Vitaly Khomutynnik: Men and the Millions of the Parliamentary "Wunderkind." Part 1
Just five years ago, he was Viktor Yanukovych's favorite "boy millionaire," heading the youth wing of the Party of Regions and collecting kickbacks for VAT refunds. Today, he's a favorite of Ihor Kolomoisky, a member of the Revival parliamentary faction, and once again tackling VAT refund issues. What's the secret behind Vitaliy Khomutynnik's unsinkability? And how did the once youngest member of the Verkhovna Rada manage to become the richest elected official today?
Crime Family
When Khomutynnik was first elected to the Verkhovna Rada in 2002, he truly became the youngest Ukrainian MP at the time (at 26 years old). Naturally, this attracted media attention, as did the fact that a year later, Khomutynnik was invited to serve as an advisor to Prime Minister Yanukovych and head the "Union of Regional Youth." Those unfamiliar with Khomutynnik's true past whispered in surprise, "A genius, a child prodigy!"—and he was happy to embrace this "nonsense," personally inventing a new biography for himself. The one in which he allegedly imported jeans from Turkey from the age of 15, then sewed workwear, and earned his first million through hard work, while simultaneously graduating from two academies. Because if Khomutynnik had publicly revealed his true past, he would probably have been immediately stripped of his parliamentary mandate and all his accumulated millions. Which, incidentally, is not too late to do now.
Vitaly Yuryevich Khomutynnik was born on August 4, 1976, in the city of Makeyevka (Donetsk Oblast). His parents weren't exactly "ordinary workers," as he claimed. His mother, Valentina Ivanovna, worked at the Spetsodezhda factory and earned a good income through under-the-table work. His father, Yuri Vladimirovich Khomutynnik, worked at the Rembyttekhnika factory (a regional network of consumer services centers) not as a TV repairman, but as a manager. His son, of course, won't reveal exactly what his job title was. However, Skelet.Org sources reported that Yuri Vladimirovich had direct ties to jewelry workshops within the Rembyttekhnika chain, which at the time were used for the illegal circulation of gold, primarily criminal (stolen) gold. And even he allegedly had the nickname "Yura the Golden" among local criminals, since he actively bought up "illegal gold" from both thieves and Roma. In fact, the stern Donbass jewelers of that time were quite unlike the armband-wearing Jews depicted in movies. For example, in Donetsk (opposite the Moskva grocery store), the future crime boss Yevgeny Kushnir worked in just such a Rembyttekhnika jewelry store—his older brother was a police investigator. This same Kushnir, whose gang would be accused of the murders of Akhat Bragin, Vadim Getman, and Yevgeny Shcherban.
Yuri Khomutynnik
Young Vitalik didn't want to follow in his father's footsteps; the jewelry workshop seemed incredibly boring to him—as did school, for that matter. He spent his best teenage years on the streets, hanging out with older boys who enjoyed hooliganism and, occasionally, mugging. Vitalik, the youngest of them, was the bully: he'd pester a chosen victim, provoking them to slap him on the back of the head, after which his "defenders" would appear from around the corner. Sometimes the victim would be offered a "payoff," more often they'd simply be beaten. And one day, the whole gang ended up in the police station. Khomutynnik's older friends were sent to prison, but his father got him, a 15-year-old slacker, off the hook. Khomutynnik Sr. eventually managed to explain to his son that making big money in business was much better, and safer, than taking pennies from passersby.
So our hero gave up ordinary crime and took up shady business, for which he did not waste time on further education in high school or vocational school.
In 1991, a pivotal year for the entire country, with a ninth-grade diploma in hand, Vitaly Khomutynnik signed up with the Specialized Management of Reclamation and Construction Mechanisms (to have some sort of official record) and began his own shuttle trading business. Of course, a 15-year-old teenager couldn't bring anything from Turkey, nor did he need to: officially, the business was run by Vladimir Lemeshko, Vitaly Khomutynnik's older friend, whom his father trusted. Khomutynnik the father also provided the money for the promotion, and he also ensured his son's protection from local organized crime groups. While Makeyevka was "held" by Eduard Braginsky (nicknamed Chirik, who knew the young Viktor Yanukovych), Vasily Dzharty (nicknamed Vasya-Bita), and Samvel Martirosyan, longtime acquaintances of Yuri Vladimirovich from the gold schemes, no one attacked Vitalik's business. True, in 1994 a major criminal war with shootings began and Braginsky was killed, but by that time Vitaly Khomutynnik had already assembled his own "brigade" and recruited his youthful friends who had "gotten out of prison" into it – convincingly explaining to them that he was now the boss in their company.
