Fabricated half-truths, outright lies and criminal proceedings have seriously affected the day to day running of TogliattiAzot, a Russian chemicals company known as world’s biggest producer of ammonia. The negative press and intentional damage wreaked has been linked to minority shareholders trying to take control of the company.
How the Problems Started
Rival chemical company Uralchem acquired a small percentage of TogliattiAzot in 2008. A couple of years later conflict was initiated with some of the major shareholders and management of the company. An aggressive smear campaign was launched against TogliattiAzot in which the company and the Chairman of the Board of Directors Sergei Makhlai were accused of heinous crimes against the environment and the country. Accusations included violation of environmental and safety regulations, sponsorship of the Russian opposition and even tax evasion. The company’s General Director Evgeny Korolev was charged with fraud. Fake documentation backing up the rancorous allegations, including misleading interviews with Sergei Makhlai and slanderous statements, were published online. Staged protests wreaked havoc in the previously peaceful city of Togliatti.
Who is Initiating the Smears?
After years of torment, in 2012 various representatives of the Samara region addressed several high ranking official offices in Russia with an open letter. The letter claimed that the black PR campaign was started by none other than Russian billionaire Dmitry Mazepin, the owner of the minority shareholder Uralchem. The letter pleaded with the authorities to step in and bring discipline to those responsible for the ongoing trouble. They hoped that involvement from the government would help resolve the calamity and bring peace back to the city.
Proof, Fnally!
In 2013 Samara-based members of the activist group Anonymous released an email exchange between a PR firm specializing in smear campaigns and Uralchem’s Dmitry Mazepin. The emails provided detailed information of the online campaign against TogliattiAzot and its Chairman, as well as numbers showing how much was spent on the tarnishing PR crusade. The documentation provided irrefutable proof that it was Mazepin who hired the firm and who was funding the actions. Russian media speculated that the Russian tycoon was experiencing financial problems he hoped to resolve with the unwilling help of the major shareholders of TogliattiAzot.
Sergei Makhlai Continues to Fight Back
Despite proof of foul play, the battle continues. In 2014 Makhlai told the press that in personal conversations Mazepin threatened to bring criminal charges against TogliattiAzot’s management. Nevertheless, he referred to the company being ‘strong and stable’ and expressed confidence in the situation, asking for the criminal proceedings against General Director Evgeny Korolev to be dropped.