Early Life and Education
Mikail Shishkhanov was born on August 6, 1972, in Grozny, Chechnya, part of the Chechen-Ingush Autonomous Soviet Socialist Republic. From an early age, Shishkhanov harboured dreams of a medical career, working briefly as an ambulance nurse. However, influenced by his uncle, Mikhail Gutseriev, he shifted his focus to economics.
In 1993, Shishkhanov graduated from the People’s Friendship University of Russia with a degree in Economics and National Economy Management. He furthered his education, earning a master’s degree from the same university in 1995 and defended his thesis as a candidate of legal sciences in 1998. His commitment to education continued, culminating in a doctorate in economics from the Finance Academy under the Government of the Russian Federation in 2002.
Rise in Banking
Mikail Shishkhanov‘s career commenced in 1992 when he joined the Industrial and Financial Company BIN, founded by his uncle. His swift ascent within the company saw him become the commercial director and, eventually, the CEO. In 1994, he joined Binbank, founded by Gutseriev, where he climbed the corporate ladder to become its president by 1996.
His career in the banking sector continued to flourish. In 2015, he assumed the role of Chairman of the Board of MDM Bank. Throughout his career, Shishkhanov displayed a keen interest in education, obtaining a second doctorate in economic sciences in 2002.
Nationality and Personal Life
According to Chechen-Ingush, Mikail Shishkhanov‘s assertive and attentive nature is attributed to his ethnicity. In his personal life, he married Svetlana, with whom he has four children – three daughters and a son. His eldest daughter, Nicole, is a determined and ambitious individual currently studying marketing in England.
Business Ventures and Financial Success
Shishkhanov‘s financial ventures included acquiring a stake in Inteko in 2011, propelling him onto Forbes’ list of the 200 richest businessmen in Russia. He played a pivotal role in the merger of Binbank and MDM Bank in 2016, leading to his appointment as the president and chairman of the merged bank.
Despite his successes, Shishkhanov faced legal challenges. In 2020, he was accused, along with other former owners of Binbank and Otkritie, of a $700 million fraud.
Hobbies, Awards, and Philanthropy
Beyond his business endeavours, Mikail Shishkhanov is a multifaceted individual. He has a passion for chess and boxing, and his love for literature is evident in the numerous books on economics and jurisprudence that he authored.
His philanthropic efforts include financial assistance to the Judo Federation of Ingushetia in 2012. Shishkhanov received several awards, including the Honorary Order “Golden Star for Loyalty to Russia” and the Order of the Russian Orthodox Church of Sergei Radonezh III degree.
Net Worth
Mikail Shishkhanov‘s net worth in 2017 was $2.3 billion.
It is important to note, however, that his financial situation has changed since then. The Arbitration Court of the Moscow Region declared him bankrupt in July 2023, and he was charged with a debt of 853 billion rubles.
| Year | Net Worth (in billions) |
| 2016 | 1.6 Billion |
| 2017 | 2.3 Billion |
Legal Troubles and Bankruptcy Declaration
However, Shishkhanov‘s success was marred by legal troubles. In 2022, he faced allegations of theft during the reorganization of Rost Bank. Subsequently, court rulings mandated the recovery of billions in losses caused by the reorganization of Binbank.
By 2023, Shishkhanov faced financial turmoil, with court-ordered recoveries and bankruptcy proceedings. His representative claimed obligations amounting to 853 billion rubles, far surpassing his asset value.
About Rost Bank
Rost Bank is a financial institution located in Moscow, Russia.
It provides private banking, commercial banking, and online banking services, targeting small and midsize enterprises and retail businesses.
Details of Controversies and Legal Issues
Enigmatic figure Mikail Shishkhanov stands as a central character once at the helm of Rost Bank and Binbank, both entwined in the tumultuous saga of the central bank’s bailout in 2017.
