Biography Of Suleyman Kerimov
Biography of Suleyman Kerimov
Suleyman Abusaidovich Kerimov, a billionaire, oligarch, and
politician of Lezgian origin, has played a significant role in Russia's
political and economic landscape. With close ties to Vladimir Putin's
government and Ramzan Kadyrov, the Chechen leader, Kerimov has emerged as a
powerful figure in Russian politics and business.
Kerimov's entry into politics dates back to the 1990s when
he began his ascent to prominence. By 1999, he had gained control of Nafta
Moskva, a former state-oil trader, marking his initial foray into the energy
sector. In the 2000s, Kerimov leveraged his political connections to secure
billions of dollars in loans from major Russian state-owned banks, including
Sberbank and VTB. These loans facilitated his acquisition of substantial stakes
in key Russian companies such as Gazprom, Uralkali, and Sberbank, solidifying
his influence in the energy and financial sectors.
Kerimov's financial success soared throughout the 2000s,
with his fortune peaking at $21 billion by 2008. However, by 2022, his wealth
had decreased significantly to $11 billion, reflecting the volatile nature of
Russia's economic landscape and the challenges faced by its oligarchs. Despite
these fluctuations, Kerimov's political connections and business acumen
continue to position him as a formidable player in Russia's elite circles.
The Early Years and Ambitions of Suleyman Kerimov
Suleyman Kerimov's journey towards wealth and influence
began in his hometown of Derbent, Dagestan. Born into modest beginnings,
Kerimov's ambition and determination would propel him to great heights in the
years to come.
Education and Military Service
After graduating from high school in 1983, Kerimov pursued
further education at the Civil Engineering Department of Dagestan Polytechnic
Institute. However, his studies were interrupted when he was called for
obligatory military service in the Soviet Army in 1984. Despite this setback,
Kerimov resumed his academic pursuits after completing his military duty in
1986, enrolling at Dagestan State University. It was there that he honed his
skills in financial accounting and economics, graduating with a degree in 1989.
During his university years, Kerimov also held the position of Deputy Chairman
of DSU's Trade Union Committee, showcasing early leadership qualities and
organizational skills.
Meeting Firuza and Pursuing Ambitions
It was during his university years that Kerimov crossed paths
with Firuza, his future wife and the daughter of a former Trade Union leader.
As their relationship blossomed, Kerimov's aspirations of financial success
grew stronger. Fueled by a desire to achieve wealth and prosperity, Kerimov
made the pivotal decision to leave his native Dagestan in the early 1990s,
setting his sights on new opportunities beyond his hometown.
Entry into the Workforce
Following his graduation from Dagestan State University in
1989, Kerimov embarked on his professional journey by securing a job as an
economist at the Eltav electrical plant in Makhachkala, Dagestan's capital. At
Eltav, a state-controlled plant, Kerimov's responsibilities included overseeing
the production and supply of transistors, semi-conductors, diodes, microchips,
and halogen lamps. Despite the modest salary of 150 roubles per month,
Kerimov's dedication to his work and ambition remained unwavering, as he and
his wife lived in a worker's hostel attached to the plant, sharing a single
room.
Venturing into Investing
As Kerimov rose through the ranks at Eltav, he began
exploring opportunities in investing, particularly during the tumultuous period
of the fall of the Soviet Union. His keen interest in finance and investments
led him to dabble in various ventures alongside his responsibilities at Eltav,
setting the stage for his transition into the world of banking and finance.
Fedprombank and Strategic Investments
In 1993, Kerimov's career took a pivotal turn when he was
tasked with managing relations between Eltav and Fedprombank, a Moscow-based
bank established by the electrical company. Under Kerimov's leadership,
Fedprombank played a crucial role in financing struggling industries, becoming
creditors to large utility companies. Kerimov's astute management and strategic
investments resulted in substantial returns for Fedprombank when the Russian
economy stabilized, solidifying his reputation as a shrewd businessman.
Expansion into Banking and Aviation
By 1995, Kerimov's influence expanded further as he was
appointed to lead the banking and trading company Soyuz-Finans. Leveraging his
growing stature in the financial sector, Kerimov acquired a 50% stake in
Vnukovo Airlines by 1997 and utilized his leverage to take control of
Fedprombank, acquiring his partners' shares and consolidating his position in
the banking industry.
