At a court hearing held on Tuesday in the Zamoskvoretsky District Court of Moscow, new details of the case against the former Minister of Economic Development Alexei Ulyukaev became clear. The prosecution decided to study the materials: the prosecutor read out the arrest reports of the ex-minister, compiled by operatives of the FSB “K” department, as well as transcripts of wiretaps - audio recordings of conversations between Ulyukaev and the head of Rosneft, Igor Sechin.

It turned out that Sechin and Oleg Feoktistov, who at that time headed the security service of Rosneft, wrote to FSB director Alexander Bortnikov a statement that Ulyukaev was demanding two million dollars for assistance in the deal to privatize Bashneft, and gave their consent to participate in the investigative experiment . Its first stage took place in room 381 at Bolshaya Lubyanka Street, 12. It included instructions, processing and marking of money with the drug “Ink Seven”. The second took place at the Rosneft office on November 14, 2016.

from transcript

“Tell Shokina ( Deputy Manager of Rosneft Olga Shokina. — Ed.), let him put the basket in 206 and make tea.”

There is a noise, rustling, creaking of the door.

Sechin: “Oh, listen, you’re not wearing a jacket.”

Ulyukaev: "Yes".

Sechin: “How do you walk anyway?”

Ulyukaev: "A?"

Sechin: “I need some kind of jacket.”

Ulyukaev: “No, no, no, why.”

Sechin: "Yes?"

Ulyukaev: "Certainly".

Sechin: “Well, first of all, I apologize for delaying the assignment. Back and forth until we collected the volume. There was a business trip. But consider the task completed. Here, take it, put it down, and let’s go and have some tea.”...

- Prosecutor Neporozhny reads out the wiretapping materials. The prosecution considers this first part of the wiretapping to be particularly important.

Ulyukaev in the courtroom, listening to the transcript of his own conversation with Sechin, laughs.

Judging by the records, Sechin and Ulyukaev communicate on a first-name basis and quite warmly. At the end of the second conversation, Sechin even says: “Hugs.” The first audio recording is the longest. Prosecutor Neporozhny reads it for about twenty minutes with expression, role-by-role.

from transcript

Sechin and Ulyukaev discuss the country’s tax system, the prospects for Bashneft’s work, relations with foreign partners, including US President Trump’s plans to increase oil production.

So, Sechin says: “We think part of the oil will be Iranian, part Iraqi, part Venezuelan (...) This will be a unique project.”

Ulyukaev:“Going to the Indians is a big deal. This is, in fact, the first such attempt. No one has ever succeeded."

Sechin:"Yes it's true. In terms of processing technology, we occupy serious positions; if we are not getting closer to the world leaders, then we are stepping on the heels very seriously.”

At the end of the first recording, Sechin will apologize again.

Sechin:“Lesh, I ask you, don’t be offended by us for all these puffs.”

Ulyukaev:“No, Igor, what are you talking about?”

Sechin:“My body can’t stand the cold at all, so I’m warming up. So, will Shokin bring tea?”

Man:"Yes Yes".

Sechin:“And a basket of sausage.”

Man:"Yes, yes."

Ulyukaev:“A basket?”

Sechin:“Uh-huh, thanks. Take the basket."

Ulyukaev: <…>

Sechin:“Happy, thank you very much!”

Ulyukaev:"Yes".

Sechin:“Goodbye,” the prosecutor reads.

The next scene—the detention of the minister itself—takes place in the courtyard of Rosneft, where Ulyukaev’s official car is parked. FSB operatives find a bag with hundred dollar bills in the trunk of the car.

- What do you have in your bag?

— A bottle of expensive wine from Sechin, a gift. Here is the key [to the castle], Sechin gave it to me.

Ulyukaev takes out a keychain from his trouser pocket. The cash inspection reports would later indicate that the ex-minister’s bag, money and hands contained the substance “Ink Seven.”

In the Rosneft yard, Ulyukaev will tell the operatives that he does not remember putting this bag in the trunk, but he remembers that he touched it when he put the basket in the trunk.

The ex-minister's defense stated at the trial that the materials were not fully disclosed. She also pointed out to the court a contradiction: from Sechin-Feoktistov’s statement it follows that Ulyukaev extorted a bribe in Moscow, while the indictment refers to Goa (Sechin and Ulyukaev previously met in this Indian state as part of a working trip).

At the same meeting, the testimony of a witness was heard - leading adviser to the corporate governance department of the Ministry of Economic Development, Yulia Moskvitina. She said that during the preparation for the privatization of Bashneft in 2016, the ministry came to the conclusion that Rosneft had no obstacles to participating in the transaction to purchase Bashneft shares.

“We have reviewed this report (compiled by the VTB Capital agent,” ed.) and sent it to the government with a request to approve all the conditions,” she said. In this first report from the agent, she said, Gazprom and Lukoil were indicated as potential buyers, in addition to Rosneft.

Then the corresponding document was prepared and sent to the government. “We wrote that the restrictions do not apply to our deal, that we have another deal in the future - the sale of shares in Rosneft, and that the deal itself on the privatization of Bashneft could have a positive effect on the budget,” Moskvitina said.

