On to NYC In November??

All Things Chess
1

Perhaps. Still no announcement of the venue in NYC for the WC or who the sponsors are or will be. Will Agon do business in the US? Perhaps we should take a look down memory lane regarding Agon’s history with conflicting details as to who actually has ownership of Agon. Why is this an important issue? Because there is evidence to suggest that Agon might have a principal owner or benificial party who is presently subject to US Dept. of the Treasury sanctions, to wit, Kirsan Ilyumzhinov. The history, with documentation, of Agon’s founding was laid out a little more than two years ago by chess.com

chess.com/news/deal-between … ument-6252

Despite explanations from Ilyumzhinov and Paulson, signatories to the contract with Agon and Ilyumzhinov, stating that this contract was superseded by some other contract, it simply isn’t clear what, if any, interest Ilyumzhinov has in the company organizing the WC in 2016. This is a not insignificant issue for business entities in the US that might want to sponsor the WC or enter into a site leasing agreement for the event. If Ilyumzhinov is an interested party in Agon (or any of it’s possible off-shore affiliates/subsidiaries) US citizens/companies doing business with Agon in NYC could well be subject to criminal sanctions.

I suggest it is more likely the 2016 WC will be held in Moscow or Sochi than NYC. I do hope it is held in NYC as it will be fun to visit, but I’m not making reservations just yet.

2

But our mayor, DeBlasio, has already announced it’s in NY, don’t ruin for me. Looking forward to seeing my first WCC since 1995, where I witnessed Kasparov and Anand agree to a draw in a very dynamic endgame (and where I joined in the booing). Was also at the 1990 K-K match in NY. I can’t believe it’s not a done deal.

3

Yes, he’s announced that the event will be in NYC-----still no venue or sponsors announced, AFAK. I just hope the Mayor doesn’t get blindsided before the event with either a) an announcement that the event won’t be held in NYC or b) that Agon or one of the individual organizers has been placed on the OFAC sanctions list. I betting on it being held in Sochi.

4

Should be in LV, NV

5

Why?

6

Some interesting developments that may eventually shed ore light on Kirsan’s interests, if any, in Agon, Ltd. affecting the holding of he WC match in NYC considering the sanctions still in place against Kirsan. See the following ffrom today’s Guardian:
theguardian.com/news/2016/ap … n-offshore

Semi-direct indications of Kirsan’s interests can be found from a variety of sources, including Women’s World Champion Hou Yifan’s blog.

[size=150]Kirsan Interest In and Control of Agon[/size]

Indirect and Semi-Direct Evidence of Kirsan Interest in Agon, Limited. :

1. Hou Yifan The sanctions of the US Treasury are not lifted, the accusations are not seriously called into question, but in Moscow it doesn’t matter, it’s quite the custom. Legal, Illegal, Scheißegal, just as we know it from our dear friend Kirsan Nikolayevich. In breach of the imposed sanctions, US citizens DO actually engage in transactions with Ilyumzhinov when they organize the upcoming world championship match in New York with FIDE marketer AGON that is controlled by Ilyumzhinov. But this is a matter of the US Treasury, they will hopefully sort it out. The US authorities have already helped FIFA to become a part of the civilized world. Let’s hope that they will help FIDE in the same way, targeting the mafia-like structures of this ailing and totally corrupt entity, putting a stop to the shady deals of these dubious figures who basically don’t stand for chess but mainly for Russian (chess) politics and their own financial concerns.
yifanhou.net/category/uncensored (Hou Yifan is the new Wormen’s World Cess Champion)

2. Malcolm Pein. Although Mr Ilyumzhinov and Mr Paulson both state that their agreemt was “just an early draft”, it was signed by both parties, as can be seen in the image of the scanned document. On top of that, Malcolm Pein, tournament director of the London Chess Classic and Chief Executive of Chess in Schools and Communities, told Chess.com: “Andrew told me on at least on two occasions that Kirsan is the majority shareholder.” The last time was “shortly before the ECF elections”, said Mr Pein. This was in October 2013.
chess.com/news/deal-between … ument-6252 3.

