Early Life and Career of Rinat Akhmetov
Rinat Akhmetov, born on September 21, 1966, in Donetsk, Ukrainian SSR, came from a humble working-class family. He identifies as an ethnic Volga Tatar and actively practices the Sunni Muslim faith.
His father, Leonid Akhmetov, worked as a coal miner, while his mother, Nyakiya Nasredinovna, had a job as a shop assistant.
He has an older brother named Igor, who used to work as a coal miner. Unfortunately, Igor had to stop working because his health was affected by the job.
Akhmetov finished his studies at Donetsk National University, earning a Bachelor of Arts/Science degree in Economics in 2001.
Marital Life and Hobbies
Rinat is happily married to Liliya Nikolaievna Smirnova, and together they have been blessed with two beautiful children named Damir and Almira.
In addition to his business pursuits, Akhmetov enjoyed sports as his primary pastime. The billionaire has a strong affinity for boxing and football, considering them to be two of his favourite sports. In Ukraine, the term “oligarch” is often used interchangeably with the title of “honorary philanthropist.”
Liliya Nikolaievna Smirnova: Wife of Rinat Akhmetov
She was born in Donetsk, Ukraine, in 1975. Her father is Nikolay Smirnov. She was a professor at the University of Donetsk, as was her mother.
Education
Liliay Nikolevna Smirnova successfully completed her academic studies at Donetsk State University, earning a bachelor’s degree in the field of economics. Additionally, she possesses a master’s degree in the field of international business.
Career
Liliya Nikolaevna Smirnova has achieved success in the field of business and has also demonstrated a commitment to philanthropy. She holds the position of Chief Executive Officer at SCM Holdings. One of the most prominent privately-owned enterprises in Ukraine Additionally, she holds the position of co-founder and co-chair of the Rinat Akhmetov Foundation.
Business Ventures of Rinat Akhmetov
He established his own coal trading business in 1990. He consolidated ownership of the country’s most important steel and coal mining companies over the next few decades. Dongorbank was founded by him in 1995.
Early Wealth
His early career is contentious, and it is unclear how he obtained his funds and wealth between 1985 and 1995, following the fall of communism in Ukraine.
The majority of Rinat’s wealth is said to have come from his ties to organized crime.
Rinat, on the other hand, claimed in a public statement that he amassed his fortune through risky investments following the collapse of the Soviet Union.
Rinat has also publicly denied inheriting money from Akhat Bragin, a powerful crime boss.
His rise in eastern Ukraine’s industrial and coal-mining Donbas region over the past few years has also been hazy.
However, after Akhat Bragin was killed in a bomb explosion at the club’s stadium in October 1995, he took over as chairman of the Shakhtar football club.
Akhmetov spent the majority of the next decade cultivating Donetsk residents’ loyalty through investments in Shakhtar while expanding his business interests across the country.
The Effects of Political Changes
Ukrainian Billionaire Rinat Akhmetov orchestrated the establishment of the System Capital Management Group, a domain over which he maintains exclusive ownership to the present day. Collaborating in 2004 with Viktor Pinchuk, kin by marriage to then-President Leonid Kuchma, they orchestrated the acquisition of Ukraine’s paramount steel foundry, Kryvorizhstal, during a governmental divestiture.
The transaction surrounding Kryvorizhstal encountered governmental contestation in 2005 after the Orange Revolution. This surge of public dissent propelled Viktor Yushchenko into the presidency, displacing Viktor Yanukovych, the erstwhile prime minister under Kuchma.
Zooming ahead to the early months of 2014, Yanukovych faced expulsion, seeking refuge beyond the borders of Ukraine. In parallel, the Russian Federation asserted dominion over Crimea. Subsequently, the conflagration in Donbas ignited in April 2014, delivering a severe fiscal blow to Akhmetov. His financial standing experienced a downturn, registering a 52% descent to $5.39 billion to pre-conflict financial metrics. This depreciation emanated directly from the havoc wrought upon his metallurgical facilities and electrical substations due to the incursion by Russian forces into Ukraine.
