Alexey Sagal, a businessman from Nevinnomyssk, has rapidly built a billion-dollar business empire by acquiring assets from global giants like Unilever and Heineken after their withdrawal from Russia.
But now questions are being raised about the role of his ties to Alexey Dyumin, Vladimir Putin’s former bodyguard and current head of the State Council, in facilitating these deals.
Connections to Power
According to a report by The Moscow Times, Sagal’s acquisitions may have been supported by Dyumin, who is said to have helped him lobby for the purchases of major foreign-owned assets.
Sources familiar with the relationship suggest that Dyumin played a pivotal role in securing Sagal’s rapid rise to prominence.
Sagal’s relationship with Dyumin dates back to the former’s investments in the Tula region, where Dyumin served as governor.
Between 2016 and 2019, Sagal launched significant projects in the region, including a 750 million-ruble Arnest plant, which Dyumin personally inaugurated. The two have been seen together at numerous government events, with Sagal often praising Dyumin’s governance.
Strategic Acquisitions
Sagal’s empire expanded dramatically following the exit of Western companies under Russian government pressure.
In September 2022, his company, Arnest, acquired four factories from the American aluminum can manufacturer Ball for $530 million. The purchase was largely financed by loans from the state-owned VTB Bank.
In August 2023, Arnest purchased Heineken’s seven factories in Russia for a symbolic one euro while agreeing to repay €100 million in debts. Despite Heineken’s reported €300 million loss, the deal gave Sagal control of over 30 popular brands, including Amstel, Krušovice, and Strongbow.
Sagal followed this with the acquisition of Unilever’s Russian operations in September 2024. The deal included major brands like Lipton, Dove, and Domestos. Although estimates for the sale range between €350 million and €520 million, this was far below the original valuation of €900 million.
Government Influence
Sagal’s success was bolstered by favorable government policies.
For instance, import duties on beer from "unfriendly countries" were raised twice in 2024, making foreign beer less competitive. Similarly, high tariffs on imported hygiene products benefited domestic manufacturers like Arnest.
Sagal has also reportedly benefited from his connections with Deputy Prime Minister Denis Manturov, who supported Arnest’s operations and appointed Sagal to a council for developing the perfume industry.
Sagal’s rapid success, fueled by discounted acquisitions and government support, has elevated him from a regional entrepreneur to a major national player.
However, his ties to influential figures like Dyumin and the government’s role in facilitating these deals have sparked concerns about the intersection of politics and business in modern Russia.
