Overview of Alexei Mordashov
Milestones
- 1988: graduates from the Leningrad Engineering and Economic Institute
- 1988: Begins career as an economist for Cherepovets steel mill.
- 1992:Named finance director at Cherepovets steel mill.
- 2003: Earns an MBA from Northumbria University.
- 2004: Severstal buys Rouge Industries steel plant, its first in the U.S.
- 2006: Arcelor loses to Lakshmi Mittal.
- 2006: Severstal was listed on the London Stock Exchange.
- 2014: Severstal exits the U.S. market, selling the remaining assets.
Alexei Mordashov, a prominent Russian billionaire with a diverse portfolio spanning multiple sectors and countries, is notably the largest shareholder of Severstal, Russia’s fourth-biggest steelmaker. Mordashov also holds substantial stakes in various enterprises, including miner Nordgold, power generation equipment maker Power Machines, and TUI, a European tour operator. His investments extend to the hypermarket chain Lenta and the telecommunications operator Rostelecom, showcasing the breadth of Alexei Mordashov assets across different industries.
In addition to these major investments, Mordashov has diversified his portfolio beyond the steel industry and outside the borders of Russia. Notable ventures include acquiring shares in TUI AG, a travel giant listed on the London Stock Exchange. His financial reach extends further to investments in Lenta, a hypermarket chain, and Rostelecom, a telecommunications operator.
Mordashov’s business pursuits are not limited to traditional industries. He has played a role in various ventures, including media enterprises and investments in plywood and telecommunications. His strategic involvement in these diverse sectors showcases his adaptability and business acumen.
It is crucial to highlight that Mordashov’s financial activities have not gone unnoticed, drawing attention and resulting in sanctions, particularly in the aftermath of Russia’s 2022 invasion of Ukraine. These sanctions underscore the geopolitical impact of Mordashov’s business decisions and add a layer of complexity to his influential role in the global business landscape.
Diverse Portfolio of Alexei Mordashov Assets
Expansion into the US Steel Industry (2004–2014)
Acquisition of US steel companies in Dearborn, MI, and Columbus, MS
In 2014, the Russian steelmaker Severstal finalized the sale of its steel plants located in Dearborn, Michigan, and Columbus, Mississippi. AK Steel and Steel Dynamics bought these facilities, with the Dearborn plant fetching $700 million and the Columbus mill going for $1.63 billion to Steel Dynamics. This strategic move signaled Severstal’s departure from the U.S. market, enabling the company to redirect its attention to its core operations in Russia.
Severstal had initially acquired the Dearborn plant in 2003 for $285 million and subsequently invested an additional $1.4 billion. This significant investment underscored the company’s substantial involvement in the U.S. steel industry. However, the decision to divest these assets in 2014 was part of Severstal’s deliberate shift in strategy—from pursuing international growth to concentrating on the more lucrative domestic Russian steel market.
United States Department of Energy loan for plant renovation
Alexei Mordashov, the CEO of OAO Severstal, played a key role in securing a loan guarantee from the United States Department of Energy (DOE) to renovate and refurbish manufacturing plants in Dearborn, Michigan. This substantial loan, exceeding $370 million, was granted to Severstal North America, an OAO Severstal subsidiary, with the specific purpose of modernizing these plants. Unfortunately, in 2012, the loan guarantee faced revocation amid escalating political tensions between the United States and Russia.
The DOE’s loan guarantee programs, including the Title XVII Clean Energy Financing Program, focus on supporting clean energy and infrastructure projects within the United States. Applicants seeking financial support for innovative clean energy initiatives can apply for loan guarantees under Title XVII of the Energy Policy Act of 2005.
Russia’s largest steel company, Severstal
This is Russia’s largest steel and mining company, of which Mordashov is the main shareholder and chairman. He owns 76.85% of Severstal, which is worth about $15.4 billion as of November 2023
Severstal, Russia’s largest steel company, is based in Cherepovets and is publicly traded on both the Moscow Exchange and the LSE. Alexei Mordashov, a billionaire, is the main owner and manager of the company.
Severstal holds a significant role in steel production, manufacturing diverse products such as flat and long-rolled items, large-diameter pipes, and metalware for industries such as automotive, machinery, construction, and oil and gas.
The company operates iron ore mining complexes in Olcon, Karelsky Okatysh, and Yakovlevskiy Mine in the Belgorod region. Its mining facilities include the Cherepovets Steel Mill, Severstal-Metiz, and Izhora Pipe Mill. In addition, Severstal is engaged in ferrous scrap metal recycling and operates a metalware plant within Russia.
Part of Severstal, the Cherepovets Steel Mill, stands out among Russian metallurgical companies for its extensive product line, catering to a variety of industries. The mill is recognized for ongoing expansion and innovation.
Severstal’s reach extends beyond its steel operations, encompassing a diverse portfolio that aligns with global market demands. Alexei Mordashov’s leadership underscores the company’s commitment to excellence and its contribution to various sectors.
