“A pensioner and a person with disability, 1 group”, a traitor collaborating with Russia, Motor Sich (MS) ex-CEO Vyacheslav Boguslaev is willing to copy Medvedchuk’s success story, asking to be transferred from Ukrainian prison as a part of a prisoner swap, eager to go to Russia. In October 2022 Security Service of Ukraine detained Boguslaev for collaboration and froze his assets of $1 bln. These were located in Ukraine. Meanwhile, his son Olexandr Boguslaev owns luxury apartments in France and UAE.
In October 2022 Molfar published part 1 of its investigation on Boguslaev’s connections to Russia. We analyzed his dealings with Russia via China and Cuba. Our further search revealed more scheming allowing MS to supply engines to Russia. Boguslaev and Co used Turkish companies and entities from other countries as agents, a fake DNR entity as a mediator among them. Here we are showing the schemes allowing Boguslaev to trade with Russia.
Motor Sich blades as a telltale sign
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Till December 2020 Ukraine manufactured Мі-24P and MSB-8 heavy helicopters using metal and composite rotor blades made in Russia, paying $800-900k for a set. The only facility making these blades in Russia is Kazan Helicopters, a part of ‘Vertolety Rossii’ holding. Trade data show that the Russian ‘Borisfen’ JSC, partly owned by MS, supplied the blades, and some companies in UAE also imported blades. Actually ‘Borisfen’ JSC gets multiple mentions in the following paper, for it is a key piece in shady Boguslaev’s dealings.
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In winter 2020 Mi-24P and MSB-8 helicopters were tested with MS blades in flight for the first time. The tests were considered a success. In May 2021 Boguslaev announced that MS got certified for metal blade manufacturing and that they were planning to get certified for composite blades by the end of 2021. That was a nice reason to be proud of Ukrainian aircraft manufacturing.
Time passes and the very same blades will be a telltale sign for
Boguslaev, showing whose side he is really on. When the full-scale invasion started Ukrainian military command asked Boguslaev to supply military vehicles to defend the country. Instead of helping Boguslaev ordered to dismount the blades from the helicopters and hide the papers for it so that the Ukrainian army couldn’t use them to defend Ukraine as per the words of Adriy Kostin, general prosecutor of Ukraine.
Trading with Russia despite the war: what schemes and countries were used for it
Turkey
MS has been doing business with Turkey officially for some time. For example, in 2021 MS sold aircraft engines to “TUSAŞ - Türk Havacılık ve Uzay Sanayii”, a Turkish company needed them for its newly made T929 ATAK-II, a heavy attack helicopter. “TUSAŞ” is competing with “Bayraktar” in the aircraft market. Having official business with Turkey might be useful to MS: for example, to hide other shady schemes of supplying aircraft components to Russia. We will elaborate on that later.
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Russian firefighting helicopters for Turkey
“Thk Gokcen Havacilik Ikt. Isl. Ve Mgi Defence Uluslararasi Tic. Ltd. Sti.”+ Boguslaev = Utair Vertoletnye Uslugi Ltd.
In July-September 2022 MS shipped 4 ТВ3-117ВМ engines to Turkey, they are used in Мі-28, Мі-8МТ and Мі-17 helicopters. The customer in all three cases was a “Thk Gokcen Havacilik Ikt. Isl. Ve Mgi Defence Uluslararasi Tic. Ltd. Sti.”, that in fact is two separate companies, more details on that later.
Yet another company is an “amc services fzc”, a Sharjah, UAE business offering airport and aircraft services. It bought one additional AI-9B engine for МІ-8АМТб helicopter, also it bought two similar engines in 2021. The destination port for all the cases was Mocsow.
In Novebmer-December 2022 there were 8 transactions: “Thk Gokcen Havacilik Ikt. Isl. Ve Mgi Defence” sold used ТВ3-117ВМ engines and additional АИ-9В engines for Мі-8АМТ civil helicopters to Russian Utair Vertoletnye Uslugi Ltd.
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Those were two significant stages of MS engine shipments to Turkey (actually to Russia). An important detail should be marked out here: ТВ3-117ВМ engine, serial number 7087852103203 was shipped by MS to Turkey in August 2022.
