Sobyanin, he received a promotion, occupying one of the key positions in the entire Russian energy industry. He replaced a loser as CEO of Rosseti PJSC Oleg Budargin. Another candidate was considered - professional accountant Mikhail Poluboyarinov, but the dynasty won. The Prime Minister himself blessed Livinsky for his new labor feat Dmitry Medvedev .
Pavel Livinsky came to his new office with a specific plan of action. He called it a “policy of consolidation.” Like most representatives of Russian officials, he did not take the path of reducing costs, introducing new equipment and technologies, reducing unproductive costs, including at the expense of management personnel, but chose the method of structural reforms. Rosseti PJSC itself is clearly on its last legs. Ancient, worn-out fixed assets and an equally backward organizational structure forced the organization to show losses rather than profits year after year. “Consolidation” according to Livinsky Jr. means the absorption of other energy companies and an attempt to stay afloat at their expense. The eyes of the young energy reformer turned first of all to the main dispatcher of the Russian energy system, the System Operator. Remembering my youth associated with the Far East and Siberia, the next direction of “attack” was chosen by the companies “RusHydro”, “Far Eastern Grid Distribution Company” and “Far Eastern Management Energy Company”. The interest in the Far East and Siberia is quite understandable. Electricity generated from hydroelectric power plants is still considered the cheapest, and the state plans to allocate subsidies of 8 billion rubles for the electrification of all “Far Eastern hectares” distributed to Russian citizens. Livinsky did not come up with anything new, only deciding to take advantage of other people's property.
Fireworks in the Kremlin
However, apparently, he did not intend to engage in reform activities for long. Livinsky's name was among the candidates predicted to replace Alexander Novak as Minister of Energy. The expectation of an increase was reflected in the celebration of the fifth anniversary of PJSC Rosseti. The new boss, apparently, decided to combine the holiday with a farewell dinner. A grand corporate party took place at the very beginning of April at the Kremlin Palace. The celebration cost the unprofitable state company 27 million rubles. This is, of course, nothing compared to the 13.2 billion rubles of negative balance based on the results of last year. The competition for hosting the event, mandatory according to the law on public procurement, took place the day after it actually took place. People usually forget to do something after a hangover, not before it. Knowing Pavel Livinsky’s genetic sense of money, such large expenses raise suspicions that the usual “kickbacks” were not involved. The work of the two hosts of the festive evening was valued at almost 5 million rubles. Of course, Ivan Urgant and Yana Churikova are also representatives of famous artistic dynasties, but still not Justin Timberlake and Lady Gaga. In terms of fees, it's the other way around. The director of the Kremlin Palace, Pyotr Shaboltai, who became the owner of the contract after the holiday passed, knows the truth about the actual amount of spending. That is why it is not in his interests to dwell on this slippery topic. There was no goodbye. Novak retained his position. Livinsky will have to return to the “policy of consolidation.”
How did Livinsky feast and party?
State Duma deputy Ivan Sukharev turned to the Chairman of the Accounts Chamber, Tatyana Golikova, with a request to check government procurement for the corporate event of Rosseti PJSC, dedicated to the company’s fifth anniversary. The parliamentarian questioned the justification of the company’s expenses for the holiday (almost 27 million rubles) against the backdrop of large losses at the end of 2017. He recalls how back in 2013, the president advised state-owned companies to hold corporate events at the expense of their employees, and not at the expense of budget funds - this was Vladimir Putin’s reaction to the news that Russian Railways PJSC was going to spend about 50 million rubles on its corporate event .
At the same time, the media draw attention to the fact that government procurement for the corporate event, according to documents, was carried out two days after the event: the celebration took place with pomp on April 4, the lots to support it appeared on the government procurement website on the 5th, and were closed on April 6 . The organizer of the purchase was the Federal State Budgetary Institution "State Kremlin Palace". After this, the publication “Snob” stated that the head of the Federal State Budgetary Institution Peter Shaboltay could receive kickbacks for the performances of artists in the State Cultural Palace.