Investment in TUI Travel (2007–2018)
In 2007, Alexey Mordashov, the primary shareholder of TUI Travel, expanded the company’s presence in Eastern Europe and Russia by acquiring additional shares under S-Group. This strategic move aims to enhance tourism activities in Russia and Ukraine. By 2014, just before the merger of TUI Travel and TUI AG, Mordashov held a significant stake in TUI Travel through his S-Group. However, post-merger, his ownership was reduced to below the blocking stake threshold of 25%.
The successful merger between TUI Travel and TUI AG on December 17, 2014, resulted in the formation of the world’s largest leisure and tourism company, TUI Group. This consolidation promised substantial cost savings and tax benefits, optimizing the holding structure and establishing a unified entity valued at $US9.7 billion. Despite the change in ownership structure, Mordashov maintained his association with TUI Group, including a position on the supervisory board.
National Media Group and Media Investments (2008)
Formation of the National Media Group with Surgutneftegas and Rossiya Bank
The National Media Group (NMG) in Russia came together through the collaboration of various entities, including Surgutneftegas and Rossiya Bank. As the largest media holding in Russia, NMG boasts shareholders such as Severstal, Surgutneftegaz, and RTL.
This collaborative effort highlights a diverse ownership structure within the Russian media industry, with key players from the energy and financial sectors actively participating in NMG. The strategic alignment of interests from these sectors underscores the significance of NMG’s presence and influence in the Russian media landscape.
Ownership of TV channel packages, including Fifth, First, and REN TV
In 2008, Alexei Mordashov, Surgutneftegas, and Rossiya Bank collaborated to establish the National Media Group. This media conglomerate holds ownership stakes in prominent TV channels, such as Fifth, First, and REN TV.
The National Media Group stands as Russia’s largest media holding, with notable shareholders including Severstal, Surgutneftegaz, and RTL. This collaboration presents a unique and diverse ownership structure within the Russian media industry.
The strategic involvement of these entities in the National Media Group highlights the varied interests and contributions shaping the landscape of media ownership in Russia.
Power Machines and Tele2 Russia Investments (2011–2013)
Purchase of 25% of Power Machines shares in 2011
In 2011, Alexei Mordashov acquired a 25% stake in Power Machines, a prominent steam turbine manufacturer, from Siemens. Power Machines, a key player in the Russian power industry, specializes in providing equipment and services such as turbines, generators, and boilers. This strategic move marked Mordashov’s deliberate effort to diversify his investment portfolio, extending beyond the steel industry into sectors like power generation.
Acquisition of 50% of Tele2 Russia with Yuri Kovalchuk in 2013
In 2013, Yuri Kovalchuk, a billionaire ally of Russian President Vladimir Putin, joined forces with partners, including Alexei Mordashov, to acquire a 50% stake in Tele2 Russia Holding AB, a mobile operator, from VTB Group, a state-run bank. This strategic move aimed to enhance the wireless carrier’s competitiveness against the country’s three dominant operators. At the time of the acquisition, Tele2 Russia held the position of the fourth-largest mobile phone operator in Russia.
According to VTB Group, the selling price for the stake was in line with expectations. This acquisition reflected a broader industry trend in Russian telecommunications, where major players sought consolidation to expand their market share and strengthen their competitive standing.
Nord Gold N.V. and Gold Mining Assets (2012–2017)
Consolidation of Severstal’s gold mining assets into Nord Gold N.V
Under the direction of billionaire Alexei Mordashov, Severstal successfully separated its gold mining assets into a new company called Nord Gold N.V. in 2012. This strategic move was part of Severstal’s broader efforts to diversify, aiming to establish Nord Gold as a standalone public company.
The primary objective behind this separation was to enhance Nord Gold’s independence and facilitate its growth as a distinct player in the industry. Severstal sought to capitalize on this strategic shift by potentially raising up to $1.5 billion through the sale of Nord Gold shares, intending to expand its global footprint and strengthen its reserve base.
Nord Gold’s portfolio encompassed valuable assets, notably the Zun-Holba and Irokinda underground mines. These assets were pivotal to Nord Gold’s positioning in the market.
With the completion of the separation, Nord Gold was poised to proceed with a Global Depositary Receipt (GDR) listing, a significant step that further solidified its standing as a fully independent entity. This move marked a crucial milestone in Severstal’s strategy and demonstrated its commitment to fostering the growth and autonomy of Nord Gold within the global mining landscape.
Listing of Nord Gold on the London Stock Exchange
Nord Gold, a gold mining company, actively trades on the London Stock Exchange (LSE), with its Global Depositary Receipts (GDRs) entering the market in 2021. Approximately 10.6% of Nordgold’s share capital is represented through GDRs, while the remaining shares are under the ownership of a wholly-owned subsidiary of Nordgold. Despite previous plans announced in 2017 to delist from the London Stock Exchange, the company’s GDRs commenced trading on the LSE in 2021, suggesting that the delisting from the exchange has not taken place yet.
