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Oleg Deripaska

Oleg Deripaska
Born Oleg Vladimirovich Deripaska
(1968-01-02) 2 January 1968
Dzerzhinsk, Nizhny Novgorod Oblast, Russian SFSR
Residence Moscow, Russia
Alma mater Moscow State University, Plekhanov Russian Academy of Economics
Occupation Chairman of Supervisory Board of Basic Element Company
Net worth US$5.4 billion (April 2015)[1]
Spouse(s) Polina Deripaska (née Yumasheva); 2 children
Website Basic Element, Oleg Deripaska

Oleg Vladimirovich Deripaska (Russian: Оле́г Влади́мирович Дерипа́ска; born 2 January 1968)[2] is the Russian Chairman of the Supervisory Board of Basic Element company, President of En+ Group and United Company RUSAL, the largest aluminium company in the world.[3] With an estimated net worth of US$5.4 billion in 2015, he is amongst the 20 wealthiest people in Russia.[1]

Contents

  • Education and early career 1
  • Later career 2
    • Net worth 2.1
    • Activity 2.2
  • Business 3
    • Basic Element 3.1
    • RUSAL 3.2
  • Other affiliations 4
  • Charity 5
  • Lawsuits 6
  • Legal investigations in Spain and the United Kingdom 7
  • Relationship with politicians 8
  • Personal life 9
  • See also 10
  • References 11
  • External links 12

Education and early career

Deripaska was born in Dzerzhinsk, Nizhny Novgorod Oblast, but grew up in Ust-Labinsk, Krasnodar Krai. He graduated with honors in physics from Moscow State University in 1993, and in 1996, he earned an economics degree from the Plekhanov Russian Academy of Economics. He was general manager of the Sayanogorsk Smelter (1994–97) and held the post of president of Sibirsky Aluminium Investment Industrial Group (1997–2001), which later became the core of Basic Element.[4]

The Soviet Union had just collapsed, the country was in turmoil; Deripaska worked on building sites across Russia to prevent himself from starving. "We had no money. It was a very practical question every day. How do I get money to buy food and keep studying?" he recalls. There was little future in his university subject, theoretical physics. He abandoned his studies and started business as a small-time metals trader. Between 1993 and 1994 he accumulated a 20% stake in the Siberian aluminium factory – to the annoyance of the plant's communist-era bosses. "I was expecting they would treat me as a shareholder. But they said, 'No, you have the shares, but we run our business. And it's separate.'" Deripaska persuaded the workforce not to go on strike, boosted production, and – it's not entirely clear how – crushed the local Russian mafia.[5]

In an interview with the Haaretz newspaper Michael Cherney (a reputed Russian-Israeli crime figure) states:

In 1993, at a conference in London, Cherney met a young blue-eyed man. His name was Oleg Deripaska. He had just graduated from the Faculty of Physics at Moscow University and was beginning to deal in metal trade – the son of poor parents from Southern Russia. "Several months later Yafyazov brought Deripaska to Paris, for a meeting with me. He had great ambitions and I liked that,“ Cherney recalls. "He wanted to do big business and told me that his group wanted to buy the Sayansk plant in Siberia on the Exchange, but didn't have money for that. I agreed to invest capital and after that we agreed to become equal partners in that project."[6]

According to the Financial Times, in 1994, Oleg Deripaska, then an independent metals trader, won the backing of Michael Cherney and TWG to become general manager of Sayansk aluminium plant in Siberia, which lead to the formation of SibAl and a partnership between Cherney and Oleg Deripaska in the company.[7][8] Cherney claims that he was the beneficial owner of the 20% stake which Deripaska held in trust. (Oleg_Deripaska#Lawsuits)

The Russian magnate [Deripaska] does not dispute making a $250 million payment to Cherney at the Lanesborough Hotel in London 11 years ago. But he alleges he was paying Cherney off to end a complex krysha arrangement which also included Anton Malevsky, a veteran of the Soviet war in Afghanistan who has been named in court papers as the head of a criminal network.[9]

After his falling out with Cherney, Deripaska then became impeccably well connected to the top political elite in Moscow:

