There are few people in the world as wealthy as Alexander Abramov. This Russian oligarch Alexander Abramov has a net worth of over $10 billion, and he didn’t achieve that level of wealth by accident. Abramov is a shrewd businessman who knows how to make money.
He got his start in the oil industry, but he has since branched out into other businesses. In this blog post, we will take a closer look at Alexander Abramov and his empire!
Alexander Abramoy Oligarch
Alexander Abramov is a Russian oligarch who made his fortune in the oil and gas industry. After the fall of the Soviet Union, he quickly rose to power and became one of Russia’s richest men.
He has been described as a “hard-nosed businessman” who is not afraid to get his hands dirty. Abramov has been involved in several high-profile business deals over the years, and he is known for being ruthless in negotiations.
Childhood And Education
Abramov was born in Moscow, USSR, in 1959. He is descended from Jews. He earned a physics and mathematics degree from the Moscow Institute of Physics and Technology.
After government funding dried up, he started working for Russia’s space and defense programs before turning to metal trading.
Career
EvrazHolding is an outcome of Russia’s development following the financial crisis of 1998, and Abramov is a prime example of the second generation of Russian magnates who entered the market after the best assets had been acquired.
Abramov did not have the political clout or financial means to take advantage of Russia’s 1990s chaotic privatization, unlike the first wave of politically connected oligarchs like Mikhail Khodorkovsky and Vladimir Potanin.
Evraz-Holding has become one of Russia’s most aggressive vertically integrated commercial organizations in recent years. Among its holdings are three sizable steel mills, three coal mines, several ore-enriching facilities, and the sizable commercial port of Nakhodka in the country’s east.
Business Entrepreneurship
Trading
He offered his skills not as a scientist but as a metal trader through his connections with Russian steel factories that utilized high-temperature technologies. In the early 1990s, trading was a common and efficient means of generating income in Russia.
The economy was contracting, late payments were a persistent issue, and factories welcomed any cash offers from traders.
By 1997, trading had become less profitable and several firms, including Abramov’s, owed significant amounts to producers. In addition to purchasing shares in the Nizhny Tagil steel mill from other stockholders, Abramov started purchasing enterprises and converted debt into equity.
Monopolies, Factories, And Acquisitions
Mr. Abramov obtained the assets in a much more targeted manner than the initial wave of Russian oligarchs, who seized whatever assets they could. To create a monopoly in the production of steel and rail construction products, he sought out factories that would enable him to achieve synergies.
The only other significant plants producing these goods were in the industrial Kemerovo region, which also houses the biggest coal mines in all of Russia.
Aman Tuleev, the region’s populist governor, was introduced to Abramov through his previous commercial relationships with coalmine executives.
Promoting Employment Creation To Fill The Void Left By Shuttered Factories
In 1998, Abramov was engaged in two bankrupt factories. Up to eight months had passed since salaries were paid, and strikes were starting.
The Arrangement: Factory Managers
Tuleev needs capable management. The two factories were needed by Abramov, and a contract was shortly reached.
Tuleev would assist in the appointment of outsider managers who were devoted to EvrazHolding to administer the steel plants as a state creditor. Abramov would guarantee employment, taxes, pay wages, and lend support to Tuleev’s charitable endeavors.
Alternatives To Alfa Group
The Alfa Group, one of the most powerful oligarch groups, which controlled one of the plants, was pitted against Abramov in this situation. Abramov and his contemporaries were creating empires while organizations like Alfa were selling off non-core businesses.
EvrazHolding was listed on the London Stock Exchange in June 2005. Abramov resigned from his position as group president five months later, but he is still a board member.
Acquisitions
Abramov purchased Claymont Steel and Oregon Steel Mills in 2007.
CAATSA Report
The Countering America’s Adversaries Through Sanctions Act, which the US Treasury published in January 2018, mentions CAATSA Report Abramov.
Private Life
He resides in Moscow, is married, and has three kids. He enjoys tennis, fishing, and swimming.
Articles You Might Enjoy Reading
How Do Russian Oligarchs Make Their Money?
Who Are The Top 10 Richest Russian Oligarchs?
Russian Oligarch’s Cryptocurrency Investments