When asked by Prosecutor Filipchuk whether there were restrictions in the conclusion of the Ministry of Economic Development, she explained: “There was a phrase that if there are concerns [about the deal], then this can be done by a separate act of the government.”

After this, Prime Minister Dmitry Medvedev ordered the report to be finalized.

“We gave instructions to the agent, but he did not change anything significant,” the witness said. At the same time, she mentioned that the Ministry of Energy considered it inappropriate for a state-controlled company to participate in the transaction.

The process will continue on Thursday, September 7. The prosecution does not announce in advance which witnesses will appear in court. But the witnesses of Sechin and Feoktistov are very welcome here.

The arrest of Minister Alexei Ulyukaev (right) indicates the growing influence of Igor Sechin (left) in the Kremlin circle Photo: EPA/UPG

The Investigative Committee of the Russian Federation opened a criminal case against the Minister of Economic Development of the Russian Federation Alexey Ulyukaev. The head of the department is suspected of receiving a bribe of $2 million for a positive assessment issued by the ministry, which allowed Rosneft to buy the state stake in Bashneft. , the Russian president knew about the impending law enforcement operation against Ulyukaev. According to Russian opposition politician Konstantin Borovoy, the current situation is a consequence of the confrontation in Vladimir Putin’s entourage. The politician told Apostrophe that Putin’s closest ally, the head of Rosneft, Igor Sechin, is increasing his influence and becoming truly dangerous for the Russian president.

In this situation everything is much simpler. Igor Sechin is expanding his area of ​​control. And this began with YUKOS, when Mikhail Khodorkovsky, at a meeting with Putin, almost openly said that Sechin extorted $300 million from him for one of the fields. It ended with Khodorkovsky being punished, he was imprisoned, and that’s when Sechin’s empire began to grow.

Sechin demonstrates his own strength, his ability to influence, among other things, the decisions of the president. The consequences are important here, and they are obvious - this is the excessive strengthening of the empire that Sechin created, being in Putin’s inner circle.

I think that Sechin won, and it was a rather difficult victory, because many of the arguments that Ulyukaev put forward against the “privatization” of Bashneft were reasonable, based on the law, but Sechin is obviously breaking the situation. In addition, the issue of taxation of this transaction was resolved in a rather crude manner. The explanation for the fact that taxes were not taken from this transaction was that if taxes were taken, the state would lose them. An absurdity that flows from a propaganda campaign into the field of economics.

And the conclusion: Sechin is getting stronger. And I think this is clear not only to Putin, but also to Sechin’s competitors in Putin’s circle. The next candidates for Sechin’s “cannibalism” could be the Rottenbergs or anyone from Putin’s entourage. And he himself understands that Sechin, who now, as it turns out, controls both the Investigative Committee and other government agencies, is becoming dangerous.

It seems to me that in the case of Ulyukaev, Putin will prevent a public trial of this corruption charge. Because he is the last person who is interested in someone in the group around him becoming too strong, and Sechin is beginning to pose a serious danger to the president, and, apparently, he understands this. This situation was to some extent a test. And Putin needs to maintain a balance of power within his own circle, and this balance will be very seriously disrupted by the strengthening of Sechin, who is becoming a figure not exactly equal to Putin, but at least in terms of influence. A parallel institution of power emerges. Now this institution is a throne and couch parties around.

The excessive strengthening of Sechin creates, as it were, two centers of power, but Putin is unlikely to be interested in this.

And it seems to me that what happened to some extent happened without Putin, because within this Kremlin group the laws are very strict, there is a very tough confrontation over trifles, and this is not the first conflict between a liberal group and the security forces. Moreover, the security forces today represented several competing parties - the prosecutor’s office of the Sledkom, Sechin. And they conflicted with each other, but now thanks to such family connections, through the same Chaika, Sechin is becoming excessively stronger. And today, for Putin, essentially, a moment has arisen when Sechin becomes his main competitor. This situation has never happened before. Still, everyone else was equidistant from Putin, and today’s show of force showed that Sechin has stood out from this group, and a new center of power is emerging, which everyone around Putin needs to take into account, perhaps to the same extent as himself Putin.

In court, representatives of the state prosecution read a transcript of audio recordings of several conversations between Ulyukaev and Sechin that took place on November 14, 2016. The first recording is a telephone conversation, during which Sechin asks Ulyukaev to come to the Rosneft office on the same day. Three other recordings were made during their meeting, the conversation was recorded by hidden recording devices (these recordings are slightly different). One of the devices may have been installed in a basket of fruit and wine, which Sechin gave to Ulyukaev along with a “bag of sausages.” The ex-minister assures that he was sure that there really was wine and sausages. In reality, the bag contained marked money, with which Ulyukaev was detained by FSB officers.

Telephone conversation between Sechin and Ulyukaev

Sechin: Hello, Alexey Valentinovich?

Reception employee Ulyukaeva: Igor Ivanovich, good afternoon, I’m connecting now.

Ulyukaev: Hello.

Sechin (grins): Alexey Valentinovich, dear?