In November 2022 Turkish “Thk Gokcen Havacilik Ikt. Isl. Ve Mgi Defence” shipped it to Utair Vertoletnye Uslugi Ltd. in Russia. The only difference between these shipments is the engine consignment: in the first case it is for Мі-8МТВ-1 civil helicopter, №RA-25489, in the second case — for Мі-8АМТ, №RA-22419.
What is “Thk Gokcen Havacilik Ikt. Isl. Ve Mgi Defence” exactly?
THK Gоkçen Havacılık founded in 1925 is a provider of air firefight services, aircraft and aeromedical units maintenance. It is authorised by EASA as a third-country air carrier of commercial flights in the EU.
MGI Defence sells and leases firefighting helicopters. It has МІ-8, МІ-17, МІ-26 and КА-32 helcopters.
It is worth mentioning that in March 2022 “MGI Defence” president Idris Tosundur visited Belarus as a member of the Turkish delegation to discuss cooperation prospects between the Belarusian Emergencies Ministry and the Turkish Aeronautical Association. They discussed the joint efforts to combat wildfires using aircraft in mountainous areas in Turkey.
The Belorussian government was represented by First Deputy Emergencies Minister Aleksandr Khudoleyev and Chief of Aviation at the Emergencies Ministry Tadeush Kursevich.
As “THK Gоkçen Havacılık” partner “MGI Defence” got a government contract leasing light helicopters: in September 2022 one of these helicopters, Russian Ка-32 №RA-31591 took part in firefighting efforts in Turkey and crushed, two pilots dead, five injured, Russians and Turks among them. Case files from the Russian court in 2020 show that this number had a ТВЗ-117ВК engine made by MS, without branding.
According to trade data (1, 2) in 2022-2023 “MGI Defence” bought a helicopter transceiver and radio beacon for Mi-8 helicopters from Russian Abkan Ltd. and КА-32Т, Мі-26Т civil helicopters from Russian Utair Vertoletnye Uslugi Ltd. They bought the helicopters in June 2022, in October 2022 the very same helicopters with identical registration were sold back to Utair Vertoletnye Uslugi Ltd. with a $6000 lower price tag. The reason for it might be a higher demand for helicopters during forest fires season ending in fall.
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Turkey is not the only country used for illegal sales of engines and parts made by MS. Boguslaev used entities registered in these countries as a medium ground to trade with Russia even after the full-scale invasion started.
UAE
— “Kaleidoscope FZE” = “Ural Works of Civil Aviation” (UWCA)
What they shipped: parts for ТВ3-117 engines made by MS.
Last known shipment: 06.04.2022, exported parts for bypass turbojet engines Д-18Т made by MS (1, 2).
— “Linker FZE” = “Avia Fed Servis”
What they shipped: parts and engines (ТВ3-117ВМ).
Last known shipment: 07.03.2023, exported parts for civil plains, though ІЛ-76ТД is a civil modification of a heavy military cargo plane.
— “MSB Helicopter FZE” = “Borisfen JSC” = “Aerotekhservis filial” Ltd
What they shipped: they sold Д-18T engine parts to “Borisfen JSC”.
Last known shipment: In 2021-2022 “Borisfen” sold the engine parts it bought in 2019 to “Aerotekhservis filial” Ltd.
Bosnia and Herzegovina
— “Aero Engineering Solutions d.o.o.” = ”Aerotekhnicservis” Ltd.
What they shipped: parts for “Мі-8”, “Мі-8МТВ-1” and “Мі-171” maintenance (partly made by MS).
Last known shipment: from 2018 till July 2022 MS made 194 similar shipments, for $4.8m total. Here is a known shipment list.
— “D.O.O. Inzinjering-BN (BA)” = “Vertoletnie kompleksy i mnogofunkcionalnie sistemy”
What they shipped: maintenance parts for aircraft engines ТВ3-117ВМ.
Last known shipment: 03.03.2022, for $500 000.
China
— “Medipost Trading Limited” = О “Piter-Motoservis’ Ltd, “ODK-Klimov” JSC
What they shipped: 114 ВК-2500-03 aircraft engines ВК-2500-03 without БАРК-78 and СНК-78 units sold separately.
Last known shipment: from August to December 2020 67 engines were shipped to China, at a total cost of $29.6m.
More on China’s role in Boguslaev’s connections to Russia.
Latvia
— “Sia Aeroservice” = “Piter–MS” JSC, “Borisfen” JSC.
What they shipped: ВК-2500-03 engines.