In 2001, he married Polina Yumasheva - the daughter of Boris Yeltsin's powerful ex-chief of staff Valentin Yumashev, who is now married to the former president's younger daughter, Tatyana. As well as this useful dynastic alliance with the Yeltsin clan, Deripaska is on friendly terms with Yeltsin's successor in the Kremlin, Vladimir Putin.[5]

Later career

Net worth

In 2005, he was included in the Sunday Times Rich List with an estimated wealth of £4,375m, but was not listed in 2006; however, according to an August 2006 article in the New York Times, the Russian business newspaper Vedomosti estimated Deripaska's total wealth at US$14 billion, which, if true, would either have made him Russia's richest man or possibly tied for the spot with Roman Abramovich.[10]

Deripaska's estimated fortune was US$16.8 billion in 2011, according to the Forbes wealthiest list.[1] In 2008, his wealth had been estimated by Forbes at US$28 billion, making him then the ninth richest man in the world.[11] In 2009, Deripaska's ranking fell to a ranking of No. 164, with Forbes stating: "[H]e may not withstand collapsing markets and heavy debts".[12] However, in 2010 his estimated US$10.7 billion fortune allowed him to rise to No. 57 of the World's Billionaires list.[13] According to Forbes magazine, he removed the heads of his two largest companies and personally negotiated with the Russian government, banks and other creditors to restructure his loan obligations.[14] Deripaska himself in 2007 was reported to have consistently said that the estimate of his wealth was exaggerated, that it did not completely account for the amount of debt he incurred, and that he should be ranked far below the top ten on the list of the Russian billionaires.[15]

As of 2014, Forbes estimates his fortune at US$6.5 billion.[1]

Activity

In 2006, GAZ Group, purchased all the shares of LDV Holdings (producer of light commercial vehicles, the city of Birmingham, Great Britain) from an American fund Sun Capital Partners. The main product of LDV is currently the light commercial vehicle Maxus. In May 2009 GAZ Group signed an agreement to sell its UK/LDV van business to the Malaysian automobile manufacturer and distributor Weststar.[16]

In April 2007, Deripaska acquired 25 percent (€1.05 billion) of the Austrian construction company Strabag SE, owned by Hans-Peter Haselsteiner. Strabag is the sixth largest construction company in Europe.[17] In May 2007, Magna International chairman Frank Stronach announced that Deripaska was becoming a strategic partner in Magna.[18]

On 25 July 2008,

  • Official website
  • : # 164 - Oleg Deripaska The World's BillionairesForbes (2009):

