Mikhail Fridman

Early Life and Background

Mikhail Maratovich Fridman was born on April 21, 1964, in Lviv, Ukrainian SSR, Soviet Union, which is now part of Ukraine. His parents were both engineers. His father, Marat Fridman, was a military engineer who worked on aircraft engines, and his mother, Eva Fridman, was a physics teacher and later an engineer. Fridman is of Jewish heritage and has maintained strong ties to the Jewish community throughout his life, becoming a significant philanthropist for Jewish causes. Growing up in the Soviet Union, he experienced the unique social and economic climate of that era, which would later influence his entrepreneurial drive during the period of Perestroika and the subsequent collapse of the Soviet Union.

Education

Fridman pursued higher education at the Moscow Institute of Steel and Alloys (MISiS), a prestigious technical university in Moscow. He graduated in 1986 with a diploma in metallurgical engineering. During his time as a student, he was already demonstrating an entrepreneurial spirit, reportedly engaging in informal trading and organizing student concerts, which were early signs of his business acumen. These early ventures, though small-scale and often operating in the grey areas of the Soviet planned economy, provided him with valuable experience in negotiation, organization, and identifying market opportunities.

Career

Mikhail Fridman's career began during the late 1980s, amidst the economic reforms of Perestroika. In 1988, he founded a student co-operative called "Kuryer," which provided window washing services and delivery services. He then ventured into other small businesses, including "Alfa Photo," a photo lab, and "Alfa Eco," a commodity trading company that dealt in agricultural products and metals. These early enterprises laid the groundwork for his future empire.

In 1990, Fridman co-founded Alfa-Bank, which quickly grew to become one of Russia's largest private commercial banks. Alfa-Bank became the cornerstone of what would become the Alfa Group Consortium. The Alfa Group, formally established in 1997 (though its constituent parts existed earlier), expanded rapidly into various sectors, including telecommunications, oil and gas, retail, and insurance.

One of Fridman's most significant ventures was the creation of TNK-BP, a joint venture formed in 2003 between Alfa Group (alongside Access Industries and Renova Group, collectively AAR Consortium) and British Petroleum (BP). This partnership became one of Russia's largest oil companies. After years of complex negotiations and disputes, the AAR consortium, including Fridman's stake, sold its 50% interest in TNK-BP to the Russian state-owned oil company Rosneft for approximately $28 billion in 2013. Fridman's personal share of this sale was substantial.

Following the sale of TNK-BP, Fridman, along with his partners German Khan and Alexei Kuzmichev, established LetterOne, an international investment vehicle based in Luxembourg. LetterOne's portfolio includes investments in energy, technology, and telecommunications companies globally. Notable investments include stakes in the German energy company DEA Deutsche Erdöl AG (later Wintershall Dea) and the telecommunications giant VimpelCom (now Veon), which operates across several emerging markets.

Another key asset within the Alfa Group is X5 Retail Group, one of Russia's leading food retailers, operating supermarket chains such as Pyaterochka and Perekrestok. Fridman also held significant interests in other sectors, including insurance through AlfaStrakhovanie and water utilities through Rosvodokanal.

In March 2022, following Russia's invasion of Ukraine, Mikhail Fridman was sanctioned by the European Union and the United Kingdom. In response, he stepped down from the boards of both Alfa-Bank and LetterOne, stating his intention to challenge the sanctions. He has consistently denied having close ties to the Kremlin, emphasizing his identity as an entrepreneur.

Major Achievements

Fridman's major achievements include co-founding and building the Alfa Group Consortium into one of Russia's largest and most diversified private business empires. The successful establishment and growth of Alfa-Bank, which navigated numerous economic crises in Russia, stands as a testament to his strategic vision in the financial sector. The creation and eventual sale of TNK-BP for a multi-billion dollar sum marked one of the largest private deals in Russian corporate history, showcasing his ability to manage complex international partnerships and execute high-value transactions. His establishment of LetterOne demonstrated an ambition to diversify investments globally, moving beyond the confines of the Russian market. Beyond business, Fridman has been a significant philanthropist, particularly within the Jewish community. He co-founded the Russian Jewish Congress in 1996 and has been a key supporter of the Genesis Prize, often referred to as the 'Jewish Nobel Prize', through the Genesis Philanthropy Group.

Personal Life

Mikhail Fridman was married to Olga Fridman, and together they have four children: Laura, Katya, Nika, and Alexander. The couple later divorced. Fridman is known for maintaining a relatively private personal life despite his public business persona. He holds both Russian and Israeli citizenship. He is reported to have residences in London and Moscow. Fridman is known to be a keen art collector and has expressed interests in various cultural and intellectual pursuits. His children have pursued their own paths, with some reportedly engaged in entrepreneurial activities as well.

Legacy

Mikhail Fridman's legacy is multifaceted. He is widely recognized as one of the most influential figures in post-Soviet Russian business, instrumental in creating large-scale private enterprises during a period of immense economic transformation. His entrepreneurial drive helped shape the modern Russian economy, particularly in banking, oil, and retail. However, his career is also intertwined with the controversies often associated with Russian oligarchs, including questions about the origins of wealth during privatization and alleged political influence. His philanthropic contributions, particularly to Jewish causes, are a significant part of his public image, aiming to strengthen Jewish identity and culture globally. The sanctions imposed on him in 2022 mark a significant challenge to his international business activities and will undoubtedly shape the final chapters of his public and professional legacy, forcing a reassessment of his global standing and the future trajectory of his wealth and influence.