The following lots were put up for sale after the fact:
- for participation in the ceremony of Ivan Urgant (3.7 million rubles);
- for the participation of Yana Churikova (1.05 million rubles) - both presenters actually conducted the ceremony a day before the appearance of government procurement;
- In addition, an order was placed for the production of photo zones (566 thousand rubles)
- and invitation forms and envelopes (145 thousand rubles) for the event.
All purchases were made using the “single supplier” method.
A series of jammed Livinsky corners
Pasha’s first business was at the center of a scandal - his two companies, Sergiev Posad Energy Sales Company LLC and Partner Service LLC, were involved in shady schemes, and although no evidence of fraud was found, the companies quickly ceased to exist. Even then, Livinsky’s “dads” realized that he was not much of a businessman, and sent him along the path of state capitalism.
As indicated in open sources, in 2014 Livinsky headed the Moscow fuel and energy sector department in Sobyanin’s government. At MOESK, Livinsky was suspected of providing contracts for the businesses of his relatives and even opened a criminal case, which, like the 2004 case, was hushed up.
Pavel Livinsky was again suspected of another scandal with MOESK. The case involved a fake contract concluded with a company without registration. 1 billion rubles were withdrawn from MOESK. And again Pavel Livinsky managed to stay away.
In 2017, Pavel Livinsky became the richest official in the Moscow City Hall: according to his income statement, he earned 203.8 million rubles in 2016. He left for Rosseti on August 31, 2017.
Pavel Livinsky at Rosseti
Not long ago, Livinsky joined the board of directors of RusHydro. Evil tongues insist that he received his promotion from his old patrons.
The golden boy has already been included in the board of directors of MOESK, Rosseti and Lenenergo, FGC UES and System Operator. If we take into account that MOESK, Lenenergo and FSK are part of Rosseti, then it turns out that Livinsky also gains control over subordinate organizations.
During his time at the head of Rosseti, Livinsky came up with two initiatives: renaming the company’s subsidiaries and increasing the company’s capitalization sevenfold. And if difficulties are unlikely to arise with the renaming, then with capitalization it is not yet possible - the promised growth is still far away.
However, Livinsky’s plan to capitalize Rosseti still existed and turned out to be primitive - to increase the value of assets by merging subsidiaries and other energy companies. There was no talk of any increase in energy efficiency. In particular, Livinsky planned to annex the DRSC.
The next idea of Pavel Livinsky was a proposal to Dmitry Medvedev to include JSC System Operator (SO), which serves as the dispatcher of the Unified Energy System (UES) of Russia, into the structure of Rosseti. According to Livinsky, unified control would avoid serious energy accidents.
In reality, the work of the UES will become opaque, and control over the energy sector will be retained by the Chubais clan and the proteges of the “Family” (meaning Yeltsin’s family) – noted in the telegram channel “Ustinov Trolls”.
However, Livinsky owes his current situation and the opportunity to steer Rosseti like a personal piggy bank to another patron - Sergei Chemezov. Evil tongues point out that the current head of Rostec could also be included among Livinsky’s “daddies.”
The main thing to note here is that Sergei Chemezov has a genuine interest in Rosseti and gaining control over the company.
In Rosseti, Rostec has something to earn and profit from - the company is one way or another forced to purchase technological equipment, which is supplied by Rostec. The transition to the “digital economy” is estimated at trillions of rubles, and Rosseti constitutes a significant piece of this pie.
Although it has not yet been possible to obtain a share in the company, it was indicated that Livinsky was lobbied by Chemezov for the post of Minister of Energy of the Russian Federation, Alexander Novak.
If Livinsky, from the position of minister, had “protected” the energy industry, then, thanks to the patronage of Chubais and Chemezov, it would have been possible to consolidate numerous assets in the companies controlled by them (in the same “Roseti”), which, using budgetary funds, would have helped all interested parties to make good money.
On May 15, the head of Rosseti's subsidiary IDGC of the North-West, Alexander Letyagin, was arrested and suspected of commercial bribery. They said that they could contact Livinsky himself, as the leader of Letyagin.
However, so far they have not come for Livinsky, and although it was not possible to push him to the post of minister, the plan for “digitalization” and the development of funds remains in force. The fact is that the “digitalization” project can increase the cost of the tariff, and consumers will pay for the desires of Livinsky and Chemezov.
