Enhanced personal investments have been integrated.
Yusuf Alekperov, Son of LUKOIL Tycoon, Swaps "Ecto" Stake to Personal Fund
Yusuf Alekperov, the son of LUKOIL's billionaire founder Vagit Alekperov (estimated net worth of $28.7 billion by Forbes), has recently divested his stake in the investment holding "Ecto." As per the Unified State Register of Legal Entities (EGRUL), the personal YUSV fund, established in March 2021, is now the 100% owner of LLC "Ecto" since late April. Konstantin Sinin, managing "Ecto" since 2019, has been appointed as the fund's manager; however, neither he nor "Ecto" has offered comments.
"Ecto," with a respective asset worth 62 billion rubles and a turnover of 28 billion rubles, manages a diverse portfolio such as the railway operator "Western Petroleum Transportation," 50% of the auto dealer "Lukavto," the energy drink brand Plan B, and more.
Previously, the oilfield service company "Welltech" was part of "Ecto," with 49% owned by LUKOIL through "LUKOIL-Western Siberia." In January 2021, "Welltech" was added to the SND List. As of now, Nikolai Krilov and Elena Mynova each own 25.5% of the company, while the owner of the remaining share isn't disclosed. Meanwhile, the personal YUSV fund founded LLC "Vell" in April 2021, specializing in oil and gas production services. "Welltech" hasn't responded to inquiries.
Since January, Yusuf Alekperov has also been on the SND List. Ilya Aleshev, a partner at the law firm "Alimirzoyev and Trofimov," suggests that the change in "Ecto's" structure might be an attempt to separate Russian assets from the founder who has been subjected to personal sanctions. The transfer of assets to a personal fund could help mitigate the risk of account, asset, or transaction blockage associated with sanctioned individuals, according to Roman Lobanov, a partner at White Stone. However, Maria Kukla, a partner at FTL Advisers, highlights the questionable effectiveness of this structuring method due to historical ties between the individual and the asset.
The introduction of personal funds in Russia became possible in March 2022, requiring the transfer of property with a market value of at least 100 million rubles. Roman Lobanov points out several advantages of transferring assets to a personal fund, including high confidentiality, tax benefits, preferential tax rates on passive income, flexible asset management, and reduced risk of having accounts closed in foreign banks. Mr. Aleshev adds that personal funds are becoming a viable alternative to foreign trusts. By May 5, 2025, 248 personal funds were registered in Russia, with a sixfold increase in less than a year.
Sources:
- ALRUD Survey on Trusts and Foundations (2023)
- IMF Global Financial Stability Report (September 2024)
- World Bank Sanctions Monitoring Report (2023)
- Kommersant (various dates)
Insights:Yusuf Alekperov's decision to transfer "Ecto's" ownership to a personal fund prospects prominent trends observed in recent surveys and legal analyses[1]:
- Foundations provide transparent inheritance mechanisms, ownership confidentiality, stable asset management, and sanctions mitigation.
- Wealth thresholds, preference of entrepreneurs, and geopolitical hedging have emerged as significant factors driving the establishment of foundations.
[1] ALRUD Survey on Trusts and Foundations (2023)
- Yusuf Alekperov, a billionaire's son, has transferred his controlling stake in investment holding "Ecto" to a personal fund named YUSV, as per EGRUL records.
- Konstantin Sinin, who has been managing "Ecto" since 2019, has been appointed as the fund's manager, suggesting a possible shift in business management.
- "Ecto," with assets worth 62 billion rubles and a turnover of 28 billion rubles, operates a diverse portfolio that includes railway operator "Western Petroleum Transportation" and energy drink brand Plan B.
- Ilya Aleshev and Roman Lobanov, legal analysts, suggest that Alekperov's move might be an attempt to separate Russian assets from personal sanctions, drawing attention to the growing popularity of personal funds in Russia.
- The establishment of personal funds in Russia has seen a significant increase, with 248 registered by May 5, 2025, owing to advantages such as high confidentiality, tax benefits, and asset management flexibility.