Legal Challenge at ECHR
The businessman has petitioned the European Court of Human Rights (ECHR) to hold Russia accountable for the destruction of Ukrainian infrastructure, looting, and the removal of export goods from Ukraine. Ukrainian Billionaire Rinat Akhmetov, in addition to seeking compensation for damages, has requested the court to implement urgent interim measures preventing further blockades of Ukrainian ports, looting, and the export of grain and steel from Ukraine, specifically from SCM enterprises.
In response to the violation of property rights, Akhmetov is seeking compensation from Russia for the damages incurred. The G7 has pledged support to Ukraine until victory, with President Zelensky appealing for weapons to bring an end to the war before winter. The heinous crimes committed by Russia against Ukraine and its people have prompted the filing of a complaint with the ECHR for damages, marking one of the initial international legal actions against the Russian aggressor.
Akhmetov emphasized that the objective is to halt the criminal activities of Russia, which include the systematic destruction of the Ukrainian economy and the theft of Ukrainian assets. The illicit seizure of Ukrainian export goods, comprising grain and steel, has resulted in a surge in prices, contributing to a rise in global hunger. Akhmetov is determined to pursue justice through the legal system and encourages other businessmen affected by Russian aggression to join in legal action.
On June 11, Russian President Vladimir Putin signed a bill regarding the non-execution of ECHR decisions made after March 15, 2022. The move has drawn criticism, with experts noting that it violates the European Convention for the Protection of Human Rights and Fundamental Freedoms.
The document stipulates that Russia is obligated to comply with final rulings of the ECHR in any case where it is a party. Despite Russia’s expulsion from the Council of Europe on March 16 for invading Ukrainian territory, it will formally cease to be a party to the Convention on September 16, 2022, six months after the expulsion. Moscow contends that it withdrew from the Council of Europe, but this claim contradicts the historic fact that it was the first country ever to be expelled from the organization, having joined in 1996.
Net Worth of Rinat Akhmetov
As of October 2023, Rinat Akhmetov‘s net worth is $5.7 billion. However, it has not remained constant over time due to various factors, with the Donbas conflict and Russia’s incursion into Ukraine being particularly influential.
Net Worth Details
As of September 2021, Bloomberg’s estimations showcase that Akhmetov commanded an extraordinary wealth of $10 billion, firmly establishing him as the 241st luminary among the global affluent. Yet, as the inaugural moments of 2023 unfolded, his prosperity had unravelled to a diminished state of $5.47 billion, relegating him to the 469th position globally.
Akhmetov occupies a singular position as the exclusive Ukrainian entrepreneur gracing the illustrious roster. As per Forbes’ compendium of international wealth in the bygone year of 2021, Akhmetov occupied the 327th niche, presiding over a considerable fortune amounting to $7.6 billion.
Venturing into the expanse of 2022, his financial dominion tallied a sum of $4.3 billion, nestling him at the 687th perch amidst the planetary cognoscenti of affluence. Yet, in March 2023, he witnessed an augmentation in his pecuniary worth, soaring to $5.7 billion and propelling him to the 445th stratum among the global aristocracy of prosperity.
Assets of Rinat Akhmetov
| Company | Industry / Sector |
|---|---|
| SCM Group | Diversified (mining, metallurgy, energy, real estate) |
| Metinvest Holding | Mining and Metallurgy |
| DTEK | Energy |
| Metinvest Holdings | Communication |
| VEGA | Fixed Communication and Internet |
| Corum Group | Mining Equipment Production |
| Media Group of Ukraine | Media |
| PUMB | Banking/Finance |
| ASKA and ASKA-life | Insurance |
| ESTA Holding | Real Estate |
| UMG Limited | Clay Production |
| Parallel | Gas Stations |
| Ukrainian Retail | Retail Trade |
| Portinvest | Transport Business |
| Lemtrans | Transport Business |
| Transinvest | Transport Business |
| HarvEast | Unspecified |
A Decade of Financial Triumphs and Setbacks
In an analysis of the Donetsk magnate’s riches, it surfaced that he commands a staggering $31.1 billion, positioning him not solely as the most affluent individual in Europe but also reigning supreme across the entire CIS realm. This astounding fiscal sum signifies a twofold surge from merely a year ago, eclipsing Russia’s most prosperous figure, Oleg Deripaska, by an impressive $1.5 billion. Back in April 2008, Forbes estimated Deripaska’s net assets at $28.6 billion, a notable departure from Ukraine’s wealthiest figure, who possessed a relatively humble $7.3 billion, securing the 127th spot in the global wealth hierarchy.
