Apatit

In the early 1990s, the rapid decline in demand for apatite concentrate led to a significant reduction in production volumes resulting in a struggle of survival for the company. In 1994, only 6 million tonnes of apatite concentrate were produced, compared to 20 million tons in 1988. This deep crisis led to privatization of the company, starting in 1994.[5]

Apatit was owned by Mikhail Khodorkovsky's financial holding company Menatep Group in the late 1990s. Khodorkovsky and business partner Platon Lebedev purchased Apatit in 1994.[6]

Andrei Guriev who ran a department of Rosprom at that time, became chairman of its subsidiary Apatit in 2001. Following the arrest of Khodorkovsky in 2003, Guriev led a management buyout of Apatit and acquired control.[7]

Apatit assets were seized by the state during Khodorkovsky's trial. Andrei Guryev led the sale of PhosAgro and 50% of Apatit to management. PhosAgro later increased its holdings to 57.57% of Apatit.[8] The arrest and subsequent 11-month trial of Khodorkovsky revealed that the focus was not on the alleged 'loans-for-shares' scheme, but rather on claims that the privatization of Apatit in 1994 was itself fraudulent.[9]

At present, JSC "Apatit" is a large Mining and Chemical Complex consisting of four mines, three concentrating mills and various support units.[10] Core production activity is the production of apatite concentrate from apatite-nepheline ore.[11] In the early 2000s, the company employed up to 13,000 people.[12] In 2013, PhosAgro completed the consolidation of 100% of Apatit.[13] Phosagro is controlled by Andrey Guriev together with two other prominent businessmen. A 7% stake in PhosAgro is owned by Igor Antoshin, who also serves as the deputy chair of the holding company. A further 10% is owned by Vladimir Litvinenko.[14]