Agon Memorandum to Kirsan Ilyumzhinov AGON

MEMORANDUM
Dear Kirsan Nikolaevich!
In accordance with your suggestion, we have prepared a model of our cooperation, for your consideration. We believe that this cooperation will be long-lasting and mutually beneficial, and will become a great success in the world of chess.
1. BUSINESS MODEL
Agon, in accordance with its contract with FIDE, (1) will become the seller of FIDE’s sponsor packages, and (2) will be responsible for marketing FIDE enterprises concerning the world championship, and (3) will organise the running of the world championship cycle events (the Grand Prix, candidates’ matches and world championship matches), including the payment of the prize fund and all expenses, in accordance with the contract with FIDE. Profits from these activities will be at the disposal of AGON and for distribution to its shareholders by way of dividends. The manager of the company will be Andrew Paulson.
Control of the board of shareholders (policy questions) – K N Illumzhinov
Control of the board of directors (the operational running of the company) – Andrew Paulson

2. FINANCIAL MODEL

For its first two years of operation, Agon will need up to 2 million dollars. This money should go to the organisation of the first cycle of events and the establishment of the chess brand. However, we consider that this initial investment sum will be reduced, to the extend that we are successful in attracting sponsors. We therefore suggest the following model:
Year one:

  • KNI will advance credit to Agon in the sum of $2 million. The first payment ($500,000) will be made on 15 February 2012. The second payment ($1,500,000) will be made on 15 March 2012.

  • The credit will be repayable, that is, before the payment of any dividends, the company is obliged to return the credit. Nobody may take any profits until all the credit has been returned to the investor. The investor is entitled to interest at a rate of LIBOR + 1%.

  • The investor has full legal control over the majority of the shares.

  • Immediately upon receipt in Agon’s account, $500,000 of the second payment will be transferred to the account of FIDE, as a guarantee of the prize money for the agreed events. The guarantee may be returned to Agon, if agreed by Interface.

Year two:

  • In the case of necessity, as agreed by the board of directors, K I Illumzhinov will advance to Agon a second tranche of credit, in the sum of $1 million, on the same terms as the first.

  • The payment ($1,000,000) will take place on 15 March 2013.

  • In the event that K I Illumzhinov’s side do not pay the amounts specified above, in

accordance with the terms of this Memorandum, then K I Illumzhinov’s share in Agon will auomatically be reduced to 20%. The grace period for making payments is 10 business days.

3. THE OWNERSHIP MODEL

VOTING SHARES (control of the company)
51% – K I Illumzhinov 49% – Andrew Paulson

In addition, the company will also have non-voting shares (carrying entitlement to dividends). These shares will be issued in accordance with decisions of the shareholders and may be issued to selected key employees of the company. Non-voting shares may be issued proportionately with the main shares in the ratio 50:50.
The head of the project Andrew Paulson is required to work full-time in the company for the term of the operative contract with FIDE (11 years).
Additional control mechanisms, mutual rights and obligations of shareholders (minority and majority) will be included in a Shareholders Agreement, which will be presented on 27 January 2012.
Non-voting shares:
10% – Ilya Merenzon 5% – Berik Balgabaev

4. PAYMENTS AND COORDINATION WITH OTHER COMPANIES WITHIN FIDE’S AUSPICES

a) Global Chess is to be the contractor for running Agon’s events (Geoffrey Borg has confirmed his willingness and interest). Global Chess will receive about $15,000 for each event, from Agon’s budget, in accordance with the contract with FIDE.
b) Makropoulos will be consultant to Agon, receiving Euro 75,000 in the first year, and Euro 150,000 in each subsequent year of the FIDE contract. This payment will increase by 5% in each year after the second.
c) Berik Balgabaev will be consultant to Agon, receiving Euro 36,000 in the first year, and Euro 60,000 in each subsequent year of the FIDE contract. This payment will increase by 5% in each year after the second.
d) Andrew Paulson will be President (director) of Agon and his pay will be Euro 240,000 per annum. This payment will increase by 5% in each year, after the second.
**
We trust you will find this scheme acceptable. We are extremely interested in working with FIDE and have done a great deal of work to conclude agreements with key contractors. We are willing to discuss other possible variants, including an initial model, in which all financial risk would lie on our side.
with respect
Andrew Paulson
(Co-signed by Kirsan at bottom of page)
kevinspraggettonchess.wordpress.com/2014/01/