External links

  1. ^ a b c d e Rapoza, Kenneth (13 February 2012). "Russia's Most Respected Billionaires". Forbes. Retrieved 25 April 2012. 
  2. ^ "Oleg Vladimirovich Deripaska" (in Russian). deripaska.ru. Retrieved 7 November 2012. 
  3. ^ "RUSAL: Board of directors". Rusal.ru. Retrieved 18 November 2014. 
  4. ^ "Basic Element - History". 
  5. ^ a b Harding, Luke (24 February 2007). "How metals and a ruthless streak put Russian patriot at top of the rich list". The Guardian (London). Retrieved 14 May 2011. 
  6. ^ Weiz, Ghidi (20 November 2009). "Michael Cherney: On Deripaska, the Russian mafia and the Israeli police". Haaretz. Retrieved 19 May 2014. 
  7. ^ Rusal: A lingering heat Financial Times
  8. ^ Russian tycoon loses legal fight over Rusal Financial Times
  9. ^ Writer, Staff (7 July 2012). "RUSAL battle set for British court". Stabroek News Guyana. Retrieved 20 May 2014. 
  10. ^ Kramer, Andrew E. "Out of Siberia, A Russian Way to Wealth", The New York Times, 20 August 2006
  11. ^ a b "#9 Oleg Deripaska Forbes". Forbes. 11 February 2008. Retrieved 14 May 2011. 
  12. ^ "#164 Oleg Deripaska – The World's Billionaires 2009". Forbes. 11 March 2009. 
  13. ^ "The World's Billionaires 2010, Forbes". Forbes. 12 February 2010. Retrieved 14 May 2011. 
  14. ^ "Oleg Deripaska". 
  15. ^ Harding, Luke (24 February 2007). "How metals and a ruthless streak put Russian patriot at top of the rich list". The Guardian (UK). Retrieved 14 May 2011. 
  16. ^ "GAZ Group signs agreement to sell UK LDV business to Weststar of Malaysia". Basel.ru. Retrieved 14 May 2011. 
  17. ^ "Basic Element: Construction Sector". Basel.ru. 16 March 2011. Retrieved 14 May 2011. 
  18. ^ Keenan, Greg (10 May 2007). "Russian billionaire buying Magna stake". The Globe and Mail (Canada). Retrieved 10 May 2007. 
  19. ^ The Launch of Volga Siber Production. Eng.gazgroup.ru (25 July 2008). Retrieved 12 May 2012.
  20. ^ Volkswagen Group Rus and GAZ Group sign a long term agreement on contract manufacturing of 110.000 cars per year at GAZ plant. Eng.gazgroup.ru (14 June 2011). Retrieved 12 May 2012.
  21. ^ Magna Announces that Russian Machines' participation in arrangements with the Stronach Trust has terminated. Magna.com. Retrieved 12 May 2012.
  22. ^ Basic Element': Basic Element and Strabag shareholders agreed on further strategic cooperation"'". Basel.ru. Retrieved 14 May 2011. 
  23. ^ "Basic Element group exercises the call option for 17% stake in Strabag". Basel.ru. Retrieved 14 May 2011. 
  24. ^ "RUSAL company website". Rusal.ru. Retrieved 14 May 2011. 
  25. ^ "Bank "SOYUZ" website". Banksoyuz.ru. Retrieved 14 May 2011. 
  26. ^ EuroSibEnergo company website
  27. ^ "Glavmosstroy website". Glavmosstroy.ru. Retrieved 14 May 2011. 
  28. ^ "Agroholding Kuban website". ahkuban.ru. Retrieved 7 November 2012. 
  29. ^ "Basel Aero website". basel.aero. Retrieved 7 November 2012. 
  30. ^ "Basic Element website". Basel.ru. 1 January 2008. Retrieved 14 May 2011. 
  31. ^ "Rusal stock jumps on analyst 'buy' recommendations". Bloomberg Businessweek (Moscow). Associated Press. 4 March 2010. Retrieved 13 May 2011. 
  32. ^ "WSJ Online: Rusal Prices IPO at Premium". The Wall Street Journal. 22 January 2010. Retrieved 13 May 2011. 
  33. ^ "Sued Russian oligarch owns a major Irish asset portfolio". Irish Independent. 2 December 2012. 
  34. ^ Oleg Deripaska biodata. Retrieved 12 May 2012.
  35. ^ "World Economic Forum; Climate Change; CEO Climate Policy Recommendations to G8 Leaders". Weforum.org. Retrieved 14 May 2011. 
  36. ^ Expert magazine; "Zero Waste"; interview
  37. ^ (20 April 2009): The Volnoe Delo Fund acknowledged as the largest contributor (Russian)
  38. ^ Volnoe Delo Fund website (Russian)
  39. ^ Withnall, Adam (10 February 2014). "Sochi Olympic Park’s condemned stray dogs ‘saved by Russian billionaire’".  
  40. ^ Osborn, Andrew (25 February 2007). "The world's richest Russian is sued for $3bn in London". The Independent (UK). Retrieved 14 May 2011. 
  41. ^ "Cherney v Deripaska, 2007 EWHC 965 (Comm)". Bailii.org. Retrieved 14 May 2011. 
  42. ^ "Cherney v Deripaska, 2008 EWHC 1530 (Comm)". Bailii.org. Retrieved 14 May 2011. 
  43. ^ "Deripaska v Cherney, 2009 EWCA Civ 849". Bailii.org. Retrieved 14 May 2011. 
  44. ^ Paul, Jonny. (23 June 2011) "British High Court to decide: Can Cherney testify by video?" The Jerusalem Post. 23 June 2011. Retrieved 12 May 2012.
  45. ^ "Wanted: Cherney, Michael". Interpol, (14 October 2010)
  46. ^ Cheston, Paul (28 July 2011). standard/article-23973334-the-gangster-a-billionaire-friend-of-mandelson-and-a-pound-23bn-row.do "The 'gangster', a billionaire friend of Mandelson and a £2.3bn row" . Evening Standard. Retrieved 8 August 2011. 
  47. ^ "ACTUAL ARTICLE TITLE BELONGS HERE!". The Wall Street Journal. Retrieved 7 November 2012. 
  48. ^ a b Wolf, Jim (11 May 2007). "U.S. revoked Deripaska visa – State Dep't official". Reuters. 
  49. ^ "Deripaska Accused U.S. of Blackmail". The Wall Street Journal. 30 October 2009. 
  50. ^ "Quiosco , El Mundo en ORBYT". El Mundo. Spain. Retrieved 14 May 2011. 
  51. ^ Lewis, Jason (30 May 2010). "Oligarch friend of Mandelson faces cash launder quiz". Daily Mail (London). 
  52. ^ Perez, Evan; White, Gregory L. (30 October 2009). "FBI Lets Barred Tycoon Visit U.S". The Wall Street Journal. 
  53. ^ "/ Comment / Analysis – Rusal: A lingering heat". Financial Times. 25 January 2010. Retrieved 14 May 2011. 
  54. ^ MacIntyre, Donald (20 July 2009). "Clash of the oligarchs". The Independent (UK). Retrieved 14 May 2011. 
  55. ^ Swinford, Steven, "Peter Mandelson oligarch Oleg Deripaska linked to mafia boss", The Sunday Times (London), 26 October 2008.
  56. ^ Ispolnova, Darya (25 November 2011). "Russian Tycoon Deripaska's case given to Russia's court by Spain". gazeta.ru. Retrieved 28 November 2011. 
  57. ^ "Leading article: The flawed judgement of a shadow Chancellor". The Independent (UK). 22 October 2008. Retrieved 23 November 2009. 
  58. ^ "Peter Mandelson joins richest Russian on his superyacht", The Times, 12 October 2008
  59. ^ "Mandelson: No favours for Deripaska", Evening Standard (London), 28 October 2008
  60. ^ "A final favour? How Mandelson's last act in Brussels boosted Russian oligarch", The Independent, 26 October 2008
  61. ^ Mandelson defended over billionaire claims, The Independent, 17 October 2008

