The official at the conveyor – Newspaper Kommersant No. 22 (7467) dated 02/07/2023

According to Kommersant, the former head of the automotive department of the Ministry of Industry and Trade, Denis Pak, is moving to Avtotor. The Kaliningrad plant only restarted last week after the crisis that unfolded in the Russian auto industry against the backdrop of hostilities in Ukraine. Avtotor started with the Chinese brand Kaiyi, and plans to launch at least two more brands from China. In the implementation of the plans, sources say to Kommersant, Avtotor is already being helped by Mr. Pak, attending meetings at the Ministry of Industry and Trade.

The former head of the department of the automotive industry and railway engineering of the Ministry of Industry and Trade, Denis Pak, is going to work at Avtotor in Kaliningrad, three sources told Kommersant. Kommersant’s interlocutors do not know what position the former official will take, but they say that the transition is “practically agreed.” One of them suggests that it will be a position “not lower than vice president”, but is not sure if “the documents have already been signed.”

According to Kommersant’s interlocutors, this year Mr. Pak has already come to meetings at the Ministry of Industry and Trade together with a representative of Avtotor and “actually promoted the interests of the company.” Another interlocutor of Kommersant said that the founder of the holding, Vladimir Shcherbakov, invited Mr. Pak to work at the Kaliningrad enterprise. Another Kommersant source knows that Denis Pak is leaving the ministry, planning to “go to work in one of the regions of the Russian Federation.”

Avtotor did not comment on the appointment of Denis Pak. Mr. Pak himself did not answer. He headed the department for the automotive industry since 2017 and left the ministry in September 2022, after which he was an adviser to the head of the Federal State Unitary Enterprise NAMI (see Kommersant dated November 16, 2022). Kommersant’s sources note that the departure of Mr. Pak from the Ministry of Industry and Trade “looked not very logical.” The official, according to Kommersant’s interlocutors, agreed on a scheme for the sale of Renault assets in the Russian Federation, however, contrary to expectations, he did not receive the post of deputy minister that had been vacated at that time.

As the curator of the automotive industry in the Ministry of Industry and Trade, Denis Pak has traditionally advocated an increase in the level of localization of Russian production. Avtotor clearly did not meet these ideas: while he insisted on localizing the engine and gearbox, BMWs were assembled in Kaliningrad (the factory did not have time to launch the welding and painting facilities for these models due to the onset of the crisis), and also gradually switched to welding and painting Korean Hyundai and Kia. Kommersant’s sources emphasize that, despite this, the company managed to get access to compensation for salvage fees.

Now the production of BMW, Hyundai and Kia in Kaliningrad has been suspended, but for 2023 the plant has big plans related to brands from China. One of the models of the Chinese sub-brand Chery, Kaiyi, was launched on the site, and in total, according to the results of the year, Avtotor is going to produce up to 100 thousand cars (see Kommersant of January 31).

One of Kommersant’s interlocutors believes that the arrival of Denis Pak at Avtotor “will help the industry to establish communication with the enterprise.” Automotive analyst Vladimir Bespalov adds that Denis Pak has “great experience in the industry and knowledge that can be useful when implementing new projects.”

Olga Nikitina