Upon reaching spring in 2012, Forbes appraised Akhmetov’s wealth at a considerable $16 billion. Nevertheless, a turning point occurred in March 2013, trimming his wealth down to $15.4 billion, and by 2014, it dwindled further to a seemingly unassuming $11.2 billion.
In November 2006, the esteemed auditing entity PricewaterhouseCoopers meticulously scrutinized the comprehensive financial records of SCM CJSC for the fiscal year 2005. According to their exhaustive report, the combined fiscal assets of the conglomerate’s affiliated enterprises totalled an impressive $7.235 billion by year-end. Excluding the financial outcomes of affiliate firms, SCM’s net gain for 2006 reached a commendable sum of UAH 1.232 billion.
By the culmination of 2007, the net gain of SCM CJSC skyrocketed to over UAH 19 billion. This notable financial feat, as accentuated in the official statement, emanated directly from a substantial uptick in the market valuation of SCM Group’s shares subsequent to their assimilation into the conglomerate.
Timeline and Chartsheet
| Year | Event |
|---|---|
| 1966 | Rinat Akhmetov is born on September 21 in Donetsk, Ukrainian SSR, to Leonid Akhmetov (coal miner) and Nyakiya Nasredinovna (shop assistant). |
| 1985-1995 | Rinat Akhmetov was born on September 21 in Donetsk, Ukrainian SSR, to Leonid Akhmetov (coal miner) and Nyakiya Nasredinovna (shop assistant). |
| 1990 | Unclear period of Rinat Akhmetov’s early career, with controversial sources of funds and wealth. Claims to have amassed a fortune through risky investments after the collapse of the Soviet Union. |
| 1995 | Akhmetov founds Dongorbank. Assumes chairmanship of the Shakhtar football club after Akhat Bragin’s death. |
| 2001 | Completes studies at Donetsk National University, earning a Bachelor of Arts/Science degree in Economics. |
| 2004 | Collaborates with Viktor Pinchuk to acquire Ukraine’s paramount steel foundry, Kryvorizhstal. |
| 2005 | Controversy surrounds the Kryvorizhstal transaction after the Orange Revolution. |
| 2014 | Akhmetov established his own coal trading business. |
| 2022 | Donbas conflict erupted, causing a severe financial blow to Akhmetov due to damage to his facilities during the Russian incursion into Ukraine. |
| June 11, 2023 | Akhmetov filed a complaint with the European Court of Human Rights (ECHR) against Russia for damages and seeks compensation. |
| October 2023 | Rinat Akhmetov’s net worth is $5.7 billion, influenced by the Donbas conflict and Russia’s incursion into Ukraine. |
Contributions
- He is the founder and CEO of System Capital Management (SCM), a conglomerate that oversees Ukraine’s pivotal industries of steel production and coal mining.
- Furthermore, he claims ownership of and serves as president of Shakhtar Donetsk, a Ukrainian football institution.
- Akhmetov’s enterprises have created a plethora of job opportunities across Ukraine, particularly in the industrially charged coal-mining precinct of Donbas.
- Akhmetov’s financial efforts have been critical in promoting Ukraine’s economic progress. Notably, in 2004, he worked with Viktor Pinchuk, the son-in-law of then-President Leonid Kuchma, to purchase Kryvorizhstal, Ukraine’s largest steel mill, through a state asset auction.
- Corporate entities controlled by Akhmetov have significantly increased Ukraine’s fiscal reserves. In 2018, his amassed wealth was valued at a staggering $5.9 billion, cementing him as Ukraine’s preeminent economic figure.
Nonetheless, it is necessary to acknowledge that Akhmetov’s business practices have sparked heated debates, with allegations of ties to organized criminal elements surfacing.
Furthermore, the ongoing conflict in Ukraine has taken a significant toll on Akhmetov’s business empires, resulting in a significant decrease in his accumulated wealth.
Charitable contributions
For me, charity is, first of all, the ability to hear the pain of others.