[emphasis added]

7

The release of the Panama Papers includes materials that involve FIFA. Will FIDE be next? From the International Consortium of Investigative Journalists:

[i]The leaked records — which were reviewed by a team of more than 370 journalists from 76 countries — come from a little-known but powerful law firm based in Panama, Mossack Fonseca, that has branches in Hong Kong, Miami, Zurich and more than 35 other places around the globe.

The firm is one of the world’s top creators of shell companies, corporate structures that can be used to hide ownership of assets. The law firm’s leaked internal files contain information on 214,488 offshore entities connected to people in more than 200 countries and territories. ICIJ will release the full list of companies and people linked to them in early May.[/i]
panamapapers.icij.org/20160403- … rview.html

Will Agon or the entity that is listed as the actual promoter of the Candidates and WC, be on the list? It’s going to be an interesting month.

Some of the people and entities to check against the Panama Papers list:
[size=150]Chess, Kirsan and FIDE
[/size]
Kirsan Nikolayevich Ilyumzhinov

George Haswani owner of HESCO Engineering and Construction Company

Mudalal Khuri

Russian Financial Alliance Bank, Kirsan owns with Khuri

Primax Business Consultants Limited

Ezegoo Investments Ltd. today for being owned or controlled by Ioannou, Khuri, Nicolaou, and Primax. Ioannou, Khuri, and Nicolaou are Directors of Ezegoo, and Primax is a Secretary of Ezegoo.

Kremsont Commercial Inc. (Kremsont) was designated today for being owned or controlled by Khuri and acting for or on behalf of the Government of Syria. Kremsont is a Belizean front company whose director is Russia-based Syrian businessman Khuri.

[size=150]Agon, Ltd.
[/size]
Agon, Ltd.

Andrew Paulson

Kirsan Ilyumzhinov

The State Oil Company of Azerbaijan (SOCAR) [paid for London Candidates 2012]

Geoffrey Borg FIDE’s Chief Executive Officer

FIDE Deputy President Georgios Makropoulos

Mr Ilyumzhinov’s assistant Berik Balgabaev

Mr Nigel Freeman

Malcolm Pein notes"
Although Mr Ilyumzhinov and Mr Paulson both state that their agreemt was “just an early draft”, it was signed by both parties, as can be seen in the image of the scanned document. On top of that, Malcolm Pein, tournament director of the London Chess Classic and Chief Executive of Chess in Schools and Communities, told Chess.com: “Andrew told me on at least on two occasions that Kirsan is the majority shareholder.” The last time was “shortly before the ECF elections”, said Mr Pein. This was in October 2013.

8

One has to wonder if any of the participants in AGON, FIDE, or the world championship organizing is listed in the recent expose on high level corruption, the so-called “Panama Papers”.

9

The complete list of companies and individuals will be released in early May according to the ICIJ.

10

Um, happy 54th birthday to Mr. Ilyumzhinov?

Alex Relyea

11

:laughing:

12

Karjakin announced today that he is dropping out of Norway Chess 2016 – which begins in less than two weeks – because he’ll be busy preparing for the Carlsen match seven months away.
It’s standard procedure these days for organizers of a big tournament to get the invitees to sign contracts. I wonder if they can sue Karjakin.

13

Karjakin could easily say he was sick just days before a tournament started, and even get a doctor’s certificate. At least he gave them some courtesy of an early notice so that they can get someone else to replace him. There should be players who would jump at the chance to play in a tournament with Magnus Carlsen.

14

As we await the complete Panama Papers business/individual list from ICIJ, here are the entities and person sanctioned along with Kirsan to keep in mind in relation to Agon, FIDE and the individuals involved with those organizations.

