Iskander Makhmudov

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Iskander Makhmudov
Mahmudov Iskandar Kahramonovich president of UMMC.jpg
Native name
Искандар (Искандер) Моисеевич Махмудак
Born (1963-12-05) December 5, 1963 (age 55)
Bukhara, Uzbek SSR
EducationDegree, Oriental Studies
Alma materTashkent University
OccupationFounder/Owner of Ural Mining and Metallurgical Company
Net worthUS$6.9 billion (2019)[1]
Board member ofTransmashholding

Iskander Kakhramonovich Makhmudov is an Uzbek-born Russian businessman.

According to Forbes Magazine, Iskander Makhmudov is the 22nd wealthiest person in Russia. Forbes reported his net worth at $6.9 billion as of April 30, 2019.[1]

Career History[edit]

Makhmudov graduated from Tashkent State University with a degree in Oriental Studies. He is also a translator by educational background.

He worked for various Soviet military organizations in Libya and Iraq. His first position in business was with the Trans-World Group, which was at that time the largest metal trader in Russia.[2]

He has worked in several other business positions:[2]

  • 1991-1994 Deputy Marketing Director, JSC Alice
  • 1994-1996 Director, JSC Industrial-Financial Company Meta Service.
  • 1996 CEO, Ai (mining and processing plant)

In 1999, he created UMMC.[2]

Now Makhmudov is the main owner of Uralskaya Gorno-Metallurgicheskaya Kompaniya (UGMK) Holding. This is the fourth largest non-ferrous metallurgical company in Russia, Russia's second-largest copper producer in terms of output. With his partner Makhmudov also acquired a 50% stake in Izdatelskiy Dom Rodionova (Rodionov Publishing House), which publishes the Russian version of BusinessWeek.

Business Enterprises[edit]

Makhmudov’s ascension to success began in 1991 when the state economy was replaced with capitalism after the fall of the USSR.[3]


Makhmudov owns 17.5% of Aeroexpress.[4]

Aeroexpress provides rail transportation services between Moscow and surrounding airports (Sheremetyevo, Domodedovo, and Vnukovo).[5]

Russian Railways JSC owns 50% of Aeroexpress. In November 2012, it was reported that Russian Railways intends to sell half of its shares (25% ownership in Aeroexpress) to TransGroup AS Ltd.[5]

CSKA Team Ownership[edit]

"According to some [Russian] media, President of the Ural Mining and Metallurgical Company ("UMMC") Makhmudov bought a controlling stake in the football club CSKA." [6]

International Space Services[edit]

Russia's Federal Space Agency (Roskosmos) plans to coordinate international space activities with other national space agencies, such as the European Space Agency. In 2011, Roskosmos announced plans to promote Russian launch services to other countries.

Many companies within Russia already work in the foreign market space. International Space Services, which is owned by Ural Mining Company, sells Zenit-operated launches from Baikonur. Baikonur, formerly known as Leninsk, is a city in Kyzylorda Province of Kazakhstan that is rented and administered by the Russian Federation.[7]

Let Kunovice[edit]

Russia's first deputy defense minister Aleksandr Sukhorukov, who is ranked number four in the Russian Army, recently toured the Let Kunovice Aircraft Industries plant to express interest in the updated L-410 aircraft. The Russian Army plans to use the L-410 aircraft to train pilots, who would then train on the newer, bigger aircraft called the Ilyushin Il-476.

