Deripaska Oleg: Tale of Wealth and Controversy 2023

I think the most important thing is to have a clear understanding of what you want to achieve. 

Who is Deripaska Oleg ?

Oleg Vladimirovich Deripaska, born on January 2, 1968, is a prominent Russian billionaire and oligarch. He amassed his wealth by acquiring formerly state-owned assets privatized after the collapse of the Soviet Union. Deripaska Oleg is the founder of Basic Element, one of Russia’s largest industrial conglomerates, and Volnoe Delo, the country’s most extensive charitable foundation. He held the position of President at En+ Group, a Russian energy firm, and served as the head of United Company Rusal, the world’s second-largest aluminum company, until his resignation from both roles in 2018.

Deripaska’s reputation includes being a key figure in the “aluminum wars” of the 1990s in Russia. These were often violent disputes among business leaders vying for control of state-owned assets. In 2000, he established Rusal through a partnership between Sibirsky Aluminum and Roman Abramovich’s Millhouse Capital. Rusal further expanded in 2007 when it merged with SUAL Group and Glencore International AG, forming UC Rusal, with Deripaska Oleg as the chairman.

Once considered Russia’s wealthiest individual, Deripaska Oleg suffered significant financial losses during the 2007–08 global financial crisis. As of June 2022, Forbes estimated his wealth at $3.2 billion, ranking him as the 920th richest person globally. Notably, in 2017, he acquired Cypriot citizenship, subsequently gaining European Union citizenship.

Upbringing in Soviet Russia

In the early 1990s, during the dissolution of the Soviet Union, Deripaska Oleg faced extreme hardship. He came close to starvation and had to work on construction sites to afford food and continue his studies. It was during this challenging period that he initiated a small metals trading venture and began establishing a presence in the Russian metals industry.

Over time, through determination and resilience, Deripaska Oleg managed to rise to the top. He gained a significant stake in the Sibirsky Aluminium Investment Industrial Group, all while navigating the influence of local Russian mafia elements and other life-threatening challenges. Despite allegations of involvement in organized crime and the shadow of multiple murders haunting his every step, his wealth expanded steadily over the next decade. Eventually, he amassed one of the largest fortunes in Russia.

Education and Early Career

Early Life

Deripaska Oleg, a native of Dzerzhinsk, Nizhny Novgorod Oblast, Soviet Russia, and raised in Ust-Labinsk, Krasnodar Krai, hails from a family with roots in Kuban. His grandparents raised him primarily while he was growing up on the family’s modest farm because his widowed mother needed to find employment. From a young age, around 5 or 6, Deripaska acquired valuable skills in agriculture and self-sufficiency, which he attributes to his grandparents. These life lessons also included a strong work ethic, instilled in him through farming.

Deripaska’s grandparents played a significant role in his upbringing. Both of his grandfathers had participated in the Second World War, with his maternal grandfather returning to Russia after the war’s conclusion. Unfortunately, his paternal grandfather, Timofey Deripaska (1918–1945), lost his life in battle and was laid to rest in a mass grave in Austria. In his grandfather’s honor, Deripaska Oleg later funded the construction of a Russian Orthodox church in the town of Laa an der Thaya.

Oleg’s journey into the workforce began at the Ust-Labinsk plant, where his mother was employed. At just 11 years old, he started as an apprentice to an electrician, where he learned the ropes of electrical motor maintenance. His aptitude for mathematics paved the way for him to enroll in the physics faculty of Moscow State University in 1985. However, his studies were temporarily interrupted when he was conscripted into the armed forces after just one year. He served in the Soviet Strategic Missile Forces, stationed in the Trans-Baikal district of Siberia, from 1986 to 1989.

Education

• In 1993, Deripaska Oleg graduated with honors in physics from Moscow State University.
• He later obtained a degree in economics from the Plekhanov Russian Academy of Economics.

Early Career

• Deripaska’s career began at the Ust-Labinsk plant, where his mother also worked.
• At the age of 11, he started as an apprentice, specializing in electrical motor maintenance.
• During the early 1990s, amidst the dissolution of the Soviet Union, he founded a small metals trading venture, marking his entry into the domestic metals industry.
• Later on, he took control of significant state-owned aluminum assets, eventually consolidating them within the Rusal group. This endeavor was in partnership with Roman Abramovich, who, like Deripaska, faced sanctions.
• Despite allegations, Deripaska Oleg denied any ties to organized criminal groups. He was also linked to Boris Berezovsky, a prominent Russian tycoon who played a key role in Vladimir Putin’s ascent to prime minister and, subsequently, president.
• Over the next decade, Deripaska’s wealth burgeoned, making him one of Russia’s wealthiest individuals.

Business growth

Prior to the China Hongqiao Group overtaking RUSAL in 2015, RUSAL was the world’s largest producer of aluminum. Under Deripaska’s leadership in 2010, RUSAL achieved the distinction of becoming the first Russian company to be listed on the Hong Kong Stock Exchange.

Apart from its core focus on metals, Deripaska’s diversified industrial portfolio includes investments in various sectors. This encompasses energy, manufacturing, commercial vehicles, auto components, financial and insurance services, leasing, construction, aviation, and agriculture. Notable assets within his portfolio comprise EuroSibEnergo, Russia’s largest private energy company, as well as a 10% ownership stake in Ingosstrakh, one of Russia’s major insurance companies. He’s also involved with GAZ Group, a manufacturer of cars, trucks, and buses, and the founder of Kuban Agro Holding, an agricultural business. Additionally, he established a transportation company to manage airports in the Krasnodar region, encompassing Sochi and Krasnodar.

All of these assets are integral components of the diversified investment and industrial conglomerate known as Basic Element. Basic Element also played a pivotal role in constructing multiple facilities for the 2014 Winter Olympics in Sochi. This included the Coastal Olympic Village, Imeretisnkiy seaport, the expansion of Kurortny Avenue in Sochi, and the renovation of the Sochi International Airport. The cumulative investments for these projects amounted to over $1.4 billion.

Personal Life & Family Details

Deripaska Oleg, known for his close ties with the inner circle of President Boris Yeltsin, was once married to Polina Yumasheva. She is the daughter of Valentin Yumashev, a top adviser to Yeltsin, and the stepdaughter of Tatyana Yeltsin. Their marriage lasted from 2001 to 2018, and they have two children, Pyotr (born in 2001) and Maria (born in 2003). When not engaged in business, Deripaska Oleg enjoys activities like yoga, swimming, horseback riding, and hiking. He even keeps seven horses and six dogs at his home near Moscow.

In March 2018, it was reported that Deripaska Oleg had acquired Cypriot citizenship in 2017 through the country’s golden visa program, a lucrative source of revenue for Cyprus. Documents revealed that his first attempt to gain EU citizenship initially faced a hurdle due to a preliminary inquiry into his activities in Belgium, which was later dismissed in 2016.

In 2009, Deripaska’s ranking on Forbes’ list fell to No. 164, with the magazine noting that he might struggle amid market collapses and heavy debts.

