Alexei Mordashov

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Alexey Mordashov
Алексей Мордашов.jpg
Alexey Mordashov
Born (1965-09-26) 26 September 1965 (age 51)
Cherepovets, Russia
Nationality Russian
Alma mater Leningrad Institute of Ec
University of Northumbria
Occupation Majority Shareholder of Severstal
Net worth US$12.7 billion (June 2016)[1]
Spouse(s) Married
Children 6
Awards

Alexey Mordashov (born 26 September 1965), is a Russian businessman and billionaire. He is the main shareholder and chairman of Severstal,[2] a Russian conglomerate with interests in metal, energy and mining companies. In November 2016, Bloomberg reported that Mordashov was Russia’s richest man, with an estimated worth of $15.7 billion.[3]

Early life[edit]

Mordashov is the son of parents who were both steel mill workers.[1] Mordashov reported that his family used welfare coupons, allowed only 200g of butter and 400g of sausages per month.[4] He graduated with a bachelor's degree from the Leningrad Engineering-Economical Institute, currently known as ENGECON. He later gained an MBA from Northumbria University in Newcastle upon Tyne, England, in 2001.[5] In an address to students at the European University at St Petersburg, Mordashov spoke about his decision to study in Leningrad rather than Moscow and the value his undergraduate studies played in his search for employment and eventual career path.[6] Returning to Cherepovets he started his career by joining the same steel plant where his parents had worked.

Career[edit]

In 1988 he joined Cherepovetskiy Metallurgical Plant after graduation from Leningrad Engineering-Economical Institut as an economist. By 1992 he became finance director, shortly before the company was privatised.[7] When the plant's elderly director instructed him to acquire shares to keep them out of the hands of an outsider, he formed two investment funds and, by buying up workers' shares, built a major stake in the factory.[1] In 1996 he was appointed as CEO of the company. He went on to build a conglomerate, Severstal, acquiring steel, coal and mining companies.[8]

In 2004, Mordashov started investing in US steel companies, purchasing companies in Dearborn, MI and Columbus, MS. The acquisition included the Rouge Plant in Dearborn.[9][10] He received a loan from the U.S. Department of Energy to renovate and refurbish the manufacturing plants in Dearborn.[11] The value of the loan, over $370 million, was revoked in 2012, after growing political tensions between the US and Russia.

Between 2004 and 2014, Mordashov and Severstal invested up to $3 billion in both the Dearborn and Columbus plants.[12] In 2011 he sold a number of US assets in Ohio, Maryland and West Virginia to the Renco Group, owned by industrialist Ira Rennert.[13] By 2014 all of Severstal's US investments had been sold for $2.3 billion.[14][15]

His company Severstal planned a multibillion-dollar project in joint venture with POSCO in Eastern India. After 10 years of not getting environmental and land clearances, his company opted out in 2008.[16][17]

In 2011, Mordashov purchased 25% of the shares in steam turbine manufacturer, Power Machines, from Siemens.[18] In 2013, with partner Yuri Kovalchuk, Mordashov bought 50% of Tele2 Russia, the country's 4th largest mobile phone operator.[19]

In 2012, Mordashov consolidated Severstal's gold mining assets into one company: Nord Gold N.V.[20][21][22] The company was listed on the London Stock Exchange (LSE: NORD LI).[23] In 2013, Nord Gold was awarded a license to embark on gold exploration in Siberia.[24][25] In 2017 Mordashov announced plans to delist Nordgold[26] from the London Stock Exchange (LSE)[27] citing unfair valuation as the reason. The LSE requires that companies have at least 25% as free float, while Mordashov owns 91% of the company.[28]

Mordashov was elected as chairman of the World Steel Association on 10 October 2012. In 2011, he was the only Russian participant in the meeting of Bilderberg Club at St Moritz, Switzerland.[29]

In 2015, Mordashov released a statement to media that he was stepping down as CEO, appointing former COO Vadim Larin, in his place.[30] Mordashov would be appointed as Chairman of the Board of Directors.[31][32] The changes were confirmed by Severstal.[33]

Personal life[edit]

Mordashov divorced wife Elena in 1996 with a small settlement. In 2001, she sued him for half of his pre-divorce property but lost the case and incurred large fees.[34][35] The case was eventually settled after she took it to the European Court of Human Rights.[36]

Philanthropy[edit]

Through Severstal:

  • Sponsor of the Bolshoi Theatre[37]
  • sponsor of the Mariinsky Theatre
  • sponsor of the Tretyakov Gallery
  • sponsor of the Russian Museum
  • sponsor of the Museum of Frescoes by Dionisius
  • sponsor of the Sergei Andriaka Watercolour School
  • sponsor of the Moscow International Film Festival
  • sponsor of the Road Back Home charity for homeless children
  • sponsor of the "Severstal Cherepovets" super-league ice-hockey team[38]
  • sponsor of the Dynamo (Moscow) Women's Volleyball Club
  • sponsor of the Russian national male chess team[39]
  • sponsor of over 20 Russian sports facilities including sports stadiums, ice rings, heated football fields and athletic centres.