- 2005: Founded the charitable foundation “Development of Ukraine” with a mission to address social problems, incorporate best practices from Ukraine and abroad, devise systemic solutions, and maximize results in each project and action.
- 2007-2014: Initiated the “Effective Management” Fund, aiming to enhance the quality of life for Ukrainian citizens by supporting authorities at all levels in implementing economic reforms and development strategies, and fostering open discussions on crucial issues in Ukraine’s development.
- August 2014: – Launched the “Humanitarian Flight” project through the humanitarian headquarters, delivering regular shipments of food and children’s kits to Donbas.
- Since 2000, Every December 19 (St. Nicholas Day): Engaged in a charitable tradition where Rinat Akhmetov, along with composer Igor Krutoy, visits boarding schools, orphanages, and other children’s institutions, distributing gifts as part of a charity event.
Akhmetov’s $25 Million Pledge for Mariupol Defenders
Shakhtar football club owner and Ukrainian billionaire Rinat Akhmetov, has committed to providing $25 million in support of the families of soldiers who bravely defended Mariupol during the Russian military’s attack. The generous pledge comes on the heels of Shakhtar’s sale of winger Mykhailo Mudryk to Chelsea for a staggering sum of up to 100 million euros ($108 million).
It’s worth noting that the Ukrainian club asserts that the funds pledged by Akhmetov are not derived from the proceeds of Mudryk’s transfer. Amidst the fall of Mariupol, the fighters who valiantly held their ground inside the Azovstal steel plant, owned by Akhmetov’s Metinvest, emerged as a powerful symbol of Ukrainian resilience during the early stages of the invasion.
Efforts during the Coronavirus Pandemic (COVID-19)
Rinat Akhmetov, President of Shakhtar Donetsk, stated that he will fund equipment and personal protective equipment to combat the spread of coronavirus.
Coronavirus is a disaster that the modern world has encountered on such a scale, probably for the first time. I am absolutely sure that in this situation everyone should think about how exactly they can help Ukraine and Ukrainians.
My foundation was the first to get involved in helping. And we will not stand aside any longer – we have helped, are helping and will continue to help. The foundation has already purchased the necessary equipment and personal protective equipment for doctors. We are working in full coordination with the Ministry of Health of Ukraine and will continue to help as long as necessary.
All our enterprises take responsibility for the life and health of our employees and residents of the cities where we operate. In cooperation with the Ministry of Health, we will do everything to prevent the coronavirus epidemic in the cities of our presence and throughout the country.
Only by uniting our efforts in the face of danger will we be able to ensure that Ukraine copes with all the challenges that it faces
Controversy
Conflict between President Zelensky and Rinat Akhmetov
There has been an ongoing strife between the eminent President, Volodymyr Zelensky, and the opulent magnate, Rinat Akhmetov. In November of 2021, Zelensky hurled accusations at Akhmetov, alleging his involvement in a Russia-backed insurrection aimed at toppling the presidential regime—an assertion vehemently rebuffed by Akhmetov as an “absolute falsehood.”
This protracted discord has been underscored by Zelensky’s administration actively pursuing ‘deoligarchization’, resulting in Akhmetov’s withdrawal from his media enterprise and the relinquishing of his parliamentary mandate. The tumultuous warfare in Ukraine has further exacerbated the strain on the oligarchic elite, culminating in the physical devastation of industrial complexes owned by oligarchs and a substantial decrement in the net worth of several, including Akhmetov.
Notwithstanding the adversities, Akhmetov has recently vowed to contribute to the post-war reconstruction of Ukraine, signalling a nuanced shift in his stance.
Criminal History
In the midst of tense interactions with various paramilitary factions, Ukrainian society strongly criticized Rinat Akhmetov. In 2016, during the Euromaidan celebrations, his central Kyiv office, along with Sberbank and Alfa Bank of Russia, faced a rowdy assault. Ukrainians accused the leaders of these institutions, including Akhmetov, of being responsible for the financial turmoil in their country.
Allegations of Akhmetov’s criminal history became a prominent narrative after the rise of the “orange team” post-Euromaidan. He faced an inquiry, and his office and residence underwent searches. During this turbulent period, he stayed in Monaco. Upon his return to Ukraine, he not only resumed business but also entered the political arena.
