Despite statements about plans to leave the Russian market after the full-scale invasion of Ukraine, at least two of the four tobacco giants — Philip Morris and Japan Tobacco — remained to profit in Russia, enriching their exclusive seller — the Megapolis group of companies, which now controls about 70% of the cigarette sales market. The owners of Megapolis are billionaires Igor Kesaev and Sergey Katsiev, who are connected with the FSB and personally with the former head of the agency, Nikolai Patrushev, as discovered by the publication 'Project'*.
Their tobacco business generates annual revenue of over 1 trillion rubles and brings billions of rubles in profit to its owners. They also own the largest national chain of alcohol markets 'Red and White' and 'Bristol', which accounts for more than 25,000 sales points across Russia. The revenue of the combined network in 2023 is 1.15 trillion rubles, billions of which turned into profit for Kesaev and Katsiev. A key competitor in this business, Sergey Studennikov, initially did not want to sell the 'Red and White' network to entrepreneurs from the special services. But he was forced to change his decision after searches involving the FSB and tax authorities took place in the company's offices at the end of 2018.
In 2024, Forbes magazine placed Kesaev in 29th place in the national ranking of the wealthy with assets amounting to $5.5 billion, and Katsiev — $1.9 billion. Over two years of war, Kesaev more than doubled his fortune.
As 'Project' writes, part of the money earned by Kesaev and Katsiev is spent on those who helped them amass their fortune — the 'office', meaning the FSB. In 2003, they established the 'Monolith' fund, which is used to finance hidden expenses 'for the needs of the office'. The fund's assets amount to over 2 billion rubles, which is a lot for such a non-profit organization in Russia.
Since 2006, Kesaev and the 'Monolith' fund have jointly owned the Sochi sanatorium named after Mikhail Frunze. Viktor Patrushev, the elder brother of the former FSB director, was a member of its board of directors. In addition, the fund supported events organized by Viktor Patrushev.
The main connection of the billionaires with the Patrushev family turned out to be Vladimir Anisimov — the president for security of the 'Mercury' group and chairman of the board of directors of the Degtyarev military plant, which Kesaev and Katsiev took control of in 2005. Anisimov served in the KGB of Karelia, where he was first a driver and then an adjutant to Nikolai Patrushev. After Patrushev moved to Moscow, Anisimov was appointed his deputy, head of the FSB internal security service. Anisimov has been listed in the management of Kesaev's firms since at least 2009.
This is not the only connection of Kesaev with the special service. In 2007, he bought 22 land plots on Rublyovka, where the FSB had a departmental kindergarten, and then they were privatized by special service employees. The deal cost Kesaev $50 million. Essentially, Kesaev, under the guise of ordinary transactions, transferred an average of $2.5 million to each FSB general, while the latter did not pay market prices for the plots. Now Kesaev's estate is located on this territory.
Despite European sanctions against Kesaev, the 'Megapolis' firm continues to be a distributor not only of tobacco products but also of Red Bull drinks, Lavazza coffee, and Reckitt Benckiser products (for example, Durex and Contex condoms).
Additionally, two Russian businessmen close to the FSB continue to do business in Ukraine. Back in 2013, Kesaev and Katsiev entered the Ukrainian market under the 'Megapolis-Ukraine' brand and within three years controlled almost 99% of the Ukrainian tobacco products market. In 2015, the share of 'Megapolis' in Ukraine was transferred to companies behind which stood Britons Richard Fenhalls and Richard Taylor-Duxbury. Sources of 'Project' claim that both foreigners are merely nominees for Kesaev and Katsiev.
* Recognized in Russia as a 'foreign agent' and 'undesirable' organization.
Photo: Project