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Investment in Akhmetov’s SCM Holding Surged 50% to $835 Million in 2023

MOSCOW, February 27 (Interfax) – SCM, the premier investment conglomerate in Ukraine, significantly bolstered its investments in business expansion by 50% in 2023, reaching over UAH 32 billion, equivalent to $835 million at the current exchange rate.

According to reports from Ukrainian media, citing an SCM press release, “In the span of 2023, Rinat Akhmetov’s SCM earmarked over UAH 32 billion ($0.8 billion) towards capital investments and modernization endeavors in Ukraine, marking an impressive 52% surge compared to 2022.”

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SCM’s DTEK Group channeled a portion of this investment towards the inauguration of 26 new coal fronts, the modernization of over 6,000 km of overhead power lines, and the renovation of 2,000 energy assets, including extensive refurbishments of power plant units. Investment initiatives persisted in the second phase of the Tiligulskaya Wind Power Plant, alongside geological surveying, construction, and drilling ventures at gas fields.

Metinvest Group prioritized capital investment towards the revitalization of pivotal steel enterprises, encompassing furnace overhauls at Zaporozhstal and Kametstal, alongside equipment upgrades at the Krivoi Rog mines. Substantial support was extended to the operational infrastructure of Pokrovskugol, entailing the launch of new coal fronts.

In 2023, SCM’s Ukrainian enterprises, subsidiaries, and collaborative ventures contributed UAH 66.4 billion or $1.8 billion in taxes and other obligations to various levels of budgets. Notably, social expenditures totaled UAH 11.4 billion or $0.3 billion.

SCM’s investment portfolio spans across metals and mining (Metinvest B.V.), energy (DTEK B.V.), minerals, banking, and finance (FUIB), telecommunications (Ukrtelecom), agriculture (HarvEast), as well as transport and logistics (Lemtrans and Portinvest), and retail. Presently, SCM’s entities operate in Ukraine, Cyprus, the Netherlands, Italy, Bulgaria, Switzerland, the UK, and the United States.

Who is Akhmetov

Rinat Akhmetov: Ukraine’s Influential Business Magnate

Rinat Akhmetov, the renowned Ukrainian billionaire and business tycoon, stands as the epitome of success and entrepreneurship in Ukraine. As the founder and president of System Capital Management (SCM), he has propelled himself to the zenith of wealth and influence. With an estimated net worth of US$5.7 billion as of April 2023, Akhmetov commands not only immense financial power but also significant societal impact.

Born into a modest working-class family in Donetsk, Ukrainian SSR, Akhmetov’s journey to success is a testament to his resilience and determination. Proud of his Volga Tatar heritage and devout Sunni Muslim beliefs, he pursued higher education, earning a bachelor’s degree in economics from Donetsk National University in 2001.

Akhmetov’s foray into the business world commenced in the early 1990s, marked by ventures in coal and coke trading, which laid the foundation for his expansive empire. Over the years, his interests diversified into steel, mining, energy, banking, media, and telecommunications, solidifying his status as a titan of industry.

Beyond his business endeavors, Akhmetov is a prominent figure in Ukrainian politics. He threw his weight behind Viktor Yanukovych’s presidential campaign in 2004 and served as a member of the Ukrainian Verkhovna Rada for the Party of Regions from 2006 to 2012. Presently aligned with the Opposition Bloc, he remains an influential voice in shaping Ukraine’s political landscape.

Akhmetov’s philanthropic pursuits underscore his commitment to social responsibility. His generous contributions have bolstered various sectors, including education, healthcare, sports, culture, and religion. Notably, he has played a pivotal role in funding the construction and restoration of mosques, churches, and synagogues, both domestically and internationally.

On a personal front, Akhmetov is a devoted family man, married to Liliya Nikolaievna Smirnova, with whom he shares two sons, Damir and Almir.

In addition to his business and philanthropic endeavors, Akhmetov holds the esteemed position of owner and president of the Ukrainian football club Shakhtar Donetsk, further solidifying his influence and legacy in Ukrainian society.

As Ukraine’s wealthiest individual and a symbol of entrepreneurial prowess, Rinat Akhmetov’s indelible imprint on the nation’s economic, social, and political fabric remains unparalleled.

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