References

See also

Deripaska is married to Valentin Yumashev's daughter, Polina; the couple has two children.[11]

Personal life

I am very surprised by the allegations in the British press about Peter Mandelson, Oleg Deripaska and aluminium. The claims hint at Mandelson's personal intervention, in his capacity of European commissioner for trade, in favour of the Russian aluminium company Rusal. I would like to clarify that no such intervention took place. One allegation relates to a nine-year debate in the EU over tariffs on raw aluminium. The other relates to anti-dumping duties on Russian aluminium. In both instances, decisions were made after the usual consultation procedures.[61]

Mandelson, then EU Trade Commissioner, had presided over the reduction of EU aluminium tariffs, which benefitted Deripaska and led many to suggest there was a conflict of interest and even that Mandelson had intervened in EU policy on the aluminium tycoon's behalf. Mandelson denied this.[59][60] In response to the allegations, David O'Sullivan, Director-General for Trade, European Commission, wrote a letter to The Sunday Times in which he stated:

Deripaska, who is a friend of Chancellor of the Exchequer of the United Kingdom and a friend of Rothschild's from school and university, and Peter Mandelson on Deripaska's yacht in Corfu in the summer of 2008.[57] There was considerable controversy over the relationship between Mandelson and Deripaska after it emerged that Mandelson had spent time on Deripaska's yacht.[58]

Vladimir Putin and Deripaska, March 19, 2002

Relationship with politicians

In November 2011, Spain's High Court sent the criminal cases against Deripaska to the Russian General Prosecutor's office because the root of the cases is Russian.[56]