However, by 2010, his estimated fortune of $10.7 billion had propelled him to No. 57 on the World’s Billionaires list. Forbes reported that he took decisive action, removing the heads of his major companies and personally negotiating with the Russian government, banks, and creditors to restructure his loan obligations. He consistently argued that the estimates of his wealth were exaggerated, failing to account for the substantial debt he had incurred. He believed his rank among Russian billionaires should be much lower than the top ten.

Forbes estimated his wealth at $3.3 billion in 2015, $5.2 billion in 2017, and $3.3 billion in 2019. As of June 2022, Forbes estimated his net worth to be $3.2 billion.

Deripaska’s Cypriot registered company, Edenfield Investments, acquired Hamstone House, a Grade II listed property in Weybridge, Surrey, in 2001. Since 2006, he has owned the Haft mansion near Embassy Row in Washington, D.C., through a company incorporated in Delaware. Additionally, he possesses a mansion in Belgravia.

Luxury Apartment of Oleg Deripaska

Deripaska Oleg owns several luxury properties around the world, including in the United States, the United Kingdom, Montenegro, and Cyprus. Some of his notable properties include:

1. A five-story home on New York’s Upper East Side at 11 East 64th St, purchased for $42.5 million in 2008 through Delaware-based Vesta International LLC.
2. A three-story townhouse in Manhattan’s West Village at 12 Gay St, purchased for $4.5 million in 2006 through Delaware-based Lucina International LLC.
3. A nearly 12,000-square-foot mansion with 7 bedrooms and 11 bathrooms near Embassy Row in Washington, D.C.
4. A residence with 7 bedrooms, a home cinema, a gym, and a Turkish steam bath on 5 Belgrave Square in the chic London neighborhood of Belgravia, bought through British Virgin Islands-based Ravellot Limited.
5. An adjacent property, a “mews house” in what was once a service road for the estate in the 19th century, originally intended for stable horses and servants, with an additional four bedrooms and two garages.
6. A sprawling hilltop mansion with two neoclassical marble palaces, olive groves, and a swimming pool on the Adriatic coast in Kotor, Montenegro, through British Virgin Islands-based Advante Management Corp.
7. A villa with a swimming pool in Paphos, Cyprus.
   Deripaska Oleg’s luxury properties have been the subject of controversy and legal battles. In 2018, his Upper East Side mansion in New York was seized by the US government as part of sanctions imposed on him. In 2022, squatters occupied a London mansion thought to belong to Deripaska Oleg, which was later seized by the UK government as part of sanctions imposed on him.

Aircraft and Helicopters of Oleg Deripaska

Oleg Deripaska’s Ownership of Private Aircraft:

Oleg Deripaska is associated with a substantial fleet of private jets and helicopters.

Forbes has identified a total of 26 private jets and 10 helicopters connected to 15 Russian-born billionaires who are subject to sanctions, including Deripaska.

In 2018, Oleg Deripaska returned three leased private jets due to sanctions imposed on him by the United States.

Deripaska is known to use these private aircraft for his business travels, but he has faced allegations of violating US sanctions through the use of the US financial system to support his aircraft.

Yachts and Superyachts 

Deripaska Oleg owns several luxury yachts and superyachts, which are as follows :

Clio

The Clio Yacht, formerly known as Queen M, is an exquisite maritime marvel stretching 73 meters (238 feet) in length. Crafted by the renowned Lurssen Yachts in 2004, this vessel showcases the exceptional design artistry of Espen Oeino and the luxurious interiors envisioned by Eidsgaard Design. Accommodating up to 18 guests across 9 lavish cabins and attended to by a 21-member strong crew in 10 cabins, the Clio ensures a seamless yachting experience.

Powered by two MTU engines, it cruises at a respectable 16 knots with a top speed of 18 knots, offering a remarkable range of 5,000 nautical miles. Notably, the Clio Yacht is accompanied by a 60-meter support vessel named Sputnik, constructed by Boustead Naval. This maritime masterpiece, currently under the ownership of Russian billionaire Deripaska Oleg, carries an estimated value of $65 million, with annual operating costs ranging from $4 to $7 million. Despite its name transition from Queen K to Clio, it remains firmly in the possession of Mr. Deripaska.

Tango

Tango, the extraordinary 78-meter superyacht, was masterfully crafted by Feadship Van Lent in 2011 and showcases the brilliant design work of Eidsgaard Design. Featuring a striking white hull and metallic gray superstructure, Tango is a pinnacle of modern luxury and style. Propelled by four MTU engines, she can reach a top speed of 22 knots, and with a range of over 5,000 nautical miles, she marries performance with elegance.

Designed by the renowned UK-based studio Eidsgaard Design, her exterior represents a fusion of innovation and aesthetics. Inside, the luxurious, yet unseen, interiors created by Harrison Eidsgaard offer accommodation for 14 guests in seven cabins, while a dedicated crew of 22 ensures impeccable service. Owned by Russian billionaireDeripaska Oleg, Tango’s legacy is shadowed by recent legal issues, as Spanish authorities, acting on a US request, seized the yacht in April 2022. Allegations of bank fraud and money laundering have arisen, claiming that shell companies were used to conceal Vekselberg’s interests in the yacht, though her status as a remarkable Feadship superyacht endures amid the ongoing legal dispute.

Career: Entry into the World of Business

Formation of VTK and its core principles

The Visualization Toolkit (VTK) is a widely used software system in scientific computing, medical image analysis, computational geometry, rendering, image processing, and informatics. Let’s explore some key principles that underlie VTK:

• Object-Oriented Foundation: VTK’s architecture is rooted in object-oriented principles and is implemented in C++. In this context, an “object” serves as an abstraction that encapsulates the characteristics and functions of a specific entity.
• Data Flow Pipelines: A fundamental requirement of VTK is its ability to construct data flow pipelines. These pipelines are essential for tasks like data ingestion, processing, representation, and, ultimately, data visualization.
• Design Patterns: VTK employs various design patterns, including the observer pattern, the factory pattern, and the command pattern. These patterns contribute to the system’s flexibility and extensibility.
• Flexibility and Modularity: VTK is intentionally designed to be flexible and modular, allowing users to tailor the system to their specific requirements with ease.
• Compatibility: VTK is versatile and designed to work seamlessly with a wide array of data types and file formats. This versatility makes it a valuable tool for data processing and visualization.

These principles have played a pivotal role in establishing VTK as a successful system for data processing and visualization, fostering a robust and engaged user community.

Troubles with US travel

In July 2006, during Deripaska Oleg’s attempt to purchase the Daimler Chrysler Group, his U.S. entry visa was canceled without an official explanation. The Wall Street Journal suggested this may have been due to allegations of his ties to Russian organized crime, citing two unnamed U.S. law enforcement officials as their sources. The New York Times later reported on August 27, 2018, that the visa revocation was due to concerns about potential money laundering through real estate transactions.