See also[edit]

References[edit]

  1. ^ a b c Alexey Mordashov Forbes Profile
  2. ^ "Severstal - Alexey Mordashov". www.severstal.com. Retrieved 2016-02-06. 
  3. ^ "Russia Has a New Richest Man". Bloomberg.com. 2016-11-01. Retrieved 2017-02-20. 
  4. ^ Ltd., World Of CEOs. "Alexey Mordashov, CEO, Severstal JSC - World of CEOs". www.worldofceos.com. Retrieved 2016-01-28. 
  5. ^ "Alexey Mordashov". Forbes. Retrieved 2016-01-28. 
  6. ^ "A Meeting with Alexei Mordashov". EUSP. Retrieved 2016-01-28. 
  7. ^ "Alexey-Mordashov". 
  8. ^ Walsh, Conal (18 June 2006). "Steely ambition of worker who bought the company". The Observer. Retrieved 16 September 2011. 
  9. ^ "Meet America's biggest bull (Hint: He's Russian)". Fortune. Retrieved 2015-12-30. 
  10. ^ "Russia's Steel King Is Betting Billions on Detroit". Forbes. Retrieved 2015-12-30. 
  11. ^ "Russian Billionaire Awarded Controversial Energy Dept. Loan". Forbes. Retrieved 2015-12-30. 
  12. ^ "Severstal: No plans to expand in U.S. as 2 steel lines go live". Automotive News. Retrieved 2015-12-30. 
  13. ^ Elmquist, Sonja; Fedorinova, Yuliya. "Russian Steel Billionaire Mordashov Seeks U.S. Pull Out". Bloomberg.com. Retrieved 2015-12-30. 
  14. ^ "Alexey Mordashov". Forbes. Retrieved 2015-12-30. 
  15. ^ Fedorinova, Yuliya. "Russia's Severstal Sells U.S. Plants for $2.3 Billion". Bloomberg.com. Retrieved 2015-12-30. 
  16. ^ Jung-a, Song (2013-07-16). "Posco drops $5.3bn India steel project". Financial Times. ISSN 0307-1766. Retrieved 2015-12-30. 
  17. ^ "Russian steel giant Severstal decides to pull out of India". www.sunday-guardian.com. Retrieved 2015-12-30. 
  18. ^ "Mordashov Eyes Power Machines Buy - Kommersant Moscow". www.kommersant.com. Retrieved 2015-12-30. 
  19. ^ Khrennikov, Ilya. "Putin's Billionaire Ally Buys Half of Tele2 Russia Operator". Bloomberg.com. Retrieved 2015-12-30. 
  20. ^ "Nordgold eyes London listing". Telegraph.co.uk. Retrieved 2016-01-28. 
  21. ^ "Nord Gold may be spun-off from Severstal before end of January". www.akm.ru. Retrieved 2016-01-28. 
  22. ^ "Severstal - Separation of Nordgold". www.severstal.com. Retrieved 2016-01-28. 
  23. ^ Kolyandr, Alexander. "Severstal to list Nord Gold unit on LSE Thursday". MarketWatch. Retrieved 2016-01-28. 
  24. ^ "News". Nordgold - more than gold. Retrieved 2016-01-28. 
  25. ^ "Russia's Nord Gold wins license for Siberian gold field". UPI. Retrieved 2016-01-28. 
  26. ^ "Nordgold considers delisting - Mining Journal". www.mining-journal.com. Retrieved 2017-02-20. 
  27. ^ "Russia's Nordgold says considers delisting from London Stock Exchange". Reuters. 2017-01-31. Retrieved 2017-02-20. 
  28. ^ "Russia Richest Man Delists Gold Miner in London on Low Value". Bloomberg.com. 2017-02-09. Retrieved 2017-02-20. 
  29. ^ "List of participants of Bilderberg Club meeting in 2011". Retrieved 24 March 2012. 
  30. ^ "UPDATE 1-Russia's Severstal says CEO Mordashov to step down". Reuters. 2015-04-27. Retrieved 2016-01-28. 
  31. ^ Williams, Sandy. "New CEO for Severstal as Mordashov Steps Down - Steel Market Update". www.steelmarketupdate.com. Retrieved 2016-01-28. 
  32. ^ "CEO of Russia's Severstal Steps Down | Business". The Moscow Times. Retrieved 2016-01-28. 
  33. ^ "Severstal - Severstal announces plans in respect to changes to Chairman and CEO". www.severstal.com. Retrieved 2016-01-28. 
  34. ^ "BBC News | BUSINESS | Russian steel giant caught in divorce row". news.bbc.co.uk. Retrieved 2017-02-20. 
  35. ^ Barchenko, Anastasía (2014-03-23). "The price of divorce for Russian oligarchs". Russia Beyond The Headlines. Retrieved 2017-02-20. 
  36. ^ Bershidsky, Leonid (2014-05-20). "Oligarch's Ex-Wife Earned Her $4.5 Billion". Bloomberg View. Retrieved 2017-02-20. 
  37. ^ "Board of Trustees". www.bolshoi.ru. Retrieved 2016-01-28. 
  38. ^ "Alexei Mordashov: profile of a Russian steel magnate", Telegraph, 31 January 2011. Accessed 8 March 2016.
  39. ^ "Russian 'Super-Final' with top players". Chess News. 2003-12-30. Retrieved 2016-01-28. 

External links[edit]