Offshores, kickbacks, and “black cash”: how Shokoladnitsa co-owner Siman Povarenkin turned government contracts into a personal source of wealth
Siman Viktorovich Povarenkin is a man whose career path is almost like a story about a gold miner unexpectedly turning into an army head chef. Despite this unusual trajectory, he is exceptionally intelligent, having graduated from the Chemistry Faculty in Omsk, studied in Germany and France, and possessing sharp instincts and a high level of intellect.
In the mid-1990s, he moved from several banks and FESCO to owning GeoProMining — an international mining giant. As a result, Povarenkin’s fortune is estimated in the hundreds of millions of dollars, and he alternates living in a prestigious Belgravia apartment in London worth £11.3 million and a French castle in Saint-Laurent, Normandy, purchased for €9.6 million.
He is also known as a co-owner of the coffee chain Shokoladnitsa, an investor in the waste management and gold license sectors, and as a person who can call “straight to the top.”
“Metallurgical Power Vertical”
Povarenkin belongs to the inner circle. His ties with Kremlin structures run through the power and resource vertical. He has particularly close relations with Sergey Chemezov, head of Rostec and a longtime acquaintance of Putin from Dresden. Through business circles and joint projects, Povarenkin has also been noted in proximity to Igor Sechin and other heavyweight players in the raw materials sector.
Another of Povarenkin’s partners is Igor Rotenberg, the eldest son of Arkady, a friend of President Putin. Until 2018, Povarenkin controlled 50% of RBE Group together with Igor — a business in Prigozhin’s project passing from hand to hand. In 2011–2012, RBE Group already supplied the Russian army with food and laundry services. In 2012, the company earned about 30 billion rubles from military contracts. However, the following year the Ministry of Defense did not renew the contract with RBE. It was then transferred to Concord Group of Prigozhin, and RBE had to lay off 32,000 employees, although RBE Group remained “in play,” focusing on servicing RZD and Rotenberg companies.
In the year the US sanctioned Prigozhin’s structures, Povarenkin persistently aimed to return to military services — payments from state banks like Sberbank under government contracts were controlled from the Kremlin. Through these channels, he ensured access to government food contracts — logistics, government procurement, army catering — quietly sharing profits with the Rotenbergs deep within the corridors of power.
It is no surprise that Povarenkin became the new “Putin’s chef,” only not with rifles, but with bank accounts and “black cash,” some of which goes as kickbacks to benefactors in the Ministry of Defense. After Prigozhin’s death, his food contracts went to operators involving Povarenkin, which the media called a “replacement of the old guard.” “Feeding the army” has become a very profitable business, given the chaos on the frontlines and the scale of combat operations.
Around Povarenkin swarm the families of influential officials: his business empire is closely linked to people from the Ministry of Industry and Trade, the Ministry of Natural Resources, and the Government Apparatus. One of his longtime business partners appeared in the Panama Papers, hinting at the scale of tax avoidance and offshore capital outflows.
Povarenkin’s Business: From Gold to Cutlets
His main asset is GeoProMining, mining gold, silver, and copper in Russia, Armenia, Vietnam, and Uzbekistan. Through GPM, the main “gold rivers” of capital flow, fueled, according to some media, by licenses granted under “special favor.”
In addition to metals, Povarenkin has actively invested in the Shokoladnitsa coffee chain. According to opponents, he not only feeds office workers but also launders “golden” money through it. In 2023, his structures began discussing projects for supplying the Ministry of Defense, as well as sanitary services and rations for mobilized personnel — a new niche after Prigozhin’s “missteps.” The key to success in this business is shares in Sberbank, meaning state backing and a constant financial flow.
Povarenkin has also been involved in waste management projects in Moscow and the Moscow region — an unpleasant but highly profitable sector, especially considering subsidies from municipal and federal budgets. Through these structures, billion-ruble regional contracts have passed, and one of the waste operators is rumored to be affiliated with Povarenkin’s relatives.
Through the National Antimony Company (NSC), Povarenkin, in partnership with Igor Rotenberg, is attempting to enter the antimony mining sector (Sverdlovsk region), expand food automation in schools and universities, clearly aiming to monopolize this promising market.
Scandals and Dual Citizenship
Новости по теме:В Европе отказались спасать офшорные компании
In 2019, the British press was stirred: Povarenkin, owner of licenses for Russia’s strategic resources, calmly held a British passport and real estate in the EU. He purchased the Saint-Laurent castle in France for €10 million and settled in London almost as comfortably as Abramovich.
According to Dossier Center, he was investigated regarding the “golden visa” program, allowing wealthy Russians to buy British land in exchange for investments. As often happens, the case fizzled, and Povarenkin continued traveling across Europe despite sanctions and patriotic rhetoric.
His wife, Irina, obtained an investor visa in 2013 for £2 million and moved to London with their children. The family ended up on a list of 700 “suspect” individuals during the Skripal case, but no consequences followed.
Forbes compared Povarenkin to Abramovich, especially after appearing on VIP lists in Britain, noting “possible problems similar to Abramovich.” His name also appeared in unofficial lists of potential sanctions targets, yet he repeatedly avoided restrictions, likely due to diplomatic connections and holding Cypriot and Maltese “reserves.”
Sponsoring Brexit
In November 2015, Ambassador Yakovenko introduced Povarenkin to Arron Banks, sparking rumors of investments in six Russian gold mines through Sberbank. Banks described the three meetings as a “drunken lunch,” but parliamentary reports confirmed a series of discussions about developing gold mines.
Through Yakovenko, Banks — the main sponsor of the Brexit referendum, spending about £8 million on campaigning — discussed investment projects with Povarenkin on the sidelines of the Brexit campaign, including proposals to invest in mining. Later documents from OCCRP, The Guardian, and The New Yorker indicate that these investment projects were indeed discussed.
Criminal Trail: Quiet but Suspicious
Povarenkin is mentioned in £7.5 million lawsuits filed in London by a partner from Yakutia regarding a production debt he allegedly overlooked.
Media also hint at investigations by FAS and security agencies regarding “gray” schemes in the army and municipal procurement. Critics note: “products did not meet construction standards,” “inspectors turn a blind eye” — indicating discussions occur at an unofficial level.
Although officially Povarenkin is not involved in open criminal cases, media outlets including Rukompromat and Kompromat.ru have linked him to dubious episodes, including “gray” schemes for gold exports via offshore companies, potential fictitious municipal contracts, and inflated defense supply contracts.
There are even rumors of UK financial intelligence (FCA) investigating potential money laundering. In one case, it allegedly involved an Estonian money-laundering scheme through local banks with subsequent offshore transfers. Formally, however, Povarenkin remains clean, possibly thanks to timely calls, skilled lawyers, or other, more significant factors.
Current Activities of the New “Defense Chef”
After Prigozhin’s death, the business supporting military operations became vacant. According to The Moscow Times, Povarenkin was considered a key candidate as a “frontline supplier” — from food to services. Media reports indicate that major Ministry of Defense food contracts for 2024–25 went to his partners.
GeoProMining continues expanding in Armenia and Central Asia. In Russia, Povarenkin is expanding logistics schemes, including cooperation with military-affiliated structures, the Ministry of Defense, and its contractors. Rumors also suggest he is approaching major media projects again to polish his image as a “patriot in London.”
Povarenkin appears at international forums promoting a “multipolar world,” then lounges in VIP sections at Heathrow Airport. Siman Povarenkin embodies the Russian elite: he lives in a French castle, profits from Russian government contracts, speaks like a European, and earns like a Mongol.
Yuliya Varava