In 2005, Deripaska had been granted a multiple-entry visa, but when questioned, a U.S. Federal Bureau of Investigation spokesman declined to comment. Lobbying on his behalf was undertaken by former Senate Republican leader and 1996 presidential candidate Bob Dole and his law firm, Alston & Bird, as Senate records show. Alston & Bird received around $260,000 in 2005 for work related to “Department of State visa policies and procedures” connected to Deripaska Oleg.

In 2009, Deripaska Oleg was granted entry to the United States once more, visiting on two occasions. During his visits, he reportedly met with agents involved in an undisclosed criminal investigation, according to two unnamed FBI administration officials. Notably, he also met with key figures from investment banks Goldman Sachs and Morgan Stanley. His aluminum company, United Company RUSAL, was preparing for an initial public offering. The resolution of Deripaska’s visa issues, which had concerned potential investors, helped to reassure the banking community.

However, the U.S. State Department never officially disclosed the reason behind the initial visa revocation and refrained from commenting on his 2009 visits. These visits were arranged through unconventional channels, as the U.S. harbored ongoing concerns about Deripaska’s business associations. Deripaska Oleg consistently denied any connections to organized crime and claimed that business rivals had orchestrated the visa revocation to tarnish his reputation. During an interview with the BBC in July 2009, Deripaska suggested that U.S. authorities had attempted to pressure him into cooperating by revoking his visa and thus deterring potential investors.

In October 2021, NBC News reported that Russia had granted Deripaska Oleg diplomatic status, providing him with immunity for U.S. entry.

Lawsuit against Morgan Stanley

In 2015, Deripaska Oleg sued Morgan Stanley, alleging that the bank used confidential information to bet against his $1.5 billion investment in Canadian-based Magna International back in 2008.

In May 2007, Frank Stronach, the chairman of Magna International, announced Deripaska Oleg’s involvement as a strategic partner.

In 2007, Deripaska’s Celeron investment vehicle acquired Magna stock through a $1.2 billion loan from BNP Paribas, using the Magna shares as collateral. This deal included Morgan Stanley through a swap arrangement with BNP Paribas, where the U.S. bank assumed the loan’s risks in exchange for a fixed payment from Paribas.

Come September 2008, Magna’s stocks took a hit due to the global economic downturn. BNP issued a $93 million margin call to Veleron. In response, Morgan Stanley, after learning that Veleron was unlikely to meet the call, short-sold the stock.

Deripaska Oleg alleged that Morgan Stanley misused its responsibilities and engaged in illegal insider trading, causing significant financial harm to Veleron, estimated at $15 million to $25 million.

In November 2015, a New York jury concluded that Morgan Stanley had indeed “acquired inside information and traded on it despite a duty to keep it confidential and not trade on it.” However, they found no evidence that Morgan Stanley intended to defraud Veleron. Veleron strongly disagreed with this verdict and announced its intention to appeal.

Basic Element

Deripaska Oleg founded Basic Element in 1997, a diverse investment group overseeing investments in multiple sectors: energy, metals and mining, machinery, financial services, agriculture, construction, and aviation. Notable investments managed by Basic Element include stakes in United Company RUSAL (the world’s largest aluminum and alumina producer), GAZ Group (an automotive company), Aviakor (an aircraft manufacturer), EuroSibEnergo (an energy supply company), Glavmosstroy (a construction company), Kuban Agroholding (an agricultural company), and Basel Aero (an aviation business that comprises the three largest airports in the Krasnodar territory and is a joint venture with Changi Airports International).

Basic Element oversees Deripaska’s investments in companies across Russia, the CIS countries, Africa, Australia, Asia, Europe, and Latin America, providing employment to approximately 250,000 people. Additionally, Basic Element holds control over Strikeforce Mining and Resources (SMR).

En+ Group

The group was formed in 2006, with Deripaska Oleg as president and controlling shareholder.

En+ Group is a prominent green energy and metals company. It holds the distinction of being the largest producer of low-carbon aluminum globally and serves as the most significant independent renewable energy generator. En+ Group also boasts a controlling interest in Rusal, one of the world’s top aluminum producers, excluding China.

The company primarily operates in Russia’s Siberian region, where it supplies power to various industrial facilities and essential aluminum smelters. Worth noting, the Energy segment of En+ Group holds membership in the Global Sustainable Electricity Partnership. This non-profit organization comprises leading electricity companies worldwide, collectively providing energy to more than 1.2 billion customers.

Metals and mining

RUSAL

United Company RUSAL, once the world’s largest aluminum company, relinquished that title in 2015 to China Hongqiao Group. By 2019, it had further slid to become the second-largest listed producer of aluminum after China’s Chalco. As of 2018, UC RUSAL contributed to 5.8% of global primary aluminum output and 6.2% of the world’s alumina production.

To secure a steady alumina supply for its smelters, RUSAL, under Deripaska’s leadership, pursued various mergers and acquisitions. In the early 2000s, RUSAL acquired bauxite mines in Guinea, a nation boasting the world’s largest bauxite reserves. Subsequently, RUSAL obtained a stake in an alumina refinery in Australia. In 2007, at Deripaska’s direction, RUSAL, SUAL Group (a top-ten global aluminum producer), and Glencore International AG (a Swiss natural resources group) combined their assets to form United Company RUSAL, becoming the world’s premier aluminum and alumina producer.

The merger with Glencore introduced bauxite and alumina assets in Jamaica, Italy, and Ireland into RUSAL’s portfolio, transforming the company from one with limited bauxite resources into a vertically integrated corporation.

Concurrently, Deripaska made substantial investments in improving the operational efficiency of smelters in Russia. He stated, “We consolidated the industry and acquired bauxite resources that were previously unavailable in Russia. We formed a company that ascended to industry leadership in under twelve years. However, to claim the top spot among global aluminum producers, we needed to enhance our operational practices. To achieve world-class excellence, we drew inspiration from Toyota, which had honed a precise, in-depth process over thirty years.”

Deripaska himself avidly endorsed the Japanese production efficiencies popularized by the “Toyota Way.” RUSAL’s smelters adopted the concept of “kaizen,” emphasizing continuous improvement and standardized production techniques. Deripaska stressed a shift from top-down management to empowering operators on the factory floor to drive efficiency and improvement.

Under Deripaska’s guidance, RUSAL constructed the Khakas aluminum smelter outside Sayanogorsk in Russian Siberia, the first such facility built in post-Soviet Russia since 1985. With an annual capacity of 300,000 tonnes, the Khakas smelter is now one of the world’s most technologically advanced. The company also undertook extensive modernization projects at several facilities, including the Bratsk, Krasnoyarsk, and Irkutsk aluminum smelters.

Amid the financial crisis, Deripaska Oleg returned as CEO in 2009 to lead RUSAL through debt restructuring. “I worked 16-hour days. We were in default, though none of the involved parties explicitly labeled it as such.” As part of contingency measures, Deripaska Oleg cut RUSAL’s costs by 25% in 2009. By December 2009, he reached a final agreement with over 70 Russian and international lenders to refinance $17 billion of debt.

