Mikhail Fridman
Encyclopedia
Mikhail Maratovich Fridman ' onMouseout='HidePop("17912")' href="/topics/Lviv">Lviv
, Ukraine) is a Jewish Russia
n businessman. Mr. Fridman graduated from Moscow Institute of Steel and Alloys in 1986. In 1988 Fridman started his career in trading and financial services before founding Alfa Group
Consortium in 1989. Fridman sits as Chairman of the Supervisory Board of Alfa Group
Consortium, which is now one of the Russia
's largest privately owned investment groups. In 2011, Forbes assessed his wealth as $15.1 billion, making him the 7th richest man in Russia.
, Alexei Kuzmichov
and several other partners, Fridman founded the Alfa Group
Consortium, an investment group which today controls Alfa Bank
(opened in 1991), Alfa Capital Management, Rosvodokanal Group, AlfaStrakhovanie Group and A1 Group. Alfa Group's portfolio includes stakes in oil and gas company TNK-BP
, Russia's largest retailer in terms of sales X5 Retail Group, and several telecom companies: Vimpelcom Ltd., MegaFon and Turkcell.
Fridman serves as Chairman of Supervisory Board of Alfa Group
Consortium, Chairman of the Board of Directors of TNK-BP
and as a member of the Board of Directors of ABH Holdings S.A. (holding company of Alfa-Banking Group), Supervisory Board of Directors of VimpelCom Ltd. and X5 Retail Group N.V.
Since 2005 he has been a member of the Public Chamber of Russia
.
He has been an active supporter of Jewish initiatives in Russia
and Europe. In 1996 Fridman was one of the founders of the Russian Jewish Congress
, now sitting on the RJC Presidium. He makes large contribution to the work of the European Jewish Fund
, a non-profit organization aimed at developing European Jewry and promoting tolerance
and reconciliation on the continent.
Mr. Fridman is a member of numerous public facing bodies, including the Board of Directors of Russian Union of Industrialists and Entrepreneurs
and National Council on Corporate Governance.
Fridman is an active supporter of the national literary award "Big Book" and a member of the board of the "Center support for native literature" focused on implementing cultural programs, promoting the ideals of humanism and respect for the values of Russian culture, supporting creative writing and book publishing in Russia.
assesed Fridman's wealth as US$ 15.1 billion, making him the 7th richest man in Russia and 43rd worldwide.
Fridman was honored "For Creation of Successfull Russian Brand" by World Brand Academy in 2006.
The annual GQ Man of the Year National Award, organized by the GQ magazine, named Mr. Fridman as Businessman of the Year for 2006.
Fridman was included in the Financial Times
list of "Leaders of the New Europe 2004".
He is one of the "Europe's Power 25" by Fortune
in 2004.
In 2003, Mikhail Fridman was honored with the Golden Plate Award of the International Academy of Achievement in Washington
, presented by former US President Bill Clinton
.
and Kasyanov's wife Irina. Friedman has said that he wasn't surprised at the low price of the house he bought because another company held a 49-year lease for that house at the time (however, that lease was bought out very cheaply a week after the auction for the houses), and that he's not aware of the details of the sale as it was handled by his corporation's legal department. According to later allegations made by the State Duma
member and journalist Aleksandr Khinshtein, Kasyanov bought the company that owns one of the houses using a loan given to him by Friedman, and one of Friedman's companies won the government-conducted tender to manage the Sheremetyevo International Airport
a week after the houses auction, allegedly with some Kasyanov's involvement. Friedman has dismissed those allegations and maintains that none of his companies ever gave any loans to Kasyanov.
On 17 January 2006 the Moscow Court of Arbitration has ruled that the house bought by Friedman should be returned to the state as not all the appropriate procedures have been followed during the privatization. However, the court also refused to call the privatization contract legally null and void (in that case Friedman's company wouldn't even get the money they paid for the house back), so it's unlikely that the prosecutors would have enough evidence of Friedman's involvement to indict him personally in the criminal court.
On 2 February 2006 the same court has made similar ruling about the house bought by Kasyanov, he would also have to return it.
On 1 March 2006 two government officials who were responsible for the auction, former deputy minister of property relations of Russia, Nikolai Gusev, and the director of Federal State Unitary Enterprise "VPK-Invest" (who officially was managing the houses before the auction), Ramil Gaisin, were indicted for "appropriation of managed property committed by an organized group on particularly large scale". They weren't arrested, they are currently released on their own recognizance. According to the prosecution, they currently don't have enough evidence to indict Kasyanov.
Lviv
Lviv is a city in western Ukraine. The city is regarded as one of the main cultural centres of today's Ukraine and historically has also been a major Polish and Jewish cultural center, as Poles and Jews were the two main ethnicities of the city until the outbreak of World War II and the following...