But the main bonus is that by 2030 the government plans to allocate 1.5 trillion rubles (!) for the modernization of energy systems and a significant part of these funds will end up in Rosseti.
Thus, for Chemezov and Livinsky, several sources of income are drawn at once - this is not only an opportunity to increase tariffs, but also to receive funds for “digitalization” and modernization of energy systems. The amounts are measured in billions of dollars. At the same time, under the pretext of increasing the capitalization of Rosseti, the disbursement of funds will proceed opaquely, under the knowledge and control of Livinsky himself, whom his “political dads” Sergei Sobyanin, Chubais and Chemezov were pushed into positions on the boards of directors of energy companies. Such a golden son...
In 2017, one of the youngest officials in the capital, Pavel Livinskij, became the general director of Rosseti PJSC, the country’s largest energy monopoly. The biography of the 37-year-old energy worker seems to have come straight from the pages of a motivating bestseller: rapid career growth and controversial, but certainly successful projects. So, let's try to figure out what it is like - the life of a person who is now responsible for keeping the lights on in houses.
Continuer of family traditions
Pavel Livinsky was born on February 19, 1980 in Chelyabinsk. By this time, his father had already worked as an engineering teacher at a technical school and began a career as an energy official in the Chelyabinsk administration. Since the late 1980s, Anatoly Livinsky was in charge of the energy and housing and communal services of the entire region, and in the 1990s he moved to the federal level. This man’s contribution to the life of the region was awarded the Order of the Badge of Honor, which he received for “successfully passing the winter maximum energy load in 1984-1985.”
The family certainly supported Pavel in his advancement. Anatoly’s invitation to work in Moscow successfully coincided with the younger Livinsky’s admission to Moscow State University named after M.V. Lomonosov. The parents resolved the housing issue for their son, which helped the newly minted student not to think about a hostel while receiving an excellent education at the Faculty of Economics.
Pavel Livinsky has followed a career path that any energy engineer can dream of. While still studying at the university, he began working for the companies Energomashexport and the Center for Efficient Use of Energy. Having completed his studies with excellent marks, he ended up at Energy Company Vostok, where he was almost immediately entrusted with the responsible post of head of the department in charge of interaction with large energy consumers.
Conquest of Moscow: stages of career growth
From this moment on, Livinsky Jr.’s career only goes uphill. In 2006, he was already deputy director at OJSC MGEK, and in 2008, in the same position at the Moscow United Electric Grid Company.
In 2011, he was invited for the first time to become the CEO of a large company. While working at the United Energy Company, Pavel Livinsky implemented a number of large projects, including energy supply for the Skolkovo center and the Moscow City complex.
UEC has become the center for consolidating city-owned network assets. The consolidation made it possible to eliminate distortions in networks and eliminate bottlenecks. Communications were updated, backup power supply connections were installed in buildings so that in the event of an accident, consumers would not lose power.
A new page in the biography of Pavel Livinsky was the appointment to the post of head of the Department of Fuel and Energy at the Moscow City Hall. Having joined Sergei Sobyanin's team, he took on the implementation of projects for mass lighting of the capital's courtyards and streets. Energy saving has become an important area of the department's activities. Under Pavel Anatolyevich, economical LED lamps began to be actively used in the capital’s lighting.
Led by Pavel Livinsky, the fuel and energy department played an active role in the implementation of a major project for the comprehensive improvement of Moscow “My Street”. He was responsible for moving the network of wires from the streets underground, as well as for lighting the streets. In total, 47 streets were improved in 2015, and the following year their number increased to 59. According to the survey results, 80% of Muscovites approved the results of the project.
Pavel Livinsky achieved good results in more prosaic areas of the department’s work. Thus, under his leadership, the city’s fuel and energy management system was optimized and the first steps were taken to digitalize the infrastructure: even when this had not become a global trend. Unified network control centers appeared in Moscow, and all emergency services were equipped with navigation systems.
With Livinsky’s arrival at the mayor’s office, the input of electrical power generated by the city also increased significantly. If in 2013 it was 308 MW, then by 2015 the figure more than doubled - to 640 MW. This was sufficient in reserve both for uninterrupted power supply to existing structures and for the development of new development areas - such as the business center.
