Becoming a Russian Oligarch After Rebirth
Chapter 686: Getting a Return on an Investment Without Actually Investing_1

Chapter 686: Chapter 686: Getting a Return on an Investment Without Actually Investing_1

If Wang Ye really needed money now, surely ten or twenty billion US dollars would not be an issue.

Without mentioning anything else, Khodorkovsky currently has huge amounts of cash on hand!

During the Yukos restructuring a while ago, he had transferred a significant number of his shares and received an astonishing amount of cash.

If Wang Ye urgently needed money, borrowing ten or twenty billion from him would be a breeze.

But the problem is, Wang Ye doesn’t feel the need.

Even without purchasing things like the Ka-60 helicopters and IL-76 transport aircraft, the weaponry of the Wagner Company were sufficient.

Especially in poor regions of Africa, was there a need for such "luxurious" equipment?

Most importantly, Petrov’s approach of "acting first, reporting later" made Wang Ye wary.

He needed to have control over the power of Wagner, but Wang Ye couldn’t linger around the security base all the time, hence it was inconvenient for him to interfere with personnel matters. Besides, he had never served in the military.

He surely couldn’t be expected to lead experts without any experience in the field.

Moreover, he had more important things to do and didn’t have the energy to personally manage Wagner Company.

Therefore, Wang Ye intended to exercise control through finance!

Even if Petrov’s prestige was high in Wagner and all the middle and lower level management were his protégés, it wouldn’t matter.

As long as he dared to have ulterior motives, Wang Ye could cut off Wagner’s "supplies"!

From start to finish, Wagner’s Finance Department was based in Moscow.

Every employee, whether they were in the Siberian Security Base, Sevastopol Base, or even as far as the African base, their wages were paid by the Finance Department in Moscow!

With over ten thousand employees, the monthly wages were a substantial expense. If that payment was cut off, the company probably couldn’t hold out for two months before all the employees would leave.

People work for Wagner because of its good benefits and high salaries...

In addition, all income of Wagner Security Company, various business incomes, were directly deposited into the company account, without going through Petrov’s hands.

Petrov was clearly aware of this and had never mentioned anything about it.

......

Seeing the boss looking at himself with the weapons procurement list in hand, Petrov smiled slightly and began to explain:

"Boss, although this equipment procurement looks very expensive, it doesn’t require a lot of money."

Wang Ye was puzzled. It doesn’t require a lot of money?

The Ka-60 and IL-76 were both high-demand items!

Even if they had a good relationship, Director Shao Yigu wouldn’t dare to sell at a loss. Besides, the procurement of these aircraft was not through him, but required direct negotiation with United Aviation Group.

Was Petrov implying that he, Chairman of United Airlines, should use some "underhand" methods?

Even if he offered the cost price, not expecting to profit from this deal, it wouldn’t be too cheap, right?

Petrov continued: "No need to mention other equipment. Buying the idling ones from the military through Director Shao Yigu is very cheap, almost free. The two most expensive pieces of equipment are the Ka-60 helicopters and IL-76 transport aircraft."

Wang Ye nodded. These were the two items that he had just questioned.

"The Ka-60 helicopter, newly developed, is not yet equipped in the military. The price for foreign trade is ten million US dollars. But, I discussed with them that if we purchase fifty at once, they can give us an internal cost price of six million per unit. So, fifty helicopters are three hundred million dollars," Petrov said.

Rossiyana couldn’t help but question: "Just the helicopters alone cost three hundred million dollars! If we had that much money, wouldn’t it be better to purchase the idling ones from the military? It wouldn’t even cost one million per unit, much cheaper, and the performance is not bad either."

She wasn’t ignorant either. All the helicopters currently installed by Wagner Security Company were "second-hand".

The purchase price was indeed very cheap, but that didn’t affect their use, as they weren’t outdated equipment. They were just not in use by the military, and many of the aircraft had only been delivered about a decade or so ago.

Since there were cheaper goods available, why must they purchase Ka-60 helicopters?

Petrov patiently explained:

"Although the second-hand ones are cheap, they are indeed outdated, and their performance cannot reach world-class levels. The Ka-60, however, is highly advanced and very suitable for use in Africa.

In the long run, taking into account the comprehensive cost, it is more cost-effective to purchase the Ka-60.

Moreover, the reason why we are purchasing fifty at once is not solely for our own use.

I plan to resell half of them, twenty-five units, to the tribal chiefs in Africa who have good relationships with us at a price of twelve million US each.

In fact, I’ve already arranged it all. Just the tribe where Momo comes from has ordered five helicopters at once, and the money has been paid.

Another twenty have already found prospective customers."

Don’t underestimate those tribal chiefs, they are indeed rich.

Therefore, the money for purchasing the Ka-60 does not need to come from the company, the advance payment from these tribal chiefs is already sufficient."

In this way, Wagner Company won’t have to spend a penny and will get twenty-five of the most advanced Ka-60 helicopters out of thin air!

And it also helps to open the market for military equipment in Africa for United Airlines!"

Wang Ye and Rossiyana were both speechless. They never expected Petrov to be so business-minded.

This is simply getting something out of nothing!

Indeed, United Aviation Group really could not directly sell to Africa, after all, being a "state-owned enterprise (SOE)" brought about many concerns.

They even found it difficult to contact the tribal chiefs directly, because there’s still a "country" above these tribes.

If they bypass the country’s departments and go straight to the tribes, what would people think?

But Wagner Security Company doesn’t need to worry about all these matters.

They are a commercial company. Providing security services to tribes while selling some of their own equipment is very reasonable...

Moreover, the helicopters being sold might still be in Wagner Company’s hands later on.

After all, it would take a substantial amount of time for the African people to learn how to operate a helicopter at Wagner’s security base.

As for why the tribal chieftains didn’t contact United Airlines directly to make purchases, why would they let Wagner Company earn a profit margin of two million when it only costs ten million a unit?

Firstly, the demand of the individual tribes is too small. Orders come in small amounts, and United Aviation Group wouldn’t take these small orders seriously.

Furthermore, although the tribes are just tribes, not "countries", if they directly made weapon purchases abroad, what would the higher government think...

Wagner Company now provides a safe and convenient procurement channel. Charging a "service fee" of two million doesn’t seem excessive, right?

......