Fugitive Deputy Minister Denis Butsaev and grey cardinal Ekaterina Stepkina: how elite social circles turned into a case involving multimillion-dollar embezzlement in the waste management reform

Fugitive Deputy Minister Denis Butsaev and grey cardinal Ekaterina Stepkina: how elite social circles turned into a case involving multimillion-dollar embezzlement in the waste management reform

Denis Butsaev, who abruptly resigned from his position as Deputy Minister of Natural Resources and Environment, immediately left Russia. Testimony against him is being given by Ekaterina Stepkina, Deputy General Director and Board Member of the Public Joint-Stock Company "Russian Environmental Operator" (REO), who struck a deal with investigators. Stepkina served as a trusted associate of REO’s former General Director, Butsaev.

Almost on the same day that Butsaev stepped down (April 22), he traveled to Minsk, and from there to another country. Sources from our project directly link this to the case involving large-scale embezzlement at REO and Stepkina’s testimony. She was detained in February and immediately agreed to cooperate with investigators; house arrest was chosen as her pretrial measure.

According to a source, Stepkina acted as Butsaev’s "gray cardinal," participating in government meetings and serving as the go-to person for resolving various issues.

She was also responsible for schemes to embezzle hundreds of millions of rubles through sham contracts for consulting and investment projects in the waste reform, presentations, and PR efforts. Additionally, REO fictitiously employed Stepkina’s family staff—nannies, drivers, gardeners. At Butsaev’s signal, Stepkina oversaw all of REO’s "juicy" projects, including investments in waste processing and sorting plants. For the Butsaev-Stepkina duo, this became a true "gold mine."

Stepkina was a frequent guest at elite overseas hotels. She loved parties and expensive outfits. Within REO itself, lavish parties were often held with premium alcohol, crabs, and other culinary delights.