Press Release, July 15, 2013

YABLOKO leader Sergei Mitrokhin sent a letter to Alexander Bastrykin, Chairman of the Investigative Committee, demanding to file a criminal case under Article 285 of the Criminal Code (“abuse of power”) in respect of the officials who organized “landscape works” of Tverskaya Street in the centre of Moscow. Over 500 million roubles were allotted for the work, while the cost of the materials needed for landscaping was overstated tenfold.

Several violations were admitted in the organisation of work on the landscaping in Tverskaya Street.

First, the announced tender for landscaping design and planting of trees and shrubs was canceled, after which the Moscow City Government issued a special order for a grant for State Unitary Enterprise “State Environmental Center”.

For the sake of circumvention of the law, the corrupt officials had to violate the Budget Code envisaging that state unitary enterprises can receive subsidies and grants only in a competitive manner, explains Sergei Mitrokhin in his blog today.

The subsidy allotted for the works in Tverskaya Street amounted to 529 million rubles.

Second, the state unitary enterprise which received the grant announced a tender for the works of beautification of the street. A
significantly overstated price of such a contract amounted to 289,686,260.00 roubles.

Thus, according to the work requirements described in the tender documentation, it was necessary to install 105 litter bins worth
30,813,946 roubles. The cost of one litter bin, according to the documentation was 293,466 rubles. According to the technical
specifications of the tender, the litter bins had to be made from solid granite Multicolor Red from Indian deposits. The market value of
a tile of this granite (300x600x18) is 2,100 rubles, which is an average cost for a granite tile. Thus the average market value of a
litter bin made of solid granite should vary in the range of 25,000 –40,000 roubles.

Therefore, the cost of a litter bin provided in the tender documentation was overstated approximately by ten times. The same
refers to other goods that have to supplied for the works, runs Mitrokhin’s statement.

Third, only two companies are closely affiliated with each other – OAO MISK and OAO DORSTROY – participated in te tender.

General Director of OAO MISK is G.M. Zhivotinsky. He is also the Chairman of the Board of Directors of DORSTROY. The winner of the
tender was OAO MISK.

It should be noted that these two companies had already implemented works on laying pavement slabs in Moscow, after which G.M.Zhivotinsky and his wife bought elite housing in Miami.

Thus, adoption of the Moscow City Government Resolution No 128-PP on allotting a grant for the works of landscape design of Tverskaya Street in Moscow was organised in bypassing of the law. The nest step was organisation of bids for the works with a many-fold overstated price of the contract. Independent suppliers did not participate in the bids, and only two companies affiliated with each other participated in the tender, runs Mitrokhin’s statement.

Sergei Mitrokhin has also sent appeals on this case to Sergei Kundeyev, Public Prosecutor General of Moscow, and Sergei Sobyanin,
the Acting Mayor of Moscow.

YABLOKO leader asks Public Prosecutor General of Moscow to issue a protest on the decision of the Moscow City Government launching the landscaping works in Tverskaya Street.

Sergei Mitrokhin demands from the Acting Moscow Mayor to conduct an audit and “submit its findings to the investigative bodies for
adoption of a decision on instituting criminal proceedings”.

On Thursday, July 18, the YABLOKO party will hold an action in Tverskaya Street so that to demonstrate to Muscovites how much money was spent on landscaping and planting of trees in Sergei Sobyanin’s style.