In 2017, Rusal issued two Eurobonds to manage its debts—a $600 million bond in February and a $500 million bond in April. In the same month, plans emerged to issue 10 billion yuan worth of seven-year onshore bonds to finance Chinese acquisitions, making Rusal the first foreign company to offer panda bonds on the Shanghai Stock Exchange. The company also arranged a pre-export finance mechanism with international lenders worth $1.7 billion for debt refinancing.

In 2013, Deripaska received the “Aluminium Industry Ambassador Award” in the Metal Bulletin Awards for Excellence for his significant influence within the global aluminum industry and the broader market.

Deripaska stepped down from RUSAL in May 2018, the day after seven board members and the CEO resigned. This move was part of an agreement with the US Treasury to have U.S. sanctions lifted from the company. As per the deal, it was announced in February 2019 that Deripaska had reduced his ownership stake in EN+ to below 50% to obtain sanctions relief.

Cherney lawsuit

Michael Cherney filed a lawsuit against Deripaska Oleg in the Commercial Court of London’s High Court. Cherney aimed to establish his ownership of 20% of RUSAL stock, which he alleged Deripaska held in trust for him. However, this claim was ultimately rejected.

On May 3, 2007, Justice Langley ruled that Deripaska had not been properly served, and the court lacked jurisdiction due to Deripaska’s non-residence in England or Wales.

During a case management conference in June 2011, the judge postponed the decision on whether Cherney could provide evidence via video link from Israel, as an outstanding Interpol arrest warrant made his UK travel risky.

In late July 2011, the High Court permitted Cherney to give evidence via video link from Israel and scheduled the trial for April 2012. Nonetheless, in September 2012, Cherney withdrew his lawsuit against Deripaska in the UK.

Cherney’s case implicated Rusal, Glencore, Deripaska Oleg, and his holding company, En+. In a separate legal action in 2012, minority Rusal investors, led by Viktor Vekselberg, sued Rusal, Deripaska, and Glencore in London’s High Court. They alleged that they suffered substantial financial losses when Rusal went public in Hong Kong in 2010. Ukrainian-born billionaire Michael Cherney, who asserted his beneficial ownership of 20% of RUSAL stock held in trust by Deripaska, was one of the parties suing Deripaska.

Energy

EuroSibEnergo

EuroSibEnergo oversees 18 power plants, boasting a total energy capacity of 19.5 GW. Out of this capacity, 15 GW is generated through hydrogeneration. This makes EuroSibEnergo a significant contributor to Russia’s electricity supply, accounting for approximately 9% of the nation’s total electricity production. Moreover, the company dominates the Siberian energy market with an impressive 41% market share.

Notably, EuroSibEnergo serves major clients, including Russia’s largest aluminum plants. The company’s substantial coal resources are pivotal for its thermal power and boiler plants, covering more than 85% of its coal requirements. With coal reserves amounting to 1.26 billion tons, EuroSibEnergo sustains an annual coal production exceeding 12 million tons.

Furthermore, as a subsidiary of the En+ Group, EuroSibEnergo is engaged in a collaborative effort with China’s leading hydroelectric power generation company, China Yangtze Power Co. Together, they are embarking on an ambitious project to construct new power plants in Siberia, primarily focusing on hydroelectric facilities. This joint venture aims to achieve a combined capacity of up to 10 GWt.

Machinery

Russian Machines

In 2005, the Russian Machines Corporation was founded to bring together Deripaska Oleg‘s various machine-building assets. This corporation encompasses industrial and engineering holdings in several sectors, including:

• Automotive Original Equipment Manufacturing (OEM) represented by GAZ Group.
• Automotive components under RM-Systems.
• Rail industry operations are managed by RM Rail.
• Aircraft Original Equipment Manufacturing by Aviacor.
• Road construction through RM-Terex.
• Agricultural machinery, in partnership with AGCO, known as AGCO-RM.
• Russian Machines Corporation oversees 24 facilities situated in 12 regions across Russia.

In September 2017, Deripaska Oleg initiated a joint venture under Russian Machines, known as the AGCO-RM SPIC project (Russian: проекта СПИКа АГКО-РМ), in collaboration with AGCO.

GAZ Group

In 2000,Deripaska Oleg began acquiring machine-building assets. GAZ Group, headquartered in Nizhny Novgorod, is a major Russian automotive conglomerate. It holds the distinction of being the largest producer of commercial vehicles in Russia, manufacturing a wide range of vehicles including light commercial and medium-duty vehicles, buses, cars, powertrain components, and automotive parts.

GAZ Group operates 18 manufacturing facilities spread across eight regions of Russia, and it also maintains sales and service organizations. Essentially, GAZ Group is a holding company centered around OAO GAZ, which brings together several industrial machinery sectors, primarily as subsidiaries of OJSC GAZ.

Notably, the company boasts substantial market shares, including approximately 50% in the light commercial vehicles segment, 58% in medium-duty trucks, 42% in all-wheel drive heavy-duty trucks, and a commanding 65% in the bus segment.

Some of GAZ Group’s fundamental principles include:

1. Flexibility: GAZ Group has been designed with flexibility and modularity in mind, enabling it to readily adapt to market changes and cater to specific customer needs.
2. Compatibility: GAZ Group is designed to work seamlessly with a wide array of data types and file formats, making it a versatile tool for data processing and visualization.
3. Sustainability: GAZ Group remains committed to sustainability. Their product portfolio features low-emission vehicles powered by various fuel types, including diesel, petrol, gas, and electricity.

In April 2019, GAZ Group sought a $468 million bailout from the Russian government, citing the risk of default due to US sanctions on Deripaska Oleg and his associated assets. More recently, in 2023, GAZ Group initiated a $348 million lawsuit against Volkswagen to recover losses stemming from a contract to assemble cars for the German automaker.

Airports

Basel Aero, a joint venture involving Changi Airports International, Basic Element, and Sberbank of Russia, operates the airports in Sochi, Krasnodar, and Anapa. These airports collectively manage over 7% of Russia’s total passenger traffic. Sochi International Airport, in particular, played a crucial role as the primary gateway for the 2014 Winter Olympics in Sochi, effectively catering to the needs of both guests and participants.

Furthermore, in October 2014, Sochi attained “open skies” status, allowing any foreign airline to transport passengers and cargo without restrictions on aircraft type, frequency, or the need for specific interstate agreements.

Financial services

Deripaska Oleg owns a 10% stake in Ingosstrakh, a prominent insurance company specializing in covering intricate risks. This includes insurance for ship owners, ship hull insurance, aviation and space-related risk coverage, and insurance for transportation companies. Ingosstrakh boasts 83 branches across Russia, with offices in 220 towns and cities.

1. Deripaska Oleg is the founder of Basic Element, one of Russia’s largest industrial groups with interests in aluminum, energy, construction, agriculture, and more.
2. He owns and controls Basic Element, a private investment and management company overseeing his diverse business ventures.
3. Deripaska has openly criticized Russia’s financial system, branding it as “primitive” and heavily influenced by state banks.
4. He has faced sanctions from the United States, Britain, and other nations, impacting his ability to conduct business and access financial services.
5. Deripaska has been actively involved in various financial transactions and investments. Notably, he gained control of significant state-owned aluminum assets, which were later consolidated within the Rusal group in collaboration with Roman Abramovich.

