Why Zaytsev received the Catholic Order was not specified at the ceremony, but various publications suggest that he made a donation for the construction and reconstruction of Belarusian churches.
"I have known Mister Zaytsev for years. His faith built up incrementally. Not only did he grow in his faith personally, but he also spread and expanded the faith of the Catholic Church here in Belarus," said the Catholic priest Lashuk at the ceremony.
Our investigation revealed that as well as helping Zaytsev to strengthen his faith, Lashuk is also running his smuggling business to evade sanctions.
The Lord gives his blessing
In September 2021, Lashuk, a Catholic priest, founded a company called ALIS MA. The sanctioned owners of the Bremino Group transferred some of their property to this company.
We asked Yury Sanko, press secretary to the head of the Roman Catholic Church in Belarus, whether a priest can engage in business.
"Our mission is ministry. A priest can neither be a member of political parties, nor engage in business. It is impossible under canon law. Such a claim is extremely confusing even for us. Therefore, we will also try to look into it," Sanko told us during a telephone conversation.
We've also sent an official request for comment to the Vatican press service and to the Vatican Ambassador to Belarus. We are waiting for their response.
Bremino Orsha is an “island” of almost total tax exemption, created by a decree of Aleksandr Lukashenko for companies owned by businessmen loyal to him. It has been used to smuggle flowers, fabrics, and foodstuffs from Europe to Russia, and we have repeatedly told about these schemes.
A significant amount of official transit through Belarus uses Bremino or its affiliates. The company got permission to build its warehouses with customs clearance at the Bruzhi and Berastavitsa border checkpoints. This is where the recoupling from European to Belarusian semi-trailers happens. These are the only private customs clearance points on the EU-Belarus border, so truck drivers entering Belarus via Berastavitsa or Bruzhi have no choice but to use the services of Bremino.
These customs checkpoint points have come under the control of Vlate Logistik, a Bremino Group company. Formerly owned directly by the Bremino Group, it has now been transferred to six individuals, most of whom represent one of the three real owners. As a result, the sanctions on Bruzhi and Berastavitsa have been lifted.
These customs centres are making huge profits due to lack of competition. But the company's profits look very low. The standard rate of return in the industry is around 20%. Vlate shows half that, even though it is a monopolist on two border sections. They pay hardly any tax on these profits, thanks to favours granted to them personally by Lukashenko. At the same time, a significant percentage of the company's income is spent on "other payments", and the net profit rarely exceeds 20 million Belarusian rubles (about $US 7.5 million).
Bremino should have to pay tens of millions more rubles in taxes for its border monopoly. This money would be enough to fully equip one health centre.
Zaytsev is a key figure in Bremino. In other deals, he’s one of a trio of businessmen who, while attempting to avoid sanctions, divided their shares equally among a few loyal individuals. But in Bremino Orsha, everything was transferred to Zaytsev's confidant, the priest Lashuk, and the ALIS MA company founded by Lashuk.
Reports show that ALIS MA ended the year 2022 with a loss of 2.6 million Belarusian rubles (about $US 1 million).
This may have something to do with our investigation into an offshore flower business. After it was published, Russian authorities shut down or at least considerably cut down the flower trade.
The net losses are also due to significant investment spending in affiliated companies, such as RuzSpedition and Vlate Logistik, for the construction of a logistics center and other infrastructure.
We asked Lashuk how he suddenly came to own a company linked to Bremino. We did not get a clear answer.
"This is my personal matter. I am a priest. There are some questions I don't answer, not even if the Pope asks me, you know? Some questions are just between me and God," Lashuk told us in a telephone conversation.
From private sector to civil servant — and back again
Zaytsev partly described his journey to big business and knighthood on his website. He stated that he graduated from the State Economic Institute in 1997 and had worked in the private sector as well as in some independent Belarusian mass media — Belorussky Rynok, Belorusskaya Delovaya Gazeta and Delo magazine. He also worked for both the Ministry of Economy and the European Humanities University. Thanks to the CyberPartisans hacker group, we learned that Zaytsev worked in the Council of Ministers beginning in December 2003. He acted as an assistant and advisor to Prime Minister Sergei Sidorsky.
In 2007, Zaytsev joined the State Secretariat of the Security Council. At the end of 2012, he left the Security Council and engaged in big business. However, his resignation did not mean the end of his travels with Viktor Lukashenko.