Ulyukaev: Yes, Igor Ivanovich? All attention, how glad I am to hear from you.

Sechin: Don't tell me, me too. Well, firstly, I had unfulfilled assignments there, but I have readiness based on the results of my work there...

Ulyukaev: Yes.

Sechin: And that means, secondly, a lot of questions have accumulated there, both on the boards of directors and on everything.

Ulyukaev: Well, let's discuss everything.

Sechin: I have only one request - if you can, come to us for a second, because here, maybe... Well, I’ll show you in general. And take a look at the company in general.

Ulyukaev: Yes, I will be happy to look at the company. Why?

Sechin: And according to the time, I now have big negotiations that will begin at 2 p.m., for about two hours.

Ulyukaev: Yes.

Sechin: Around 4:30 p.m., is that possible?

Ulyukaev: Quite possible. Yes, I'm flying tomorrow. By the way, will you be in Lima?

Sechin: I'll be in Lima.

Ulyukaev: Well, I will also be in Lima, we can continue there.

Sechin: Let's work.

Ulyukaev: Continue working? Come on, this is it, now.

Sechin: At 17 here.

Ulyukaev: Now just a second. No, a little later, if possible.

Sechin: Let's.

Ulyukaev: Yes, because it starts at 16 for me.

Sechin: At what time? At 18?

Ulyukaev: It's 17 now, let's go to 18?

Sechin: A little earlier. Early.

Ulyukaev: At 17:30?

Sechin: Well, come on at 17.

Ulyukaev: A?

Sechin: Can you do it at 17?

Ulyukaev (sighs): Yes, I have here, including yours, in my opinion, different procurement companies. That's where I collect them. Well, come on at 17.

Sechin: At 17? Thanks a lot.

Ulyukaev: Let's.

Sechin: Everyone, hugs, thank you.

Meeting between Sechin and Ulyukaev. First recording device

Sechin: Tell Shokina (deputy manager of Rosneft Olga Shokina - MZ), let her put the basket in 206 and prepare tea for now. Yes, everything is great. Listen, are you without a jacket?

Ulyukaev: Yes.

Sechin: How do you even walk like that?

Ulyukaev: A?

Sechin: I need some kind of jacket.

Ulyukaev: No, no, no, why?

Sechin: Yes?

Ulyukaev: Certainly.

Sechin: Well, one second, okay, you sit for now.

Ulyukaev: ... (reading out the transcript, the prosecutor says: “Ulyukaev - ellipsis”; this probably means the interlocutor’s inaudible mooing)

Sechin: Well, first of all, I apologize for delaying the execution of the assignment, well, I was on business trips.

Ulyukaev: Certainly.

Sechin: Yes, so far back and forth, we have collected the volume. Well, you can consider the task completed.

Ulyukaev: Yes.

Sechin: ...

Ulyukaev: ...

Sechin: I'm warming myself.

Ulyukaev: ...

Sechin: Don't say it.

Ulyukaev: You need to find out when the car is, and this is the case when the distance is short.

Sechin: Well, yes.

Ulyukaev: They think it's a green hedge.

Sechin: So, will Shokin bring tea?

Man: Yes Yes.

Sechin: And a basket of sausage.

Man: Eat.

Sechin: So, a few words. More details about the company. This means that in 1998, when we started working, the company was producing 4 million tons of oil. Nobody needed her. So it skipped the era of privatization.

Ulyukaev: Well, yes, abroad.

Sechin: So, well, then the courts, the return of the withdrawn assets began. Here is an interesting page, fourth.

Ulyukaev: Yes.

Sechin: What have we created during this time? Here are the main indicators of oil companies whose shares are traded on the stock exchange. This means that this is the resource base of current production and production costs. Only public companies were compared. This means that we are the first in the world in terms of resource base and geological exploration. In terms of current production, it ranks first among companies. The cost price is also the most highly competitive. Here we need...

Ulyukaev: If you look, I’ll interrupt, the capitalization of the company. These positions, it will be clear that the asset is worth twice as much as other assets with comparable characteristics.

Sechin: We are. With the exception of one nuance - the tax base. Our tax base is the heaviest compared to any other company. The heaviest in the world, that is. Now you can easily add 25 to these two and three, this will take into account the tax base. Plus transport. That is, relatively speaking, consider 35 to be the lower limit for us.

Ulyukaev: Are these yield prices?

Sechin: No, this is the lower price level.

Ulyukaev: I speak excluding loan servicing?

Sechin: Yes, which will allow us to provide additional operating profitability. Therefore, the situation is not so simple; we need to deal with the tax base.

Ulyukaev: You definitely have to do it. Ours is not only large, but growing and growing.

Sechin: Growing and killing. I was talking to the same guy there ENI, they donate 2 billion euros to the Italian budget. We are 50 billion. This is a plus to the fact that you are asking us to add 17 there today. We have already given some of them, and we are already generating 50 billion annually. Therefore, of course, we need to think about it. U Exxon the total fiscal burden is 43%, of course, and shares are expensive. Understand?

Ulyukaev: Well, of course.