[55] However Deripaska has himself been accused of having similar links to Malevsky, who, with his brother Andrei, owned a 10% stake in Deripaska's company. Deripaska denies the claims.[54] to extort US$250 million from him as part of a protection racket.Izmailovskaya syndicate Deripaska has accused Michael Chernoy of using Malevsky and the [53] On 25 January 2010, the

While Deripaska has been interrogated previously as a witness in Spain and England and by the FBI in cases of money laundering, he has never been charged with any crimes in those probes.[52]

According to an article in El Mundo, Deripaska and Iskander Makhmudov (head of UGMK) were asked by Spanish police to answer questions in relation to a money-laundering enquiry.[50] The Spanish state prosecutor's office subsequently confirmed Deripaska's interrogation.[51]

[49] reported that according to two unnamed FBI administration officials Deripaska had met with agents regarding a continuing criminal probe, the details of the probe were not known or reported. During Deripaska's visits he visited leading management figures from investment banks The Wall Street Journal In 2009 Deripaska was again allowed entry and visited the USA twice;

[48] and his Alston & Bird law partners, Senate records show. Alston & Bird was paid about US$260,000 in 2005 for work on "Department of State visa policies and procedures" tied to Deripaska.Bob Dole spokesman refused to comment. Lobbying on his behalf had been done by former Senate Republican leader and 1996 presidential candidate Federal Bureau of Investigation Deripaska had received a multiple-entry visa in 2005; a U.S. [48] In July 2006, whilst Deripaska was involved in a bid to buy the

Legal investigations in Spain and the United Kingdom

In September 2012, Cherney terminated his UK lawsuit against Deripaska.[47]

At a June 2011 case management conference, the judge deferred a decision on whether Cherney would be allowed to give evidence by video link from Israel rather than appear in person as an outstanding Interpol arrest warrant meant he would be detained if he travelled to the UK.[44][45] In late July 2011, the High Court ruled that Cherney may give evidence at the trial by video link from Israel and set trial for April 2012.[46]

On 3 July 2008, Mr Justice Christopher Clarke ruled that the case should be tried in England, although "the natural forum for this litigation is Russia", because, he held, "risks inherent in a trial in Russia ... are sufficient to make England the forum in which the case can most suitably be tried in the interest of both parties and the ends of justice".[42] On 22 July 2008, he granted Deripaska leave to appeal. The Court of Appeal of England and Wales refused the appeal on 31 July 2009.[43]

On 24 November 2006, Michael Cherney brought legal action against Deripaska in the Commercial Court of the High Court in London.[40] Cherney sought a declaration that he was the beneficial owner of 20% of RUSAL stock which, he claimed, Deripaska held in trust for him. The claim was denied. On 3 May 2007, Mr Justice Langley ruled that Deripaska had not been properly served and that the court had no jurisdiction to try the claim as Deripaska was not domiciled in England or Wales.[41]

Cherney's 2006 lawsuit hinged on whether Deripaska "resided" at his London house at 5, Belgrave Square (right)

Lawsuits

In February 2014 Deripaska financed the construction of makeshift kennels to house stray dogs that had been abandoned by building workers after completion of work at the Sochi Olympic Village. Officials had employed a company to eradicate the animals stating the number of strays was in excess of 2,000 and presented a risk of rabies. Approximately 150 were saved and others were re-homed.[39]

In 1998, Deripaska established Volnoe Delo, Russia's largest private charity foundation.[37] The fund supports over 400 initiatives across Russia aimed at developing education and science, preserving spiritual and cultural heritage, and improving standards in public health.[38] It helps children, old people, talented youths, teachers, eminent scientists and other participants of the programs. For the last seven years the total budget of more than 400 charitable programs has been increased 17 times to over 8.5 billion roubles.

