The FSB confirmed the involvement of former Dagestan State Secretary Magomed-Sultan Magomedov in the theft of Dagnefteprodukt from the state.

This is stated in a statement from the FSB distributed to the media.

The Dagnefteprodukt enterprise and the Dagnotech LLC oil refinery, worth a total of 100 billion rubles, were returned to the state under a lawsuit filed by the Prosecutor General’s Office against Magomedov. His and other defendants in the fraud case had their property seized for a total of more than 3 billion rubles, the special service added, RBK writes.

Magomedov was the CEO of Dagnefteprodukt in 1991–2005, when the company was state-owned. In 2005, the company was privatized, and he remained its director until 2010. A new company, Kaspetrolservis, was created on the basis of the privatized company; it is now part of MSB-Holding.

The FSB stated that Magomedov, “using administrative resources,” initiated “administrative decisions” in the Dagestan authorities, on the basis of which, in 2001–2005, a state enterprise was illegally transferred to republican ownership and subsequently sold to persons under his control at a reduced price.

“Dagnefteprodukt” is the only operator for transshipment of oil arriving at the sea trade port of Makhachkala. The property complex of the enterprise included 67 land plots and more than 360 buildings, structures, facilities, including pipelines, gas stations, reservoirs, and other infrastructure.

Magomedov is involved in a case of fraud (Part 4 of Article 159 of the Criminal Code) and legalization of proceeds from crime (Part 4 of Article 174.1 of the Criminal Code). He was detained on the morning of June 25 in a case of embezzlement after searches in his home in Makhachkala.

Searches were conducted at dozens of addresses, not only in Dagestan, but also in Moscow and St. Petersburg. They were conducted at Magomedov’s relatives and colleagues, in his office in the Dagestan administration. Searches were conducted, in particular, at the official’s wife and daughters, a source told RBK. His son, a deputy of the People’s Assembly of Dagestan, head of the public support headquarters for United Russia and head of MSB-Holding Magomed Magomedov, were questioned.

A federal official, aware of what was happening in the republic, noted after the arrest of the state secretary that Magomedov is one of the most influential people in Dagestan: “In his circles, he is known by the nickname Gas Station Attendant.” According to the RBC source, law enforcement agencies have had questions about Magomedov Sr. for several years, but for various reasons, active actions against him have been delayed.

Magomedov has been one of the main political figures in Dagestan in recent years, said Shamil Khadulaev, head of the region’s POC. According to him, the former secretary of state had a very serious influence on many processes, including appointments to many positions.

There were also complaints against Magomedov in connection with the quality of Dagnefteproduct oil. “Earlier, there were many complaints that the oil from this company was dirty, diluted with all sorts of substandard products. But nothing could be done about it,” the head of the POC explained.