FESCO Transportation Group has announced the appointment of Arkadiy Korosteljov as the President of the Group on 4 September 2020. Maxim Sakharov, who held this position, is now holding the position of the First Deputy President of FESCO.
The decision was made on 3 September 2020 by the Board of Directors of FESCO (the parent company of the Group).
‘The global economic crisis caused by the coronavirus pandemic has put a serious strain on all businesses of FESCO. This pressure, coupled with our debt obligation to VTB, sets a serious challenge to the entire management of the Group. We believe that the changes approved by the Board of Directors will strengthen FESCO’s management team and help the members to use their expertise more effectively to achieve the tactical and strategic goals faced by the Group. Maxim Sakharov has great experience in successfully solving the most difficult financial problems. His part in the successful debt restructuring in 2017 is invaluable. The new position will allow Maxim Sakharov to fully focus on this critical issue. In turn, Arkadiy Korosteljov will bring his many years of experience and comprehensive knowledge of the market to help FESCO to successfully compete in all key business areas, to fully unlock the potential of the management team and the entire team of the Group’, - said Leyla Mammad Zada, Chairperson of the Board of Directors of FESCO.
Arkadiy Korosteljov has extensive experience. He held executive positions in LUKOIL and SIBUR, and was also vice-president for commerce in FESCO. He has a degree in economics and an MBA from the University of Chicago.
To develop a medium and long-term strategy for FESCO, the Board of Directors of FESCO also decided to engage the consulting company Alvarez & Marsal, with which the Group already had experience and fruitful cooperation. Additional expertise brought by Alvarez & Marsal experts will allow FESCO to strengthen its market position, update value propositions for the Group's key clients, and create additional value for shareholders.
In addition, the Board of Directors of FESCO instructed the management to revise the Group's business plan and update the market presence strategy, focusing on the key competitive advantages, including its professional and highly engaged team of experts. The major criteria for the success of the new strategy will be the growing liquidity and long-term financial viability of all key businesses of FESCO.