Sechin: Because it is consistently 43, and I have 80. This means that we are counting on an increase in interest there. It's hard, yes. For example, B.P.. That’s why I’m working with shareholders now, telling them about undervalued aspects that they don’t necessarily have to take into account. Here are the writers in the first column outside the frames. And as soon as we bought it, our shares became fourth. And why? Because we allowed the resource base to be put on the balance sheet, in proportion to ownership.

Ulyukaev: So they have 20%? Fifth part?

Sechin: Yes. And they immediately jumped to another level.

Ulyukaev: Wait, if they put your resource base on their balance sheet, you don’t have a balance left?

Sechin: Remains, remains. Oil remains. But for us it costs nothing at all. It's just permission to use it. And they report back to our geological exploration. We replaced them there by 150%, they simply count 20% of this replacement for themselves. And the same for production . They would never have gone beyond this level of production if they had not contributed to our projects too.

Ulyukaev: If without, then it would be 20 or so, which means they would be below ten.

Sechin: Yes, yes, yes, absolutely. Of course, we took a very serious step, as you know, in India to acquire . I wanted to ask, I will apply, it will be necessary to support project financing...

Ulyukaev: …

Sechin: This is a project...

Ulyukaev: Listen, will the oil there be Iranian?

Sechin: Some are Iraqi, some are Venezuelan, some are Iranian. 20 million tons of processing, very high Nelson index - 11.8. Deep-water ports, 2700 gas stations. This is such a project for the market - simply unique.

Ulyukaev: But here are your own gas stations through them. How much of the processing goes through its network of gas stations?

Sechin: I can tell you approximately, approximately. About the fourth part.

Ulyukaev: Fourth part.

Sechin: Yes, part four. They have a plant there, maybe a terminal that allows export-import operations with crude oil.

Ulyukaev: No. Because visiting Indians is a big deal.

Sechin: Yes.

Ulyukaev: This is essentially the first such major attempt; no one has succeeded.

Sechin: Yes it's true. So what else can I say. In terms of development technology, we occupy serious leading positions; if we are not getting closer to the world leaders, then we are stepping on the heels very seriously. But it also depends on us... it has to do with our equipment. For example, in the States, hydraulic fracturing equipment allows you to make up to 30 or more breaks at a time. We do 12–15, up to 20. But they have different compressors, there is more pressure, different proppants - this is a special fraction that is pumped into a fracture during a rupture and does not allow it to collapse, creating a reservoir base for collecting oil and gas. Previously, we used sand, but sand is washed away with water; Americans are now using new types of proppants with a changing center of gravity, they cling, they have all sorts of sharp edges, and are not washed out of the rock. There are many nuances, but our development is proceeding despite the wishes of OPEC, I reported to Vladimir Vladimirovich about this. They are all preparing the development of production, everything, Venezuela, I absolutely know for sure. They plan to increase production by 250 thousand barrels per day within six months. So, first. Second. Iran will increase, they now have 3.9–4.0. They have a plan to add a million tons of barrels.

Ulyukaev: They and 4 are somewhere ready to freeze.

Sechin: 3.9 now, but they want 4.9.

Ulyukaev: 4. No, no, they are ready for 4 and frozen.

Sechin: Well.

Ulyukaev: Well, probably yes.

Sechin: Yes. I think no one is telling the truth. And they all need, I think, Iraq, Nigeria, they need about six months to issue additional volumes. And these six months, if we freeze, will give the Americans the opportunity to give the oil shale a little oxygen. And here, it seems to me, the trick lies in: now support shale oil here.

Ulyukaev: Yes.

Ulyukaev: They will take advantage of this.

Ulyukaev: Plus, during this time, the Trump administration, and he is very pro traditional sources, he is very much going to support production.

Sechin: Yes. He wants to maintain his prey, that's true. He stated this.

Ulyukaev: He will be ready for tax...

Sechin:...benefits and financing. He has stated this more than once; these are the theses of his election program.

Ulyukaev: This must be taken into account. It will take some time because the administration will need to adapt. This is perhaps his central point.

Sechin: This must be taken into account. But we are working little by little, Lesha.

Ulyukaev: Look, when it comes to taxes, I am completely on your side in everything. I believe that we are acting short-sighted, and therefore absurd. We distort the completely future picture of the world. We want to attract investment. We will not attract investment and will undermine our own investment climate. And this is a completely dead-end path, especially when it comes to old fields. There you just need to drill and pump, drill and fill with water. The process cannot be stopped. And if you fall...

Sechin: Well...

Ulyukaev: Well, are you going to do it at a loss? This is weird.

Sechin: Certainly.

Ulyukaev: It means strange logic, good for nothing. Because, of course, we are 100% for it. And of course, we need several international ones...

Sechin: Lesha, I beg you. Don't be offended by us for all these delays.

Ulyukaev: No, Igor, what?

Sechin: I felt like it was a little stormy, yes.

Ulyukaev: No, you tell me...