Acquisition and Restructuring of Nafta Moskva
In a significant move in late 1999, Kerimov acquired a
majority stake of 55% in Nafta Moskva, a notable oil trading company that
succeeded the Soviet-era monopoly firm Soyuznefteexport. With a $50 million
investment, Kerimov embarked on a comprehensive restructuring of Nafta Moskva,
divesting all oil-related assets and transforming it into an investment and
holding company. Under his leadership, Nafta Moskva expanded its portfolio,
including acquisitions such as the business center Smolensky Passazh and
AvtoBank, demonstrating Kerimov's strategic vision and diversification
strategy.
Strategic Investments in Gazprom and Sberbank
Kerimov's strategic acumen came to the fore in 2003 when he
secured a substantial $43 million loan from Vnesheconombank, a state-owned
institution, which he promptly invested in Gazprom, the Russian oil and gas
giant. Capitalizing on the surging share prices of Gazprom, Kerimov swiftly
repaid the loan within four months, showcasing his adeptness in leveraging
market opportunities. Subsequently, in 2004, Kerimov capitalized on Sberbank's
stature as the largest bank in Russia and Eastern Europe, securing a sizable
loan of $3.2 billion. These funds were strategically invested in equities,
further bolstering Kerimov's investment portfolio.
Wealth Accumulation and Strategic Divestment
By 2008, Kerimov's astute investments had yielded
substantial returns, with a 5% stake in Gazprom and a 6% stake in Sberbank,
contributing to his estimated fortune of $17.5 billion, positioning him as one
of the world's wealthiest individuals. However, recognizing market dynamics,
Kerimov strategically divested his holdings in Gazprom and Sberbank in mid-2008,
demonstrating his agility in responding to market fluctuations and optimizing
investment returns.
Acquisition and Public Offering of Polymetal
In November 2005, Kerimov's Nafta Moskva made a significant
move by acquiring JSC Polymetal, a leading player in Russia's gold and silver
mining sector. This strategic acquisition positioned Kerimov as a key player in
the lucrative mining industry. Subsequently, in 2007, Kerimov orchestrated
Polymetal's public listing on the London Stock Exchange, enhancing its visibility
and access to international capital markets. However, recognizing market
dynamics, Kerimov opted to divest 70% of his shares in 2008, strategically
capitalizing on market conditions before the surge in gold prices in 2011. This
strategic maneuver exemplified Kerimov's adeptness in optimizing investment
returns and mitigating risks.
Role in the 2008 Financial Crisis
As global markets braced for the 2008 financial crisis,
Kerimov and his associates anticipated the impending economic downturn, particularly
its impact on the Russian economy. To safeguard his investments and forge
closer ties with Western financial institutions, Kerimov strategically reduced
his stakes in Russian blue-chip companies, including Gazprom. In a bold move,
Kerimov approached Wall Street with a proposal to invest a significant portion
of his fortune to bolster the financial stability of these institutions,
thereby fending off short-sellers. This strategic initiative not only
demonstrated Kerimov's foresight but also positioned him as a pivotal player in
global financial markets.
Strategic Shift to Polyus Gold
Following the economic turmoil of 2008, Kerimov recalibrated
his investment strategy, focusing on acquiring controlling stakes in companies
to exert influence over their strategic direction. In 2009, Nafta Moskva
acquired a substantial $1.3 billion stake, representing a 37% ownership
interest, in OAO Polyus Gold, Russia's largest gold producer. This strategic
investment underscored Kerimov's commitment to the mining sector and his
penchant for leveraging market opportunities. Over time, Kerimov's influence within
Polyus Gold grew, culminating in its IPO on the London Stock Exchange in 2012,
a testament to his strategic vision and ability to navigate complex market
landscapes.
A Reclusive Figure: Forbes Magazine's Assessment
Forbes magazine characterizes Kerimov as one of the most
enigmatic Russian billionaires, noting his steadfast avoidance of media
engagements throughout his two-decade-long business career. Despite his immense
wealth and influence, Kerimov maintains a low profile, refraining from granting
interviews or public appearances, thereby adding to the intrigue surrounding
his business dealings.
