Messieurs Kingpin: Makhmudov and Bokarev, Russian oligarchs with gang ties and Ukraine war profits, buy villas in France

In the “LPR”, Kostyuchenko was a regular at the occupation administration as a representative of the local business community. At the same time, he also acted as deputy director at OOO Lugamash (a limited liability company). As The Insider found, this Luhansk-based company was created based on Luganskteplovoz and registered to frontmen working for oligarchs Bokarev and Makhmudov. Lugamash's CEO and co-founder is Alexander Martynenko, an employee of the Novocherkassk Electric Locomotive Plant in the Rostov Region – an entity within Transmashholding.

Lugamash officially employs more than 1,000 people and produces parts and locomotives for Russian Railways. The company receives regular support from the local occupation authorities and Moscow, including subsidies from the budget. The United Russia faction in the State Duma also pledged support for Lugamash, and in September, the enterprise joined the “Free Economic Zone” established by Vladimir Putin's decree in the occupied territory.

French business in the occupied territories

Twenty percent of Transmashholding's shares belong to French engineering company Alstom. As it turns out, Alstom also co-owns a business in the occupied territory, holding a stake in Luganskteplovoz through Transmashholding.

Alstom and Transmashholding go way back as partners. They jointly manufactured electric locomotives and other products, and the French were reluctant to withdraw from Transmashholding even after the outbreak of full-scale war. Here is how Andrei Bokarev explained it at last year's St. Petersburg Economic Forum:

–What's the situation with Alstom being a Transmashholding shareholder?

–There's no situation. They are shareholders. We're working.

–Have they expressed the desire to get out?

–None at all.

–Are you considering the future possibility of buying out their Transmashholding stake?

–We don't want to, and neither do they.

–Has Alstom continued the deliveries?

–To the extent that we bought anything from them, our arrangements are in place.

However, the French may decide to withdraw from Transmashholding after the Russian company gets hit by U.S. sanctions.

Like Transmashholding, Alstom operates in the railway transportation market. Nine years ago, the French company was implicated in a corruption scandal surrounding Emmanuel Macron, who was the economy minister at the time. The future president was accused of lobbying for the sale of Alstom's power assets to General Electric. Labor unions and many politicians were against the deal, but Macron personally strong-armed its signing.