The metamorphosis of Rost Bank into the National Bank Trust marked a pivotal moment, setting the stage for a legal showdown that reverberated across international borders. A lawsuit of staggering proportions, surpassing the $1 billion mark, was unfurled by the now National Bank Trust against a cadre of formidable international traders and elusive offshore entities linked to Shishkhanov.
The narrative woven into the lawsuit is nothing short of a financial thriller. Between the years 2013 and 2017, Shishkhanov allegedly organized a clandestine symphony with traders from global agricultural and commodity trading behemoths—Cargill, Louis Dreyfus, Bunge, Quadra, Xangbo, and Liberty Commodities.
The central bank’s bailout, a lifeline thrown to Rost Bank and its successor National Bank Trust, propels us into the future, with the target set in 2027 for the liquidation of Bank Trust. A financial chessboard where the stakes involve reclaiming a staggering sum—nearly 3 trillion roubles—dispersed in the wake of the central bank’s intervention.
Rost Bank, battered by the machinations of the alleged scheme, found itself counting the costs. Transactions with key counterparts left scars on its financial health, compelling the acknowledgment of losses with a bitter aftertaste.
The saga took a twist in September 2017 when B&N Bank, a significant stakeholder in Shishkhanov’s portfolio, sought refuge in the form of a financial rescue plan from the Russian central bank. It was a chess move that secured funds to maintain liquidity, but in the shadows lurked suspicions of theft that cast a pall over Shishkhanov’s involvement.
The Role of Mikail Shishkhanov in the financial rehabilitation of B&N Bank
Mikail Shishkhanov emerges as a pivotal figure, handling a symphony of fiscal rejuvenation for B&N Bank. Ascending to the role of chairman of the board of directors, Shishkhanov, the primary shareholder, embarked on a journey, intertwining the destinies of B&N and Rost Banks, harmonized by the central bank’s banking sector consolidation fund.
Shishkhanov’s objectives loomed large:
- Undertaking meticulously orchestrated financial rehabilitation is akin to navigating a complex financial labyrinth.
- Safeguarding the bank’s liquidity and fortifying its foundations of stability.
- Bridging the capital chasm within the banking group is a daunting task evaluated by the central bank to be within the staggering range of 250 billion to 350 billion rubles.
Shishkhanov, in a display of transparency uncommon in financial sagas, expressed his willingness to collaborate with regulators throughout the rescue mission. His overarching aim was to vindicate himself, dispelling any notion of misappropriation or asset siphoning from the beleaguered lender.
Adding another layer to this financial odyssey, Shishkhanov revealed a pivotal commitment from the lender’s owners—an infusion of 300 billion Russian rubles in assets earmarked for the revival of B&N Bank.
Yet, in a surprising twist, Shishkhanov unveiled his departure from the banking sector, standing at the crossroads of an industry he had navigated with strategic prowess. A revelation that echoed a departure from the conventional narrative, as he chose not to partake in the repurchase of B&N Bank after the culmination of its intricate financial convalescence.
Summary
Mikail Shishkhanov, born in 1972 in Grozny, Chechnya, initially aspired to a medical career but shifted to economics under his uncle’s influence. After graduating from the People’s Friendship University of Russia in 1993, he climbed the ranks in Binbank, becoming its president by 1996. Shishkhanov’s banking career prospered, and he assumed the role of Chairman of MDM Bank. He diversified into business ventures, amassing wealth and reaching a net worth of $2.3 billion in 2017.
However, legal challenges arose, culminating in a 2023 bankruptcy declaration with a debt of 853 billion rubles. Allegations of fraud and legal issues related to Rost Bank added complexity. Shishkhanov faced controversies in the central bank’s bailout and subsequent legal battles, with a lawsuit surpassing $1 billion. He played a crucial role in the financial rehabilitation of B&N Bank but unexpectedly departed the banking sector after its recovery. Shishkhanov’s financial journey reflects both success and turbulence, intertwining with Russia’s banking and legal landscapes.