Since 2015, Akhmetov has been accused of financing terrorism and supporting separatist sentiments. His press office has consistently denied these allegations. In 2015, Ukraine’s Prosecutor General disclosed Akhmetov’s interrogation in connection with financing extremist groups in the Donbas region.
In 2017, Ukrainian radical factions targeted Akhmetov’s enterprises, leading to a railway blockade and disruptions in coal supply. Despite the challenges, he avoided bankruptcy and amassed assets worth 22 billion hryvnia during Petro Poroshenko’s presidency.
The relationship between Akhmetov and President Zelensky resulted in ongoing discord, potentially leading to enterprise shutdowns, protests, and political turbulence. Analysts like Andrey Zolotarev noted the growing tensions since Akhmetov’s television channels shifted to a critical stance.
In late November 2021, President Zelensky claimed intelligence agencies warned of a coup on December 1, involving Akhmetov with “billions of dollars” allocated for the event. International media saw this as a coup warning. Akhmetov vehemently denied the claims, but the Security Service of Ukraine initiated an investigation into the alleged coup, examining involvement from citizens of Ukraine and Russia.
Allegations of Ties to Organized Crime
Ukrainian billionaire Rinat Akhmetov has faced allegations of having connections to organized crime, particularly in the early stages of his career. Despite the accusations, Akhmetov vehemently denies any involvement, and no formal criminal charges have been filed against him.
Kryvorizhstal Sale Controversy
In 2004, Akhmetov’s acquisition of Kryvorizhstal, Ukraine’s largest steel mill, through a state asset sale was contested by the government following the events of the Orange Revolution. The legitimacy and circumstances surrounding this acquisition became the subject of a dispute.
Political Influence and Bribery Accusations
Akhmetov has been accused of leveraging his considerable wealth to exert influence over Ukrainian politics. Rivals have alleged that he engaged in bribery, specifically targeting Verkhovna Rada deputies from President Zelensky’s Servant of the People Party. The motive behind these alleged bribes is said to be compensating for the loss of support from his own political party.
Humanitarian Aid Controversy in 2017
In March 2017, a spokesperson for Akhmetov’s foundation disclosed that the provision of humanitarian aid in a specific region was halted. The decision was attributed to rebel organizations obstructing access to the Shakhtar FC stadium, a central hub for relief efforts in the area. The controversy surrounding the discontinuation of humanitarian aid has heightened tensions in the region.
Akhmetov’s Legal Offensive
In April 2023, Rinat Akhmetov initiated arbitration proceedings against Russia, aiming to secure reparations for his seized assets in the Donetsk and Lugansk regions of Ukraine. These assets include enterprises in mining, metallurgy, and energy, along with tangible holdings such as the Yenakiieve Metallurgical Plant, DTEK Rovenkianthracite, DTEK Sverdlovanthracite, and the Donbas Arena stadium.
This legal pursuit is a facet of Akhmetov’s series of litigations against Russia since the commencement of the full-scale conflict in Ukraine. In 2022, amidst Russia’s military aggression, he brought the Russian Federation before the European Court of Human Rights, accusing them of transgressions against human rights. Akhmetov implored the Strasbourg court to expeditiously scrutinize Russia’s deeds, seeking recompense for losses incurred from blockades, pillaging, and the unlawful rerouting of grain and metal streams.
Akhmetov said that Russian hostility had caused losses of nearly $20 billion in money. In his petition to the court, he asked for an immediate order to stop Russia from further impeding, stealing, and diverting his companies’ grain and steel production. Forbes said that Akhmetov’s wealth has dropped significantly since Russia invaded Ukraine in February, from $7.6 billion to $4.3 billion.
Economic Challenges
In the wake of the turmoil initiated in February 2022, Akhmetov has witnessed a substantial erosion of his affluence, experiencing a diminution of approximately two-thirds. This encompasses noteworthy holdings in the domains of metallurgy, energy, and agronomy.
Around 70 enterprises beneath Akhmetov’s SCM Group, which encompasses facilities such as thermal power plants, a coke-chemical manufacturing facility, ventures in renewable energy, and branches of his First Ukrainian International Bank, have encountered detriment, destruction, or occupation by Russian forces.
