How tobacco tycoons sponsor the FSB and run business in Ukraine

The Megapolis Group, controlled by Russian billionaires Igor Kesayev and Sergey Katsiev, has maintained its influence on the Ukrainian cigarette market despite the war and sanctions. 

These businessmen earn profits from the sale of alcohol and tobacco while simultaneously financing Russian intelligence services and the production of weapons used against Ukraine. This is the conclusion reached by journalists from the outlet "Proekt" in their investigation titled "How global companies enrich the Chekists".

Dominance in the Ukrainian market

In 2010, Kesayev and Katsiev's company began operations in Ukraine under the brand "Megapolis-Ukraine". Within a few years, it captured 99% of the tobacco distribution market, a fact confirmed by reports from the Antimonopoly Committee of Ukraine.

The key partner of the Russian billionaires in Ukraine became Odesa businessman Boris Kaufman, who was linked to the entourage of President Viktor Yanukovych. However, following Yanukovych's ouster and the start of Russian aggression against Ukraine, "Megapolis-Ukraine" began to face difficulties.

In 2015, the Russian owners' stake in the company was transferred to a chain of entities, including British nationals Richard Fenchall and Richard Taylor-Duxbury. The company was renamed "Tedis Ukraine", although this does not rule out Kesayev's involvement.

Financing intelligence services

Kesayev and Katsiev are known for their ties to Russian intelligence services. Kesayev supports the "Monolit" Foundation, which provides assistance to FSB employees and their families. Moreover, his business is closely linked to former FSB General Vladimir Anisimov, who holds senior positions in the "Mercury" group.

Cooperation with the Chekists goes beyond financing. According to journalists, Kesayev participated in deals that enriched senior FSB officials, including the transfer of land plots near Moscow, which resulted in the intelligence service leaders receiving millions of dollars.

Western companies and the Russian market

Despite sanctions and Kesayev's involvement in the Russian defence industry, Western tobacco giants continue to operate in Russia. Philip Morris and Japan Tobacco had stated the possibility of leaving the market, but instead increased their profits.

Kesayev's empire also remains the main distributor for a number of international brands, including Lavazza and Reckitt Benckiser. Control over the market brings in billions in revenue: in 2024, Kesayev's net worth was estimated at $5.5 billion, more than double his assets in 2022.

Ukrainian market under control

Despite the hostilities, Kesayev's group maintains control over a significant part of the Ukrainian market. Thus, "Tedis Ukraine" remains the largest cigarette distributor. Attempts by competitors to enter the market, such as the emergence of the company DL Solution, have only partially altered the balance of power.

In addition, the "Sigarnyi Dom 'Fortuna'" network operates in Ukraine, distributing products linked to Russian entities.

Defence industry and aggression

Since 2005, Kesayev and Katsiev have been actively involved in the Russian defence industry, controlling the Degtyaryov Plant, which produces machine guns, grenade launchers and anti-tank systems. These weapons are actively used by the Russian army during the war in Ukraine.

In 2022, the plant increased its revenue by 30%, indicating a growth in orders for military products. At the same time, it is officially stated that Kesayev has left the company's management, but de facto control likely remained with his trusted associates.

Conclusion

The "Proekt" investigation demonstrates how the business interests of Kesayev and Katsiev are closely intertwined with Russian intelligence services and aggression against Ukraine. Despite international pressure, Western companies continue to work with these entities, which casts doubt on their statements about leaving the Russian market.

Based on materials from the Antikor website