Eugene Gerden is a freelance writer who writes on a wide range of international topics
from commerce to chemistry and from wine to aviation
Chemistry World and The Journal of Commerce
he has covered several stories on wine markets and production in Russia
Speculation about potential bidders for Massandra winery has been building after Vladimir Konstantinov
earlier this year said there were plans to privatise the historic producer
which was founded in 1894 and also has one of the largest wine collections in the world
A tender process was expected to take place in October and November this year
which has long had high-profile admirers – including Tsar Nicolas II – was recently passed from Russian federal control to authorities in the Republic of Crimea
any attempt at privatisation would likely draw the ire of Ukraine and its allies
Massandra’s value has been estimated at RUB12 to 15 billion (US$180-250 million)
One of the potential bidders was reported to be Boris Titov
a businessman whose family owns Russia’s largest winery
a spokesperson for Abrau-Durso told Decanter.com that the company was not a potential suitor
‘Abrau-Durso is not interested in buying Massandra winery,’ the spokesperson said
Other potential bidders for Massandra have been reported to be billionaire businessmen Arkady Rotenberg and Yuri Kovalchuk
although their interest has not been confirmed
Both men are believed to be close to Russian president Vladimir Putin and have been targeted by US Treasury sanctions since 2014
Kovalchuk bought Crimea’s Novy Svet winery in late 2017 via Rossia Bank, in which he has a majority stake, according to The Moscow Times
Any deal for Massandra could present extra risks in terms of western sanctions for the buyer
Russian lawyers from the Bannikov and Partners law firm said that this might not deter potential bidders that have already been made subject to EU and US sanctions since 2014
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lying at the northern end of the Black Sea
has a long history of viticulture and wine production
Over the last few centuries it has been a major supplier of wine to Russia
the Black Sea coast has seen viticulture proliferate since ancient times – often connected to Greek trade across the sea
often found itself caught in greater geopolitical struggles
Sitting on the northern edge of the Black Sea
its ports formed a major step in the connection between the inland peoples of Eastern Europe (including the Cossacks
the Rus and the Poles) and trading posts along the Black Sea and the Mediterranean
As such, the likes of the Crimea and the major port city of Odessa in southern Ukraine had historic links to the likes of the Greek cities, Istanbul (and the Ottoman Empire), Georgia (and the Caucasus) to the east
While written evidence of ancient wine production and viticulture in the region is rarely quoted
it is widely understood to have predated early modern times
under the Tsarist Russia and then Soviet control
the position of the Crimean Peninsula in the Black Sea made it the obvious location to house the country's Black Sea Fleet
headquartered in the western Crimean city of Sevastopol since the late 18th Century
Although wine production grew (both in the Crimea and in neighboring areas – see also Krasnodar) in the 19th Century
its ready association with Soviet control through much of the 20th Century is mixed
While wineries were often geared to high-volume production
with repeated temperance campaigns throughout the Soviet regime (most notably under premier Mikhail Gorbachev in the mid-1980s)
At the breakup of the Soviet Union and Ukrainian independence in 1991
the Crimea came under the latter's control
established as the Autonomous Republic of Crimea
the peninsula was annexed by Russia (see below)
The Crimea sits between the temperate and subtropical climate belts
The southern coastal regions enjoy a Mediterranean climate
The region became part of an independent Ukraine after the collapse of the Soviet Union. However, it has a large population of ethnic Russians, and in 2014 it was annexed by the Russian Federation
This took place in the aftermath of the 2014 Ukrainian revolution against President Yanukovych
who had been seeking to maintain close economic ties with Russia
referendum took place among Crimean residents in which they voted to join the Russian Federation
not least due to the fact that the option of maintaining the political situation prior to 2014 (with Crimea an autonomous region
albeit under Ukrainian jurisdiction) was not available on the ballot