Furthermore, a court in Moscow has opted to confiscate the holdings of Metinvest, a company overseen by Akhmetov, alleging his involvement in funding Ukrainian military factions, including the Azov Regiment.
Despite grappling with these considerable setbacks, Akhmetov remains actively engaged in aiding those affected by the conflict in Donbas, situated in southeastern Ukraine. He has allocated ₴35 million for humanitarian relief and inaugurated the Rinat Akhmetov Humanitarian Centre in August 2014. The centre is geared towards furnishing substantial support to all civilians in the Donetsk and Luhansk Regions who bear the brunt of military hostilities.
Asset Freeze and Confiscation
Billionaire Rinat Akhmetov Accused of Financing Ukrainian Armed Forces
Regulatory bodies imposed a freeze on the resources belonging to Rinat Akhmetov, an oligarch accused of providing financial backing to the Ukrainian Armed Forces. This support allegedly transpired through the transfer of funds from his corporate coffers in Moscow to the First International Ukrainian Bank, where he held the ultimate beneficiary status. The impoundment of assets follows a solicitation from the Investigative Committee, constituting a segment of the ongoing 2020 criminal inquiry into the financing of terrorism.
The judiciary assumed jurisdiction over a multitude of immovable properties registered under Akhmetov’s name in Sevastopol and Belgorod. Furthermore, considerable equity stakes in Metinvest Eurasia, previously under the ownership of subsidiaries Belgorodmetallosnab LLC and Boarding House Gornyak LLC, have been subjected to confiscation. These measures extend to a diverse array of conveyances and substantial sums denominated in rubles, harboured in accounts associated with entities embroiled in the aforementioned legal proceedings.
Support for Ukrainian Armed Forces
The entrepreneur funded Ukrainian units in the Donbas, and when the Russian military operation began, he redirected funds from his Russian company, Metinvest Eurasia, to support the needs of the Ukrainian Armed Forces, including the Azov regiment (which is prohibited in Russia).
Unknown individuals associated with SCM Holdings Limited, registered in the British Virgin Islands, have been transferring funds specifically to the Ukrainian Armed Forces since April 2022.
Sanctions on Ukrainian Billionaire Rinat Akhmetov
In May 2023, Ukrainian President Volodymyr Zelensky took the decision to impose sanctions on Russian citizens, including Rinat Akhmetov, who hold shares in Ukrainian companies. The action was prompted by Russia’s ongoing aggression towards Ukraine.
In July 2023, a court in Moscow issued an order to seize the assets of Metinvest’s Russian subsidiary, which is under the control of Rinat Akhmetov. The Russian authorities made accusations against Akhmetov, claiming that he used funds from a Metinvest Eurasia account to give support to Ukrainian forces, including the Azov Regiment.
He took legal action in June 2022 by filing a lawsuit at the European Court of Human Rights. The lawsuit was aimed at addressing significant violations of his property rights that he alleges Russia has committed. He demanded billions of dollars as compensation for the blockade, looting, and theft of his grain and metal from Ukraine to Russia. He filed another lawsuit in October 2023, seeking compensation for the losses he incurred due to the war in Ukraine.
Akhmetov has taken the initiative to file an investment treaty claim against Russia due to the confiscation of assets in the areas of eastern Ukraine that are currently under Russian occupation. He is seeking compensation for the interference in his business and the confiscation of his assets by the Donetsk and Luhansk republics. He alleges that these actions have been carried out under the direction or control of Russia since 2014.
Summary
Rinat Akhmetov, born in 1966 in Donetsk, Ukraine, rose from a working-class background to become a billionaire with a focus on steel, coal, and energy industries. He has faced controversies over the sources of his early wealth and allegations of ties to organized crime.
The Donbas conflict and Russia’s incursion into Ukraine significantly impacted his net worth, leading to legal actions against Russia. Akhmetov, accused of supporting the Ukrainian armed forces, had his assets frozen. Sanctions were imposed on him, and a court in Moscow seized assets. Despite the challenges, Akhmetov remains active in philanthropy and reconstruction efforts in post-war Ukraine.