Sechin: We are working on privatizations, that is. I met today, tomorrow I fly to Europe. The main thing, I’ll tell you, is this: they are ready to lend in full, they don’t really want to buy. That’s why we make different offers there, we create different carrots in order to entice them into the promotions. This means that progress is being made in Asia, the Japanese - you know, they have now made changes to the legislation, after all, the emperor must sign there now, but they have already submitted them to parliament, they are also working with them.

Ulyukaev: WITH...

Sechin: Well with everyone there.

Ulyukaev: OK then.

Sechin: There are more young people there.

Ulyukaev: More with young people?

Sechin: Yes. Well, we’re working, we’re not relaxing. In general, I don’t want to tell you anything yet, but we are persistently working to complete the task in full.

Ulyukaev: To be honest, for today’s reasons I would like to attract the Japanese. All these Indians are not the same, you won’t get anything from the Indians.

Sechin: We work with Koreans. No, neither the Chinese nor the Indians, these are...

Ulyukaev: I don't need them at all.

Sechin: There will be no synergy with them anymore.

Ulyukaev: Absolutely, but you can get it from them.

Sechin: These can, yes, and I also think that these can. They are very pragmatic; they, of course, want to fulfill their main task - to go over and get political , there on the territory, such questions were put to us even during negotiations, but we rejected it.

Ulyukaev: Well, of course.

Sechin: They immediately said: guys, no.

Ulyukaev: They're doing well now. What does it mean to decide... Abe must show his people something, they tell him, you are making constant concessions to the Russians. He will say: why, I am acquiring very interesting assets, this is a guaranteed supply of external energy resources to our country for decades to come. I create for the Japanese.

Sechin: So how is it?

Ulyukaev: It was quite profitable for them.

Sechin: You know, we, I tell them that, guys, the essence of our proposal is this: you get a share, a share in the company, firstly, conditions for the development of joint projects. This means that our second proposal, after the share, is the creation on production, transportation, collaboration in markets. If you do this, then you get access to the Central Tatar section, the Verkhnechonskaya Dole - and a number of other deposits that we are developing together with you. True, you get a minority stake here, and if you agree to this, then in case of force majeure we undertake to supply only to the Japanese market.

Ulyukaev: This is very important for them; they have a very large dependence on the Gulf. They need to balance.

Sechin: This is exactly what we are saying, but what is force majeure - we have prescribed a price change of 20%, for example, a price increase by 20% or a decrease by 20%, a sharp change in the market situation, then the enterprise begins to supply the entire volume of production only to your address, and you reduce any dependence on other suppliers, in general, our offer is very decent and balanced, we are working. There are risks of delays, so deadlines are of fundamental importance here. They are trying to set the record straight about tender procedures there, but they are still waiting for the audit results. The government issued an order, so we don’t know anything and we ourselves are already in this situation: we must sign by the fifth. Keep this in mind, this is no longer our competence, this is the competence of the government. Please, we can announce it on the 15th if everything works out for you. This means, yes, on the date of signing we told them - you will transfer 10% of the advance to us here, if you do not conclude a deal, it becomes the property of the company. Well, these are the conditions.

Ulyukaev: It's clear. Well, it will be important now in Lima on the 20th (November 20 of last year in Peru the APEC-MZ summit was held), the boss will meet with Abe there, this is a must.

Sechin: Yes, I will be in Lima.

Ulyukaev: That's right, I will too. And even before that, the day before, I met with this Seko (Hiroshige Seko - Minister of Economy, Trade and Industry in the government of Shinzo Abe - MZ), there, too, I still need to put pressure on him, the same minister responsible for Russia.

Sechin: Well, yes, yes. So they take steps. I can’t say that they somehow completely leave us out there...

Ulyukaev: Uh-huh.

Sechin: No, they have a plan, they are making attempts, they directly said, “It will be difficult for us if there is no progress.” I told them, no, guys, don’t contact me with these questions. We are soldiers, we do what we are told, and this is no longer our diocese. Lesha, thank you very much, I won’t delay you, you have a difficult schedule.

Ulyukaev: Yes, now I’ll stop by the courses on the way home.

Sechin: Let's go to?

Man (laughs) : From Ivanovich (probably Sechin’s interlocutor means the “From Ivanovich” basket with sausage, which Vedomosti calls a traditional gift from the head of Rosneft - MZ)?

Sechin: Yes, you need to go to that entrance there.

Ulyukaev: …

Meeting between Sechin and Ulyukaev.Second recording device

Engine noise.

Sechin: Okay, heh... with him ( the prosecutor says: “hey with him”, what exactly Sechin said is unclear). But here you can... there, as it were... and well, yeah...

Man: Should I come here?

Sechin: Yes, go tell Shokina, let her put the basket in 206 and make tea for now. Yeah, that's enough.

There is noise and rustling.

Sechin: Listen, are you without a jacket, huh? How do you even walk like that?

Ulyukaev: ...

Sechin: Exactly this. I need some kind of jacket.

Ulyukaev: No, no, no, why?

Sechin: Yes? Well, one second, sit still, okay.

Rustle and steps are heard.

Sechin: So, you just need a second, just a second, yeah, I’ll be so short then so that you don’t freeze. Well, first of all, I apologize for delaying the completion of this assignment. We were on a business trip.