The subsequent takeover of Crimea by the Russian Federation led to two of Crimea’s most famous estates, Massandra and Novyi Svit
being brought under control of the Russian state
Russia has always been an important market for Crimean wine
and sales there may have been boosted by the new political situation
(as of 2019) many other markets have been closed to Crimean wineries by international sanctions against Russia
Though the Greek influence is clear
it may be that winemaking already existed before the Greeks arrival
Wine production was prohibited during the Ottoman period
But this was offset to some extent by a rise in table grape production
After Catherine the Great brought Crimea into the Russian Empire
vineyards were established in various locations using vines imported from established European wine regions
The famous Massandra Estate was founded in this period
the Crimea continued to supply Eastern Europe
Mikhail Gorbachev introduced the resolution "Measures to Overcome Drunkenness and Alcoholism"
Many vineyards across the Soviet Union were pulled up
Further vineyards were lost in the Crimea after the collapse of the USSR
From obscure companies in Vladimir Putin’s home city of St
Petersburg to choice properties in Russian-seized territory in Crimea
a network of companies recently given the name “LLCInvest” holds assets worth tens of billions of dollars for Russia’s leading oligarchs
including those closely associated with President Putin
The network is far larger and more widespread than previously reported
The LLCInvest network, the subject of an investigation by the Organized Crime and Corruption Reporting Project (OCCRP) and a Kharon report in August
consists of companies connected by shared ownership
whose ownership shares are held by numerous sanctioned Russian oligarchs.Holdings of the LLCInvest network tied to close associates of Russian president Vladimir Putin extend into Crimea
the region of Ukraine seized by Russia in 2014 but still recognized as part of Ukraine by the U.S
and most Western nations.Former Ukrainian President’s Waterfront PropertyAlong the Black Sea coast in the resort town of Batiliman near Sevastopol
are 38,000 square meters of land once possessed by former President of Ukraine Viktor Yanukovych
removed from office by Ukraine’s Maidan Revolution in February 2014
had been using the waterfront property to build a mansion that remained incomplete when he fled Ukraine and went into exile in Russia
has emerged as the nominal owner of the Crimean waterfront property possessed by Yanukovych in 2014
The company has multiple links to the LLCInvest network
according to Russian corporate and domain records and other publicly available records reviewed by Kharon
Petersburg and shares an LLCInvest.ru domain address with a nonprofit organization named Assotsiatsiya Razvitie Rynka Effektivnikh Investitsiy (Association for Development of a Market of Effective Investment)
Members of the nonprofit organization include sanctioned Russian oligarchs Gennady Timchenko and Petr Kolbin
according to the Russia Unified State Register of Legal Entities and Russian corporate records.The owner of Bereg OOO is the St
the nonprofit Assotsiatsiya Razvitie Rynka Effektivnikh Investitsiy
and Golden Geyt AO share the same director general
Pavel Zaytsev.Crimean Vineyards and LLCInvestCrimea’s historic vineyards have also become assets of companies within the LLCInvest network
a major supplier of wine to Russia and Europe
were founded by Imperial Russian aristocrats in the 19th Century
survived as prized properties of the Soviet Union and later came within the territory of independent Ukraine
The wine region’s takeover received some notoriety in Western media in 2015
when Russian president Vladimir Putin and former Italian prime minister Silvio Berlusconi sampled a 1775 bottle of wine preserved at a Crimean winery since the 19th Century
a historic Crimean winery founded in the 19th Century that possesses a renowned collection of wines inherited from Imperial Russia that Putin and Berlusconi sampled in 2015
is the property of a Russian company owned by Yuzhny Proekt OOO (“Southern Project”) — a St
Petersburg-registered limited liability company.Southern Project was established in 2017 and owns Crimean properties that include wineries
and a stake in the airport of Crimea’s capital
Department of the Treasury sanctioned Southern Project in 2018 for being owned or controlled by Bank Rossiya and Yuri Kovalchuk