, Ukraine) is a Jewish Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
n businessman. Mr. Fridman graduated from Moscow Institute of Steel and Alloys in 1986. In 1988 Fridman started his career in trading and financial services before founding Alfa Group
Alfa Group
Alfa Group Consortium is one of Russia's largest privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities and special situation investments...
Consortium in 1989. Fridman sits as Chairman of the Supervisory Board of Alfa Group
Alfa Group
Alfa Group Consortium is one of Russia's largest privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities and special situation investments...
Consortium, which is now one of the Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
's largest privately owned investment groups. In 2011, Forbes assessed his wealth as $15.1 billion, making him the 7th richest man in Russia.
Business Activities
Along with German KhanGerman Khan
German Borisovich Khan is a Russian businessman with interests in the oil and gas industries. He studied at the . When Alfa Group took over oil giant TNK, it was Khan who was chosen to run the operation...
, Alexei Kuzmichov
Alexei Kuzmichov
Alexey Viktorovich Kuzmichev or Kousmichoff is a Russian businessman...
and several other partners, Fridman founded the Alfa Group
Alfa Group
Alfa Group Consortium is one of Russia's largest privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities and special situation investments...
Consortium, an investment group which today controls Alfa Bank
Alfa Bank
Alfa Bank, the corporate treasury of the Alfa Group, is the largest private commercial bank in Russia. Headquartered in Moscow, it operates in 7 countries, providing financial services to over 40,000 active corporate customers and 5.3 million retail clients...
(opened in 1991), Alfa Capital Management, Rosvodokanal Group, AlfaStrakhovanie Group and A1 Group. Alfa Group's portfolio includes stakes in oil and gas company TNK-BP
TNK-BP
TNK-BP is a major vertically integrated Russian oil company. It is Russia's third largest oil producer and among the ten largest private oil companies in the world. TNK-BP is Russia's third largest oil company in terms of reserves and crude oil production...
, Russia's largest retailer in terms of sales X5 Retail Group, and several telecom companies: Vimpelcom Ltd., MegaFon and Turkcell.
Fridman serves as Chairman of Supervisory Board of Alfa Group
Alfa Group
Alfa Group Consortium is one of Russia's largest privately owned investment groups, with interests in oil and gas, commercial and investment banking, asset management, insurance, retail trade, telecommunications, water utilities and special situation investments...
Consortium, Chairman of the Board of Directors of TNK-BP
TNK-BP
TNK-BP is a major vertically integrated Russian oil company. It is Russia's third largest oil producer and among the ten largest private oil companies in the world. TNK-BP is Russia's third largest oil company in terms of reserves and crude oil production...
and as a member of the Board of Directors of ABH Holdings S.A. (holding company of Alfa-Banking Group), Supervisory Board of Directors of VimpelCom Ltd. and X5 Retail Group N.V.
Public Activities
Since 2005, Fridman has been a Russian representative on the International Advisory Board of the Council of Foreign Relations.Since 2005 he has been a member of the Public Chamber of Russia
Public Chamber of Russia
The Public Chamber is a state institution with 126 members created in 2005 in Russia to analyze draft legislation and monitor the activities of the parliament, government and other government bodies of Russia and its Federal Subjects. It has a role similar to an oversight committee and has...
.
He has been an active supporter of Jewish initiatives in Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...
and Europe. In 1996 Fridman was one of the founders of the Russian Jewish Congress
Russian Jewish Congress
The Russian Jewish Congress is a non-profit charitable fund and the largest secular organisation of Russian Jews. It was established in 1996 by the initiative group of the Jewish businessmen, active workers and religious figures for revival of the Jewish life in Russia...
, now sitting on the RJC Presidium. He makes large contribution to the work of the European Jewish Fund
European Jewish Fund
The European Jewish Fund is an international non-governmental organisation that coordinates and supports programmes and events aimed at improving interreligious and interethnic relations, reinforcing Jewish national identity, counteracting assimilation, promoting tolerance and reconciliation in...
, a non-profit organization aimed at developing European Jewry and promoting tolerance
Toleration
Toleration is "the practice of deliberately allowing or permitting a thing of which one disapproves. One can meaningfully speak of tolerating, ie of allowing or permitting, only if one is in a position to disallow”. It has also been defined as "to bear or endure" or "to nourish, sustain or preserve"...
and reconciliation on the continent.
Mr. Fridman is a member of numerous public facing bodies, including the Board of Directors of Russian Union of Industrialists and Entrepreneurs
Russian Union of Industrialists and Entrepreneurs
The Russian Union of Industrialists and Entrepreneurs is a lobby based in Moscow that promotes the interests of business in Russia. It has over 1,000 members, which include both private and state-owned companies, factories, and foreign and Russian plants....
and National Council on Corporate Governance.
Fridman is an active supporter of the national literary award "Big Book" and a member of the board of the "Center support for native literature" focused on implementing cultural programs, promoting the ideals of humanism and respect for the values of Russian culture, supporting creative writing and book publishing in Russia.