Comparison to Warren Buffett: Moscow Times Insights
The Moscow Times draws parallels between Kerimov and
legendary investor Warren Buffett, citing similarities in their investment
strategies marked by astute decision-making and foresight. Kirill Vishnepolsky,
a former deputy editor of Forbes Russia, likens Kerimov to Buffett, lauding his
prudent investment style and knack for identifying lucrative opportunities in
the market.
Perceptions from Financial Circles: Insight into Kerimov's
Business Savvy
Insights from financial circles shed light on Kerimov's
reputation as a visionary and strategic thinker in the business world. A senior
Moscow banker acknowledges the challenges of engaging with Kerimov, describing
him as consistently several steps ahead and possessing unparalleled creativity
in generating innovative ideas. Even seasoned professionals find it challenging
to match Kerimov's agility and intellect, highlighting his exceptional acumen
and entrepreneurial prowess.
Biography Of Suleyman Kerimov - Russian billionaire
Utilization of Financial Leverage: Industry Observations
Reports suggest that Kerimov employs leverage extensively in
his investment ventures, leveraging financial instruments to amplify returns
and maximize profitability. Financiers and bankers active in Russia attest to
Kerimov's adeptness in utilizing leverage as a strategic tool, further
enhancing his reputation as a savvy investor with a penchant for calculated
risk-taking.
Acquisition and Ambitious Plans: Kerimov's Entry into
Football
In 2011, Kerimov acquired FC Anzhi Makhachkala, his hometown
football club competing in the Russian Premier League, signaling his entry into
the realm of sports ownership. With a vision to elevate the club's status on
both domestic and international fronts, Kerimov embarked on an ambitious
journey aimed at transforming Anzhi into a formidable force in the footballing
world.
Unprecedented Spending: A Summer Transfer Budget of €230
Million
In a bold display of financial firepower, Kerimov allocated
a staggering summer transfer budget exceeding €230 million to FC Anzhi
Makhachkala in March 2012. The substantial investment aimed to bolster the
club's squad and propel them towards qualification for the prestigious UEFA
Champions League within a span of three seasons, underscoring Kerimov's
commitment to achieving sporting excellence.
Infrastructure Development: The Anzhi Arena and Youth
Football Academy
Complementing his investment in player recruitment, Kerimov
financed the construction of the modern Anzhi Arena, a state-of-the-art
football stadium with a capacity of 30,000 spectators. Additionally, funds were
allocated to support teams from Anzhi's Youth Football Academy, nurturing
talent and fostering the development of young players within the club's ranks.
Strategic Restructuring: Scaling Back Expenditure and Focus
on Domestic Talent
In August 2013, FC Anzhi Makhachkala underwent a significant
shift in strategy under Kerimov's leadership, as the club opted to scale back
its annual budget by $50–70 million. This decision marked a departure from
their previous lavish spending approach, with a renewed emphasis on prudent
financial management and the recruitment of promising Russian talent to
reinforce the squad.
Exit Strategy: Sale of the Club
On 28 December 2016, Suleyman Kerimov divested his ownership
stake in FC Anzhi Makhachkala, selling the club to Osman Kadiyev. The sale
marked the conclusion of Kerimov's tenure as the club's owner, signaling a new
chapter for Anzhi as it navigated the evolving landscape of Russian football.
Family Background and Personal Life:
Suleyman Kerimov's upbringing was influenced by his family's
professional backgrounds. His father served as a lawyer at a criminal
investigation institution, while his mother worked as an accountant for the
Savings Bank of Russia. Kerimov, married and a father of three children, draws
upon his familial experiences and values in both his personal and professional
endeavors.
Kerimov's extensive network and connections within the
financial world became evident in October 2011. Leveraging his influence, he
orchestrated the visit of prominent Western financial figures to Moscow.
Notable figures such as Jamie Dimon of JPMorgan, Richard Parsons of Citigroup,
and Stephen Schwarzman of Blackstone were among those flown to Moscow. This initiative
aligned with then-President Dmitry Medvedev's vision to establish Moscow as an
"international financial center," showcasing Kerimov's role in
facilitating high-level engagements and initiatives on the global financial
stage.