its chairman and largest single shareholder.Southern Project has additional connections to the LLCInvest network
It owns additional companies in Crimea that use an LLCInvest email domain
Its director general holds the same title for a Russian LLC which wholly owns a sanctioned investment company that uses an LLCInvest domain address
Russia’s Crimean regional government nationalized Massandra in 2014
sanctioned the resulting state-owned company
the newly registered Russian company Production-Agrarian Union Massandra AO assumed ownership of the winery
Southern Project wholly owns Production-Agrarian Union Massandra
according to Russian media reporting.Novy Svet
a maker of sparkling wine dating back to the 19th Century
is also the property of a Russian company owned by Southern Project
the Crimean regional government sold the state-owned company that owned Novy Svet to the Russian company Zavod Shampanskikh Vin Novy Svet (“Novy Svet Champagne Factory”) AO
Southern Project wholly owns Zavod Shampanskikh Vin Novy Svet
A bottle of 1775 Jerez de la Frontera was brought to Crimea by Count Mikhail Vorontsov during the reign of Catherine the Great
Vladimir Putin and Silvio Berlusconi were accused of drinking it
The Russian president was showing his friend and former Italian prime minister round the Massandra winery in Crimea
with the pair asking questions about vintage bottles in the wine cellar
Berlusconi picked up one of the five bottles of 1775 Jeres de la Frontera believed to be kept in the collection − a 1891 vintage − and asked “Is is possible to drink?”
“Yes” said Massandra’s director Yanina Pavlenko, according to Radio Free Europe.
While it is unclear how much, if any, of the wine Putin and Berlusconi consumed, Ukrainian prosecutors are furious, and are preparing criminal charges against Pavlenko.
“This is one of the five bottles that constitute not only Massandra’s or Crimea’s heritage, but the heritage of all Ukrainian people,” Nazar Kholodnytsky, first deputy prosecutor for Crimea, told the Associated Press from exile in Kiev.
Massandra, which opened in 1894, was Ukrainian government property before Russia’s annexation of Crimea in March 2014, and any charges could not be pursued in Crimea, where Russia has full control.
In June 2014, the winery was placed on a list of businesses hit by EU sanctions after passing into Russian hands.
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A winery director in Crimea allegedly opened one of the most expensive bottles of wine in the world for the two politicians
Ukrainian prosecutors are preparing criminal charges against a woman who allegedly uncorked a 240-year-old bottle of wine for Vladimir Putin and Silvio Berlusconi
The Russian President and former Italian Prime Minister, said to be firm friends, were on a tour of Crimea when they visited the famous Massandra estate
The pair spent the weekend together on the peninsula
which was annexed by Russia more than a year ago as the Ukrainian crisis continued
One of their trips was to the Massandra winery
which has gained a global reputation for its fine products since it was founded in the 1890s
Footage broadcast on Russian television showed Mr Berlusconi examining a vintage bottle from its vast cellars during a tour
and asking the winery's director if he could try it
Russian newspaper Promyshlennie Vedomosti reported
with a witness describing how she uncorked a precious bottle of Jeres de la Frontera
it is one of the oldest and most expensive wines in the world
Ukrainian prosecutors for Crimea, who are working in exile, say the bottle was worth more than $90,000 (£58,000), Radio Free Europe reported.
When the peninsula was annexed, Massandra only owned five of the famous bottles, after two were sold at Sotheby's auctions, with the personal authorisation of then Ukrainian President Leonid Kuchma.
The successful bidder paid almost $50,000 (£32,000) at the 2001 auction, which then went to the government to fund the development of Massandra and wine-making in Crimea.
Ukrainian prosecutors are reportedly looking into filing embezzlement charges against Ms Pavlenko, who is also wanted for alleged “treason” after voting in favour of the Russian annexation of Crimea.
“This is one of the five bottles that constitute not only Massandra's or Crimea's heritage, but the heritage of all Ukrainian people,'' Nazar Kholodnytsky, first deputy prosecutor for Crimea told the Associated Press in Kiev.
Mr Putin and Mr Berlusconi are both reportedly named in the case over “large-scale misuse of property”.
