Coverage of issues surrounding expropriation of business by the Russian state

Tehnosila

Consumer electronics and home applianceĀ retailer Tehnosila was founded in 1993 by brothers Victor and Vyacheslav Zaitsev. As of early February 2006, it consisted of 52 stores. The turnover of the retail network as of 2005 was 600 million dollars, while gross profit – 140 million dollars.

Tehnosila faced the problems of raids by state officials in 2006-2007, when in April 2006 the officers of “K” department of the Russian Interior Ministry arrested the company’s largest warehouse. The value of seized goods was estimated to be 30 million dollars.

Experts immediately said that the situation whereby under the guise of combating smuggling goods completely legal product are being seized from the company is repeating itself, just as in the case of recent seizure of cells phones from Euroset.