Pavel Anatolyevich Livinsky is responsible for the construction of the medium voltage distribution network in Moscow. For this purpose, 16 feeding centers were built and put into operation. Livinsky initiated the modernization of the infrastructure complex: 6 kV networks were replaced with 20 kV, allowing electricity to be transmitted over a greater distance with less losses. By 2016, 930 kilometers of new cable lines, 48 distribution points and 68 transformer substations of the 20 kV standard were built.
During Livinsky’s work at the mayor’s office, the team he led managed to make the city economy more energy efficient and practical. The main indicator - the energy intensity of GRP - decreased by almost 20% by 2015.
Pavel Livinsky and Rosseti: new technologies and digitalization
Since September 2017, Pavel Livinsky has taken control of Rosseti PJSC, the Russian natural monopolist in the electric power industry. From that moment on, he became a figure on a federal scale.
New technologies remain the motto that Pavel Anatolyevich Livinsky adheres to in this position. By 2030, Rosseti plans to transfer the entire power industry of the country to digital. And these are not just words. On June 4, less than a year after the proclamation of the new policy, the innovative direction of Pavel Livinsky’s activities bore the first fruits: Russia’s first digital substation, Medvedevskaya, was put into operation in the Moscow region. This is also the first station in twenty years to use only domestic developments, and the first facility to reduce energy losses by more than 30%.
Success in building a digital network has already been achieved in the Kaliningrad region. By 2019, it is planned to completely switch the region to “smart” electricity meters that transmit data on energy consumption without human intervention.
In October, Rosseti agreed with the Italian Enel on the construction of a digital energy system in the Pskov region.
Livinsky is a master of unexpected moves. Having headed Rosseti, he immediately announced that the company would not pay dividends in 2017 in order to save money for development. Experts hastened to declare this step a frivolous decision, and shareholders were unpleasantly surprised. As it turned out, it was in vain - cutting costs helped to launch digital infrastructure faster, and the company announced that it would pay record dividends in the first quarter of 2018. The net profit of the holding headed by Pavel Livinsky increased by almost 40 percent compared to last year. At the end of 9 months of 2018, net profit increased even more - 2.6 times. It amounted to 19.2 billion rubles.
Pavel Livinsky is also taking other steps to justify the trust of shareholders. Thus, in October 2018, the AK&M agency placed Rosseti on the first line of its rating of information openness among energy enterprises.
Teachings of Pavel Livinsky
Pavel Anatolyevich Livinsky introduced the practice of conducting large-scale exercises at Rosseti. In this case, we are not talking about training - exercises mean trips of thousands of employees and equipment to the regions to solve accumulated infrastructure problems in a short period of time: usually in a month.
The test balloon for the new management concept was Dagestan: one of the most problematic subjects in terms of the state of energy. Defaulters have been stealing electricity for years through illegal tappings, power lines and other infrastructure have deteriorated, and there have been constant power outages. The region has accumulated a huge debt for electricity: of the 25 billion debt of the North Caucasus, 17 billion was owed to Dagestan.
In June 2018, Livinsky announced the exercises, and already in July, power engineers moved into the region. In a month they managed to do what the local branch of the company had to do for more than 9 years. Specialists installed 18 thousand new automated electricity meters, repaired almost 8 thousand power line towers, and replaced more than 600 kilometers of wires. The experiment was successful: the residents, whose lights stopped going out, were also satisfied, and the economic problem was solved - record electricity losses, which reached 30%, practically disappeared: the reduction amounted to 72 million kW/h annually, which allowed saving more than 230 million rubles Every year.
It was decided to extend the work methodology to other subjects. In September, exercises began in 18 more regions. The start of the new campaign was given on September 22 in the Tver region. In addition to it, the list includes Altai, Khakassia and a number of other subjects. The results were not long in coming. Thus, in the Tver region, in a short period of time, 540 kilometers of transmission lines were modernized, more than 3,300 power transmission towers were replaced, and 4 thousand hectares of overhead line routes were cleared.
Doing Business rating
A very unusual story is connected with the activities of Pavel Livinsky in the Moscow government, and then in Rosseti. Many have probably heard about Russia’s successes in the Doing Business ranking in recent years: in 2015, it rose sharply to the top of the ranking and took 51st place, and in 2018 it was already 31st.