During the two-day trip to Crimea, they also laid flowers at a war memorial, toured the seaside, inspected an archaeological dig and visited three palaces and a cathedral.
Massandra was Ukrainian government property before Russia's annexation of Crimea in March 2014, but has since been nationalised by the Kremlin.
The will of the Russian oligarchs to own vineyards in Crimea and produce wines under their own trademarks was first implemented even before the occupation of Crimea by Russia
became the first owner of Crimean vineyards and Crimean wine producer
Ukrainian companies controlled by him leased lands of the state enterprise “Gurzuf”
The occupation of Crimea opened many opportunities for Russian oligarchs and top-officials to buy agricultural lands and expropriated vineyards and wine production factories
It is also worth recalling those marauders who were the first to take precious “Massandra” lands immediately after occupation
It is remarkable that citizens of EU countries help new “owners” to launch their vineyards and factories
It is clear that they violate Western sanctions and the Ukrainian legislation
“Alekperov’s” Chateau and the first sale of “Massandra” lands
the land plot (total area 36,4306 hectares) near Gurzuf was sold at the “auction”
in accordance with the “Decree of the Council of Ministries of the Republic of Crimea”
The land plot was owned by the state enterprise “Gurzuf”
only 576 USD per 100 square meter of precious lands
The land plot was bought by Moscow based LLC “Elias” (LLC “Elias”
The name of the LLC was changed to “Grineko” on March 31
The investigation of the Center for Journalist Investigations established the connection between LLC “Elias” and Vagit Alekperov
Marina Romanicheva was the founder of “Elias”
She was also the co-founder of LLC “Center for Consulting and Outsourcing “Our Future”
Another co-founder of the Center was “Our Future” Foundation for Regional Social Programs” founded by oligarch Vagit Alekperov
Alekperov calls it “my foundation” in the presentation video
The connection of the first buyer of “Massandra” lands with the oligarch was not a surprise for those who knows the history of wine producer Château Côtes de Saint-Daniel
Its vineyards are located near Alekperov’s dacha (he told about vacations there in his interview)
LLC “Vinogradniki “Medvedi” acquired ownership of “biomaterial” (grape bushes) by court decisions but failed to privatize land plots of state owned enterprise “Gurzuf” where they were planted
The sale of “Gurzuf” lands was forbidden by the moratorium on privatization of agricultural lands whereas the property complex of “Massandra” was protected from privatization by the special legislation
The Prosecutor’s Office of the Autonomous Republic of Crimea initiated criminal investigation about illegal alienation of “Gurzuf” land plot on December 9
2015 when the occupation regime of Crimea prepared the decision about the sale of land
The investigation has been about illegal acquisition by public officials of “the Council of Ministries of the Republic of Crimea” of agricultural lands located on the territory of occupied Crimea (part 5 of article 191 of the Criminal Code of Ukraine)
Though the Center for Journalist Investigations uncovered names of the formal and real beneficiaries of the transaction
the investigation has been never completed and not submitted to the court
JSC “Upravlauschaja kompania “Business Investitsii”
UK) acquiring shares of Karpaty Chemical B.V
The latter owned 100% of shares of “Karpatnaftokhim”
“Graf’s Chateau” and the first stealing of “Massandra” lands
occupants “lost” 13 hectares of vineyards when the stolen property of “Massandra” was transferred to the Office of the President of Russia
Those lands bordered the territory of 5-star hotel complex Mriya Resort & Spa
Mykola Boiko, the General Director of “Massandra”
fired by occupation authorities told the Center for Journalist Investigations that he has been at the hospital abroad when Crimea was seized
he found out that occupants stole from “Massandra” the vineyard of elite Muscat Blanc located near the hotel complex Mriya Resort & Spa
“My problems began when 13 hectares of land were stolen in April
It was leased by Zelenski Nikolai Aleksandrovich
And Herman Osakrovich is there… (Herman Graf
the Head of the Board of “Sberbank Russia” – ed.)
