Roman Abramovich
Roman Arkadievich Abramovich (Russian: Рома́н Арка́дьевич Абрамо́вич) (born October 24, 1966 in Saratov, Russian SFSR, USSR) is a Russian oil billionaire, referred to as one of the Russian oligarchs. In March 2005 he was listed by Forbes Magazine as the richest Russian and the 21st richest person in the world with an estimated fortune of $13.3 billion. (Everyone above him in the list was older than him; the only one of those within a decade of his age was computer magnate Michael Dell, 20 months older). Abramovich is most famous outside of Russia as the owner of Chelsea F.C., an English Premiership football club, his wider involvement in European football, and for his contributions to Jewish enterprises in Israel and elsewhere, reflecting his Jewish origins.
Early Life and Career
Abramovich lost his mother at the age of 18 months and his father, who was killed in a construction accident, at the age of four. Adopted by his paternal uncle and raised by his Jewish family of limited means in the harsh environment of Komi in North West Russia, Abramovich has been able to transform hardship into success.
Abramovich attended the Industrial Institute in the city of Ukhta before being drafted into the Soviet Army, the Soviet military ground force.
Post-Soviet Privatization, New Wealth and Political Career
Abramovich started his commercial activity in 1992. He received help in these activities from his friend Boris Berezovsky. In 1992-1995 Abramovich founded five companies that conducted resale and acted as intermediaries. His alleged criminal activities during this period were noticed by law enforcement. In July, 1992, deputy prosecutor of Moscow approved Abramovich's arrest for violating article 90 of Russian criminal code. This case was sent to Ukhta, Komi republic for further investigation. He was accused of stealing diesel fuel from an Ukhta enterprise to the amount of 4,000,000 rubles. Investigation determined that this fuel was transported to Riga using falsified documents (which said that the fuel was supposed to be delivered to the Army) and sold there.
Abramovich obtained the majority of his wealth by cheaply acquiring shares of privatized state companies in the mid 90s with the help of Boris Yeltsin and Boris Berezovsky. He became the majority shareholder in Sibneft, a large oil company, and is also a major shareholder in RusAl, the world's second-largest aluminium producer, as well as various other companies.
The shares of Sibneft were acquired by Abramovich and Berezovsky at a so-called contest in which companies owned by these individuals were the only competitors. These companies were founded shortly before the contest.
According to allegations of Compromising materials, Russian investigation authorities have been long collecting information about Abramovich's criminal activity, and the only reason that he has not been charged with a crime is that he is very closely connected to Boris Yeltsin and his daughter Tatiana Diachenko.
In 1999 Abramovich was elected to the Russian Duma as the representative for the impoverished Far East region of Chukotka. He started the charity Pole of Hope to help the people of Chukotka, especially children, and in December 2000 was elected governor of Chukotka, replacing the corrupt Alexander Nazarov. Since then he has invested hundreds of millions of dollars in Chukotka, for example building a college and hotels in Anadyr and renovating the airport. He has also used Chukotka as a tax haven for Sibneft and has been exploring for oil there. Abramovich said that he would not run for governor again after his term of office expires in 2005, as it is "too expensive" - and he rarely visits the region. However, Russian President Vladimir Putin has changed the law to abolish elections for regional governors, and on 21 October 2005 Abramovich was reappointed governor for another term.
Abramovich and European Football
In 2003 he became the owner of the companies that control Chelsea Football Club in the United Kingdom. This immediately raised his profile in Britain where the tabloids noted the Russian connection by humorously dubbing the club Chelski. As soon as Abramovich took control, he poured massive investment into the Club, bringing to it the finest footballing and managerial talent that could be obtained, with money being no object. The Club also embarked on an ambitious programme of commercial development, with the aim of making it a worldwide brand and not simply a local football club. The result was near-instant success: Chelsea finished its first season after the Abramovich takeover in second place in the Premiership. The following season they moved into first place and also reached the semi-finals of the Champions League. They are now a dominant force in English football.
In March 2004, Sibneft agreed a three-year sponsorship deal worth USD 58 million (approx. GBP 30 million, EUR 44.5 million, RUR 1.6 billion) with the Russian team CSKA Moscow. Despite the company explaining that the decision was made at management level, some viewed the deal as an attempt by Abramovich to counter accusations of being unpatriotic which were made at the time of the Chelsea purchase. UEFA rules prevent one person owning more than one team participating in UEFA competitions, so Abramovich has no equity interest in CSKA. Nevertheless, he was named most influential person in Russian football in the Russian magazine Pro Sport at the end of June 2004. In May 2005, CSKA won the UEFA Cup, becoming the first Russian club ever to win a major European football competition. However later in 2005 Abramovich sold his interest in Sibneft.
Relationship with Kremlin
Abramovich's close relationship with Boris Yeltsin and his family is well known, and some details have been provided by general Korzhakov. It is alleged that Yeltsin provided Abramovich with protection from any attempt of prosecution for criminal activities.
The proposed merger of Sibneft with Yukos was seen by most as a distancing of himself from Russia, at a time when the Kremlin appears to have decided to bring at least some of the oligarchs to account for their colourful past business practices. Abramovich was a close associate of controversial Boris Berezovsky who sold him his stake in Sibneft, although in July 2005 Berezovsky announced his intention to sue Abramovich in the British courts for pressuring him into selling most of his Russian assets cheaply to Abramovich after Berezovsky fled the country [1].
In 2005, he moved down to second place in the Sunday Times Rich List of UK residents, as the newspapers estimate of Lakshmi Mittal's wealth had more than quadrupled since the previous year. Abramovich is included in the list despite the fact that he retains residences in Moscow, Chukotka and a mulitimillion dollar mansion in Barabados.
In September 2005 Abramovich sold 72.663% of Sibneft to the Russian-government controlled Gazprom for US$ 13.01 billion (euro 10.81 billion, GB£ 7.4 billion). The transaction is interpreted as indicating that he remains on good terms with President Vladimir Putin, unlike fellow-oligarch Mikhail Khodorkhovsky (The Khodorkhovsky-case has been a very controversial case, leading many to believe that he is a prisoner of conscience, or rather imprisoned for not co-operating with Putin) who was recently jailed for nine years. In addition the Kremlin press service recently confirmed that Abramovich's name has been sent for approval as governor for another term to Chukotka's local parliament, which confirmed his appointment on 21 October 2005.
Other interests and activities
Abramovich is known as a fan of Formula One and is often seen in the paddock at races; in 2004, after the sport's owner Bernie Ecclestone was seen giving Abramovich a tour of the pitlane at the Monaco Grand Prix, rumours circulated that he was considering investing in or purchasing an F1 team.
He owns his own private Boeing 767-300 known as "The Bandit" due to its paint scheme.
Of Jewish background, Abramovich is a firm supporter of Jewish causes, seen his funding of several projects in the Abramovich neighbourhood in Jerusalem, Israel and in Tel Aviv.
He owns three superyachts. Le Grand Bleu, previously owned by Paul Allen of Microsoft, is 108.3 metres long and carries a 22 metre yacht on board, a helicopter, speedboat and jet skis. Pelorus is a 114.5 metre yacht made by the Lurssen yard, and Ecstasea is a 85.95 Feadship vessel launched in 2004.