Let Kunovice is currently negotiating a deal to delivery 8 planes to the Russian Defense Ministry in 2013. Makhmudov's Ural Mining and Metallurgical Company is the majority owner of Kunovice.[8]

Moscow Passenger Company[edit]

Makhmudov and his partner Bokarev own Moscow Passenger Company (MPC).[9]

In 2011, MPC purchased a 25% stake in Central Suburban Passenger Company (CSPC). CSPC accounts for 56% of all suburban transportation in Russia.[9]

In December 2012, MPC won a bid to purchase another 25% stake in CSPC. This purchase will increase MPC’s equity position to 50%.[9]

Over 500 million passengers rode trains operated by CSPC in 2011. In 2011, CSPC had 24 billion rubles in revenue and 4.7 billion rubles in profit.[9]


CJSC Transmashholding (TMH), a holding company owned partially by Makhmudov, is Russia's largest producer of rolling stock for railways and subways. The company owns plants in St. Petersburg, Bryansk, Penza, and the Moscow, Rostov and Tver regions.[10]

In November 2012, it was announced that TMH had increased its net profit by 9 percent to 2.69 billion rubles. The company also reduced its long-term liabilities by 39 percent.[10]

In November 2012, Anatomy Ledovskikh, the former head of Russian’s Federal Agency for Subsoil Use, was elected Chairman of the Board at Transmashholding, one of the companies owned by Iskander Makhmudov. Transmashholding produces locomotives, freight cars, passenger cars, electrain train cars, and other train heavy machinery.[11]

Alstom Stake

In November 2012, Alstom purchased a blocking stake in TMH for $422 million U.S. dollars. Alstom is a France-based engineering company serving the power generation and rail transportation industries.[12]

Skolhovo Foundation

On November 16, Skolhovo Foundation and Transmashholding signed a memorandum of understanding. The two organizations will cooperate on issues of innovative research and development.[13]

Zheldorremmash Stake

In February 2012, RBC Daily reported that Transmashholding—through its subsidiary TMH Service—purchased 75 percent holdings in Zheldorremmash, a subsidiary of OJSC Russian Railways. Zheldorremmash is considered a major player in the locomotive repair industry.[14]

Ural Mining and Metallurgical Company[edit]


In 2011, RusBusinessNews reported that UMMC had commissioned a new coal processing factory. The factory is known as Krasnobrodskaya-Koksovaya. UMMC invested 3.3 billion rubles into the project. According to the article, the factory will process 3 million tons of coal each year.[15]

Tyumen Steel Mill

In July 2012, Metal Mining Wire reported that UMMC had planned to build and run a new steel mill in the Tyumen region of Russia. The mill would cost $675 million. According to the article, UMMC expects the new mill to produce 540,000 metric tons of steel per year.[16]


In August 2011, the first Wendy's restaurant opened in Russia. The Wenrus Restaurant Group operates the Wendy’s chain in Russia.[17]

Wendy’s/Arby’s International and Wenrus are planning to develop 180 restaurants over the next 10 years in Russia. Each restaurant will contain a Wendy’s and Arby’s.[18]

The Wenrus Restaurant Group is an affiliate of Food Service Capital.[18] Food Service Capital’s businesses include:[19]

  • Arpikom, a company that owns and operates 28 restaurants under the brands Goodman Steak House, Filimonova and Yankel, Kolbasoff and Mama’s Pasta)
  • Komfis, a catering company
  • Legion and Yedinaya Set Pitania, a food delivery service

Makhmudov owns Food Service Capital, along with Mikhail Zelman and their business partners.[19]

Investment and growth[edit]

Hyatt Hotels[edit]

In June 2014, Makhmudov closed a deal with Hyatt Hotels to build a luxury apartment hotel in Yekaterinburg, Russia. Makhmudov and his business partner Andrei Kozitsyn met with the two head executives from Hyatt Hotels in Yekaterinburg to discuss the project.[20] According to Russian news sources, Ural Mining and Metallurgical Company (UMMC) and Hyatt Hotels Corporation have already agreed to build the hotel. A subsidiary of UMMC is currently constructing a building called the Iset Tower. If the UMMC-Hyatt deal is finalized, Hyatt will use the top six floors of the Iset Tower for the luxury apartments.[21]


According to Russia & CIS Business & Financial Daily, Makhmudov will budget approximately 60 billion rubles in 2013 for investments. "We're signing contracts for next year, and have started budgeting. The average copper prices will be around $8,000 a tonne in 2012. We're hoping it stays at that level next year. We're also planning the same investment program as this year - 60 billion rubles," said his business partner.[22]