Ulyukaev: Well, life, of course.

Sechin: So while back and forth, we collected the volume. But in general, you can consider the task completed. Here, take it, put it down and let’s go have some tea.

The prosecutor especially emphasized the words that “they collected a volume” and ““take it, put it down” when he read out the wiretap.

Ulyukaev: Yes?

Sechin: So, here's the key for every fireman.

The key was marked with the same special solution as the bag and money used in the operational experiment; the words about the key and the prosecutor also emphasized during the announcement of the decryption.

Ulyukaev: Yes, let's go.

Sechin: Yeah.

Knocking, stomping, sounds of zippers and rustling clothes.

Sechin: My body can no longer tolerate the cold at all, so I’m warming up.

Ulyukaev: You need to find out when the car is at its worst, overheating...

Sechin: A?

Ulyukaev: Always when the distance is short.

Sechin: Well, yes.

Ulyukaev:

Sechin: Right.

Ulyukaev: Green...

Sechin: So Shokina will bring tea?

UnnamedMan: Yes Yes.

Sechin: And a basket there.

Man: Yes, yes.

Sechin: ...

Man: Bring some tea.

Man: Hello, yes. Oh, let me clarify now. Everything is fine there. Drinking tea, here. Here, simply, according to your order, no cars are allowed out of the territory, we are under security. Or can it be released? A? And yes, yes. Well, he drinks tea with a visitor. Yes, yeah. That's it, I understand, yes, okay, it's there, that's it, it's there. Okay, okay, yeah, there is. Hello Hello? Well, is everything okay? Yes. Do you mean the regime has been preserved? Come on everyone. Hello Hello? Yes? Everything is fine, it’s there, but I’ll just type it and that’s it. Yes, yes, I understand, okay, yes, yes, yeah.

The noise of a car engine and a telephone call are heard.

Man: Yes. Well, here I am, yes, yes, hello, hello. The car arrived, I got ready.

The noise of the engine is heard.

Man (by phone): Yes?

Sechin: ...

Man (laughs): From Ivanovich (probably Sechin’s interlocutor means the “From Ivanovich” basket with sausage, which Vedomosti calls a traditional gift from the head of Rosneft - MZ)?

Sechin: Yes, there is an entrance there.

The rustle of clothes.

Sechin: Yeah

Ulyukaev: A little basket.

Sechin: Yes, take the basket.

Ulyukaev: ...

Sechin: Everything is happy, thank you very much.

Ulyukaev: ...

Sechin: Goodbye.

Meeting between Sechin and Ulyukaev. Third recording device

Engine noise.

Sechin: Go to the parking lot, get there, yes, get to the parking lot, get to the parking lot, get to the parking lot. Okay, God bless him. He stands aside there. And so do we now.

Man: , please park it.

Sechin: Yes, great, I’ll park it now.

The sound of the engine, the door, the rustle of clothes.

Sechin: Does he know where to go?

Unnamed Man: I posted security there.

Sechin: A?

Man: I put people on the street to tell me how to get there.

Sechin: Oh good.

Man: ...

Sechin: OK. Is it possible to go here? There. Oh, that's it, yes.

Man: ...

Sechin: Tell Shokina to put the basket in 206 and make tea for now. (To Ulyukaev who entered) Oh, listen, you're not wearing a jacket, huh? How do you even walk like that?

Ulyukaev: A?

Sechin: Exactly this. I need some kind of jacket.

Ulyukaev: No need, no need.

Sechin: Yes, yes, yes, just sit there for a second, okay? So, you are now, oh, well... I’m doing this, briefly, so that you don’t freeze. Well, first of all, I apologize for delaying the completion of this assignment. Well, there were business trips.

Ulyukaev: Well, life, of course.

Sechin: So far we have collected the volume back and forth. But you can consider the task completed. Here, take your luggage and let’s go and have some tea. So, here is the key for every fireman (the prosecutor especially emphasized these words during the announcement of the transcript - MZ).

Ulyukaev: ...

Sechin: Yeah. My body can no longer tolerate the cold.

At this point, the third recording read by the prosecutor is interrupted.

Illustration copyright TASS Image caption Sechin and Ulyukaev definitely agree on one thing: no one heard their conversation at the BRICS summit

The word of the head of Rosneft against the word of the ex-minister: this is what the trial in the case of the former head of the Ministry of Economic Development, accused of taking a bribe, actually came down to. The BBC Russian service looked into how their versions differ.

On Monday, in the Zamoskvoretsky Court of Moscow, Alexey Ulyukaev for the first time told his version of how events unfolded in the fall of 2016.

It has still not been possible to interrogate Sechin, who handed the minister a bag of money - he did not appear in court for the fourth time. His testimony was not made public, but its contents were previously reported by the BBC Russian Service.

Meeting in Goa

At a meeting in October 2016, the prosecution claims, Ulyukaev asked Sechin for a bribe. This happened during the BRICS summit in Goa, where heads of Russian state-owned companies and members of the government came. By this time, the deal to privatize Bashneft had already been closed.