once Graf went to his balcony and thought: “Why are here vineyards not belonging to me
I should make them mine!” Those lands were simply given to him
I wrote official letters but failed and ran into serious problems
I will tell you the great secret: the future of “Massandra” was determined before this case…”
What is Herman Graf involved into this story
“Sberbank Russia” owns hotel complex “Mriya Resort & Spa” through LLC “Garant-SV” (tax number 9103007830) and its founders LLC “Auktsyon” and “Gamma-S”
The Ukrainian subsidiary of “Sberbank Russia” launched its construction before the occupation of Crimea
Vladimir Putin held the meeting of the Security Council of the Russian Federation and met with members of the State Duma in the half-completed complex
He recognized the use of the Russian armed forces during the pseudo-referendum at the meeting
The Yalta International Economic Forum (YIEF) is conducted each year in Mriya Resort. It is the largest Crimean investment event with propaganda forums of the “friends of the occupation of Crimea”
the USA imposed sanctions on Mriya Resort & Spa and its direct owner LLC “Garant-SV”
PHOTO: Vladimir Putin and German Gref in Mriya Resort & Spa
It is known that “Sberbank Russia” refused working in occupied Crimea
as it was afraid that the US government would impose more severe sanctions than 2014 restrictions
Herman Graf was criticized by Russian “ultra-patriots” for his “non-patriotic” pragmatism
It is surprising that “Sberbank Russia” decided to enter the viticulture and wine production on lands expropriated from “Massandra”
The “Council of Ministries of Crimea” and LLC “Gorizont-servise” (its founders are “Garant-SV” and “Auktsyon”) signed an agreement about investment project “Creation of Wine Tourism in the Republic of Crimea” on June 15
The “project on planning and land management of the territory located to the south of sanatorium-recreation complex “Mriya Resort & Spa” has been developed within the agreement
It was ordered by LLC “SB Development” (Moscow subsidiary of LLC “Gamma-S”) and developed by LLC “Proektny Institut “Genplan” (Simferopol)
The construction of entertainment complex “Vinnyj Park” [Wine Park] was initiated in 2018
It was planned that the complex would occupy the area of 22 825 square m near Opolznevoe village and would include the wine production
The internal yard was supposed to have the artificial lake and the tower 50 meters high
The vineyards would occupy the largest part of the park (yearly harvest was estimated at 46,8 tons of the wine grapes of three types)
COVID0-19 pandemics postponed the opening of “Wine Park” (from autumn 2010 to spring 2021). It is likely that it will be launched in April. In accordance with the website of the Park
the initial project was significantly changed
Total area of the Park expanded to 30 hectares whereas the area of the vineyard was reduced to 7,5 hectares
Multifunctional space with immersive program will plunge guests into specific atmosphere when the insight into secrets of wine making will turn into free creative dialogue…
Local inhabitants told the Center for Journalist Investigations that two types of red grapes were planted: Cabernet and Mourvèdre
It was reported that another vineyard (with Pinot grapes) was planned in Sebastopol zone as Sebastopol climate was better than Gurzuf one
new owners destroyed 13 hectares of Muscat Blanc and replaced them with 7,5 hectares of the new vineyard
expensive palm trees and 200 years old olive trees were planted on the remaining territory of the Park…
“Westarbaiters” at the service of Russian oligarchs in Crimea
“SB Development” also mentions its project partners – LLC “Podzemproekt” (Moscow) and Italian architectural bureau Archea Associati (Florence
Happy Thomas Doll is sitting on the barrel of wine amid vineyards
His left hand holds a bottle of white wine whereas his right hand – a glass of Kokur
He is the Chief Winemaker in Mriya “Wine Park”
Thomas Doll came to Crimea in 2011 as the invited wine consultant of the wine production “Alma Valley” (Viline village
It is owned by another well-known Russian – Andrei Kostin
the Head of the Board of “Vneshekonombank”
the first wines under “Alma Valley” trademark were produced in 2013
The German consultant did not leave Crimea even after its occupation by Russia
Thomas Doll became the member of the jury of “international wine competition” conducted in Yalta on the basis of “Massandra” (already being the object of Western sanctions)