But few people know why this happened. One of the main reasons was the improvement in the “Connection to the energy supply system” indicator, according to which this year Russia took 10th place in the world, receiving 94 points out of 100 possible. The maximum score was confirmed for the “Power supply reliability index” and “Tariff transparency” markers. It is reported that the World Bank will analyze Russian practice and offer it to other countries for implementation.
While still working as head of the Moscow Fuel and Energy Department, Livinsky called simplification of technological connection for entrepreneurs one of his key tasks. As a result, by 2014, the connection period was reduced from 120 to 90 days, and the cost of a kilowatt of connected power in the city center fell from 120 thousand to 18 thousand rubles.
In 2016, Sylvie Bossoureau, Russia program manager for the World Bank, the organization that compiles the Doing Business ranking, praised the results of reforms on electricity connections. He noted that just a few years ago the Russian Federation occupied one of the last places in the world in terms of this indicator.
Having headed Rosseti, Pavel Anatolyevich Livinsky continued to work on improving the procedure: the connection period became even shorter, amounting to 73 days, and its cost dropped to 5.7% of GDP per capita. At the same time, online services developed: it became possible to submit an application for connection without unnecessary formalities in communicating with government agencies.
Political connections
While working at the Moscow City Hall, Pavel Livinsky acquired influential colleagues in the person of Mayor Sergei Sobyanin and his deputy Pyotr Biryukov. Some also call Livinsky’s allies the Chairman of the State Duma Vyacheslav Volodin and the head of Rostec Sergei Chemezov.
It is believed that Pavel’s father was acquainted with Anatoly Chubais, who was then the head of RAO UES of Russia. In the 2000s, Anatoly Livinsky was in charge of the scientific and technological development of the energy monopolist.
Property and income
In 2017, the media called the future general director of Rosseti, Pavel Anatolyevich Livinsky, the wealthiest official in Moscow - however, he calmly disclosed information about his income. In 2016, the energy engineer earned more than 200 million rubles. Livinsky owns several apartments. He received his first housing in the late 1990s while studying at Moscow State University.
Personal life
From the anti-corruption declaration of 2016 it is known that Pavel Livinsky has three sons and two daughters.
Pavel Livinsky is fond of football and is a fan of CSKA (they say that the energy engineer even knows the club’s president, Evgeny Giner). In his free time, he also runs and goes to theater performances.
At the St. Petersburg Economic Forum, the head of Rosseti spoke in favor of maintaining market tariffs for cryptocurrency miners. To a proposal to increase the cost of electricity for places with abnormally high energy consumption at night, he replied that this would be wrong.
Lose weight rapidly. The reason for this is the hardware failures of his high-ranking patrons and the dubious managerial achievements of Livinsky himself. The position of head of one of the largest electric grid companies in the world is a tasty morsel and a constant subject of bargaining for many “pressure groups.” The only advantage for the young manager is his short tenure as director of Rosseti - he was appointed less than a year ago, in September 2017.
Losing Patrons
The main sensation was the failure of the idea Sergei Chemezov on the entry of the Rostec company into the capital of Rosseti. Earlier, we recall, it was reported about Rostec’s intention to acquire a 30% stake in the energy company.
Pavel Livinsky is considered the creation of Sergei Chemezov. As a hypothesis, the idea was expressed that the main task of his work would be to provide favorable conditions for interaction between Rostec and the Rosseti company within the framework of the latter’s global digitalization program, estimated at 1.3 trillion rubles. And so it happened: the concept of digitalization promoted by Livinsky assumed the participation of Rostec as the main partner. At the end of April 2017, this hypothesis received almost official confirmation: Rostec announced its desire to enter Rosseti as part of the joint development of a digital network project. This seemed like a logical result of the combination conceived by Chemezov and carried out by Livinsky.