Khomutynnik the father couldn't be happier with his eldest son, who had come to his senses. The same couldn't be said for his youngest, Yuri Yuryevich Khomutynnik (born 1983), who had been living the wild life of a rich kid since the late 90s and had decided to supplement his pocket money by stealing expensive cars. But more on that later...
Vitaly Khomutynnik. Under Shcherban's wing
Vitaly Khomutynnik was always drawn to older men, and he had a talent for winning their favor. It could be said that this is precisely what secured his career as a multimillionaire and member of parliament. It began in 1993 with his meeting with Volodymyr Shcherban, then deputy chairman of the Donetsk City Executive Committee. It was reported that the historic meeting between the already highly influential man and the 17-year-old businessman took place under very mysterious circumstances at the "Chance" café in Makeyevka. The rumors surrounding this meeting were vague, and therefore no one could discern any logic in the subsequent close collaboration between the two men. Khomutynnik must have either been a distant relative of Shcherban, introduced to him by certain adults who had business dealings with him, or, at the very least, become his lover. Otherwise, why would Shcherban have let the young Turkish down jacket merchant into his inner circle?
Vladimir Shcherban
Whatever the reasons, it happened. From that moment on, the Khomutynnik family's fortunes took off, especially when Shcherban became chairman of the regional council (1994) and then governor of the Donetsk region (1995). The unprofitable shuttle trade in "rags" was abandoned, and in 1994 they founded the company "Cascade," where Vitaly Khomutynnik became director of foreign economic activity. In 1998, it was re-established as "Cascade" CJSC, with Vladimir Lemeshko and Vladimir Logvinov among its co-owners.
There's no clear information regarding Logvinov (it's being concealed). Media outlets once reported that he was allegedly Vitaly Khomutynnik's father-in-law (the father of his wife, Svetlana), although this information has never been confirmed. Other Skelet.Org sources reported that Logvinov was Shcherban's man, others that he was a representative of Donetsk organized crime groups, and still others that he was a longtime friend of the Khomutynnik family. Again, several possibilities could be true—isn't it possible to marry the daughter of a family friend or the boss's man? In any case, Logvinov's influence was sufficient to secure the director's chair at Kaskad and then hire his other daughter, Olga, as an accountant.
Vitaly and Svetlana Khomutynnik
"Cascade" became a typical, robust firm of its time, dabbling in everything from coal, coke, and metal to workwear (the Spetsodezhda plant, where Khomutynnik's mother had previously worked, was privatized for this purpose), to mining equipment, participated in voucher privatizations through Intime LLC, ran bill scams, and traded fuel through Ukrspetspostavka. Its success was assured by Shcherban's name—while he was the region's top man. However, when the hapless Viktor Yanukovych was installed as governor, Vitaliy Khomutynnik quickly found a way to his heart (or something else entirely). And that was much easier, with his connections in the criminal underworld, former governor Shcherban, and the reputation of leading businessmen. In addition to his business success, Vitaly Khomutynnik was elected to the Makeyevka City Council in 1998 (and the 22-year-old headed the budget committee), and at the same time joined the Party of Regional Revival of Ukraine, founded by then-Mayor of Donetsk Volodymyr Rybak (and later joined the PPPU).
Governor Shcherban's patronage helped Vitaly Khomutynnik resolve the thorny issue of his education. He somehow managed to obtain a high school diploma and enrolled in the Donetsk State Academy of Management, where he graduated in 2000. Thus, the undereducated student became an academy graduate, taking a step toward his reputation as a "child prodigy."
In 1999, Vladimir Shcherban left for the governorship of Sumy Oblast, taking his young companion with him. Sumy residents still recall the Shcherban era with a shudder: the greed of this man, who wanted to place his people in every position and take over a highly profitable business, knew no bounds. But the role of the Khomutynnik family in that "Shcherban terror" was underestimated. According to media reports, several of Vitaly Khomutynnik's relatives secured lucrative positions in the region, entrenching themselves there for many years. He himself played the role of Shcherban's envoy, approaching business owners with a kind smile and an offer to share their businesses "on good terms" (if they refused, darker personalities would arrive with "bad terms").
