Russian Oligarchs

Konstantin Strukov : An Epic Russian Oligarch [2023 Update]

Who Is Konstantin Strukov?

Konstantin Strukov owns Yuzhuralzoloto, 3rd largest gold miner in Russia and coal mines in Chelyabinsk and Kuzbass regions. He is one of the largest donors of United Russia, Putin’s ruling party.

Konstantin Ivanovich Strukov is a Russian miner, entrepreneur, and politician. Konstantin Strukov has been the Vice-Chairman of the Legislative Assembly of the Chelyabinsk Region since June 23, 2016.

Konstantin Strukov is the President of the Yuzhuralzoloto Group of Companies, the richest resident of Chelyabinsk, a full cavalier of the Miner’s Glory badge, a member of the Management Board, vice president of the Union of Industrialists and Entrepreneurs. Strukov Konstantin Ivanovich is the beneficiary of the Petropavlovsk company.

Konstantin Ivanovich Strukov is under sactions from Ukraine. His various name in sanctions lists are as follows:

СТРУКОВ Костянтин Іванович
СТРУКОВ Константин Иванович
STRUKOV Konstantin Ivanovich

Reason for imposing sanctions are as folloes.

Strukov Konstantin – entrepreneur, politician, deputy of the Legislative Assembly of the Chelyabinsk region, member of the political council of the Chelyabinsk regional branch of the Political Party “United Russia”.
President of the Management Company “Yuzhuralzoloto Group of Companies”
The main assets of Konstantin Strukov are concentrated in the mining industry (JSC Chelyabinsk Coal Company, CJSC Yuzhuralzoloto Group of Companies).

Early Life and Education Of Konstantin Strukov

Konstantin Strukov, born on 10 September 1958 in the Dimitrovo of the Ileka region of Orenburg, Russia.

In 1980, Strukov completed his studies at the Magnitogorsk Mining and Metallurgical Institute with a major in ‘Technology and comprehensive mechanization of underground mineral deposit mining.’

In 2003, Konstantin Strukov successfully completed his master’s thesis titled ‘Enhancing the Technology for Extracting Vein Gold Deposits at Significant Depths in the Kochkarsky Field.’

Family of Konstantin Strukov

Konstantin Strukov is married to Lyudmila. Currently they both do not live together. They have been living separately since nearly two decades. She lives in Orenburg. Officially, they are not divorced. She owns three plots of land with a total area of ​​more than 17,000 square meters (+ another 3,000 square meters of beach for rent) in Montenegro,Europe.

Strukov Family land and mansions in Montenegro
Strukov Family land and mansions in Montenegro

They are said to have three daughters , Evgenia , Alexandra and Valeria.

The eldest is Evgenia Kuznetsova (born November 2, 1979). She is reported to be the  beneficial owner of the company MELDEXX LEASING MINING LTD . This Cyprus based company is currently under sanctions by Ukraine.

Notification of Major Holdings of Petropavlovsk PLC

Major Holdings of Petropavlovsk PLC
Major Holdings of Petropavlovsk PLC ( Source : FT )

The second daughter, Alexandra Kuznetsova, lives in Moscow.

The youngest daughter Valeria Kuznetsova is said to be born in 2000. She started posting pictures of her which the the renowned Tatler magazine featured as “million-dollar baby” .

Valeria Kuznetsova youngest daughter of Konstantin Strukov
Valeria Kuznetsova youngest daughter of Konstantin Strukov

Valeria Kuznetsova enthusiastically shared about the studio in the Empire Tower, located within the opulent Moscow City business center, which her father had bought for her. She also divulged intriguing aspects of oligarchic life. Valeria later posted a photo from her Tatler feature on Instagram. Following this controversy, Konstantin Strukov publicly disassociated himself from his daughter during an interview. But they remain same as before. This was just not to draw attention to family property.

Career Of Konstantin Strukov

From 1980 to 1987, Konstantin Strukov held various roles in Kazakhstan and Bashkiria’s enterprises, including positions such as mine foreman, supervising foreman, chief engineer, and mine director.

After seven years, he moved to the field of gold mining, initially serving as an engineer and later ascending to the position of a top executive.

In 1993, Strukov relocated from Kazakhstan to Russia and ventured into copper mining. By 1995, he rented a gold mine near Chelyabinsk, previously owned by the former Soviet giant Uzhuralzoloto.

In 1993, Uzhuralzoloto Enterprise was privatised and reorganised into OAO Uzhuralzoloto. From 1993 to 1997, during the period of overall decline in the Russian economy, the performance of OAO Uzhuralzoloto deteriorated and, in May 1997, it ceased to operate.

In July 1997, Konstantin Strukov established ZAO Uzhuralzoloto, which acquired the principal assets of OAO Uzhuralzoloto, including the Kochkarskoe deposit, the Svetlinskoe deposit, the Artem Full Cycle Processing Plant and the Kochkarskaya Processing Plant. He developed and implemented a programme to improve production efficiency, which resulted in an increase in production and a decrease in operating costs. At the initial stage of development, the Group focused on rehabilitation of mining operations at the Kochkarskoe and Svetlinskoe deposits.

