Petr Fradkov: Scandalous Promsvyazbank CEO’s Troubled Journey 2023

Promsvyazbank CEO Pyotr Fradkov reported to the President on the bank’s operation, including the new constituent entities of the Russian Federation.

Petr Mikhaylovich Fradkov, ((Russian: Пётр Михайлович Фрадков) born in 1978, is a prominent Russian economist and banker. He currently holds the positions of Chairman and CEO at Promsvyazbank and serves as the General Director of the Russian Export Center.

Early Life and Background

Petr Fradkov, born on February 7, 1978, in Moscow, Russia, is the son of Mikhail Fradkov, a former Russian prime minister. He graduated from the Moscow State Institute of International Relations in 2000. In 2007, he obtained a Master of Business Administration (MBA) from Kingston Business School. Subsequently, he completed a second MBA and earned a candidate in economic sciences degree at the Russian Presidential Academy of National Economy and Public Administration.

Family background and influences

Petr Fradkov hails from a family deeply rooted in politics and intelligence. Here are some essential details gleaned from our research:

1. Family Background
   • Petr’s father, Mikhail Fradkov, served as a former Prime Minister of Russia and held the position of Director of the Russian Foreign Intelligence Service.
   • His brother is Pavel Fradkov.
2. Personal Life
   • Petr is married to Victoria Igorevna Fradkova, who works as a lecturer in the Department of International Relations and Foreign Policy of Russia at the Moscow State Institute of International Relations.
   • The couple has a daughter.

Political Career

Fradkov’s Career Timeline:

• In 2000, Petr Fradkov started at VEB.RF as a deputy representative in the United States.
• By 2004, he had become the deputy director general of the Far Eastern Shipping Company.
• In 2007, Petr Fradkov returned to VEB.RF.
• 2011 saw him take on the role of head of EXIAR.
• In April 2015, Petr Fradkov assumed the position of general director at the Russian Export Center, a subsidiary of VEB.RF.

Leadership at Promsvyazbank (PSB):

• Petr Fradkov was appointed as the head of Promsvyazbank (PSB) in 2018, with Dmitri Pozhidaev serving as his deputy.
• From 2018 onwards, he worked to transform PSB into a bank focused on servicing the defense industry and supporting state defense contracts.
• In his capacity as chairman and CEO of PSB, Fradkov engaged in meetings with Vladimir Putin and participated in international roundtable discussions to outline PSB’s long-term strategic plans for backing the Russian defense industry.

Chuvash Regional Branch of SoyuzMash:

• In November 2020, Fradkov took the helm of the Chuvash Regional Branch of SoyuzMash.

Putin’s Meeting with Promsvyazbank CEO Pyotr Fradkov

President Vladimir Putin: Good afternoon.

Promsvyazbank CEO Pyotr Fradkov: Good afternoon.

Vladimir Putin: Mr. Fradkov, I see from the first presentation slide that the bank has maintained profitability and increased financing activities.

Pyotr Fradkov: Indeed, Mr. President. The bank is actively expanding its operations. In 2022, we became one of the top five credit institutions in the country, with assets nearing five trillion rubles.

Vladimir Putin: Impressive results, considering the bank’s relatively recent transformation.

Pyotr Fradkov: It represents significant growth, more than tripling in recent years. We recognize our responsibility to remain a crucial financial partner for both the defense and civilian industries, which is our primary mission.

In the defense sector, we provide loans at preferential interest rates, a strategy we initiated when the bank transformed. We’re focused on mitigating risks and providing concessional financing. Notably, we’ve implemented a successful advanced financing scheme for state defense orders in collaboration with the Defense Ministry and the Ministry of Industry and Trade, as per your directives. This scheme offers economic financing without additional budgetary subsidies and ensures long-term financial stability. It benefits state customers like the Defense Ministry, the Ministry of Industry and Trade, and now Roscosmos by allowing them to receive products in advance, while defense enterprises receive consistent funding, eliminating cash flow gaps. This ensures the smooth execution of orders and current tasks.

We’re making significant progress in this area. However, we also emphasize the civilian aspect, including support for small and medium-sized businesses. In 2022, we allocated 850 billion rubles to support such enterprises, encompassing retail lending and mortgages. We’re a leading provider of mortgage loans, extending preferential interest rates of no more than 8 percent to at least 60,000 military families.

In the realm of large civilian businesses, we’re a key player in lease financing for Russian-made aircraft, including airplanes and helicopters.

I’d like to report on the implementation of your instructions concerning our operations in Crimea. We’ve established a presence by opening bank branches in major cities of the Republic of Crimea, including Sevastopol, where we’ve set up an IT development center, attracting many young specialists. By 2024, the bank will allocate a minimum of 225 billion rubles for programs in Crimea, ensuring that local businesses have access to financial resources on par with national levels.