These details shed light on Deripaska’s engagements in financial services and industries, including his critical stance on the Russian financial system and his experiences with international sanctions.

Agribusiness

In 2011, Deripaska Oleg founded Kuban Agroholding, a vast agribusiness spanning 75,000 hectares in the Krasnodar region. This enterprise encompasses two dairy farms, a breeding complex with a capacity for 16,000 pigs, three elevators with a combined grain storage capacity exceeding 270,000 tonnes, three-grain processing plants, a sugar factory, and the Sunrise horse breeding farm, specializing in English thoroughbred horse breeding. Kuban Agroholding ranks among the top 20 largest agribusinesses in Russia and stands as one of the nation’s top five most efficient land users.

Notably, Kuban Agroholding is among the select few agro companies in Russia engaged in embryo transfer technology. This innovative method allows the reproduction of high-yielding milk cows using less productive surrogate cows.

The company has garnered significant media attention for its corn-seeding program, which deploys numerous corn varieties meticulously chosen by its genetic specialists.

As of June 2019, Forbes reported that Deripaska Oleg‘s Kuban land bank was the fourteenth largest in Russia.

Redut PMC

Redut, also known as Redoubt or Redut-Antiterror, formerly referred to as “Shield,” is a Russian Private Military and Security Company (PMSC) affiliated with the “Antiterror family.” Redut is a group of PMSCs dedicated to safeguarding the interests of Russian businesses. Currently, Redut is involved in the Russian invasion of Ukraine, a situation that has led to international sanctions due to its actions. Disturbingly, some members of this group have faced convictions for war crimes committed during the invasion.

Notably, Deripaska Oleg and Gennady Timchenko are reported to be significant supporters of this company, having provided armored personnel carriers, helmets, and protective vests to the PMC.

Major Projects and Philanthropic Efforts

Contribution to the 2014 Winter Olympics in Sochi

Russian billionaire and oligarch, Deripaska Oleg, played a pivotal role in the success of the 2014 Winter Olympics in Sochi. Here are some of his key contributions:

Olympic Village: Deripaska Oleg invested a substantial $760 million in the Olympic Village, comprising 47 buildings that accommodated 3,000 people.

Olympic Infrastructure: Through his industrial conglomerate, Basic Element, he contributed over $1.2 billion to Olympic infrastructure. This included more than $700 million for the athletes’ Olympic Village in the seaside Olympic Park, $400 million for the international airport, and $170 million for the port.

Legacy Projects: Post-Olympics, the village was intended to be sold as apartments, while the cargo port was slated for transformation into a marina for yachts.

Charitable Efforts: Deripaska also financed a charity called “Volnoe Delo,” which spearheaded the rescue of numerous stray dogs in Sochi. He provided $15,000 to initiate a shelter on land donated by the local government and committed around $50,000 annually for its operations.

Major Investments: Deripaska Oleg emerged as a major investor in the Sochi Games, funding significant projects like the airport renovation, a new seaport, and the coastal Olympic Village.

These contributions not only played a crucial role in the triumph of the 2014 Winter Olympics in Sochi but also left a lasting legacy of enhanced infrastructure and accessibility in the region.

Creation of the Coastal Olympic Village and other key projects

• Deripaska’s extensive industrial conglomerate, Basic Element, invested over $1.2 billion in Olympic infrastructure. This included more than $700 million for the athletes’ Olympic Village in the seaside Olympic Park, $400 million for the international airport, and $170 million for the port.
• The Olympic Village, initially designed for athletes and officials during the games, was planned to be repurposed as apartments after the Olympics. Additionally, the cargo port was set to transform into a marina for yachts.
• Among Deripaska’s notable projects was the $760 million Olympic Village, capable of accommodating 3,000 people in 47 buildings. He also funded a 42-km road encircling the venues.
• All of Deripaska’s endeavors were profit-oriented, as stated by Andrei Elinson, Deputy General Director at Basic Element.
• Deripaska Oleg contested the widely reported $50 billion construction cost for the Winter Olympics, asserting that it was slightly over half that amount.
• He vehemently denied allegations that he was coerced into making potentially unprofitable investments in Olympics infrastructure, dismissing such claims as baseless.
• Notably, Deripaska Oleg supported a charity called Volnoe Delo, which led efforts to rescue hundreds of stray dogs facing euthanasia in Sochi.

These contributions played a crucial role in the success of the 2014 Winter Olympics in Sochi, leaving behind a lasting legacy of enhanced infrastructure and accessibility in the region.

Establishment of the Volnoe Delo charitable foundation

Deripaska Oleg founded the Volnoe Delo charitable foundation in 1998 with the aim of backing social programs and initiatives crucial for Russia’s development. As one of Russia’s largest non-profit organizations, Volnoe Delo engages in a wide range of social, charitable, and volunteer projects, all with the primary objective of promoting effective and meaningful charity in Russia. Since its inception, the foundation has invested in over 500 charity programs across 50 regions in Russia.

The foundation’s initiatives encompass various areas, including:

1. Equipping schools throughout Russia with notebook PCs
2. Sustaining research activities in the historic city of Phanagoria, dating back 2,550 years, since 2004
3. Offering support for research focused on the early detection of breast cancer at Moscow State University’s Faculty of Fundamental Medicine
4. Assisting two faculties at Moscow State University, contributing to their establishment.
5. Providing student loans through the CREDO program.
6. Backing the development of innovative schools and workforce initiatives.
7. Supporting advancements in Russian science.
8. Aiding rescue efforts to save numerous stray dogs facing harm in Sochi.

The Volnoe Delo Foundation is dedicated to fostering positive change and progress in Russia through these various initiatives and charitable projects.

Philanthropic endeavors in education, science, and public health

Deripaska Oleg, the Russian billionaire and oligarch, has made significant philanthropic contributions to education, science, and public health in Russia. Below, you’ll find details of his contributions:

1. In 1998, Deripaska Oleg founded the Volnoe Delo charitable foundation in Russia. The foundation’s mission is to support initiatives that focus on education, scientific advancement, preserving cultural heritage, and enhancing public health standards.
2. Since its establishment, the Volnoe Delo Foundation claims to have invested in over 500 charity programs across 50 regions of Russia.
3. The foundation has been actively involved in supporting research efforts in the ancient city of Phanagoria since 2004.
4. It has also provided support for research related to the early detection of breast cancer at the Faculty of Fundamental Medicine, Moscow State University. Additionally, the foundation played a key role in establishing and supporting two faculties at Moscow State University.
5. The Volnoe Delo Foundation extends its support to students through the CREDO program, which provides student loans.
6. Deripaska’s philanthropic efforts have contributed to the development of modern schools and the betterment of workers.
7. Notably, the foundation actively promotes and supports Russian scientific endeavors.
8. Beyond education, science, and public health, Deripaska Oleg financed a charity known as Volnoe Delo. This charity coordinated efforts to rescue hundreds of stray dogs in Sochi, reflecting his commitment to animal welfare.