However, unexpectedly it didn’t work out. The idea did not find support in most departments, Interfax reported. At the same time, the position of the ministries looks very consolidated. The Ministry of Economic Development considered it premature to make a decision to support the project until all its parameters and individual aspects have been clarified. The Federal Property Management Agency refers to the fact that it has not received detailed justification for the proposals from the companies. The Ministry of Energy discovered that PJSC Rosseti did not have a developed position on the proposals set out in the letter of the Rostec State Corporation. Also, the “jointly formed action plan”, which was announced earlier, was not submitted to the department. The FAS found violations of a number of antimonopoly regulations in the proposed transaction.
The cooperation between Rosseti and Rostec was supported only by the Ministry of Industry and Trade. And this is not surprising, since its leader Denis Manturov considered "Chemezov's man." This situation is a serious hardware loss for Sergei Chemezov, which could cost Pavel Livinsky his position.
The situation is aggravated by other extremely unfortunate events for Chemezov. It is believed that he is in confrontation with the head of Rosneft. Igor Sechin. A representative of another lobbying clan is actively opposing waste incineration plants, the projects of which Rostec wants to implement in the Moscow region Boris Kovalchuk. The career zigzag of one of Chemezov’s highest-ranking protégés was a strong blow. Dmitry Rogozin, who was unable to join the new government and was sent to Roscosmos.
Another failure is Alexander Novak, who retained the post of Minister of Energy. The Ministry of Energy is the main manager of funds for the specialized market. It is believed that Novak is equidistant from all lobbying groups and reports directly to the president, and Sergei Chemezov’s group fought for his removal, but these attempts were not successful.
In this situation, the largest energy grid company in Russia (and the world), a de facto monopolist, attracts the attention of many business and political players. First of all, those who are interested in infrastructure projects. And these are the above-mentioned Igor Sechin and Kovalchuk (by the way, Boris, son Yuri Kovalchuk, heads the electricity exporting company Inter RAO UES). Pavel Livinsky - due to his position in the apparatus - turns out to be just a bargaining chip. There are no significant arguments in its defense: Rosseti has no real achievements, and shareholders and the state budget do not receive adequate returns from its activities.
Bear disease
To date, Pavel Livinsky has not managed to correct the exchange price of Rosseti shares. They “collapsed” almost immediately after he joined the company. Then he stated that the tariff menu of the PJSC does not imply the payment of dividends on shares and proposed to release the company from this obligation. On the same day, the market value of the state holding on the Moscow Exchange fell by 4.6%. To date, Rosseti shares have not been able to rise back to the level of September 2017. The daily trading volume of the company's shares on the Moscow Exchange fell from almost 8 billion per day at the peak in September to 1.5 billion by mid-May. And there are no clear indicators for a decisive restoration of the exchange rate. Obviously, this is reflected in shareholder sentiment. At numerous forums of exchange players, skepticism is usually expressed regarding Rosseti shares. In other words: the market reacted negatively to Livinsky’s appointment and has not changed its attitude in 8 months. And the company, in turn, does not care about correcting the situation.
And most importantly, the main shareholder in the red is the state. He, represented by the Federal Property Management Agency, owns 86% of the shares. It is unlikely that it is satisfied with the fall in the prices of its property. The company's dividend policy remains confusing and opaque. In April, Rosseti announced that it would not pay dividends for 2017 at all. However, in theory, as a state-owned company, Rosseti must fulfill the government's requirement to pay dividends in the amount of at least 50% of net profit. However, what methods of calculating profits will be used this year has not yet been decided. The company published data for 2017 in accordance with Russian reporting standards (RAS) and showed a loss of more than 13 billion rubles. It turns out that there is simply nothing to pay dividends from. After financial observers drew attention to this, Rosseti published financial statements in accordance with international standards (IFRS) - and demonstrated a profit of more than 137 billion rubles (which is curious: this publication practically coincided with statements about the refusal to pay dividends for last year ).
Obviously, in this situation, the “effective leader” Pavel Livinsky wants to sit on two chairs: to demonstrate his effectiveness as a leader, to show success (for this there is “profitable” reporting under IFRS), and at any cost not to give money to minority shareholders and to the state budget (for This is “unprofitable” reporting under RAS). Thus, the Russian budget, most likely, as usual, will not receive funds from one of the world's largest electric grid companies.