Charity

Deripaska is one of 16 global business leaders who drafted CEO Climate Policy Recommendations to G8 Leaders, a document outlining international business community's proposals to tackle global warming. The proposals were signed by more than 100 of the world's leading corporations and handed to Japanese Prime Minister Yasuo Fukuda on 20 June 2008. The G8 leaders discussed the recommendations during the summit in Japan on 7–9 July 2008. The process was coordinated by the World Economic Forum in collaboration with the World Business Council for Sustainable Development.[35][36]

He sits on the board of trustees of the Bolshoi Theatre, the School of Business Administration, the School of Public Administration, and the School of Economics at Moscow State University and the School of Business Administration at St. Petersburg State University. Deripaska is a co-founder of the National Science Support Foundation and the National Medicine Fund. In 1999, he was awarded the Order of Friendship, a state award of the Russian Federation. He was named businessman of the year in 1999, 2006 & 2007 by Vedomosti, a leading business daily published in partnership with The Wall Street Journal and The Financial Times.

In 2004, Deripaska was appointed by the President of Russia to represent the country in the Asia-Pacific Economic Cooperation Business Advisory Council (ABAC). He has held the position of Chairman of ABAC Russia since 2007. Deripaska is Vice President of the Russian Union of Industrialists and Entrepreneurs, Chairman of the Executive Board of the Russian National Committee of the International Chamber of Commerce and a member of the Competitiveness and Entrepreneurship Council, an agency of the Russian Government.[34]

Other affiliations

Deripaska's Rusal company owns the €900m valued Aughinish Alumina plant on the Shannon estuary in Ireland. The factory is Ireland's largest manufacturing site and the largest alumina plant in Europe.[33]

RUSAL went public in January 2010. Hong Kong regulators were criticized for allowing RUSAL, whose debt was nearly US$15 billion, to list its shares. The Hong Kong exchange responded by warning investors of the risks and setting a minimum investment amount of US$129,000.[31] Rusal raised US$2.24 billion through its dual initial public offering in Hong Kong and Paris. The company sold 1.61 billion shares, or 11% of its market capitalisation, at HK$10.80 each.[32]

RUSAL

Basic Element owns companies and subsidiaries in Russia, the CIS countries, Africa, Australia, Asia, Europe and Latin America. It employs as many as 250,000 people.[30]

Deripaska is the sole owner and Chairman of Supervisory Board of Basic Element, a diversified investment group established in 1997. Basic Element's assets are concentrated in five sectors: energy, manufacturing, financial services, agriculture, construction and aviation. The major assets include United Company RUSAL[24] the world's largest aluminium and alumina producer; GAZ Group, an automotive company; Ingosstrakh, the country's oldest insurance company; Bank SOYUZ (Банк «СОЮЗ»);[25] Aviakor aircraft manufacturer; EuroSibEnergo (ЕвроСибЭнерго), an investment and energy supply company;[26] Glavmosstroy (Главмосстрой), a construction company;[27] Kuban Agroholding, an agricultural company;[28] and Basel Aero, an aviation business comprising the four largest airports in the Krasnodar territory (in joint venture with Changi Airports International).[29]

Basic Element

Business

In 2011, Forbes Russia conducted a poll with the help of Russia-based Profi Online Research Company of the country's "most beloved billionaire oligarchs". Deripaska, with 15.7% of the vote, came in third after Roman Abramovich (27.1%) and Mikhail Prokhorov (23.8%).[1] In June 2012, Basic Element, Sberbank of Russia and Changi Airports signed a joint venture agreement to invest in and develop Russian airports.

On 30 April 2009 Basic Element announced that it has transferred its 25% stake in Strabag to other shareholders of the company. It will also hold a call option to buy back the stake until 20 December 2009 with an opportunity of its extension to October 2010. Basic Element also retains one registered share of Strabag and keeps two places on Strabag nine-seat supervisory board.[22] On 30 November 2010 Basic Element bought back 17% stake in Strabag from other shareholders of the company for € 373 mln. Deripaska was also provided with an extension of the call option for the remaining 8% until 15 July 2014.[23]

On 3 October 2008 Magna International announced that Russian Machines terminated its participation as a shareholder of the Canadian auto parts maker. However the companies said that development of autocomponents business in Russia, as well as other joint projects, would continue.[21]

[20]

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