These generous initiatives underscore Deripaska Oleg‘s dedication to enhancing education, science, public health, and animal welfare in Russia.

Global Travel and Controversies

Allegations and investigations, including Spain and the UK

Deripaska Oleg, the Russian billionaire and oligarch, has faced numerous allegations and investigations concerning his business activities and associations. Here are the key findings from our research:

• In 2018, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated Deripaska Oleg as a Specially Designated National (SDN) for violating U.S. sanctions imposed on Russia.
• In 2022, U.K. businessman Graham Bonham-Carter was indicted for conspiring to violate U.S. sanctions against Deripaska Oleg and committing wire fraud. These charges are related to the financing of U.S. properties owned by Deripaska and an attempt to move his artwork out of the United States through false representations.
• Deripaska Oleg has been accused of having ties to companies under investigation by Spanish authorities for money laundering.
• Accusations of connections to organized crime and extortion have been made against Deripaska Oleg.
• The British government imposed sanctions on Deripaska Oleg, which included asset freezing and a travel ban, following the 2022 Russian invasion of Ukraine.
• In December 2018, Deripaska Oleg -linked UK company Terra Services Ltd was subject to a raid.
• The FBI conducted an investigation into Deripaska Oleg and others, looking into conspiracy to evade sanctions, making false statements, and violating U.S. export laws. This investigation revolved around an attempt to transport a high-precision, computer-controlled grinding machine to Russia for potential use in its defense program.
• The FBI identified over $500 million in assets belonging to Deripaska Oleg and other Russian oligarchs who illicitly supported the Russian government, leading to warrants for the seizure of these assets.

These allegations and investigations underscore the controversies surrounding Deripaska Oleg ‘s business activities, his associations, and his involvement in violating U.S. sanctions.

Relationship with prominent political figures

Vladimir Putin

Deripaska Oleg is well-known for his close relationship with Russian President Vladimir Putin. This connection faced strain during Deripaska’s financial struggles in 2009. In a notable incident broadcast on Russian television, Putin visited a cement factory owned by Deripaska, which had stalled operations. During this visit, Putin expressed his dissatisfaction with the factory’s management and compelled Deripaska to sign a contract committing to pay nearly $1 million in unpaid wages.

However, their relationship eventually improved, and Deripaska Oleg has been described as “Putin’s favorite industrialist“. Leaked U.S. diplomatic cables from 2006 revealed that Deripaska Oleg was one of the “2–3 oligarchs Putin regularly turned to” and was a “more-or-less permanent companion on Putin’s overseas trips”.

In a 2011 interview with The Globe and Mail, Tye Burt, the CEO of Kinross Gold, who is acquainted with Deripaska Oleg, stated, “I believe Russia recognizes Oleg’s significant role in revitalizing a broad spectrum of domestic businesses, rejuvenating struggling companies, and rebuilding infrastructure.”

Comments on Putin’s invasion of Ukraine

On February 27, 2022, during the third day of Russia’s invasion of Ukraine, Deripaska Oleg posted a message on Telegram stressing the importance of peace. He emphasized the need for immediate negotiations. The following day, he turned his attention to the economic challenges resulting from Western sanctions and made the following points:

“I’m seeking clear and comprehensible insights into the economic strategy for the next three months. The Russian central bank’s decision to significantly raise interest rates and compel companies to sell foreign currency represents the first test of who will bear the brunt of these measures. We must reform our economic policy, moving away from state capitalism.”

In reference to Russia’s previous annexation of Crimea and the subsequent Western sanctions, he cautioned that this time, unlike 2014, sitting it out won’t be an option. In February 2022, Deripaska Oleg expressed the belief that the war in Ukraine would bring 200 years of suffering to Russia.

Fast forward to June 28, during a press conference at a Moscow university, Deripaska Oleg strongly criticized the idea of Russia pursuing military aggression against Ukraine, repeatedly referring to it as a “colossal mistake” and a “colossal error.” It’s worth noting that the term “war” in the context of the invasion of Ukraine is largely restricted within Russia. Deripaska views the war in Ukraine as irrational and highlights that the sanctions imposed on Russia have a more detrimental impact on its economy than on the West. He stated, “Debt and capital markets are closed, foreign assets are expropriated, and this situation represents a significant upheaval.”

Lastly, on December 20, 2022, the Financial Times reported that a Russian court had ordered the seizure of a $1 billion luxury hotel complex in Sochi owned by Deripaska Oleg. Several sources indicated that this asset seizure was a response to Deripaska’s criticism of the war.

Nathaniel Rothschild and Peter Mandelson

Deripaska Oleg has a close relationship with Nathaniel Rothschild, a significant investor in Glencore and United Company RUSAL. Together, Deripaska Oleg and Rothschild hosted George Osborne and Peter Mandelson on Deripaska’s yacht in Corfu during the summer of 2008. At that time, Osborne was the Shadow Chancellor of the Exchequer in the United Kingdom and a longtime friend of Rothschild from their school and university days. Peter Mandelson had reportedly maintained private contacts with Deripaska over several years.

The revelation of these connections raised concerns because, in his role as the European Union Trade Commissioner, Mandelson had been responsible for the decision to reduce aluminum tariffs from 6% to 3%, a decision that notably benefited Deripaska’s company, RusAl. Mandelson, however, emphasized that he had never discussed aluminum tariffs with Deripaska.

On October 26, 2008, William Hague, the Shadow Foreign Secretary, asserted that the “whole country” desired transparency regarding Mandelson’s past meetings with Deripaska Oleg. In response, Prime Minister Gordon Brown defended Mandelson, stating that his dealings with Deripaska had been investigated and found to be above board. Mandelson also clarified that meeting business figures from emerging economies fell within his responsibilities as the EU Trade Commissioner.

In addition, it was alleged in the British press on October 29, 2008, while Mandelson was on a ministerial visit to Moscow, that Valery Pechenkin, the head of security at Deripaska’s company, Basic Element, had expedited a swift entry visa for Mandelson when he visited Deripaska Oleg in Moscow in 2005.

Paul Manafort

On March 22, 2017, the Associated Press published a report claiming that Paul Manafort, the former presidential campaign manager for Donald Trump, had negotiated a $10 million annual contract with Deripaska Oleg. This contract aimed to promote Russian interests in European and American politics, business, and media coverage, dating back to 2005. Both Deripaska and Manafort acknowledged their past collaboration but disputed the specifics of the AP report.

Manafort contended that his work had been inaccurately portrayed and insisted that there was nothing inappropriate or sinister about it. In response to these allegations, on March 28, 2017, Deripaska Oleg published open letters in The Washington Post and The Wall Street Journal, denying any involvement in a $10 million contract with Manafort to advance the Russian government’s interests. He expressed his willingness to testify before the United States Congress to address these claims and argued that the accusations were influenced by the strained relations between the United States and Russia.