Prosecution witnesses questioned in court said they saw Sechin and Ulyukaev meeting, but did not hear the content of the conversation. The topic of their conversation is known only from the testimony of the ex-minister at the trial and the interrogation of the head of Rosneft.

Ulyukaev	Sechin
Ulyukaev says that at the summit he saw Sechin playing billiards with the head of VTB Andrei Kostin, and decided to approach them. “Different people approached Sechin and Kostin, I also decided to approach,” Ulyukaev said at the trial.	The conversation took place “in the daytime” in the hotel building, according to Sechin’s testimony during interrogation, which was reviewed by the BBC Russian Service. The head of Rosneft did not mention either Kostin or billiards.
According to the ex-minister, at the summit they exchanged humorous remarks, including about the privatization of Bashneft. But they did not talk about remuneration or money.	The head of Rosneft claimed that the minister “asked to thank him in some way for the positive decision” on the deal, during which the state-owned stake in Bashneft was bought by Rosneft, “by paying a so-called bonus.”
“Sechin noted that we did a very good job preparing this deal. He twirled the “hole” in his jacket, hinting at the presentation for the award. He said: “I will treat you to a wine that you have never tried,” - so Ulyukaev at the trial described the dialogue.	“Ulyukaev A.V., with a gesture in the form of two fingers, showed the size of the remuneration he required, specifying verbally that this gesture corresponds to 2 million US dollars,” Sechin said during interrogation. “I promised to think about this proposal from Ulyukaev A.V.”
Ulyukaev found it difficult to answer whether anyone could have heard this conversation. “The hall was large, there were about 30 people in it, there was noise.” It is unlikely that Kostin, who was present, heard the entire conversation, Ulyukaev said.	According to Sechin, the fact of the conversation, but not its content, can be confirmed by the Rosneft security service officers accompanying him.

Illustration copyright TASS Image caption The ex-minister and the head of Rosneft remember differently the morning before Ulyukaev’s arrest

Telephone conversation before the meetingat Rosneft

Ulyukaev was detained on the evening of November 14, after a meeting with Sechin at the Rosneft office. In the morning they agreed on this visit by phone, but Sechin and Ulyukaev’s versions of who invited whom differ. From the transcripts of conversations read out in court, it followed that it was Sechin who persuaded Ulyukaev to “come and see the company.”

Ulyukaev	Sechin
Ulyukaev said that Sechin called him and insistently offered to look at Rosneft on November 14. “When he called me to the Rosneft office, he promised to show me the central dispatch office - a place that not everyone gets to see,” Ulyukaev said.	In Sechin’s description, the morning of the operational experiment looked like this: on November 14, around noon, Ulyukaev himself called him and asked for a meeting. The head of the state-owned company perceived this call as a “repeated demand for a bribe,” as follows from the interrogation materials. This call was witnessed by the head of the Rosneft security service, Oleg Feoktistov, who was sitting in his office.
“Sechin was persistent and asked to come to the Rosneft company today. The hour he named was inconvenient. In the end, I agreed,” Ulyukaev recalled at the trial.	Sechin also said that the minister, having learned about his departure on November 15 on a business trip, did not want to reschedule the meeting and suggested meeting at the Rosneft office on the same day.

Illustration copyright TASS Image caption Sechin and Ulyukaev heard each other differently

Meeting at Rosneft

Ulyukaev and Sechin met at about five in the evening, at the personal entrance of the head of the company. The head of Rosneft was wearing recording equipment. A transcript of this conversation is in the file and was announced in court, but the top manager and the ex-minister have different interpretations of it.

Ulyukaev	Sechin
The former head of the Ministry of Economic Development said in court that he did not perceive Sechin’s words “I apologize for delaying the execution of the order” as referring to a bribe. In leadership circles, the word “instruction” is perceived as nothing other than an order from the president, Ulyukaev explained. He clarified that he could not personally give Sechin any instructions.	“I apologize for delaying the execution of the assignment. You can consider that the task is completed,” Sechin told Ulyukaev, pointing to the bag. Thus, the head of Rosneft told the investigators, he made it clear to the minister that “the money was transferred and collected in Rosneft solely at the request and in the interests” of Ulyukaev.
The conversation continued with Sechin’s phrase “the volume has been collected.” Ulyukaev took these words as information that Rosneft had collected the 10 billion rubles necessary for the privatization of the company.	Sechin stated during interrogation that with the words “the volume was collected” he meant “a bribe in the form of cash that was in the bag.”
At the meeting, Sechin took Ulyukaev aside instead of going into the entrance and showed him the bag, the ex-minister said in court. The head of Rosneft handed him the key as he walked, “accompanying him with some words.” Ulyukaev remembered that in Goa Sechin had promised to treat him to wine, “which he had not tried yet,” so he assumed that this was what was in the bag, and I didn’t ask a question about the contents. Ulyukaev did not open the bag because it was locked.	Ulyukaev, the head of Rosneft asserted during interrogation, “did not ask any questions” and “did not express surprise at receiving a heavy bag of money.” “He was not interested in the contents of the bag and the need for a key to it, which clearly indicated his full awareness of the purpose of the visit to Rosneft and the contents of the bag,” Sechin described receiving the bag.
According to the memoirs of the former head of the Ministry of Economic Development, the further conversation turned out to be crumpled: “As soon as we began to discuss the privatization side of the work, Sechin began to end the meeting.”	Sechin noted that after handing over the money, they drank tea alone for about 15 minutes; the conversation was not related to the conversation in the parking lot: they discussed the prospects for the development of the oil industry.

