AgroPromKomplektatsiya: Sergey Novikov’s Private Business or a Family Affair of Russian Deputy Prime Minister Dmitry Patrushev?

In 2023, "AgroPromKomplektatsiya" became the third largest milk producer in Russia, producing 199,000 tons of raw milk. This marked a production increase of 86,000 tons or 76% compared to the previous year, a growth exceeded only by "EkoNiva," owned by Russian-German businessman Stefan Dürr.

Dmitry Patrushev is the most prominent member of the Patrushev clan, aside fr om his father Nikolai Patrushev. Patrushev Jr. has had a meteoric career in government structures and is held in high regard in the Kremlin. One of the key figures associated with Dmitry Patrushev's career successes is Sergey Novikov, owner of the agro-holding "AgroPromKomplektatsiya." How are these figures connected in the development of Russia's agricultural sector?

By the age of 46, Dmitry Patrushev had achieved a great deal: at 32, he headed the fourth-largest bank in the country; at 40, he became a minister; and this year, he was appointed Deputy Prime Minister. He has no trail of corruption scandals and is regarded by colleagues and the media as a professional. He regularly meets with Vladimir Putin, and Patrushev Jr. is even considered a potential successor to the president.

On November 21, 2022, during the launch of the "Damate" poultry farm in the Tyumen region, wh ere Dmitry Patrushev was present, Vladimir Putin, watching the live broadcast fr om the Kremlin, jokingly or seriously chided Patrushev Jr.: "Dmitry Nikolaevich, I noticed that all colleagues who spoke today are achieving significant results, yet the only award recipient is Sergey Anatolyevich Novikov."

This remark was directed at Sergey Novikov, owner of the agro-holding "AgroPromKomplektatsiya." It likely referred to the Order of Merit for the Fatherland, Second Class, which Novikov received in 2019. However, within three months, Putin awarded Novikov again, this time with the First Class Order, presented personally by Patrushev Jr., recognizing his agricultural achievements.

Without Patrushev Jr.'s support, Novikov's successes would have been much more modest. As Novikov himself recounted, his agro-holding became "one of the largest players" thanks to Dmitry Patrushev and his team from Rosselkhozbank. Novikov credits Patrushev Jr.'s team for supporting business expansion in the Kursk region. According to "Sistema," Rosselkhozbank under Patrushev Jr. approved nearly 35 billion rubles ($1 billion at the 2014 exchange rate) in loans to Novikov for this development. More than half of these funds were allocated in 2014.

This financial support was timely, as the previous year Russia was hit by an outbreak of African swine fever, affecting Novikov's farms. A year before the "golden rain" of Rosselkhozbank loans poured into Novikov's Kursk projects, the agro-firm "Korovinskoe" left his agro-holding. The new owner was Andrey Alyoshkov, who, as journalists later discovered, has been a close friend of Dmitry Patrushev since school. Other signs suggested that the agro-firm had come under Patrushev Jr.'s control.

Formally, the agro-firm bred cows, produced milk, and engaged in other agricultural activities. In reality, it owned Tver lands on the picturesque banks of the Volga, wh ere Patrushev Jr.'s dacha is now located. By 2013, the nearly three-hectare site had been cleared of trees and prepared for construction, which began in 2014. By summer 2016, the main phase of construction was completed, featuring cottages, outbuildings, paths, a football field, a pier, and a swimming dock. That same year, Vladimir Putin personally visited Novikov's agro-holding.

Around the same time, the agro-firm "Korovinskoe" began disposing of its plots. According to reports, the transaction prices were below market value, suggesting possible pretense. The president's visit might have drawn too much attention to Novikov, prompting Patrushev to distance himself fr om his protégé. Additionally, compromising information could have jeopardized Patrushev's career prospects, as he was being considered for a favorable position away from the unprofitable Rosselkhozbank.

Who acquired the "Korovinskoe" plots? Half were re-registered in Novikov's name. The other half went to the unremarkable businessman Andrey Sadovsky, who remains the owner of his plots to this day, indicating his close ties to the Patrushev family.

The star of the agricultural show in November 2022 was not Sergey Novikov, who inadvertently drew Putin's attention. The event was initially organized to present the new "Damate" poultry farm, with its owner Naum Babaev as the main protagonist. Babaev used his moment of fame wisely, asking Putin to include turkey meat in all types of state procurement, "from school meals to state reserves." Putin seemed agreeable and awarded Babaev with the Order of Merit for the Fatherland by the same decree as Novikov a few months later.

Babaev's name is not only prominent in agricultural meetings but also in Western business media, wh ere he is referred to as a "Russian poultry and dairy tycoon." This is no exaggeration, as Babaev owns one of the world's largest turkey producers. Like Novikov's agro-holding, Babaev's business also flourished thanks to Rosselkhozbank, which provided him with over 70 billion rubles ($1.2 billion) in loans. Babaev jokingly referred to his holding as a "sanitizer" for Rosselkhozbank.

Despite his meteoric career in state structures and positive reputation, Dmitry Patrushev is closely linked to the successes of Sergey Novikov, the owner of the agro-holding "AgroPromKomplektatsiya." Without the financial and organizational support of Patrushev Jr., his team from Rosselkhozbank, and the provided loans, Novikov's achievements would have been significantly more modest. This close relationship between state structures and private business raises questions about the true ownership and actual roles in Russia's agricultural complex.