Vladimir Putin and Alina Kabaeva live together and use money from slush fund in Cyprus, Proekt reports
Russian President Vladimir Putin and the former gymnast, National Media Group (NMG) head and mother of Putin’s children Alina Kabaeva, live together, most often in a residence near Lake Valdai, which has already grown into a luxury village, and use Putin's money hidden in Cyprus to buy luxury real estate, revealed independent investigative outlet Proekt (“The Project”) in a two-part investigation titled “Iron Masks.”
The first part of the investigation profiles the Cypriot company Ermira Consultants, which was found to have stakes in businesses important to Putin. Proekt journalists met with the former business manager of one of Putin's closest friends who was involved in running a secret financial network that also included Ermira. The source said that until 2015 the company belonged to a front man – Vladislav Kopylov, a lawyer from St. Petersburg. Ermira's accounts were used to pay for expenses for Putin and his relatives. The Russian president also bought apartments and homes with the firm’s money.
“Kopylov is a nobody, just a hobo, both in fact and in appearance,” said the source, referring to the company as “the obshchak” (organized crime jargon referring to a collective fund intended for use in the interests of a criminal group). Kopylov was listed as a nominal owner until March 2015, with the ownership of the company moving offshore, and people linked to oligarch Arkady Rotenberg – Putin’s close confidant and childhood friend – likely became its beneficiaries. The publication's source said that Putin's cronies personally met with Arkady Rotenberg, Yuri Kovalchuk and their subordinates and told them what they needed. After that, they used Ermira’s money to buy housing – for example, in 2011, Kabaeva drew on the firm’s money to buy four apartments in Sochi, and registered them in the name of various trustees.
Proekt also revealed that the Cypriot company profited from the sale of shares in Russian media conglomerate NMG, where Kabayeva heads the board of directors. In 2013, Ermira bought 7.5% of NMG’s shares for €76 million, allegedly selling them three months later to companies linked to oligarch Gennady Timchenko, netting a premium of €65.6 million.
The second part of the investigation describes the lives of Putin and Kabaeva, who journalists found to be living together. The gymnast's aides and cousins constantly visit Putin's Valdai residence, and one of her sisters even has a home nearby.