Despite Deripaska’s offer to testify, the United States Congress declined, as he had requested immunity from criminal prosecution, which was seen as complicating federal criminal investigations by unnamed officials, as reported by The New York Times.

On May 15, 2017,Deripaska Oleg filed a defamation and libel lawsuit against the Associated Press in the U.S. District Court in Washington, D.C., stating that the report falsely asserted that he had signed a contract with Manafort to advance Russian government goals. The lawsuit was dismissed in October 2017 on the grounds that Deripaska did not dispute any material facts presented in the Associated Press story.

During Manafort’s involvement in the 2016 U.S. presidential campaign, there were allegations that he, through Kyiv-based operative Konstantin Kilimnik, offered to provide political briefings to Deripaska Oleg. Some interpreted these actions as Manafort’s attempt to curry favor with an oligarch connected to Putin’s government, as noted by writers at The Atlantic.

Navalny video

In February 2018, Alexei Navalny released a video revealing a meeting between Deripaska Oleg and Russian Deputy Prime Minister Sergei Eduardovich Prikhodko on a yacht near Norway. Navalny suggested that Deripaska may have acted as an intermediary between the Russian government, represented by Prikhodko, and Paul Manafort during Russian involvement in the 2016 U.S. elections. Prikhodko refuted these claims, accusing Navalny of distorting facts concerning his “friends” Deripaska, Donald Trump, and Paul Manafort. He expressed a desire to have a direct conversation with Navalny.

Shortly after the video’s publication, Roskomnadzor included it in the Federal List of Extremist Materials, making it illegal for Russian citizens to access. Roskomnadzor also instructed YouTube to remove seven videos and Instagram to delete 14 points mentioned in the investigation. As of February 12, 2018, neither YouTube nor Instagram had responded to these requests. A representative from Roskomnadzor stated that such a court order against content on Instagram and YouTube was unprecedented in Russia. The New York Times observed that this might indicate a more assertive approach by the Russian government in regulating online content.

Vashukevich recordings

In March 2018, Anastasia Vashukevich, a Belarusian escort, expressed concerns for her safety while in a Bangkok jail. She claimed to possess over 16 hours of audio recordings that she believed could reveal potential Russian involvement in American elections. Vashukevich offered these recordings to U.S. authorities in exchange for asylum but was later deported and detained at a Russian airport.

According to Vashukevich, these recordings date back to August 2016 and feature Deripaska Oleg discussing the U.S. presidential election with three English-speaking individuals whom she presumed to be American. She stated that Deripaska Oleg had some plans related to the elections. During a court appearance, Vashukevich publicly apologized to Deripaska and mentioned that Russian agents had visited her in jail, encouraging her to refrain from making public statements about him. The New York Times noted that her claims, though questionable, gained attention due to the Navalny video.[163]

It’s worth noting that Deripaska Oleg has denied any intimate involvement with Vashukevich.

US Sanctions and Legal Battles

US sanctions in 2018 and their impact on Deripaska’s businesses

In 2018, the US Treasury’s Office of Foreign Assets Control (OFAC) designated Deripaska Oleg as a Specially Designated National (SDN) due to his violation of US sanctions against Russia. This designation carried significant implications as Deripaska Oleg held control over United Company RUSAL, one of the world’s largest aluminum producers, through his minority stake in RUSAL via EN+ Group.

These sanctions led to technical defaults on bank loans and credit obligations, with both RUSAL and EN+ Group acknowledging the potentially adverse impact on their businesses. US and international companies had until October 23, 2018, to phase out their business dealings with RUSAL. It’s essential to note that the sanctions primarily targeted Deripaska, not RUSAL itself. The possibility of lifting both primary and secondary sanctions against RUSAL hinged on Deripaska Oleg divesting his controlling stake in the company.

To facilitate the lifting of sanctions, Deripaska Oleg agreed to reduce his ownership stake in EN+ from 70 percent to below 50 percent, effectively relinquishing control of RUSAL. In December 2018, the Trump administration announced its intention to remove sanctions on Oleg V. Deripaska’s business empire, a significant figure in Russia’s oligarchy. This decision came after an agreement was reached to reduce his ownership interest in EN+ and sever his control over the company.

It’s worth noting that these sanctions had far-reaching consequences beyond Russia, causing global aluminum prices to surge and adversely affecting US and European companies reliant on this metal.

Legal battles, including the lawsuit against Morgan Stanley

Deripaska Oleg has been embroiled in various legal disputes, one of which involved a lawsuit against Morgan Stanley.

• In 2015, Veleron BV, a Dutch company established as an investment vehicle by Deripaska Oleg, filed a lawsuit against Morgan Stanley, seeking over $10 million in damages. They alleged that Morgan Stanley had engaged in insider trading during the height of the financial crisis by short-selling a company based on non-public information.
• The lawsuit contended that Morgan Stanley had used its awareness of Veleron’s impending default to its advantage just days before this information became public. This short-selling activity had the effect of driving down the price of Magna stock.
• Morgan Stanley, in response, argued that they had no legal obligation to Veleron that would constitute insider trading. They further maintained that they were not directly involved in the loan used to finance Deripaska’s investment in Magna International.
• In 2015, Morgan Stanley was ultimately cleared of any wrongdoing in the lawsuit brought by Veleron BV. The judge’s ruling stated that the company did not engage in insider trading to the detriment of a company under Deripaska’s control.
• This lawsuit marked at least the fourth legal proceeding arising from Deripaska’s investment in Magna International Inc., a Canadian auto parts manufacturer. In 2015, Morgan Stanley prevailed in a legal dispute where Deripaska Oleg had claimed the bank cheated him out of millions through insider trading.
• These legal battles underscore the controversies surrounding Deripaska’s business dealings and his pursuit of compensation from companies he believes have treated him unfairly.

Sanctions, Investigations, and International Response

Sanctions imposed by various countries, including the US, EU, and Australia

Australian sanctions

On March 18, 2022, Australia imposed sanctions on Deripaska Oleg.

Canada sanctions

Canada has imposed sanctions under the Special Economic Measures Act (S.C. 1992, c. 17) due to Russia’s invasion of Ukraine, citing grave breaches of international peace and security.

European Union sanctions

On April 8, 2022, the European Union (EU) took action against Deripaska Oleg, placing him on its sanctions list. This action involved freezing his assets and issuing a travel ban that applies across all EU member states. In response to these sanctions, Deripaska filed an appeal on November 30, 2022, contesting the EU’s decision.

Furthermore, Ukraine alleges that assets owned by Deripaska Oleg have been transferred to Siegfried Wolf, an Austrian citizen who is financially supported by Deripaska. This move is seen as an attempt to evade the sanctions imposed on Deripaska.

UK sanctions

After the 2022 Russian invasion of Ukraine, the British government imposed sanctions on Deripaska Oleg. These sanctions included freezing his assets and imposing a travel ban. In addition to this, in December 2018, a raid was conducted on Terra Services Ltd, a company connected to Deripaska.

