Bendukidze Kakha Avtandilovich


Born on April 20, 1956 in Tbilisi. He graduated from Tbilisi State University, majoring in biology. In 1977, he continued his postgraduate studies in MSU
1981 he started his scientific career at the Institute of Biochemistry and Physiology of Microorganisms at USSR Academy of Sciences
1988 organized his own business - the production of biochemical products
1994 became a board member of the shipbuilding company “Almaz”
In 1996, after creating “OMZ”, became its chairman, in 1998 - the General Director of OMZ (Uralmash-Izhora Group).
In autumn 2003 the merger of OMZ with "Power Machines” was announced. In March 2004, Bendukidze resigned form the post of CEO, in April - the Chairman of the Board of Directors


Bendukidze started his career as a businessman in 1988 in the cooperative store “Inter”, where he was invited by Michael Mogutov, the future CEO of the group "Bioprocess-NIPEK” and Mikhail Yuriev, the future vice-speaker of the Duma. Bendukidze launched the production of biotechnical drugs for medical and scientific diagnostics.
In 2000, the cooperative was transformed into JSC “Bioprocess”. Partners soon fell apart and Yuriev retired.
Soon Bendukidze got enthusiastic over the idea of privatization. At that time there was the process of purchase of 18% of Uralmash. The package cost half a million dollars - in those days, it was very little money for such an enterprise. Subsequently Bendukidze actively encouraged foreign investors, which helped him to unite Uralmash and Izhora plants, creating a holding company "Ural Heavy Machinery Plants”.
Source: "Profile" on 02.11.1998

Bendukidze's company “Bioprocess” together with a firm "Astarta" was the founder of two joint ventures: the Soviet-Lebanese joint venture “Madzhess" registered in 1989, and the Soviet- Hong Kong joint venture “Web Technology", registered in 1990. Bendukidze was the director of the latter.
In November 1991, Bendukidze created the People's oil investment industrial Euro-Asian corporation (NIPEK), a large share of fixed capital was owned by “Bioprocess” and JV “Madzhess”. Bendukidze was a member of its board of directors. Despite the lack of official position, he had a big impact in NIPEK: speaking on behalf of the corporation in the press, made a keynote presentation at the shareholders meeting in 1993.
Subscription for NIPEK shares was performed very professionally, there was a large-scale advertising campaign of the corporation. In 1992 a statutory fund of NIPEK was announced which turned out to be the biggest among investment companies. The press said that its two-thirds had been paid, and therefore the increase in shareholder value was predicted.

In March 1993, the results of NIPEK operations turned to be not very successful. Only 28% of  the statutory fund had been paid, control over a number of investments had been lost. There were no enough funds for the payment of dividends. In the end it was decided not to pay them, and the buying of shares from minority shareholders for 2,5-3% of rate was announced.
The main benefit from creating NIPEK was received by Bendukidze as “Bioprocess” acquired large stakes of various companies, and as a result of nationwide check auction had acquired 18% stake of “Uralmash”.
Sources: "The database SB Group "Most" ("Kommersant": №8 from 02.1992, № 21 from 05.1993,"Kommersant-daily" from 03.19.1993, 20.03.1993, 30.03.1993, "Delovoy Mir" from 23.07.1992)

In May 1995 NIPEK received control over JSC "Tomsk Petrochemical Plant (TNHK). In 1997 external control was introduced at TNHK. Bendukidze negotiated its sale to Gazprom, but he didn’t agree on its price, and then the controlling stake of the company was sold to Sibhimkombinat (SHK), the structural unit of Minatom of Russia.
Source: "Kommersant-Vlast" on 11.09.2001

JV “Madzhess” from a group of Bendukidze companies participated in shady deals on sale of the Chechen oil abroad. A contract for the supply of fuel oil from Chechnya for export to England and Bulgaria was signed. Fuel oil was sold at a lower price, the supplier "Chechenneftegazprodukt" got nothing. After some time in March 1993 Chechen officials Ruslan Utsiev (Johar Dudayev's presidential adviser), his brother Nazarbek Utsiev and Gennady Sanko (Deputy vice-premier of Chechnya Yaragi Mamadaev) were killed. The first two could participate in shady deals at "Madzhess" and the latter could have known about it.
In 1992, Bendukidze became a member of the association "Entrepreneurial political initiative-92, which also included Mikhail Khodorkovsky.
Source: Database SB Group "Most" ("Kommersant": №8 from 02.1992, № 21 from 05.1993, "Kommersant-daily" from 19.03.1993, 20.03.1993, 30.03.1993, " Delovoy Mir" from 23.07.1992)

After the arrest of Vladimir Gusinsky in 2000, the head of “Media-Most”, Bendukidze met with other oligarchs at a meeting: the general director of “Media-MOST” Dzhavanfar Zamani, the president of “Alfa-Bank” Pyotr Aven, the chairman of the board of the same organization, Mikhail Fridman, the chairman of the board of ONEKSIM Bank Mikhail Prokhorov, the deputy chairman of Yukos Vasily Shakhnovsky. They were discussing a possible threat to their own businesses.
Source: “Nezavisimaya Gazetafrom 15.06.2000

In 2003, Bendukidze took part in the conflict of the members of the Russian Union of Industrialists and Entrepreneurs. The reason was the letter from the President of RSPP Arkady Volsky, addressed to Vladimir Putin, where he suggested how to improve the investment climate in Russia. This letter received favorable responses, but Bendukidze, together with the other members of the union began to speak to the press sharply against the fact that Volsky had sent the letter without consulting the others. Probably, in a letter Volsky did not consider the lobbying interests of businessmen who were trying to impose on him for scoring in that letter.
Source: form 24.04.2003