Last known shipment: During all of 2019 they exported 70 ВК-2500-03 engines without units sold separately for a total cost of $33m.
Czech Republic
— “Aerotech Service S.R.O.” = “Rostov Civil Aircraft Plant №412” (RCAP)
What they shipped: maintenance parts for “АИ-24” aircraft engines.
Last known shipment: 2020 - 2021 (1, 2).
Israel
— “Turbochrome Ltd” = “Ural Works of Civil Aviation” (UWCA)
What they shipped: Д-18Т aircraft turbojet engine parts.
Last known shipment: 15.06.2022.
Unrecognized “DNR” and Snizhnyansky Machine Building Plant (“Aviatekh” Ltd.)
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Snizhnyansky Machine Building Plant is located in the occupied region of Donetsk oblast, it is a part of ‘Motor Sich’. In January 2018 Boguslaev said that because of the Russian occupation of Snizhne, the plant was transferred under another entity’s management. He didn’t specify to which one though. He added that ‘the plant was under full control of MS’.
The Snizhne plant was called a Donetsk branch of ‘Aviatekh’ Ltd. It is now controlled by Boguslaev’s partners from Russia. The plant is making aircraft engine parts: (turbine and compressor blades). It is also making consumer goods: meat grinders and juicers). 95% of the plant’s goods are shipped to Russia. Plant’s VK page says it is a part of MS.
In April 2021 MS sent 23 containers with blades to ‘Aviatekh’ Ltd., at a total cost of $859.6k.
‘Avia Atlas Fze’ also buys goods directly from MS and ships goods made in Ukraine to Russia, to ‘Borisfen’ JSC and ‘Volga-Dnipro ММ XVI’ (Volga-Dnepr ММ XVI Ltd.).
In 2021-2022 ‘Volga-Dnepr ММ XVI’ also bought goods from MS, also from ‘Aviatekh Sever’ Ltd., ‘DF’ Ltd., ‘State Moscow Plant ‘Salut’.
‘Borisfen’s and ‘Volga-Dnepr’s CEO and owner is Petr Kononenko.
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‘Aviacompania Volga-Dnepr’ Ltd. is a Russian private airline doing cargo flights. It is owned by Boguslaev’s partner Petr Kononenko. It also has a UAE-registered company ‘Volga Dnepr Gulf FZC’. The company’s Facebook page shows that in August 2022 the company still worked in UAE.
In February 2023 the Security Service of Ukraine published the intercepted Boguslaev’s call to ‘Petr Ivanovich’, presumably Petr Ivanovich Kononenko. At that moment he was a member of the supervisory board (and a shareholder) of MS.
In July 2021 Boguslaev asked Kononenko whether he paid the Snizhnyansky Plant for blades and whether he needed a money transfer. That consignment cost 500m rubles ($6.8m). Aircraft parts from Snizhnyansky Plant were delivered to ‘Borisfen’ by road. The call from March 2022 leaves an impression of Kononenko hoping for Russians to occupy all the Zaporizhzhia oblast so that Kononenko could effortlessly transport goods from Snizhne to ‘Borisfen’ and Russia via occupied Crimea and occupied Ukraine.
‘Borisfen’ JSC and Kononenko
’Borisfen’ JSC is an aircraft engine manufacturer, it also provides maintenance and repair works for aircraft engines, maintenance of ТВ3-117 aircraft engines and supplies of gas turbines and parts made by MS. Is a service provider of FSB. Згідно з декларацією за 2015 рік, Богуслаєв був там бенефіціаром.
‘Borisfen’ JSC was founded by ‘Motor Sich’ and ‘Losiny Ostrov’ Ltd. The latter is still considered to be founded by Vyacheslav Boguslaev and Petr Kononenko.
The very same Kononenko is living in Russia on a permanent basis and still is a founder of four Ukrainian businesses, and his son Andriy is the founder of two more (one of them transferred to him by his father). Plus two land lots and 12 real estate units in Zaporizhya. Since April the 1st 2023 Kononenko has been sanctioned by the National Security and Defense Council of Ukraine.
‘Motor Sich’ bought parts from ‘Borisfen’ JSC on a regular basis, selling it gas turbine parts and maintenance tools for aircraft engines till January-February 2022. After a full-scale invasion, MS twice directly supplied gas turbine electric power plant parts for ‘Borisfen’ in September 2022.