According to SKRIN Market & Corporate News, Makhmudov planned to direct his company to develop a new regional jet by 2015. The aircraft was to be manufactured in a Czech Republic-based plant. All tests were planned to be completed in 2013.[23]

Personal life[edit]

He was born to an ethnic Uzbek Muslim family.[2]

See also[edit]


  1. ^ a b "Iskander Makhmudov - Forbes". Forbes. 30 April 2019. Retrieved 22 June 2014.
  2. ^ a b c d "Iskander Makhmudov" Russian Capitalists
  3. ^ Russian Capitalist Wiki contributors (8 November 2013). "Iskander Makhmudov". Russian Capitalist Wiki. Retrieved 11 November 2013.
  4. ^ “Likistov Pulls out of Rail Business, Partners Buy New Assets,” Russia & CIS Business and Financial Newswire, 26 Dec 2012
  5. ^ a b “Russian Railways to Halve Stake in Aeroexpress,” M&A Navigator, 23 Nov 2012
  6. ^ Karimov Cyril, "Makhmudov entrepreneur who bought a controlling stake in CSKA football club will help to cope with financial problems", Sobesednik, 28 Nov 2012
  7. ^ "Federal Space Agency Competes with Foreign Contractors", RIA Novosti, 14 Nov 2012
  8. ^ "Russian army to possibly place order for aircraft with Czech manufacturer", BBC Worldwide Monitoring, 5 Nov 2012
  9. ^ a b c d “Russian Railway Divests 25% in Suburban Operator” ROS Business Consulting Database, 24 Dec 2012.
  10. ^ a b "Transmashholding ups RAS net profit 9% to 2.69 bln rubles in 9M", Companies and Markets, Russia & CIS Business & Financial Daily, 14 Nov 2012
  11. ^ Esmerk, "Russia: Ex-head of Rosnedra becomes new chairman of Transmashholding's board", Kommersant, 16 Nov 2012
  12. ^ "Alstom pays around $422 mln for 25% in Russia's Transmashholding", Prime-Tass English-language Business Newswire, 7 Nov 2012
  13. ^ "Memorandum of Cooperation signed between Skolkovo Foundation and Transmashholding", SKRIN Market & Corporate News, 19 Nov 2012
  14. ^ Yevgeny Sergienko, "Structure "Transmashholding" buys 75% stake in "Zheldorremmash", RBC Daily, 11 Feb 2012
  15. ^ "Ural Mining and Metallurgical Company completed the construction of the processing factory in the Kemerovo Region", RusBusinessNews, 30 Aug 2011
  16. ^ Andrew Lair, "Ural Mining and Metallurgical Company to open new steel mill", Metal Mining Wire, 6 Jul 2012
  17. ^ “Wendy's Opens First Fast-Food Restaurant in Russia”, Voice of America, 23 Aug 2011
  18. ^ a b “Arby's, Wendy's Prep Big Russian Expansion”, QSR Magazine, Retrieved 26 Jan 2013
  19. ^ a b Tatyana Romanova and Maria Rozhkova, “Wendy's to Enter Russia Next Year”, The Moscow Times, 06 Aug 2010
  20. ^ Hamilton, Louis (19 June 2014). "Hyatt Hotel heads meet with UMMC to discuss apartment hotel". Yekaterinburg News. Retrieved 18 July 2014.
  21. ^ "Hyatt Hotels Corporation to build apartment hotel in Yekaterinburg". UralBusinessConsulting. 17 June 2014. Retrieved 18 July 2014.
  22. ^ "Metals Holding UMMC to Invest 60 Bln Rubles in 2013", Russia & CIS Business & Financial Daily, 18 Oct 2012
  23. ^ "UMMC Plans to Develop a New Regional Jet by 2015", SKRIN Market & Corporate News, 5 Oct 2012

External links[edit]