Server group
Severgroup, established in 1993 by Alexey Mordashov, stands as a dynamic private business group with a diverse array of assets. The group is dedicated to long-term investments and managing assets for its stakeholders across various sectors. These include metallurgy, engineering, mining, tourism, banking, technology, media, and finance.
Alexey Mordashov, a prominent figure among Russia’s wealthiest billionaires, leads Severgroup Limited Liability Company. The group’s official website, where you can delve into its extensive portfolio, is available at severgroup.ru.
Notably, Severgroup has earned recognition for its active involvement in the financial services sector within the Russian Federation’s economy. It plays a significant role in shaping the financial landscape of a country. This designation aligns with E.O. 14024, Section 1(a)(i).
Furthermore, it’s essential to highlight that Alexey Mordashov, in his leadership capacity at Severgroup, is subject to designation under Section 1(a)(iii)(C) of E.O. 14024. This underscores the influential role he plays within the group and its broader impact on the economic landscape.
In summary, Severgroup, under the guidance of Alexey Mordashov, continues to be a key player in shaping various sectors of the Russian economy, reflecting its commitment to sustainable and impactful investments.
Alexei Mordashov Assets
Alexey Mordashov, a Russian billionaire businessman, is known to own a private jet, a yacht, and several properties around the world. Here are the details:
Private Jet: Bombardier Global 6000
The registration number M-YSSF indicates that Alexei Mordashov is the proud owner of a Bombardier Global 6000 private jet. Recognized for its spacious cabin, extensive range, and cutting-edge avionics suite, the Bombardier Global 6000 stands out as a prominent business jet. Crafted with a focus on executive comfort and productivity, this jet boasts superior cabin volume.
The Global 6000 is renowned for its ability to fly non-stop for up to 17 hours, making it ideal for extended-range travel. This private jet stands as a valuable asset, providing a tangible reflection of Mordashov’s considerable wealth and extensive involvement in various business endeavors.
Yacht
Nord
The impressive 142-meter (466-foot) Nord superyacht, built by Lürssen and designed by Nuvolari & Lenard, belongs to Alexey Mordashov. Valued at an estimated $500 million, this opulent yacht boasts 20 cabins, two helipads, a swimming pool, and a state-of-the-art sports and diving center. Nord has garnered global attention not only for its immense value but also for the notable movements of its owner, Alexey Mordashov, renowned for his substantial wealth and business ventures.
The yacht has become a focal point of international voyages, drawing media scrutiny due to Mordashov’s political affiliations and the geopolitical context surrounding him. The vessel’s luxurious features and its owner’s high-profile activities have elevated its status in the public eye, making it a subject of interest and discussion.
Features of the Nord Superyacht
Alexey Mordashov’s superyacht, Nord, stands as the pinnacle of luxury and innovation in the maritime world. Boasting an impressive length of 142 meters, a beam of 19.5 meters, and a draft of 5.15 meters, this vessel’s physical dimensions command attention. With a voluminous 10,154 gross tons, the Nord features a robust steel hull and an elegant aluminum superstructure. The superyacht travels at a noteworthy top speed of about 20 knots thanks to four MTU engines.
LADY M
Physical Attributes:
The Lady M stretches an impressive 65 meters (213 feet) in length and features a beam of 9.5 meters (31 feet). This yacht, which weighs a substantial 716 gross tons, exhibits a sophisticated design by the renowned Nuvolari & Lenard.
Design and Interior Sophistication:
Nuvolari & Lenard, celebrated for their avant-garde designs, meticulously curated both the interior and exterior aesthetics of Lady M. The yacht radiates innovation and striking visuals in every detail, a testament to the design prowess of its creators.
Luxurious Amenities:
Lady M is designed for ultimate comfort, accommodating up to 12 guests in 6 cabins, alongside a crew of 14 in 7 cabins. Onboard luxuries include a swimming pool, a fully-equipped gym, and a state-of-the-art movie theatre.
Ownership and Noteworthy Seizure:
Previously owned by Alexey Mordashov, a prominent Russian oligarch and the primary shareholder and chairman of Severstal, Russia’s leading steel and mining company. However, Lady M faced an unexpected twist when Italian authorities seized the yacht in the port of Imperia. This confiscation resulted from the EU’s sanctions imposed on several Russian businessmen in the aftermath of the 2022 Russian invasion of Ukraine.
Luxury Properties
Russian billionaire Alexei Mordashov possesses a range of assets, notably a residential complex in Portisco, northeastern Sardinia. Italian authorities seized this property in March 2022 following EU sanctions imposed on several Russian businessmen in response to the 2022 Russian invasion of Ukraine. The estimated value of this complex is approximately €105 million ($116 million).
In addition to real estate, Mordashov owns two luxurious superyachts—Lady M and Nord. Lady M, a 65-meter (213 feet) vessel crafted by Palmer Johnson and designed by Nuvolari & Lenard, is valued at around €65 million ($71 million). Unfortunately, Italian authorities also seized Lady M in March 2022. Nord, a 142-meter (466 ft) vessel built by Lürssen and designed by Nuvolari & Lenard, rounds out his impressive fleet.