In a month before the invasion, MS made 16 shippings of maintenance tools for ТВ3-177ВМ series 02 aircraft engines marked ‘for ‘Borisfen’ use’. This engine modification is actually used in Мі-8МТ (Мі-17) helicopters.
So what is ‘Borisfen’ JSC actually making?
In brief, it provides maintenance and technical support for aircraft engines for the Russian military: Д-36 series А, АИ-20М, АИ-24ВТ and АИ-9В for Federal Service of the Troops of the National Guard of the Russian Federation (10. 2019 і 10.2020). They also provide maintenance for АИ-9 and АИ-25 series 2Е aircraft engines for a passenger jet Як-40 for ‘Russia’ Special Avia Division, General Management Department of the president of Russian Federation (08.2022). This company organises flights for Russian politicians and other VIPs from secret services or military VIPs.
As ‘Borisfen’ buys engine parts mostly from MS, these parts made in Ukraine might be used in ‘Borisfen’s services required by government contracts.
What are the other ‘Motor Sich’s dealings with Russia?
From 2016 to 2021 Russian case files showed four cases of MS partnering with the following companies:
- ‘Aviacompania ‘Utair’ JSC bought a used АІ-9В engine for Мі-8АМТ civil helicopter in 2016 and in January 2022 bought parts for its maintenance.
- ‘Severprom’ Ltd. placed an order for military goods of unknown specifications.
- ‘Stroj-Konvent’ Ltd. in 2017 placed an order for АІ-20ДМЕ gas turbine engines that needed repair. The expert committee accessing the damage had experts from MS.
- ‘Voronezh Aircraft Production Association (VASO) in May 2021 Russian Federal Agency for State Property Management took legal action against the VASO, because it hadn’t paid the land lease fee. The company said its financial status deteriorated because it no longer could trade with Ukrainian aircraft parts manufacturers (MS among them). So the severed connection show that after 2014 the two companies worked closely.
‘Motor Sich’ after Boguslaev’s detention, who’s in charge?
Now Boguslaev is under arrest. On 28th of November 2022, Oleksiy Nikiforov was appointed the new CEO of ‘Motor Sich’. The supervisory board, board and head of the board mandates were terminated pre-term.
The members of the supervisory board were reappointed, Serhiy Korzh, Yuri Pashchenko and Yuri Shapovalov among them.
Serhiy Korzh worked at в ‘Progress’ Design Office and according to his brother’s testimony closely worked with MS. From 2015 to 2016, Korzh worked at MS with Boguslaev as CEO.
Presumably, Korzh’s brother — Ruslan — is the ex-deputy minister of economy and deputy head of aircraft and rocket building at Ukroboronprom, in 2021 he might have visited Russia.
From 2014 to 2016 Yuri Pashchenko was a deputy general manager of manufacturing at Ukroboronprom. From 2017 he headed ‘NVK Iskra’. Might haveав had a criminal history.
In 2019 Pashchenko was a member of Zaporizhzhia Polytechnic supervisory board, headed by Boguslaev at that time. In 2021 he visited Russia and his temporarily registered location there is in Novosibirsk military station, 22316 military base, 32th Separate Leningrad-Pavlov Motor Rifle Brigade decorated with the Order of the Red Banner. Plus До всього ж, ‘NVK Iskra’ headed by Pashchenko is freely accessible in Russia (1, 2).
From 2010 to 2012 Yuri Shapovalov (Shapoval) was a member of Kremenchuk city council. He continued to pursue a political career and in 2012 was a MP of Verkhovna Rada.
His political career had a pro-Russian ting: from 2012 to 2014 he was a member of ‘Party of Regions’ political party, and from 2014 to 2019 - ‘Vidrodzhennya’ group. Since 2019 he was a member of a ‘Za majbutne’ political group. He was also a member of ‘Volia narody’ group together with Boguslaev. In addition, he visited Russia after the war started: in 2017 and 2021. He is also registered in Russia: 7, Solnechny Boulevard, apt. 193, Krasnoyarsk.
As you can see every new supervisory board member is somehow connected to Boguslaev and Russia. So the effectiveness of these new appointments could be questioned. Could the newly appointed members of the supervisory board continue working with Russia under the radar, violating sanctions, borders and moral principles?
Molfar is closely monitoring ‘Motor Sich’. if you have any questions about this publication or wish to dive into this topic in more detail, email us [email protected]