In March 2003, Bendukidze holding "United Heavy Machinery (OMZ) announced about the purchase of a blocking stake of JSC “Atomenergoexport” (AEE) and a controlling stake of "Zarubezhenergoproekt" - the companies engaged in building and designing nuclear power plants. A huge sum of money was needed for this purchase. There were talks about friendship between Bendukidze and George Soros and the former ambassador of Great Britain in Russia Braytweit Rodrik, who might be happy to buy Russian nuclear secrets from Bendukidze. OMZ was the only Russian producer of nuclear reactors.
After privatization of “Atomenergoexport” and “Atomstroiexport”, which were supposed for foreign nuclear construction projects, state funds came under the control of Bendukidze.
The next step of Bendukidze in optimization of the nuclear energy sector of the holding company was supposed to be the purchase of  FSUE (federal state unitary enterprise) EDO (experimental design office) “Gidropress”. This was opposed by the Director and Chief Designer of EDO Yury Dragunov. He said that Bendukidze bought the enterprises for public funds received in advance for the projects, afterwards profits no longer go to the state, and the costs of the oligarch are recovered quickly.
Source: on 31.07.2003

In 2003, OMZ revealed the details about the structure of its capital stock. It became known that Bendukidze owned 25.93% shares.
Source: "Kommersant" dated 29/09/2003

Bendukidzewas the first among the major Russian businessmen who defended the head of “Yukos”, Mikhail Khodorkovsky. According to him, in connection with the actions around “YUKOS”, the capitalization of the Russian stock market fell by 10 billion dollars.
Source: Official website of the President of the Russian Federation "of 06.10.2003

Bendukidze in Russia used the same way of tax minimization, for which Khodorkovsky was put into prison. In Moscow, he was even registered as an entrepreneur without a legal entity, which gave him the right not to pay income tax.
Source: Russian "Newsweek" from 07.06.2004

After Khodorkovsky's arrest in October 2003, the Bureau of the Russian Union of Industrialists and Entrepreneurs held an emergency meeting, where Bendukidze took part. Entrepreneurs condemned the actions of law enforcement agencies.
Source: Vedomosti from 01.06.2009

In June 2004, Bendukidze received Georgian citizenship.
Source: Kommersant-Online from 20.11.2008  

Soon, he was appointed the Minister of Economy of Georgia. The assumption was made that in such a way he went under the protection of Georgian President Saakashvili, who himself was under the protection of George Bush. But Bendukidze sharply refuted this view.
Source: "Arguments and Facts" from 09.06.2004

The idea for Bendukidze to lead the Georgian economy was suggested by Saakashvili personally.
Source: "Sobesednik" from 25.10.2005

In 2004, during the Georgian program live Bendukidze told the Georgian parliamentarian, Levan Gachechiladze where to get off. He responded in the same way. The conversation was about the privatization plans of Bendukidze in terms ofTbilisi-based production association "Aviastroitel”. Gachechiladze, criticized the decision for its selling.
Source: "Izvestia" from 14.08.2004

Bendukidze formulated his economic program for Georgia in a thesis "everything will be sold, except its conscience and honor." He had in mind even strategic locations. After the deputies did not understand his position, he explained it to them in his favorite obscene form.
Source: "Versions" on 19.06.2004

Bendukidze was accused of lobbying Russian interests. Thus, Tbilisi Electric Locomotive Plant was sold to a Russian company, "Dema Computers" for $ 4.15 million, and another holding company won the tender for the purchase of "Chiaturmarganets” and HPP “Vartsikha" (but then refused the deal). But in 2004, Russia announced the blockade of Georgia.
Source: Kommersant № 22/P (4077) from 09.02.2009  

In November of 2004, Bendukidze sold his stake in OMZ to Gazprombank.
Source: Kommersant № 22/P (4077) from 09.02.2009  

In December 2004, Bendukidze was promoted to the post of the Minister on economic and structural reforms implementation.
Source: Kommersant № 22/P (4077) from 09.02.2009  
In autumn 2005 Bendukidze sold his main industrial assets - shares in OMZ.
In February 2007, Bendukidze sold his last asset in the Russian insurance company "Moscow Re". Its buyer was JSC "Insurance Group."
Source: Kommersant № 28 (3604) from 21.02.2007  

In January 2008, Bendukidze again distinguished himself by inviting his opponent, the chairman of the faction "Industrialists” Zurab Tkemaladze “to brush his teeth, before he mentions his name". He paraphrased the standard phrase "rinse your mouth”, which is usually preceded by disassembly of street brawl. It was again during the discussion of the plan on economic reconstruction of Georgia.
Source: "Izvestia" on 29.01.2008

In late 2008, a member of the opposition party “New Right” Pikria Chikhradze accused Bendukidze of spying for Russia, adding that Saakashvili also takes part in this. Analytical Group of the Party had found information about Russian military intelligence colonel Vitaly Shlykov, which led business of Bendukidze, the appropriate conclusions were drawn from this fact.
Source: Kommersant -Online on 20.11.2008  

In February 2009, Bendukidze left the Georgian government. Prior to that he had headed the State Chancellery of Georgia from 2008. Bendukidze leaving was associated with the preparation of Saakashvili's to the early presidential and parliamentary elections. Prime Minister Nika Giluari said that he would like to see Bendukidze among his advisers, but he sees another man as the head of the State Chancellery. With a new prime minister Bendukidze was not on the best terms: in the presence of journalists, he once called him "a moron".
Bendukidze said that he was planning to run a private university "European School of Management” in Tbilisi, which he acquired in 2004.
Source: Kommersant № 22 / P (4077) from 09.02.2009