The legacy of billionaire Dmitry Bosov went to Roman Trotsenko

The heirs of Dmitry Bosov, who died in early May, sold a coal project in the Arctic to businessman Roman Trotsenko. As a result of the transaction, Bosov’s relatives consolidated 100% of the Pechora LNG gas project.
19.06.2020
Forbes
Origin source
The heirs of Dmitry Bosov made the first transaction with his assets, told the Forbes the widow of billionaire Katerina Bosov. According to her, on June 18, a coal deposit was sold in Taimyr, the buyer was billionaire Roman Trotsenko.

Trotsenko confirmed to Forbes that the deal was closed, adding that he had begun negotiations with Bosov back in February 2020 (the businessman died on May 6). Preparation for the transaction took four months, says Katerina Bosov and adds that she is pleased with the result.

Complex asset

Dmitry Bosov, together with partner Alexander Isaev, began the development of Taimyr coal deposits in 2015. By 2023, the billionaire expected to go to the extraction of 30 million tons of coal and launch two deep-sea ports. Total costs were estimated at $ 250 million.

Subsequently, production plans adjusted to 20 million tons. And in 2018, Rosprirodnadzor filed a lawsuit against 824 million rubles against the Arctic Mining Company (AGK), which led the development of the field. The service claimed that the AGK illegally mined and exported 187,000 tons of coal, because it only had a license for geological exploration of the subsoil. The company insisted that it was only about trial lots. During the courts, the amount of the fine decreased to 600 million.

In April 2020, it became publicly known about the conflict between Bosov and Isaev. The billionaire dismissed a long-time partner from all posts in his companies, and messages appeared on their websites accusing Isaev of "flagrant abuse and theft." Isaev, through a court, demanded to refute the information posted and to compensate moral damage.

Friendly exchange

Bosov and Isaev began looking for a buyer at AGK in early 2020.

Negotiations, according to RBC, were conducted with the state corporation Rosatom. Trotsenko was not named among the applicants. Trotsenko and Bosov are old acquaintances, says a close friend of the latter. According to him, they repeatedly traveled together, for example, went to "jeep in Chile."

The deal to sell 75% of Trotsenko’s AGK was completed on June 18. The seller was the Alltech group, founded by Bosov. The current owners of the group are Bosov’s heirs, including Katerina Bosov, as well as former classmates of the billionaire, including Alltek CEO Dmitry Aga. The deal was non-cash and involved an asset swap, Trotsenko said. He noted that he estimates the total investment of the previous owners in the project at $ 86 million.

Katerina Bosov said Trotsenko had exchanged his stake in the Pechora LNG project for coal deposits, which involved the construction of an LNG plant based on gas fields in the Nenets Autonomous Okrug (NAO). Bosov planned to develop the project together with Rosneft. But in 2018, the state-owned company withdrew from the project, and it stalled. Katerina Bosov considers it “promising,” but does not comment on development plans. She also does not disclose how much Trotsenko belonged to Pechora, but notes that as a result of the transaction, Alltech consolidated 100% of the project. Trotsenko, however, intends to consolidate 100% of the AGK and is in talks with Isaev to buy back the remaining stake.

Arctic plans

Roman Trotsenko evaluates the prospects of the new asset more conservatively than its previous owners. He believes that he will be able to produce the first million tons of coal in 2023, and will reach 5 million tons by 2025.

He estimates total investment in the project at 33 billion rubles. The coal mine will cost 20 billion, the rest is infrastructure and exploration. Trotsenko will finance 30% of the project at his own expense, the rest will be in banks. The cooperation agreement has been signed with VTB, but it’s too early to talk about lending conditions.

This is not the only billionaire project in the Arctic. Trotsenko also intends to build the Indigo ice-free port in the Nenets Autonomous District and to develop another coal field in the Taimyr - the Northern Star. There is synergy between AGK and Severnaya Zvezda, the billionaire notes: general energy supply, “export points”, road network, one mining plant. The fine of Rosprirodnadzor, which went to Trotsenko together with the AGK, the businessman promises to pay off "by installments."

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