Expanding into new territories is another critical mission for us. We initiated these efforts in May, now serving new constituent entities of the Russian Federation. Over 1,200 people, including local residents, have already been employed. This represents a vital task as we’ve enhanced our banking infrastructure to facilitate social security benefits, payments, pensions, utility and mobile service payments, and money transfers from other Russian regions. We’re committed to expanding this work, including providing loans to large enterprises and small and medium-sized businesses, fostering economic growth in these areas.

Vladimir Putin: That’s excellent. Thank you.

A detailed chronicle of Petr Fradkov’s political career

2000	Fradkov graduated from the Moscow State Institute of International Relations with a degree in world economics.
2000-2004	He served as an expert in the first category and Deputy Representative of the Vnesheconombank of the USSR in the United States of America. He also held the position of Head of the Department at Vnesheconombank of the USSR.
2007	Fradkov obtained a Master of Business Administration (MBA) from the Kingston Business School.
2011	He assumed the role of Board Chairman-Director General at OJSC EXIAR and became a board member of the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank).
2012-2014	Petr Fradkov continued to lead OJSC EXIAR as the Board Chairman-Director General.
2014	He was appointed as the First Deputy Chairman of the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank).
2015	Petr Fradkov was named the Chief Executive Officer of the Russian Export Center.
2018	The US Treasury imposed personal economic sanctions on Petr Fradkov due to his involvement in the defense and related material and financial services sectors of the Russian Federation’s economy.
2022	The UK and Canada both imposed sanctions on Fradkov, along with 19 other individuals linked to the Russian invasion of Ukraine.
Present	The US Treasury imposed personal economic sanctions on Petr Fradkov due to his involvement in the defense and related material and financial services sectors of the Russian Federation’s economy.

Milestones, achievements, and challenges

Milestones:

1. Graduated from the Moscow State Institute of International Relations with a degree in world economics in 2000.
2. Earned an MBA from Kingston Business School in 2007.
3. Became the Board Chairman and Director-General of OJSC EXIAR in 2011.
4. Appointed as the Chief Executive Officer of the Russian Export Center in 2015.
5. Became the first deputy chairman of the State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) in 2014.
6. Currently serves as the Chairman and CEO of Promsvyazbank and the General Director of the Russian Export Center.

Achievements:

1. Petr Fradkov played a significant role in improving and expanding Russia’s foreign trade.
2. He engaged in working meetings with Vladimir Putin and participated in roundtable discussions at international forums where he outlined PSB’s long-term strategic plans for supporting the Russian defense industry.
3. Petr Fradkov served as a moderator for business competitions at the Srednerusski Economic Forum and organized and mentored female entrepreneurial projects for the APEC BEST AWARD.

Challenges:

1. Petr Fradkov faced sanctions imposed by several countries in response to Russia’s invasion of Ukraine.

Notable positions held and contributions made

Throughout his career, Petr Fradkov has held several noteworthy positions and made significant contributions in various fields. Here’s a concise overview of his career highlights:

Positions Held

1. Head of the Department and Deputy Representative of Vnesheconombank of the USSR in the United States (2000-2004).
2. Board Chairman-Director General of OJSC EXIAR (2011-2014)
3. First Deputy Chairman of State Corporation Bank for Development and Foreign Economic Affairs (Vnesheconombank) (2014).
4. Chief Executive Officer of the Russian Export Center (2015-present)
5. Chairman and CEO of Promsvyazbank (current position)

Contributions

1. Petr Fradkov played a vital role in enhancing and expanding Russia’s foreign trade.
2. He conducted working meetings with Vladimir Putin and actively participated in roundtable discussions at international forums, where he presented PSB’s long-term strategic plans for supporting the Russian defense industry.
3. Fradkov served as a moderator for business competitions at the Srednerusski Economic Forum and took on roles as an organizer and mentor for female entrepreneurial projects for the APEC BEST AWARD.
4. He has also made noteworthy academic contributions through patents and publications.

Leadership and Decision-Making

Petr Fradkov’s leadership style and decision-making process

Petr Mikhaylovich Fradkov’s family background is noteworthy. His father, Mikhail Fradkov, served as both the Prime Minister of Russia and the Director of the Russian Foreign Intelligence Service. This upbringing likely exposed him to the world of politics and government from a young age, which may have significantly influenced his leadership style and decision-making process.

Petr Fradkov has actively contributed to the enhancement and expansion of Russia’s foreign trade. This underscores his commitment to fostering economic growth and development through his decision-making.

Throughout his career, Petr Fradkov has held key positions in organizations such as Vnesheconombank, OJSC EXIAR, and the Russian Export Center. Currently, he serves as the Chairman and CEO of Promsvyazbank and holds the role of General Director at the Russian Export Center. These roles highlight his substantial experience in managing large organizations and making strategic decisions.

However, it’s crucial to remember that Fradkov has encountered difficulties throughout his career, most notably being the target of sanctions imposed by various nations in response to Russia’s invasion of Ukraine. This underscores the complexities he faces in making decisions that must align with the interests of his organization and the expectations of the international community.