Thomas Doll left the team of Andrei Kostin’s wine producers (Russian expert Andrei Grigoriev headed it) and started working for Graf’s wine production
Russian media “Ludi ROSTa” published an interview with Thomas Doll as the Chief Winemaker of “Wine Park” project on November 30
2020 (the media is the project of “Partia ROSTa” [Party of Growth] by Boris Titov
Russian business ombudsman and owner of “Abrau Durso” company)
Doll describes the technology of grapes processing and informs that the project of wine production facilities was developed by Italian architect Marco Casamonti whereas another Italian
Marco Casamonti together with Giovanni Polazzi and Laura Andreini founded architectural bureau “Archea Associati”
the bureau implemented numerous large-scale architectural projects – from wine factories in Italy to sports complex in Tirana (Albania) and the Museum of Ceramics in Liling
Marco Casamonti is the ordinary professor at the department of architectural planning of the architecture faculty of the University of Genoa
He is the editor of the international architectural journal “Area” published by his bureau
he spoke at the Sankt Petersburg architectural exhibition in 2013
Mr. Casamonti seems to be successful architect, scholar and professor. However, he had serious problems with Italian prosecutors, in accordance with the Italian media La Repubblica. In April 2017, the newspaper published detailed article about scandal Casamonti was involved
He violated the law when he combined the work of the university professor with the work of architect and consultant in business projects
University students complained he ignored his duties as professor and did not deliver lectures
informed the damage brought by Casamonti’s behavior in 1999-2006 amounted to 689 thousand Euros
He had to pay 976 thousand Euro as the compensation
Alberto Antonini is last but not the least from “Westarbaiters” working for Russian oligarchs in Crimea
He is one of the best world enologists and consultants on wine production
He graduated from the University of Florence and received PhD from the University of Bordeaux and University of California in Davis
Antonini possesses family wine production near Florence
He has worked as consultant for wine producers from Argentina to Armenia for dozens of years
Antonini consulted the personnel of “Wine Park” and his consultancy has been very important for the project
it seems that this fragmented information can be sufficient for making conclusions about the work of citizens of EU countries in Crimea sanctioned by the EU…
Crimean “privatization” or expropriation of stolen property can take on various forms
There are many people willing to participate
when lucrative objects are at stake (like “Massandra”)
Architects and wine producers with worldwide reputation
owners of the large Russian business and rank-and-file local officials dreaming about career promotion – they are all involved into illegal transactions
The “Wine Park” is the monument of the Russian stupidity
wine cellars and 100 thousand visitors per year?
Everything seems to be possible for Russian marauders
critical deficit of the fresh water and international isolation…
prosecutors said they will file charges against the head of a wine factory in Crimea after a 240 year-old wine bottle was allegedly opened for Russian President Vladimir Putin and the former Italian Prime Minister Silvio Berlusconi
Putin and Berlusconi spent last weekend in Crimea visiting historic sites including the wine renowned Massandra factory where prosecutors say they drank wine
Massandra was the property of the Ukrainian government before Crimea joined Russia in March 2014
No charges can be issued in Crimea where Russia has absolute control
An eyewitness said the new Massandra director who is pro-Russia
Yanina Pavlenko opened a presigious 1775 bottle
Jeres de la Frontera for her distinguished guests
Video footage on Russian TV showed Berlusconi holding a wine bottle as Putin was listening to Pavlenko during the factory tour
Berlusconi was seen looking at a 1891 bottle and asked “Can it be drunk?” and the director replied “Yes”
Owen Galea huwa l-Kap tal-Aħbarijiet ta' TVM
Huwa nħatar f'din il-kariga fl-1 ta' Mejju 2024
Galea beda l-karriera l-ġurnalistitika tiegħu fl-2003 wara li ggradwa fil-Komunikazzjoni mill-Università ta' Malta.