Thus, the joint business of Shcherban and Khomutynnik was replenished with the following enterprises: "Nefteprommash", Svessky Pump Plant, Belopolsky Machine-Building Plant, Belopolsky Cheese Factory, Lebedinsky Piston Ring Plant, Lebedinsky Bakery, Konotop Bakery, Glukhovsky Meat-Packing Plant, "Sumy Porcelain Factory", "Krolevetspromarmatura", Sumy Rubber Products Plant, Sumy Sewing Factory "Spetsodezhda", Akhtyrskaya Sewing Factory, "Akhtyrselmash", Romensky Printing Machinery Plant, Romensky Dairy Plant, etc. For their joint management, the "North-East Industrial Group" corporation was created, 49% of the shares of which belonged to ZAO "Kaskad". The corporation operated until 2005, when Shcherban fled the country to escape a series of criminal cases brought against him. Vitaly Khomutynnik, who escaped with only a minor infraction, then sought to sell off a significant portion of their joint business at a profit. Some of the remaining assets were reclaimed by their former owners in 2005-2006, but only a portion. It was the Sumy enterprises, seized by Khomutynnik and Shcherban, that constituted the bulk of his vast fortune.
Interestingly, in 2004, Khomutynnik actively collaborated with the Buryakov family's Brokbusinessbank , jointly founding Brokbusinessinsurance, through which he later transferred the grain trading company Agrokontrakt to the ownership of his trading house, Euroservice. This marked the beginning of Khomutynnik's insurance and agricultural businesses.
Kyiv houses of the Khomutynniks
In 2002, Vasyl Dzharty, an old friend of the Khomutynnik family and then mayor of Makeyevka, suggested Vitaly try his hand at big-time politics and helped him get elected as a people's deputy in electoral district No. 53. To this end, Khomutynnik even re-registered with the newly formed Party of Regions, and a year later, it was Dzharty who advised the Donetsk people to appoint Khomutynnik as head of the Party of Regions' youth wing.
It's worth noting that, according to various sources, the Khomutynnik and Dzharty families were linked not only by their past in the 80s and early 90s, but also by a little-known business redistribution in the second half of the 90s. Among other things, they shared the share of Samvel Martirosyan, who was in pretrial detention. It was reported that "Samvel's share" constituted a significant, if not the majority, portion of Khomutynnik's Makeyevka assets. Samvel was later released (quite frightening Vitalik), but he didn't stir up trouble and hastily left the city without any complaints.
So, elected MP Vitaliy Khomutynnik arrived in the capital and immediately bought himself a penthouse (17 Kovpaka Street, Apt. 147). However, he then "came to his senses": he transferred the apartment to his wife, gifting her a used Toyota RAV4, and signed up for the Rada's waiting list for state-owned housing. Just a few months later, he received a three-room apartment in Pozniaky (24 Sribnokilska Street, Apt. 168), where he registered his mother and younger brother, Yuriy (the same one who stole cars). But this wasn't enough for the Khomutynniks, and in 2005, they staged a hostile takeover of the building at 6 Redutny Lane. The takeover was carried out through Globus-Invest, which was registered to Yuriy Khomutynnik and Herman Volga (a relative of Vasyl Volga).
That same year, 2005, Khomutynnik decided to grab a water park in Crimea for himself. Perhaps he'd even build a small bungalow there. What happened was this: a certain businessman, Nikolai Stefluk, had been building a water park in Sevastopol for several years, partnering with Russian businessman Anatoly Zagorsky (each a 50% stake). But when the park was nearly finished, Zagorsky disappeared (he never resurfaced), and Vitaly Khomutynnik appeared in his place, declaring himself a co-owner of the water park and demanding a renegotiation of the contract. "He brought a lawyer from Kyiv who took on the task of redoing the contract. When I finally saw the new document, my name was no longer there," Stefluk complained.
And yet, the Khomutynniks weren't satisfied! In 2007, with the help of his contacts in the Kyiv City Council and his connections to Mayor Leonid Chernovetsky , Khomutynnik received 12 hundredths of a hectare of land in the Holosiivskyi district, near Koncha-Zaspa, on the banks of the Dnieper. Almost immediately, their family illegally seized another 23 hundredths of a hectare (along with a section of the dam), expanding their plot and building three houses there! In doing so, they fenced off the road running along the dam, cutting off the only access to the Robinson children's camp.
In August 2016, a group of activists staged a protest outside the fence of the Khomutynniks' "estate." Then, deciding that the illegally erected fence was not legally protected property, they tore it down, clearing the way. In response, to protect their property, the Khomutynniks called not only law enforcement but also representatives of a certain "All-Ukrainian People's Council for Combating Corruption" (wow!), who also happened to be ATO veterans. The situation seemed rather curious: ATO veterans were called in to protect themselves from ATO veterans. However, this is already becoming commonplace in Ukraine.
Sergey Varis, for Skelet.Org
CONTINUED: Vitaly Khomutynnik: Men and the Millions of the Parliamentary "Wunderkind." PART 2
Subscribe to our channels on Telegram, Facebook , Twitter , VK - Only new faces from the SKLEP section!