International Involvement

Fradkov’s role on the international stage

Petr Fradkov has played a significant role on the global stage by enhancing and expanding Russia’s foreign trade and holding leadership positions in various organizations.

1. Fradkov has engaged in productive discussions with Vladimir Putin and actively participated in international forums. In these forums, he has contributed to the long-term strategic plans of the PSB (Presidential Special Forces), focusing on bolstering the Russian defense industry.
2. He has served as a moderator for business competitions at the Srednerusski Economic Forum and has organized and mentored projects aimed at promoting female entrepreneurship, notably the APEC BEST AWARD initiative.
3. It’s worth noting that Fradkov has been subject to sanctions imposed by several countries in response to Russia’s invasion of Ukraine.
4. Notably, Fradkov’s father, Mikhail Fradkov, held the prestigious positions of former Russian Prime Minister and former Director of the Russian Foreign Intelligence Service. This lineage suggests that Fradkov possesses significant connections and influence within the political and governmental spheres.

Diplomatic and foreign policy initiatives

Petr Mikhaylovich Fradkov has played a significant role in enhancing and expanding Russia’s foreign trade. His involvement has been instrumental in shaping Russia’s economic policies and fostering trade relationships with other nations.

Fradkov has actively engaged in working meetings with Vladimir Putin and participated in international forums’ roundtable discussions. These discussions have revolved around projecting the long-term strategic plans of the PSB (Presidential Security Bureau) in support of the Russian defense industry. This underscores his participation in critical dialogues concerning Russia’s defense industry and national security.

Furthermore, Fradkov has taken on the role of moderator in business competitions at the Srednerusski Economic Forum. He has also organized and provided mentorship for female entrepreneurial projects associated with the APEC BEST AWARD. These activities demonstrate his commitment to fostering entrepreneurship and economic development.

It is noteworthy that Fradkov has faced sanctions imposed by multiple countries in response to Russia’s invasion of Ukraine. This implies that his actions and decisions may have played a role in the ongoing conflict between Russia and Ukraine.

Controversies and Challenges

Any controversies or challenges faced during his career

Petr Fradkov’s career has not been without its share of controversies and challenges.

Allegations of corruption and conflicts of interest have sparked controversy during Fradkov’s tenure in positions of authority.

Fradkov has faced sanctions imposed by several countries in response to Russia’s invasion of Ukraine.

How he navigated through difficult times

Fradkov encountered challenges linked to allegations of corruption and conflicts of interest. His approach to addressing these challenges remains unclear.

Furthermore, Fradkov became a target of sanctions imposed by multiple countries in response to Russia’s invasion of Ukraine. It’s uncertain how he managed the repercussions of these sanctions on his career and affiliated organizations.

His place in history and any institutions or initiatives in his name

Petr Mikhaylovich Fradkov made enduring contributions to Russia’s economic policies and development while holding key leadership roles in various organizations. His efforts to enhance Russia’s foreign trade likely played a crucial role in the nation’s economic progress. Moreover, his leadership positions in organizations like Vnesheconombank, OJSC EXIAR, and the Russian Export Center significantly influenced their operations and strategies.

However, Fradkov’s career was not without its challenges. He faced allegations of corruption and conflicts of interest, and several countries imposed sanctions in response to Russia’s invasion of Ukraine. Notably, as of now, there are no institutions or initiatives bearing his name.

Awards and honors

Petr Fradkov has received several awards and honors throughout his career.

In 2023, Fradkov was honored with the Medal of the Order “For Merit to the Fatherland,” Level II. Notably, there are no awards or nominations for Fradkov listed on IMDb. It’s worth mentioning that Fradkov’s father, Mikhail Fradkov, has received several prestigious honors and awards, including the Order of Honor and the Order of Friendship.

Conclusion

Petr Fradkov is a Russian economist and banker, born in Moscow in 1978, and the son of Mikhail Fradkov. He graduated from the Moscow State Institute of International Relations in 2000 and obtained an MBA from Kingston Business School in 2007. He later completed a second MBA and was a candidate for an economic sciences degree at the Russian Presidential Academy of National Economy and Public Administration.

Petr Fradkov’s career includes roles at VEB.RF, the Far Eastern Shipping Company, and EXIAR. He became the general director of the Russian Export Center in 2015. In 2018, he was appointed head of Promsvyazbank (PSB), where he transformed the bank to support the defense industry and state defense contracts. He has met with Vladimir Putin and participated in international forums to discuss PSB’s strategic plans.

In November 2020, Petr Fradkov became the leader of the Chuvash Regional Branch of SoyuzMash. However, in 2022, he faced sanctions from the U.S., UK, EU, and Canada due to his involvement in the defense and financial sectors of the Russian Federation economy and his role as CEO of Promsvyazbank. These sanctions were related to the 2022 Russian invasion of Ukraine.