Andrey Melnichenko is a Russian billionaire industrialist and oligarch. He is the founder and owner of the fertilizer company EuroChem, the coal producer Suek, and the power generator company SGK.
According to Forbes, he was worth US$13.4 billion in 2019, making him the 38th richest person in Russia and 138th richest person in the world.
The History Of Russian Oligarchs
The Greek term oligarch derives from the word meaning “few,” and in Russia, oligarchs are a group of businesspeople who have amassed enormous wealth and power since the fall of communism in 1991. These individuals (and they are almost exclusively males) accumulated their fortunes by taking advantage of the shift from a planned economy to a free market system.
In the early 1990s, the Russian government sold off state-owned assets at bargain-basement prices, and oligarchs purchased them for a fraction of what they were worth. They subsequently utilized their political power to engineer sweetheart agreements, tax breaks, and other perks from the authorities. As a consequence, they rapidly accumulated wealth while many common Russians struggled to make ends meet.
Today, there are fewer than two dozen oligarchs in Russia, but they still wield an enormous amount of power. Thanks to their close ties to the Kremlin, they have been able to weather successive economic crises and continue to amass greater wealth and influence.
For many Russians, the oligarchs are a symbol of everything that is wrong with post-communist Russia: They are ruthless capitalists who have used their position of power to line their own pockets at the expense of ordinary citizens.
Who Is Andrey Melnichenko?
Early Life & Education
Russian billionaire Andrey Melnichenko was born on March 8, 1972, in Gomel, Belarus, old Soviet Union. His father, a Belarusian professor, and his mother, a Ukrainian teacher, were both academics.
He studied physics at the Lomonosov Moscow State University’s Advanced Education and Science Center from 1989 to 1991 before enrolling at Moscow State University’s Faculty of Physics. After two years at the Plekhanov Russian University of Economics studying finance, he graduated in 1997 with an MBA in financial management from FIMI-LLC (Finance Institute).
Career
While attending university, Melnichenko began his entrepreneurial activities by setting up a currency exchange booth on campus with two other people. After making US$50,000 from their business, the partners obtained a Bank of Russia banking license at the age of 21.
From the late 1990s to the early 2000s, MDM Bank acquired seven regional banks. In 1997, Melnichenko acquired the MDM Bank shares from his partners and became the sole owner of the bank as well as its chairman of the management board.
By the year 2000, Andrey Melnichenko teamed up with Sergei Popov and founded MDM Group. The new Russian business focused its operations on coal production and processing, production and processing of fertilizers, as well as the manufacturing of pipelines.
This new company was achieved by taking over more than 50 individual businesses, such as joint-stock companies, mines, and factories. This then allowed them to create three new enterprises: TMK, coal energy company SUEK, and EuroChem.
Melnichenko was the President of MDM Group from 2001 to 2004. He then sold shares of MDM Bank2004 to 2007 and focused on developing assets in coal and fertilizer. The International Financial Corporation (IFC) bought 5% of MDM bank after Melnichenko stepped down as president in 2007, valuing it at US$3.7 billion. Following this sale, the MDM group no longer exists.
Since 2007, Melnichenko has been one of the decision makers of the Russian Union of Industrialists and Entrepreneurs.
Personal Life
In 2005, Russian billionaire Andrei Melnichenko wed Serbian former pop singer and model Aleksandra Melnichenko in the picturesque location of the South of France. The lovely couple has two children together.
Luxury Possessions
Andrey Melnichenko’s net worth is 15.8 billion USD. He is one of Russia’s wealthiest people, with some of the world’s largest yachts. He currently owns two high-tech boats: Sailing Yacht A and Motor Yacht A. Both were created by Philippe Starck.
Philanthropy
Andrey Melnichenko created The Andrey Melnichenko Foundation to support Russian children. The foundation hopes to create a socially equal Russia through science and education.
His companies have contributed over half a billion dollars to social and charitable programs. These have earned them so many awards and commendations.
Sanctions
The European Union sanctioned Andrey Melnichenko on the day Russia invaded Ukraine. This means that he is subject to an asset freeze and travel ban within the EU. Although he’s planning on disputing the EU sanctions because he has no close ties to Kremlin.
Russian Billionaires
1. Mikhail Prokhorov – Net Worth $9.5 Billion
Prokhorov is the former owner of the Brooklyn Nets, as well as a mining and investment company. He is one of the few oligarchs that has managed to maintain good relations with Vladimir Putin.
2. Leonid Mikhelson – Net Worth $28 Billion
Mikhelson is the CEO of Novatek, Russia’s largest independent natural gas producer. He has been a close ally of Putin and has been credited with helping to develop Russia’s energy sector.
3. Alisher Usmanov – Net Worth $17.6 Billion
Usmanov is a Russian businessman and investor. He is the majority shareholder of Metalloinvest, a Metallurgical holding company. He also has stakes in a number of tech companies, including Facebook and Twitter.
4. Vagit Alekperov – Net Worth $15 Billion
Alekperov is the president of Lukoil, Russia’s largest oil company. He has been a vocal critic of Putin’s policies but has remained one of the most influential businessmen in Russia.
5.Gennady Timchenko – Net Worth $14.6 Billion
Timchenko is an entrepreneur and investor with interests in oil trading, engineering, and construction. He is a close friend of Putin and was recently placed on the U.S. sanctions list.
Conclusion
Andrey Melnichenko is not regarded as a Russian oligarch due to the fact that his wealth is not tied to the Russian government. However, there is no denying that he is a self-made man who has achieved great things.
What do you think of him? Let us know in the comments!