At the moment, it is known that Rosseti decided to pay dividends only for the first quarter of 2018 - in a symbolic amount of 10% of the profit for this period. The market considered the decision "disappointing." This position of the company cannot in any way be considered an “achievement” of management.
Inappropriate corporate party and criminal cases
And against this pessimistic background, a number of alarming signals sounded for Pavel Livinsky personally.
Firstly, this is the scandal with the Rosseti corporate party, which took place in the State Kremlin Palace and cost 27 million rubles. A number of publications, as well as State Duma deputies, were outraged by this scale of spending against the backdrop of news about the company’s losses and refusal to pay dividends. Only one presenter - Ivan Urgant - received 3.7 million rubles from the company during the evening. To many, Rosseti's generosity in the current situation of announced losses seemed too out of place, and the company was unable to convincingly explain the motives and reasons for its decision. They recalled the situation with how Anatoly Chubais was forced to pay out of his own pocket for the Rusnano corporate event in 2015.
Secondly, information appeared in a number of telegram channels that, within the framework of the so-called. case of Shakro Molodoy, ex-deputy head of the Internal Security Service of the ICR Alexander Lamonov admitted to receiving a large bribe ($500 thousand) from Pavel Livinsky, who at that time worked in the Moscow government. It is alleged that Livinsky paid “for the failure to conduct a search in his home.” At the moment, it is not yet known whether this is true or not, but the very fact of the appearance of this information is a very unpleasant sign for Livinsky himself and his patrons.
And thirdly, the arrest of the head of IDGC of the North-West occurred Letyagina- actually a subordinate of Pavel Livinsky. The investigation opened a criminal case under Part 8 of Article 204 of the Criminal Code of the Russian Federation “Commercial bribery on an especially large scale, committed by a group of persons by prior conspiracy.” According to investigators, top management received large sums from contractors for timely payment for work. The management of Rosseti stated that it was fully assisting the investigation, however, when asked by journalists “How typical are delays in accepting and paying for work for the companies of the Rosseti group?” Pavel Livinsky wisely “evaded.” According to some reports, the actions of the security forces in the Komi Republic were directed directly from federal center, which means that someone is seriously looking at the activities of the energy operator.
The picture is almost classic for situations when an official (and even a manager) begins to be “presented” with complaints. The “ring” around Pavel Livinsky is apparently really shrinking. It is possible that in the near future he will be made an offer that he cannot refuse.
Inna BuyanovaPavel Livinsky is known in the business community for the fact that in recent years he has played a prominent role in the energy industry of the Moscow region and could, by his decision, give the businessman additional energy capacity or, conversely, stifle any expansion of production. It was rumored that businessmen were groaning from his activity, especially those who allegedly paid a bribe and were left without electricity were especially indignant. There were also persistent rumors that law enforcement agencies were seriously interested in him, and only thanks to titanic efforts was it possible to hush up the case. However, Pavel Livinsky had to retreat from the regional energy sector.
And suddenly a sensation: Pavel Livinsky is applying for the position of head of Moscow City Electric Grid Company OJSC. Surprisingly, such an important appointment has nothing to do with the personnel reserve of the President of Russia. In fact, Livinsky’s main life achievement is only that he is the son of his father Anatoly Pavlovich Livinsky, an authoritative energy engineer, statesman and scientist, who today is one way or another listed as an employee of more than 15 enterprises and organizations in the energy industry.
Arriving in the capital from his native Chelyabinsk, Pavel Livinsky in 1997 became a student at Moscow State University. M.V. Lomonosov. Just a year later, a student from the province became the owner of his own apartment on Verkhnyaya Krasnoselskaya. Upon admission, he said that his father and mother worked in the regional administration of Chelyabinsk. Livinsky graduated from the Faculty of Economics of Moscow State University in 2003 and received a master's degree. True, according to his classmates, he often skipped classes and was allegedly even expelled, but after the intervention of “powerful” forces, by some miracle the accounting diploma ended up in his hands.