Wealth and Assets:
Suleyman Kerimov's wealth and assets have been subject to
fluctuations over the years, reflecting his diverse investments and business
ventures. In 2006, he was listed among the world's 100 richest individuals and
ranked as Russia's eighth richest person by Forbes. At that time, his net worth
was estimated at $6.9 billion, a testament to his financial success and prominence
on the global stage.
Kerimov's fortune experienced significant growth in 2020,
primarily attributed to a sharp rise in gold prices. This surge propelled him
to become the richest businessman in Russia temporarily, with his family's
wealth predominantly derived from their substantial holding in the Polyus gold
company, estimated at $24.7 billion. However, by the end of 2020, the value of
the Kerimov family's assets had decreased to $20.9 billion, indicative of the
volatility inherent in financial markets.
Despite fluctuations in his wealth, Kerimov has maintained a
diverse portfolio of assets, including ownership of a villa in Cap d’Antibes,
France. However, his lavish lifestyle has not been without incident, as
evidenced by a serious car accident in Nice, France, in 2006. Kerimov sustained
severe burns after losing control of his $650,000 Ferrari Enzo on the Promenade
des Anglais, underscoring the risks associated with his high-profile lifestyle.
Extravagant Spending and Social Engagements:
Kerimov is renowned for his extravagant spending habits,
often allocating significant portions of his fortune to lavish parties and
entertainment. Notable examples include his sponsorship of performances by
renowned celebrities such as Christina Aguilera, Shakira, Amy Winehouse, and
Jessie J at his exclusive events. These high-profile gatherings serve as a
reflection of Kerimov's penchant for opulence and his status as a prominent
figure in elite social circles.
Ownership of Luxury Yachts:
Suleyman Kerimov's extravagant lifestyle is epitomized by
his ownership of luxurious yachts, reflecting his penchant for opulence and
leisure. From 2005 to 2015, Kerimov possessed one of the world's largest
private yachts, known as Ice. Originally named Air and constructed by German
company Lürssen in 2005, Ice boasted impressive dimensions, measuring 295 feet
(90 meters) in length and capable of reaching speeds of up to 18.6 knots (34.4
km/h; 21.4 mph). The yacht garnered acclaim, winning the prestigious Superyacht
of the Year award at the World Superyacht Awards in 2006, solidifying its
status as a symbol of luxury and sophistication. However, in 2015, Kerimov
divested his ownership of Ice, selling it to The Ministry of Defence for the
Republic of Equatorial Guinea, marking the end of an era for the illustrious
vessel.
Philanthropic Endeavors of Suleyman Kerimov:
Suleyman Kerimov's philanthropic initiatives reflect his commitment
to uplifting communities and promoting social welfare across various spheres.
In 2007, he established the Suleyman Kerimov Foundation, a testament to his
dedication to philanthropy and humanitarian causes. Through this foundation,
Kerimov has made significant contributions to the construction of religious
landmarks, educational institutions, and initiatives aimed at fostering talent
and nurturing potential.
Support for Religious Institutions and Education:
The Kerimov Foundation has played a pivotal role in the
construction of mosques and churches, symbolizing Kerimov's commitment to
promoting religious harmony and cultural diversity. Notably, Kerimov invested
$100 million in the construction of the Moscow Cathedral Mosque, a landmark
project that serves as a testament to his dedication to fostering religious
tolerance and architectural heritage preservation.
In addition to supporting religious endeavors, Kerimov has
been actively involved in educational initiatives aimed at nurturing talent and
empowering future generations. He played a key role in the reconstruction of
the Zarechenskaya secondary school, enhancing educational infrastructure and
opportunities for students in the region. Furthermore, Kerimov's sponsorship of
the Sirius educational center for gifted children underscores his commitment to
promoting excellence in education and providing opportunities for young talents
to thrive.
Commitment to Sports and Youth Development:
Kerimov's philanthropic endeavors extend to the realm of
sports and youth development. As the head of the supervisory board of the
Russian Wrestling Federation, he has championed the development of wrestling as
a sport and supported initiatives aimed at nurturing aspiring athletes. His
contributions to the Gorchakov Foundation's.