Ratings and awards
In 2011, ForbesForbes
Forbes is an American publishing and media company. Its flagship publication, the Forbes magazine, is published biweekly. Its primary competitors in the national business magazine category are Fortune, which is also published biweekly, and Business Week...
assesed Fridman's wealth as US$ 15.1 billion, making him the 7th richest man in Russia and 43rd worldwide.
Fridman was honored "For Creation of Successfull Russian Brand" by World Brand Academy in 2006.
The annual GQ Man of the Year National Award, organized by the GQ magazine, named Mr. Fridman as Businessman of the Year for 2006.
Fridman was included in the Financial Times
Financial Times
The Financial Times is an international business newspaper. It is a morning daily newspaper published in London and printed in 24 cities around the world. Its primary rival is the Wall Street Journal, published in New York City....
list of "Leaders of the New Europe 2004".
He is one of the "Europe's Power 25" by Fortune
Fortune
Fortune may refer to:General concepts* Luck, a chance happening, or that which happens beyond a person's controls* Wealth, an abundance of items of economic value* Prophecy, the prediction of future events...
in 2004.
In 2003, Mikhail Fridman was honored with the Golden Plate Award of the International Academy of Achievement in Washington
Washington, D.C.
Washington, D.C., formally the District of Columbia and commonly referred to as Washington, "the District", or simply D.C., is the capital of the United States. On July 16, 1790, the United States Congress approved the creation of a permanent national capital as permitted by the U.S. Constitution....
, presented by former US President Bill Clinton
Bill Clinton
William Jefferson "Bill" Clinton is an American politician who served as the 42nd President of the United States from 1993 to 2001. Inaugurated at age 46, he was the third-youngest president. He took office at the end of the Cold War, and was the first president of the baby boomer generation...
.
2005 house privatization controversy
In July 2005, he was involved in a privatization scandal. Two luxury houses formerly owned by the government were sold in 2003 for a price significantly below market value to two companies, one of which is owned by Friedman and another by the former Russian prime-minister, Mikhail KasyanovMikhail Kasyanov
Mikhail Mikhailovich Kasyanov - was the Prime Minister of Russia from May 2000 to February 2004.He is the leader of the People's Democratic Union and an ex-member of the opposition coalition "The Other Russia".-Political career:...
and Kasyanov's wife Irina. Friedman has said that he wasn't surprised at the low price of the house he bought because another company held a 49-year lease for that house at the time (however, that lease was bought out very cheaply a week after the auction for the houses), and that he's not aware of the details of the sale as it was handled by his corporation's legal department. According to later allegations made by the State Duma
State Duma
The State Duma , common abbreviation: Госду́ма ) in the Russian Federation is the lower house of the Federal Assembly of Russia , the upper house being the Federation Council of Russia. The Duma headquarters is located in central Moscow, a few steps from Manege Square. Its members are referred to...
member and journalist Aleksandr Khinshtein, Kasyanov bought the company that owns one of the houses using a loan given to him by Friedman, and one of Friedman's companies won the government-conducted tender to manage the Sheremetyevo International Airport
Sheremetyevo International Airport
Sheremetyevo International Airport , is an international airport located in the Moscow Oblast, Russia, north-west of central Moscow. It is a hub for the passenger operations of the Russian international airline Aeroflot, and one of the three major airports serving Moscow along with Domodedovo...
a week after the houses auction, allegedly with some Kasyanov's involvement. Friedman has dismissed those allegations and maintains that none of his companies ever gave any loans to Kasyanov.
On 17 January 2006 the Moscow Court of Arbitration has ruled that the house bought by Friedman should be returned to the state as not all the appropriate procedures have been followed during the privatization. However, the court also refused to call the privatization contract legally null and void (in that case Friedman's company wouldn't even get the money they paid for the house back), so it's unlikely that the prosecutors would have enough evidence of Friedman's involvement to indict him personally in the criminal court.
On 2 February 2006 the same court has made similar ruling about the house bought by Kasyanov, he would also have to return it.
On 1 March 2006 two government officials who were responsible for the auction, former deputy minister of property relations of Russia, Nikolai Gusev, and the director of Federal State Unitary Enterprise "VPK-Invest" (who officially was managing the houses before the auction), Ramil Gaisin, were indicted for "appropriation of managed property committed by an organized group on particularly large scale". They weren't arrested, they are currently released on their own recognizance. According to the prosecution, they currently don't have enough evidence to indict Kasyanov.
External links
- Forbes.com: Forbes World's Richest People
- TeliaSonera initiates legal action against Russian Alfa Group 28 November 2005
- Western Operators Warned to Beware Altimo's Business Record 14 December 2005
- Shareholder dispute could drive Kyivstar into technical default 11 April 2007
- Telenor steps up fight on Altimo 'propaganda' 30 March 2007
- BP, Russian billionaires, and the Kremlin: a Power Triangle that never was 23 November 2011