In 2001, the Group took control of the Kommunar Subsidiary, which possessed a license for developing the Kommunar deposit in the Republic of Khakassiya. The following year, in 2002, the Group also gained control over the Etkulzoloto Subsidiary, which held a license for developing the Bereznyakovskoe deposit and initiated processing activities at a heap-leach facility at the Svetlinskoe deposit in the Chelyabinsk region.

By 2006, the Group had acquired licenses for the South Kurasan and West Kurasan deposits in the Chelyabinsk region, the Turgayul river area at the Kommunar deposit in the Republic of Khakassiya, and had taken control of the Drazhny Subsidiary, a company with licenses for developing alluvial deposits in the Krasnoyarsk territory.

Continuing its expansion, in 2007, the Group acquired the Darasun Subsidiary, which held licenses for the development of the Darasun, Talatuy, and Teremki deposits in the Zabaykalsk territory. This acquisition was made from the subsidiary of Highland Gold Mining Ltd.

During 2007-2008, the Group initiated an internal restructuring effort to consolidate its mining and processing operations under the Uzhuralzoloto Subsidiary. This strategic move aimed to simplify the corporate structure, streamline the shareholding arrangement, and enhance corporate governance.

In the subsequent year, 2008, the Group acquired a license for geological surveying, exploration, and mining in the Zaitsevskoye prospective area within the Chelyabinsk region through a state auction.

The years 2009-2010 marked significant progress as the Group successfully completed the reconstruction of the Artem Full Cycle Processing Plant. Additionally, construction commenced on the Bereznyakovskaya Processing Plant in the Chelyabinsk region, with expectations of its operational readiness by the second quarter of 2013.

In 2010, the Group further expanded its operations by procuring licenses for geological surveying, exploration, and mining in the North-Svetlinskoe, Altyntash, and Naily prospective areas, all situated in the Chelyabinsk region. The acquisition spree continued in 2011 when the Group secured a license for geological survey, development, and mining in the Oseyskoe prospective area within the same Chelyabinsk region, accomplished through a state auction.

Uzhuralzoloto Group of Companies (UGC Group) is nearly 100% owned by Ugold Limited, which is controlled by UGC chairman Konstantin Strukov.

Strukov started investing in coal mining in 2013, and now has coal deposits exceeding 100 million tons.
In 2020 Uzhuralzoloto became Petropavlovsk largest shareholder which led to a corporate conflict in the Russian gold miner. In 2022 Petropavlosk sold its assets to UGMK. In 2022 Strukov transferred his shares of Uzhuralzoloto from Cyprus-registered Ugold Ltd to direct ownership.

Konstantin Strukov Public and Political Activities

Membership of the Legislative Assembly of the Chelabin Region.

Member of the Political Council of the Chelabin Regional Office of the Political Party ” United Russia ” .

Konstantin Strukov
Member of the Political Council of the Chelabin Regional Office of the Political Party ” United Russia ” .

Konstantin Strukov crimes

In 2001, Chelyabinsk Coal Company Plc. (CCC) was founded, and Konstantin Strukov became its CEO. Soon, a conflict arose between CCC and its subsidiary, the Korkinsky coal strip mine. The Korkinsky mine was originally part of Chelyabinskugol Plc., but 60% of its shares were transferred to CCC during corporatization in 1994. However, it was later discovered that under the 2003 agreement, CCC leased Chelyabinskugol’s assets with the right to purchase them.

After gaining a controlling stake in the Korkinsky coal strip mine, Strukov launched a takeover bid. He instructed his protege, the mine’s director Yury Kuzmenko, to file for temporary observation, which the court granted. However, the selection of an external manager was delayed indefinitely. The mine’s creditors wanted to initiate bankruptcy proceedings so that CCC could buy it, but the court appointed an external manager anyway. Strukov appealed the decision.

In January 2004, miners in Kopeisk held a rally outside the city administration building to protest against the management of CCC, which had imposed a 7-hour workday and reduced vacation time from 66 to 42 days. Trade union members were also pressured to leave the union, under threat of unpaid wages. The miners appealed to the prosecutor and the Russian Labour Inspectorate to investigate their leadership.

In August 2006, Konstantin Strukov announced the suspension of investment programs for CCC’s development due to declining coal consumption by companies. This was due to the poor quality of CCC’s coal, which caused companies to switch to higher quality coal at a higher cost. One mine was closed, and the energy industry was shifting to gas. However, the regional government wanted to support CCC because it was a social project for them.

In the end of 2006, the conflict between Strukov and Vitaly Gorshkov flared. Both were the  owners of Kuzbasspolimetall LLC. Strukov dismissed Gorshkov from his post as general director, after it became clear that the coal strip mine “Tagaryshsky” controlled by the company was in debts.

Konstantin Strukov found out that the main assets of the coal strip mine were transferred to the company “Energougol” owned by Gorshkov. In addition, the equipment of the mine was sold to “Energougol” and then immediately was leased to the mine. Gorshkov appealed to the Court of Arbitration, claiming that he was dismissed with a violation of the company charter.

Alexander Harris

Alexander Harris began his career as a journalist. He is one of the founders of the " Russian Oligarchs Tracker Unit ".

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