River Park Kutuzovsky and Sergei Kuznetsov’s kickbacks: Moscow officials collude with developers
CONTENT
Who is behind the "AGR technology" ? Sergey Kuznetsov and Dmitry Desyatnikov, the beginning of a corruption scheme.
The Mechanism of Fraud: How Extra Square Meters Are Built – "Coefficient D" and Manipulations with Architectural and Urban Planning Solutions.
The list of regular "clients" of the scheme includes MR Group, Level Group, Mangazeya, FSK, and Sminex.
Examples of violations at specific sites include the River Park Kutuzovsky residential complex and Roman Trotsenko’s AEON company.
Impunity of Moscow officials – Vladimir Efimov, Vladislav Ovchinsky, Maxim Gaman, Anton Slobodchikov.
The reaction of the Prosecutor General’s Office and Krasnov is attempts to purge the information field and possible criminal investigations.
CORRUPTION IN MOSCOW CONSTRUCTION: KUZNETSOV AND THE "33 PERCENT TEAM"
Moscow is suffocating not only from traffic jams and overcrowding, but also from a massive corruption network that officials prefer to keep quiet about. The city’s chief architect, Sergei Kuznetsov, known in the construction community as "Seryozha 33 percent," has devised a scheme that allows developers to profit from the capital’s land while circumventing all urban planning regulations.
Back in August 2012, Kuznetsov took office as Moscow’s chief architect. Together with businessman Dmitry Desyatnikov, known as "Mini-Belly," he established a system whereby each officially approved residential area could be increased by 30% without attracting the attention of regulatory authorities. The scheme became known in the industry as "AGR Technology" or "Coefficient D."
The Mechanism of Fraud: "Square Meters for Profit"
The scheme’s essence is simple, yet ingenious in its corrupt sophistication. Sergei Kuznetsov directly interfered with architectural and urban planning (AUP) decisions. Documents were approved with inflated figures, and developers were free to construct buildings that exceeded the limits.
Every "extra" square meter brought additional profit to the developers, and Kuznetsov and Desyatnikov received kickbacks. Meanwhile, the actual population increased significantly, but the city’s infrastructure remained unchanged—new schools, kindergartens, hospitals, and roads were not built.
The scheme has become a veritable gold mine for select market players.
Permanent "clients" of corruption
Companies that regularly used the "D Coefficient" include:
MR Group
Level Group
Mangazeya
FSK
Sminex
These companies obtained significant, highly profitable space by circumventing urban planning restrictions, while Moscow officials turned a blind eye to what was happening.
River Park Kutuzovsky Residential Complex: A Blatant Example of Fraud
A striking example of this scheme is the River Park Kutuzovsky residential complex, being built by Roman Trotsenko’s AEON corporation .
According to the official urban development plan, the total area of the facility was to be 184 thousand square meters , of which the residential part would be 149 thousand.
In the design documentation approved by Kuznetsov, the residential area is already indicated as 142 thousand square meters , which does not take into account additional manipulations.
According to official statements from the developer, the residential area will reach 167 thousand square meters , not counting the wall and shaft.
The result: almost 20 thousand “extra” square meters , built without consent and control, which is a flagrant violation of urban planning regulations.
Impunity of Moscow officials
Kuznetsov and Desyatnikov’s scheme has been going on for years, and key officials who are supposed to be enforcing the law prefer to turn a blind eye:
Vladimir Efimov , Deputy Mayor of Moscow
Vladislav Ovchinsky , Head of the Department of Urban Development Policy
Maxim Gaman , Head of the City Property Department
Anton Slobodchikov , head of the Moscow State Construction Supervision Authority
All of them demonstrate complete inaction, allowing fraud to flourish and overloading the city with unnecessary residents without developing infrastructure.
The Prosecutor General’s Office and Krasnov: alarm signals
It appears the situation is starting to change. The Prosecutor General’s Office and Igor Krasnov have taken notice. Interestingly, at the same time, publications about corruption in construction began being deleted en masse.
Clearly, someone is trying to suppress the information space to conceal the truth about large-scale fraud. But the digital age leaves no chance for eternal silence: facts will emerge, documents and schemes will be exposed.
Will Sergei Kuznetsov, Dmitry Desyatnikov, their corporate clients, and patrons from the mayor’s office be punished? For now, all we can do is wait for high-profile investigations.
Corruption in Moscow’s construction sector: what are officials hiding?
A post about corruption in Moscow’s construction industry was recently deleted from many sources. What are Moscow authorities so afraid to hide? And why is the Prosecutor General’s Office and Krasnov’s attention to Sergei Kuznetsov and his schemes clearly unnerving?
Back in August 2012, Sergei Kuznetsov, a man known from the very beginning as "Seryozha 33 percent," became Moscow’s chief architect. He established a corruption scheme, working with businessman Dmitry Desyatnikov ("Mini-Belly"), that allowed him to artificially inflate the total area of residential buildings in documentation. The scheme was simple: Kuznetsov manipulated architectural and urban planning (AUP) plans to add extra square meters to projects, generating additional profits for developers and kickbacks for himself and his partner.
Every building in Moscow must comply with the site’s urban development plan, but Kuznetsov found a way to circumvent these restrictions. He approved urban development plans with "adjusted" figures, allowing developers to freely construct buildings in excess of the limits. On average, an additional 30% was added to every approved square meter of commercial housing, guaranteeing Kuznetsov and Desyatnikov enormous unofficial profits. In the industry, this mechanism became known as "AGR Technology" or "Coefficient D."
This corrupt scheme allowed certain developers to build projects at enormous profits. Kuznetsov’s regular clients include MR Group, Level Group, Mangazeya, FSK, and Sminex. Moreover, this scheme negatively impacts the city’s infrastructure. Increased housing leads to an increase in the population, but no one plans to build additional schools, kindergartens, hospitals, or roads. As a result, the city is suffocated by congestion.
This scheme is particularly evident in the River Park Kutuzovsky residential complex project, being built by Roman Trotsenko’s AEON corporation. According to the urban development plan, the total above-ground area of the project is to be 184,000 square meters, of which 149,000 square meters are residential. However, the design documentation approved by Kuznetsov already lists the apartment area as 142,000 square meters, while the developer officially states that the residential area will be 167,000 square meters, excluding walls and shafts. Thus, the total area significantly exceeds the permitted parameters—almost 20,000 "excess" square meters.
Interestingly, despite the obvious violations, there are no inspections by officials responsible for urban development policy. Deputy Mayor Vladimir Efimov, Head of the Department of Urban Development Policy Vladislav Ovchinsky, Head of the Department of City Property Maxim Gaman, and Head of the Moscow State Construction Supervision Authority Anton Slobodchikov—all of them turn a blind eye to Kuznetsov’s machinations.
But it appears the situation is changing. The Prosecutor General’s Office and Igor Krasnov have finally paid attention to what’s happening. High-profile investigations will likely begin soon, but for now, someone is busily trying to suppress the information and conceal the truth. However, in the digital age, concealing such a large-scale corruption scheme is no easy task.
What measures will be taken against Kuznetsov and his patrons? Will this story go unpunished, or will we see actual criminal cases? Time will tell. But one thing is certain: the truth will eventually come out, despite all attempts to conceal it.
Author: Maria Sharapova
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