Suleiman Kerimov

Early Life and Background

Suleiman Abusaidovich Kerimov was born on March 12, 1966, in the ancient city of Derbent, located in the Dagestan Autonomous Soviet Socialist Republic (ASSR) within the Russian Soviet Federative Socialist Republic of the Soviet Union. His family belonged to the Lezgian ethnic group, one of the indigenous Caucasian peoples of Dagestan. His father held a position as a criminal investigator within the Soviet legal system, while his mother worked as an accountant, providing a stable, middle-class upbringing during the Soviet era. Kerimov demonstrated academic aptitude from a young age, successfully graduating from secondary school No. 18 in Derbent in 1983, laying the groundwork for his future educational pursuits.

Education

Following his secondary education, Kerimov initially pursued higher education in civil engineering, enrolling at the Dagestan Polytechnic Institute in 1984. His studies were interrupted between 1986 and 1988 when he fulfilled his mandatory military service in the Soviet Army, a common requirement for young men in the Soviet Union. After completing his military duty, Kerimov made a significant academic shift, transferring to Dagestan State University. He pursued a degree in Financial Accounting and Economics, a field that would prove pivotal to his subsequent career. He successfully graduated from Dagestan State University in 1989, equipped with a strong understanding of economic principles and financial management.

Career

Suleiman Kerimov's career began immediately after his graduation in 1989, when he joined Eltrav, an electrical components plant located in Makhachkala, the capital of Dagestan. Starting as an ordinary economist, Kerimov quickly demonstrated his abilities and rose through the ranks, eventually becoming Deputy Director General of the plant by 1995. This early experience provided him with practical knowledge of industrial operations and management.

In 1995, Kerimov made a strategic move to Moscow, a decision that marked a turning point in his professional life. He joined Soyuz-Finans, a financial-industrial company, where he initially headed the company's Moscow office. This role exposed him to the rapidly evolving post-Soviet Russian financial markets and investment opportunities.

His breakthrough came in 1999 when he acquired a controlling stake in Nafta Moskva, a former state-owned oil trading company that had fallen into disarray. Kerimov transformed Nafta Moskva from an oil trader into a powerful investment vehicle. Under his leadership, Nafta Moskva embarked on a series of aggressive and highly leveraged investments across various sectors of the Russian economy. He acquired significant stakes in major Russian companies, including the state-controlled gas giant Gazprom and the country's largest bank, Sberbank. His strategy often involved taking large, debt-financed positions in undervalued assets, restructuring them, and then selling them for substantial profits. This approach earned him a reputation as a shrewd and audacious investor.

Between 2005 and 2009, Kerimov's investment vehicle, Nafta Moskva, made a series of high-profile acquisitions and divestitures. He invested heavily in Russian construction companies, including the acquisition of a significant stake in Mostotrest, Russia's largest bridge construction company. He later exited many of these construction holdings, shifting his focus towards the mining sector. In 2008, he acquired a substantial stake in Polymetal International, one of Russia's largest gold and silver producers. Subsequently, he became a major shareholder in Uralkali, a leading global producer of potash, and Polyus Gold, Russia's largest gold mining company, where his son, Said Kerimov, later served as Chairman of the Board of Directors.

Kerimov also ventured into the telecommunications sector, acquiring stakes in companies like Mostelecom. His investment philosophy was characterized by a willingness to take on considerable risk, utilize significant leverage, and make timely exits, often predicting market trends with remarkable accuracy. His business acumen propelled him to become one of Russia's wealthiest individuals.

Alongside his business empire, Kerimov also embarked on a political career. In 1999, he was elected as a deputy to the State Duma, the lower house of the Russian parliament, representing the Liberal Democratic Party of Russia (LDPR). He was re-elected in 2003, serving until 2007. In 2008, he transitioned to the Federation Council, the upper house of the Russian parliament, where he has since served as a senator representing the Republic of Dagestan. As a senator, he has been involved in various committees, including those related to finance and federal affairs, allowing him to maintain influence in both the economic and political spheres of Russia.

Major Achievements

Suleiman Kerimov's primary achievement lies in his extraordinary ability to build a multi-billion-dollar business empire through astute and often unconventional investment strategies. His transformation of Nafta Moskva into a powerful and diversified investment holding company is a testament to his financial prowess. His timely investments and divestments in sectors like oil, gas, banking, construction, and mining consistently generated immense wealth, solidifying his position as one of Russia's most successful entrepreneurs.

Beyond his financial successes, Kerimov has made significant contributions through his philanthropic endeavors. In 2007, he established the Suleiman Kerimov Foundation, which has become a major charitable organization. The foundation has supported numerous projects, particularly in his native Dagestan, focusing on education, healthcare, infrastructure development, and cultural preservation. He is known for funding the construction and renovation of mosques, schools, and sports facilities. A notable philanthropic venture was his acquisition and significant investment in the football club FC Anzhi Makhachkala from 2011 to 2013, aiming to elevate the club's profile and develop football in Dagestan, though he later scaled back his involvement.

In his political capacity, Kerimov has consistently advocated for the interests of Dagestan and contributed to legislative processes at the federal level, leveraging his economic expertise for policy development.

Personal Life

Suleiman Kerimov is married to Firuza Nazimovna Khanbalaeva, whom he married in 1989. Together, they have three children: two daughters, Gulnara and Aminat, and a son, Said. His son, Said Kerimov, has also taken an active role in the family's business interests, notably serving as Chairman of the Board of Directors of Polyus Gold. Kerimov is known for maintaining a relatively private personal life despite his public profile as a billionaire and politician. However, he has been associated with a lavish lifestyle, owning luxury properties and a private jet.

One significant personal event occurred in November 2006 when Kerimov was involved in a severe car accident in Nice, France. His Ferrari Enzo crashed, leading to extensive burns that required prolonged medical treatment and left him with visible scars. He reportedly sustained burns over 70% of his body, a testament to the severity of the incident.

Controversies

Kerimov's career has not been without controversy. His rapid accumulation of wealth during Russia's privatization era and subsequent aggressive investment tactics drew scrutiny regarding the origins and methods of his fortune. The opacity surrounding some of his deals and the use of offshore structures have been subjects of media speculation.

In November 2017, Kerimov was arrested at Nice Côte d'Azur Airport in France on suspicion of tax evasion and money laundering. French authorities alleged that he had illegally imported hundreds of millions of euros into France to purchase several luxury villas on the French Riviera through shell companies, thereby avoiding significant taxes. He was held for several days and subsequently released on bail. After a lengthy legal process, the case was ultimately settled in 2020, with Kerimov agreeing to pay a substantial fine, though he was not convicted of money laundering.

More recently, following Russia's full-scale invasion of Ukraine in February 2022, Suleiman Kerimov was subjected to sanctions by the United States, the European Union, and the United Kingdom. These sanctions were imposed due to his close ties to the Russian government and his perceived role in supporting the Russian economy and its aggression. The sanctions led to the freezing of his assets in these jurisdictions and restrictions on his travel and business activities, impacting his international operations and financial holdings.

Legacy

Suleiman Kerimov's legacy is multifaceted. He stands as a prime example of the Russian oligarch class that emerged in the post-Soviet period, demonstrating exceptional entrepreneurial drive and a talent for navigating complex financial and political landscapes. His impact on the Russian economy, particularly through his strategic investments in key industries, is undeniable. Furthermore, his extensive philanthropic work, especially in Dagestan, has left a lasting mark on his home region, contributing to social development, education, and cultural initiatives. Despite the controversies and international sanctions, Kerimov remains a powerful and influential figure in Russia, embodying a blend of business acumen, political engagement, and significant charitable giving.