Ulyukaev case

Ulyukaevadetained on November 142016 year at the Rosneft office" in Moscow. The Investigative Committee of Russia approvedlthat officialcaught red-handedupon receipt2 million dollars. Nand in the hands of the ex-ministerAfound traces of a special substance, which was used to process the bag and banknotes.

Pabout the investigation version,Ulyukaev demanded a bribe of $2 million from Sechin so that his department would give a positive opinion on Rosneft’s acquisition of the state-owned stake in Bashneft.

Ulyukaev was charged witharticle "Paccepting a bribe by an official on an especially large scalee". He is in dangerup to 15 yearsimprisonment. INThe former minister does not recognize him.

The Investigative Committee of the Russian Federation opened a criminal case against the Minister of Economic Development of the Russian Federation Alexey Ulyukaev. The head of the department is suspected of receiving a bribe of $2 million for a positive assessment issued by the ministry, which allowed Rosneft to buy the state stake in Bashneft. According to Vladimir Putin's press secretary Dmitry Peskov, the Russian president knew about the impending law enforcement operation against Ulyukaev. According to Russian opposition politician Konstantin Borovoy, the current situation is a consequence of the confrontation within Vladimir Putin’s entourage. The politician told Apostrophe that Putin’s closest ally, the head of Rosneft, Igor Sechin, is increasing his influence and becoming truly dangerous for the Russian president.

In this situation everything is much simpler. Igor Sechin is expanding his area of ​​control. And this began with YUKOS, when Mikhail Khodorkovsky, at a meeting with Putin, almost openly said that Sechin extorted $300 million from him for one of the fields. It ended with Khodorkovsky being punished, he was imprisoned, and that’s when Sechin’s empire began to grow.

Context

Sechin showed who's boss

Russian RFI Service 11/15/2016

Shocking news from Russia

Kauppalehti 11/15/2016

How Ulyukaev's arrest will affect the economy and markets

Reuters 11/15/2016 Sechin demonstrates his own strength, his ability to influence, including the decisions of the president. The consequences are important here, and they are obvious: this is the excessive strengthening of the empire that Sechin created, being in Putin’s inner circle.

I think that Sechin won, and it was a rather difficult victory, because many of the arguments that Ulyukaev put forward against the “privatization” of Bashneft were reasonable, based on the law, but Sechin is obviously breaking the situation. In addition, the issue of taxation of this transaction was resolved in a rather crude manner. The explanation for the fact that taxes were not taken from this transaction was that if taxes were taken, the state would lose them. An absurdity that flows from a propaganda campaign into the field of economics.

And the conclusion: Sechin is getting stronger. And I think this is clear not only to Putin, but also to Sechin’s competitors in Putin’s circle. The next candidates for Sechin’s “cannibalism” could be the Rottenbergs or anyone from Putin’s entourage. And he himself understands that Sechin, who now, as it turns out, controls both the Investigative Committee and other government agencies, is becoming dangerous.

It seems to me that in the case of Ulyukaev, Putin will prevent a public trial of this corruption charge. Because he is the last of those who may be interested in someone in the group around him becoming too strong, and Sechin is beginning to pose a serious danger to the president, and, apparently, he understands this. This situation was to some extent a test. And Putin needs to maintain a balance of power within his own circle, and this balance will be very seriously upset by the strengthening of Sechin, who is becoming a figure, not exactly equal to Putin, but in any case very influential. A parallel institution of power emerges. Now this institution is a throne and couch parties around.

The excessive strengthening of Sechin creates, as it were, two centers of power, but Putin is unlikely to be interested in this.

And it seems to me that what happened to some extent happened without Putin, because within this Kremlin group the laws are very strict, there is a very tough confrontation over trifles, and this is not the first conflict between a liberal group and the security forces. Moreover, the security forces today represented several competing parties - the prosecutor's office, the Investigative Committee, Sechin. And they conflicted with each other, but now thanks to such family connections, through the same Chaika, Sechin is becoming excessively stronger. And today, for Putin, essentially, a moment has arisen when Sechin becomes his main competitor. This situation has never happened before. Still, everyone else was at an equal distance from Putin, and today’s show of force showed that Sechin has stood out from this group, and a new center of power is emerging, which everyone around Putin needs to reckon with, perhaps to the same extent as Putin himself.

I, of course, do not think that Putin has doubts about Sechin’s loyalty, but, like any politician, he understands that the situation can change very quickly. And at any moment this could become the center of a conspiracy. Essentially, this is the beginning of a war in which Sechin not directly, but indirectly declares war on Putin himself.