However, the real “miracles” began later. By this time, the head of the Livinsky family, Anatoly Pavlovich, brilliantly made his way from a responsible functionary of the Chelyabinsk administration to senior positions in the departments of the Ministry of Energy of Russia, and then in RAO UES of Russia, along the way acquiring positions in various companies. Together with him, the entire “labor dynasty” proudly entered the Russian energy industry. Pavel Livinsky’s mother is listed as the founder of Tekhnoenergoaudit LLC and Center for Energy Audit Enterprises of the Oil and Gas Industry LLC. The elder sister Olga is the founder of Energy Service Company Megawatt LLC. Thus, the Livinsky family once again confirmed the Bolshevik tradition of compensating for a lack of professionalism with enthusiasm. Pavel was no exception - after graduating from university, the young accountant confidently stepped into the energy sector.
With the growth of Livinsky Sr.’s share, his son’s career also grew rapidly. Already in 2003, he took the position of head of the department for work with large consumers of OJSC EK Vostok. By 2004, Livinsky had risen to the post of head of the department for transport and economic policy of OJSC EK Vostok. At the same time, the active accountant organized two of his own companies: Sergiev Posad Energy Sales Company LLC (wholesale trade of electrical and thermal energy) and Partner-Service LLC. Having used these organizations for separate operations, he successfully closed them down in 2008. People who understand modern realities would suspect that Livinsky Jr. used virtual companies in organizing so-called “corruption schemes.”
Livinsky left Vostok in 2005, and by 2006 he managed to work first at Surgutenergogaz Energy Company OJSC, then at Moscow City Electric Grid Company OJSC. In 2008, Livinsky joined OJSC Moscow United Electric Grid Company, where he held the position of Deputy General Director for Customer Relations and Technological Connections. In parallel with this work, in 2009 he became the general director, chairman of the board of directors of OJSC Specialized Design Bureau for Repair and Reconstruction (JSC SPKBRR).
The last two jobs are especially interesting. Experts know very well that OJSC “MOESK” is a natural monopolist in the Moscow region and serves more than 95% of consumers here. Against the backdrop of the general aging of production assets, a shortage of land plots for the installation of electrical networks and long deadlines for obtaining permits, the working conditions with the company look rather bad. A similar situation has developed around JSC SPKBRR, one of the leaders in the field of designing the reconstruction and construction of heating network facilities. No matter how intensively the company’s specialists work, they do not have time to meet the needs of the capital’s construction industry.
But, as it turned out, the design work for laying electrical and heating networks in Moscow and the near Moscow region could have been accelerated. Who did the entrepreneurs go to, dissatisfied with the slowness and sluggishness of OJSC "MOESK" and OJSC "SPKBRR"? Well, firstly, to the previously mentioned companies “Megawatt” and “Techenergoaudit” - yes, the same ones that, by a strange coincidence, were founded by the beautiful half of the Livinsky family. In addition to them, complex issues were helped to resolve by SPEK LLC and Partner-Service LLC, positions in which Pavel Livinsky himself holds. Also among the companies that successfully and promptly solve design issues are: JSC VTI, NP VTI, NP High Technologies Engineering in Design, NP High Technologies Engineering in Construction and State Budgetary Institution "ENERGETIKA". These companies were already headed by Livinsky Sr.
It is characteristic that it was during the period of the most vigorous activity of the above-mentioned companies that Pavel Livinsky became the owner of a prestigious Land Rover, a Yamaha sports bike and an apartment in the very center of Moscow, with an area of 118.5 square meters. m.
It seems that Livinsky Sr. decided to significantly strengthen the position of the family business. A mechanical engineer by training, the author of scientific works and an honored veteran of the energy industry, he cannot help but understand the dangers of a situation in which decisions are made not by professional technocrats, but by certified accountants, including those involved in shadow schemes. We all remember well the energy disaster of June 21, 2005, when half of the metropolis was left without electricity. Much was said then about both the deterioration of equipment and the lack of communications in the city. What's the result? Production assets continue to age, and already overloaded networks are burdened with more and more new connections, thanks to the tireless care for “consumers” shown by the Livinsky clan.
We must assume that if the power supply fails again in Moscow today, it will be a man-made disaster comparable in scale to Fukushima. The tragedy of which, by the way, is that the consequences of the accident at the station were eliminated not by nuclear professionals, but by confused “effective managers” of the operating company, whose first goal was to maintain a positive reputation. Contrary to common sense and solely for the sake of preserving profits.