U.S. sanctions

In April 2018, the United States imposed sanctions on Oleg Deripaska and 23 other Russian business figures and officials. The United States Department of the Treasury accused Deripaska of various wrongdoings, including endangering the lives of business competitors, illegal wiretapping of a government official, and involvement in extortion and racketeering.

In May 2018, it was reported that Deripaska had to return three private jets owned by Credit Suisse and Raiffeisen.

In October 2018, the U.S. Treasury extended the deadline for imposing full sanctions on Rusal and its parent company, En+ Group, until December 12. This extension allowed for the review of proposals presented by En+ Group to the U.S. government, which aimed to reduce Deripaska’s ownership stake in En+ from approximately 70 percent to below 45 percent.

In January 2019, the U.S. Treasury lifted sanctions on companies that were once under Deripaska’s control, but sanctions against Deripaska himself remained in effect. In April 2019, the U.S. Treasury Department permitted Deripaska to transfer 10.5 million shares of his holding company, En+ Group, to a trust fund for his children as part of a divorce settlement with his ex-wife, Polina Yumasheva. This arrangement was finalized before the sanctions were imposed and was facilitated by Greg Barker, a UK legislator who later became chairman of En+ Group.

In March 2019, Deripaska filed a lawsuit against the United States, alleging that the sanctions imposed on him exceeded legal bounds and made him a “victim” of the FBI’s investigation into Russia’s interference in U.S. elections. U.S. District Court Judge Amit Mehta dismissed the lawsuit in June 2021, citing a lack of merit. On October 3, 2022, the U.S. Supreme Court rejected Deripaska’s appeal.

On September 29, 2022, the United States Attorney for the Southern District of New York accused Deripaska of evading sanctions. The prosecutor’s office claimed that Deripaska, through Gracetown Inc., unlawfully used the U.S. financial system to manage real estate properties he owned. He received assistance from two individuals, Olga Shriki, who operated in the United States, and Natalia Bardakova, who directed Shriki from Russia. All three individuals were charged with conspiring to violate and evade U.S. sanctions, which could lead to a maximum sentence of 20 years in prison. Additionally, Graham Bonham-Carter faced charges for aiding Deripaska in evading sanctions.

In January 2023, Charles McGonigal, a former head of counterintelligence in the FBI’s New York City field office, was charged with conspiring with Sergey Shestakov, a former Soviet and Russian diplomat who is now a U.S. citizen. They were accused of providing services to Deripaska in 2021, in violation of U.S. sanctions imposed in 2018. These services allegedly involved investigating a rival Russian oligarch in exchange for concealed payments from Deripaska, facilitated through shell companies. They also used a forged signature on the contract and the same shell companies to send and receive payments from Deripaska.

Legal battles and investigations involving Deripaska

Oleg Deripaska has been entangled in numerous legal disputes and investigations, including the following:

1. In 2015, a Dutch company, Veleron BV, established as an investment vehicle by Deripaska, sued Morgan Stanley for over $10 million in damages. They alleged insider trading, claiming that Morgan Stanley short-sold a company based on confidential information during the height of the financial crisis.
2. In 2018, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated Deripaska as a Specially Designated National (SDN) for violating U.S. sanctions imposed on Russia.
3. In 2022, Deripaska and two associates faced indictment by the U.S. Department of Justice for conspiring to violate U.S. sanctions placed on Deripaska and one of his corporate entities, Basic Element Limited. They were also charged with obstruction of justice.
4. Deripaska faced allegations of having connections to firms under investigation by Spanish authorities for potential money laundering.
5. Accusations of Deripaska’s involvement with organized crime and extortion have surfaced.
6. The British government imposed sanctions on Deripaska, which included freezing his assets and imposing a travel ban, following the 2022 Russian invasion of Ukraine.
7. The FBI initiated an investigation into Deripaska for conspiracy to evade sanctions, making false statements, and violating U.S. export laws by attempting to smuggle a high-precision, computer-controlled grinding machine to Russia, likely for use in its defense program.
8. Deripaska was accused of facilitating Paul Manafort’s work with Viktor Yanukovych and his political party.
9. Allegations have arisen that Deripaska was involved in advancing Russian President Vladimir Putin’s interests and proposing strategies to undermine anti-Russian opposition in former Soviet states.
10. Accusations of Deripaska violating U.S. sanctions by using the U.S. financial system to maintain three luxury properties and by attempting to have his girlfriend travel from Russia to the United States to bear his children.

Conclusion

Oleg Deripaska‘s rise to power as a global business mogul is a story marked by ruthless and intricate business dealings. He achieved control of vast, formerly state-owned aluminum assets, which he subsequently consolidated under the Rusal group in partnership with fellow sanctions target, Roman Abramovich.

Deripaska holds prestigious positions, including the Vice President of the Russian Union of Industrialists and Entrepreneurs, Chairman of the Executive Board of the Russian National Committee of the International Chamber of Commerce, and membership in the Competitiveness and Entrepreneurship Council, a Russian government agency. Oleg Deripaska’s journey is also tainted by controversies, sanctions, and legal battles. Accusations of links to firms under investigation for money laundering, organized crime connections, extortion, and violations of U.S. sanctions have loomed over him. In 2018, the U.S. Treasury’s Office of Foreign Assets Control (OFAC) designated him as a Specially Designated National (SDN) for violating U.S. sanctions on Russia.

In 2022, the U.S. Department of Justice indicted Deripaska and two associates for conspiring to violate U.S. sanctions and obstructing justice. The British government also imposed sanctions, freezing his assets and issuing a travel ban following the 2022 Russian invasion of Ukraine. Further investigations by the FBI into conspiracy to evade sanctions, false statements, and violations of U.S. export laws for attempting to smuggle advanced machinery to Russia have added to his legal woes. Deripaska’s association with Paul Manafort, the former Trump campaign manager, has been a subject of scrutiny in the United States.

Notably, Deripaska’s close ties with Russian President Vladimir Putin have faced strains due to his financial difficulties in 2009. He has also faced allegations of using the U.S. financial system for personal purposes, including maintaining luxury properties and facilitating his girlfriend’s travel from Russia to the United States. Currently, ongoing legal proceedings surround Deripaska, with indictments for alleged sanctions violations and obstruction of justice.

In the end, Oleg Deripaska’s legacy will be molded by his business empire, his enduring controversies and legal entanglements, and his complex relationship with Vladimir Putin.

FAQS

• Who is Oleg Deripaska?

Oleg Deripaska is a well-known Russian businessman who has been involved in the aluminum industry and has been part of several controversies.

• What is the Rusal group?

The Rusal group is indeed a significant Russian aluminum company. It is controlled by prominent individuals like Deripaska and Roman Abramovich.

• Why was Oleg Deripaska sanctioned by the U.S. and the British government?

Deripaska was sanctioned for allegedly violating U.S. sanctions and for his role in the 2022 Russian invasion of Ukraine.