Syria Designations
11/25/2015
OFFICE OF FOREIGN ASSETS CONTROL
Specially Designated Nationals List Update
The following individuals have been added to OFAC’s SDN List:

HASWANI, George (a.k.a. AL HASAWANI, George; a.k.a. HASAWANI, George; a.k.a. HASWANI, Jurj; a.k.a. HESSWANI, Georges; a.k.a. HESWANI, George; a.k.a. HEWANI, George; a.k.a. KHESOUANI, George; a.k.a. KHESOUANI, Georges); DOB 26 Sep 1946; POB Yabrud, Syria; nationality Syria; alt. nationality Russia (individual) [SYRIA].

ILYUMZHINOV, Kirsan Nikolayevich (a.k.a. ILYUMZHINOV, Kirsan); DOB 05 Apr 1962; POB Elista, Republic of Kalmykia, Russia (individual) [SYRIA] (Linked To: MAYALEH, Adib; Linked To: RIDA, Batoul).

KHURI, Mudalal (a.k.a. KHOURY, Mudallal; a.k.a. KHURI, Mudalal Mtanyus); DOB 18 Jun 1957; POB Khoms, Syria; nationality Russia (individual) [SYRIA] (Linked To: MAYALEH, Adib; Linked To: RIDA, Batoul).

NICOLAOU, Nicos; DOB 06 Apr 1965; POB Cyprus; nationality Cyprus (individual) [SYRIA] (Linked To: IOANNOU, Ioannis; Linked To: PIRUSETI ENTERPRISES LTD; Linked To: KHURI, Mudalal).

The following entities have been added to OFAC’s SDN List:

EZEGOO INVESTMENTS LTD, 1 Logothetou, Lemesos 4043, Cyprus; National ID No. C310521 (Cyprus) [SYRIA] (Linked To: IOANNOU, Ioannis; Linked To: KHURI, Mudalal; Linked To: NICOLAOU, Nicos; Linked To: PRIMAX BUSINESS CONSULTANTS LIMITED).

HESCO ENGINEERING & CONSTRUCTION CO (a.k.a. HESCO ENG & CON. CO; a.k.a. HESCO ENGINEERING AND CONSTRUCTION COMPANY LIMITED), Al Horani Building, Abdullah Ben Omer Street, Damascus, Syria; Suite 351, 10 Great Russell Street, London WC1B 3BQ, United Kingdom; Company Number 05527424 (United Kingdom) [SYRIA] (Linked To: HASWANI, George).

HUDSOTRADE LIMITED, 118 Anexartisias Street, Suite 202, Limassol 3040, Cyprus; 14 Gubkina Street, Moscow, Moscow Region 117312, Russia; Website primax.com.cy; Registration ID C81329 (Cyprus) [SYRIA] (Linked To: KHURI, Mudalal; Linked To: NICOLAOU, Nicos; Linked To: PRIMAX BUSINESS CONSULTANTS LIMITED).

KREMSONT COMMERCIAL INC. (a.k.a. KREMSONT ALLIANCE CORP.), Corner of Eyre Street and Hutson Street, Blake Building, No. 302, Belize City, Belize [SYRIA] (Linked To: KHURI, Mudalal).

PRIMAX BUSINESS CONSULTANTS LIMITED, 118 Anexartisias Street, 2nd Floor, Apt/Office 202, Limassol, Cyprus; Registration ID HE 143062 (Cyprus) [SYRIA] (Linked To: KHURI, Mudalal; Linked To: NICOLAOU, Nicos).

RUSSIAN FINANCIAL ALLIANCE BANK (a.k.a. OPEN JOINT STOCK COMPANY JOINT STOCK COMMERCIAL BANK ‘RUSSIAN FINANCIAL ALLIANCE’; a.k.a. RFA BANK; a.k.a. “AKB RFA, OAO”; a.k.a. “OJSC JSCB RFA”), per. Maly Karetny, d. 11-13, str. 1, Moscow 127051, Russia; SWIFT/BIC MNGRRUMM; Website rfabank.ru; all offices worldwide [SYRIA] (Linked To: KHURI, Mudalal; Linked To: ILYUMZHINOV, Kirsan Nikolayevich).