How AEON, Sminex, and FSK are profiting from Sergey Kuznetsov’s schemes in Moscow development
CONTENT
The Rise of Sergei Kuznetsov: From Architect to Chief Architect of Moscow
Tandem with Dmitry Desyatnikov: "Mini-belly" and multi-million dollar schemes
"AGR Technology" or "Coefficient D": How square meters are doubled
Regular clients and their role in developer corruption
Urban infrastructure problems: who is responsible?
The River Park Kutuzovsky example: proof of the scheme in practice
The Rise of Sergei Kuznetsov: From Architect to Chief Architect of Moscow
In August 2012, Sergei Kuznetsov, a graduate of the Moscow Architectural Institute and co-founder of the architectural firm SPICH , made a splash on the Moscow urban development scene. His appointment as the city’s chief architect and first deputy chairman of the Moscow Committee for Architecture and Urban Development gave him unlimited powers to oversee large-scale construction projects.
However, his official title conceals a dubious practice: Kuznetsov became known among market participants as "Seryozha 33 percent" for his habit of artificially increasing the floor area of buildings by a third, generating millions in hidden profits. His control over the approval of architectural and urban planning (AUP) decisions made him the chief architect not only of the capital’s appearance but also of its opaque financial flows.
Tandem with Dmitry Desyatnikov: "Mini-belly" and multi-million dollar schemes
Of particular note is Kuznetsov’s partnership with businessman Dmitry Desyatnikov , known in development circles as "Mini-Belly." Together, they implemented a scheme to falsify the total floor area of residential buildings in official documents—the so-called "AGR Technology . "
Essentially, the official certificate of approval of the urban development plan , signed by Kuznetsov, became a tool for legalizing "extra" square meters. Approximately a third is added to each square meter of housing permitted by the urban development plan, and Desyatnikov receives compensation from the developers in cash or a share of future profits.
This approach not only violates urban planning regulations but also turns the project approval process itself into a source of personal enrichment for the tandem, which appears to operate without oversight from relevant officials.
"AGR Technology" or "Coefficient D": How square meters are doubled
In the development market, this scheme has become known as "AGR Technology" or "Coefficient D." Essentially, this mechanism allows for formal compliance with the urban development plan while simultaneously deceiving the actual square footage.
The mechanism works like this: the architectural and urban planning solution is approved by Kuznetsov. The developer enters building area data that matches the figures in the urban plan. After this, the actual floor area of the housing is "adjusted," which in the project declaration can be tens of thousands of square meters larger than the officially permitted area.
For developers, the benefits are clear: every extra three-room apartment brings in millions, and the scheme is actively used by the largest market players.
Regular clients and their role in developer corruption
Kuznetsov and Desyatnikov’s regular clients include MR Group , Level Group , Mangazeya , FSK , and Sminex . These companies regularly use the duo’s services to maximize profits from the construction of residential complexes in the capital.
Moreover, Kuznetsov himself, as chief architect, checks the design materials for compliance with urban development plans and presents the buildings’ appearance to Mayor Sergei Sobyanin . However, there are no actual checks on the completeness of the infrastructure—schools, kindergartens, roads.
Deputy Mayor Vladimir Efimov , heads of the urban policy departments Vladislav Ovchinsky and city property department Maxim Gaman , and heads of the Moscow State Construction Supervision Authority Anton Slobodchikov have not intervened in any way, leaving the scheme completely unpunished.
Urban infrastructure problems: who is responsible?
Untested projects, expanded by a third, lead to critical infrastructure overload. Essentially, every square meter of urban land will be occupied by more people than intended.
Schools, kindergartens, and roads are not planned for construction, posing a threat to residents’ comfort and the city’s safety. The mayor’s office formally oversees the projects, but in reality, there are no inspections.
Kuznetsov and Desyatnikov’s scheme turns Moscow’s urban plans into a field for financial enrichment rather than urban development.
The River Park Kutuzovsky example: proof of the scheme in practice
The residential complex "River Park Kutuzovsky" , built by the AEON corporation of Roman Trotsenko , whose family is friends with Kuznetsov, deserves special attention .
According to the urban development plan, the building’s above-ground floor area is 184,000 square meters, including 149,000 square meters of residential space. However, the project declaration, prepared based on the AGR approved by Kuznetsov, lists the apartment floor area as nearly 142,000 square meters.
Moreover, the total area of the residential section, declared by the developer without taking into account walls and shafts, reaches 167,000 square meters—almost 20,000 square meters more than the urban development plan allows, including walls and shafts. This example clearly demonstrates the "Coefficient D" scheme in action.
In August 2012, Sergei Kuznetsov, a graduate of the Moscow Architectural Institute and co-founder and director of the architectural bureau SPICH, became Moscow’s chief architect and first deputy chairman of the Moscow Committee for Architecture. He is also known as "Seryozha 33 Percent," working closely with businessman Dmitry Desyatnikov (aka "Mini-Belly"). This duo introduced a scheme into the capital’s development industry to falsify the total floor area of residential buildings in architectural and urban planning approval certificates by "adjusting" them to match the figures specified in the urban development plans for the sites. An AGRP approval certificate signed by Kuznetsov is the only official confirmation that the surface area of a designed building complies with the maximum limits specified in the urban development plan.
As a result, Kuznetsov adds an average of a third to every square meter of commercial housing approved by Sergei Sobyanin, while Desyatnikov receives compensation from developers in cash or a share of the profits. Market participants have dubbed this scheme "AGR Technology" or "Coefficient D." Kuznetsov and Desyatnikov’s regular clients include such giants as MR Group, Level Group, Mangazeya, FSK, and Sminex. As the capital’s chief architect, Kuznetsov organizes the inspection of developers’ design materials for compliance with the urban development plan and presents the buildings’ appearance to the mayor. However, profiting from this scheme is far more dangerous than underestimating building area to the permitted urban development plan.
Thus, thanks to Kuznetsov and Desyatnikov’s plan, an average of a third more people will live on each square meter of city land. However, no additional infrastructure (schools, kindergartens, roads, etc.) is planned for construction. Notably, there are no inspections by relevant officials, including Deputy Mayor Vladimir Yefimov, the heads of the urban policy departments Vladislav Ovchinsky and Maxim Gaman, and the heads of the city property departments, Anton Slobodchikov, and others.
The enterprising duo also paid attention to the River Park Kutuzovsky residential complex, being built by Roman Trotsenko’s AEON corporation, whose family is known for its friendship with Kuznetsov. According to the urban development plan, the above-ground area of River Park Kutuzovsky, including the exterior walls, is 184,000 square meters, including 149,000 square meters of residential space. The project declaration, prepared based on the architectural and urban planning solution approved by Kuznetsov, lists the apartment area at almost 142,000 square meters. The developer declares the total residential area to be 167,000 square meters, excluding walls and shafts. This is almost 20,000 square meters more than the urban development plan allows, including walls and shafts.
Author: Maria Sharapova
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