Roman Abramovich

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Roman Arkadievich Abramovich
Born	October 24, 1966 (age 40) Saratov, Russia
Occupation	Governor, Oil Billionaire, Owner Chelsea Football Club
Spouse	Irina Abramovich (divorced)

Roman Arkadievich Abramovich (English: a-bram-OH-vich)(IPA: [rʌˈmɑn arˈkadʲievɨtɕ abraˈmovɨtɕ]) (Russian: Рома́н Арка́дьевич Абрамо́вич) (born 24 October 1966 in Saratov, Russia) is a Russian oil billionaire and the main owner of private investment company Millhouse Capital, referred to as one of the Russian oligarchs. According to Forbes Magazine, he has a net worth of $18.7 billion.

Abramovich is most famous outside Russia as the owner of Chelsea, an English Premiership football club, and for his wider involvement in European football. Despite his high profile around the world, Abramovich makes virtually no public statements about his activities.

In Russian, his surname is pronounced with the stress on the third syllable, but most English speakers stress it on the second syllable.

Contents 1 Early life and education 2 Post-Soviet privatization and business success 3 Political career 4 Abramovich and European football 4.1 Chelsea F.C. 4.2 CSKA Moscow 4.3 Russian national team 5 Relationship with Kremlin 6 Family, other interests and activities 7 Boats and planes 8 References 9 External links

[edit] Early life and education

Roman grew up as an orphan. His mother, Irina Abramovich, died from bacteremia as a result of a back-alley abortion when Roman was one year old ^[1]. His father Arkady Abramovich was killed in an incident on a construction site when Roman was three years old ^[1]. Abramovich grew up in his uncle's family in Ukhta and with his grandmother in Moscow ^[1].

Abramovich attended the Industrial Institute in the city of Ukhta before being drafted into the Soviet Army. After military service, he studied briefly at the Moscow State Auto Transport Institute before dropping out to go into business. He later earned a correspondence degree from the Moscow State Law Academy.

[edit] Post-Soviet privatization and business success

Abramovich started his commercial activity in the late 1980s when Soviet president Mikhail Gorbachev's reforms permitted the opening of small private businesses, known as co-operatives. In 1992 to 1995 Abramovich founded five companies that conducted resale and acted as intermediaries, eventually specializing in the trading of oil and oil products. In 1995 Roman Abramovich, together with Boris Berezovsky, acquired the controlling interest in the large oil company Sibneft. The deal was within the controversial Loans-for-shares program and cost the partners $100m, although the real cost of the company was in billions of dollars ^[1].

During the 1990s, through their holding company Millhouse Capital, Abramovich and his business partner Eugene Shvidler acquired significant stakes in Russia's largest air company Aeroflot and the aluminium giant Rusal, as well as in smaller companies in the automobile industry, pharmaceuticals, food processing, real estate and other sectors. Most of those assets were sold for hefty profits in 2002-2005. Most notably, Millhouse Capital sold its stake in Sibneft to state energy giant Gazprom for 13 billion dollars, and its stake in Rusal to Oleg Deripaska for 2 billion dollars.

In 2004, Swiss criminal investigators abandoned an investigation into an alleged fraud involving a $4.8 billion loan from the IMF to Russia, in which Abramovich was one of the investigators' key suspects, after the United States and Russia refused to divulge information on the scandal; Laurent Kasper-Ansermet, the magistrate in charge of the Swiss investigation, was also beaten unconscious while visiting St Petersburg.^[2]

In 2005, France commenced money laundering investigations into companies linked to Abramovich, following an earlier investigation by Tracfin, an agency of the French Finance Ministry.^[3]

He was named the second-wealthiest person in the UK in the Sunday Times Rich List 2006, with an estimated fortune of £10,800 million. Abramovich qualified for the list by virtue of retaining residences in Knightsbridge London and Sussex. His 440-acre estate in West Sussex was previously owned by King Hussein of Jordan. It has stabling for 100 horses, two polo pitches, a swimming pool, a clay pigeon shoot, a rifle range and a go-kart track.^[4]
He attempted to purchase the internet domain Abramovich.com, but was rebuffed by the current owner, an American of the same name.

[edit] Political career

In 1999 Abramovich was elected to the State Duma as the representative for the Chukotka Autonomous Okrug, an impoverished region in the Russian Far East. 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 Alexander Nazarov. Since then he has invested hundreds of millions of pounds in Chukotka, which has paid for a college, a hospital, a pre-school and hotels in Anadyr, as well as renovating the airport and funding new or renovated schools in many small towns and villages. He has also used Chukotka as a tax haven for Sibneft, though the company re-invested most of its tax savings in the region and has been exploring for oil there as part of the governor's drive to boost the local economy. Abramovich said that he would not run for governor again after his term of office expired in 2005, as it is "too expensive", and he rarely visits the region. However, Russian President Vladimir Putin changed the law to abolish elections for regional governors, and on 21 October 2005 Abramovich was reappointed governor for another term. In 2006 Abramovich used his power as governor to help out the explorer Karl Bushby who was deported from the region for border violations after walking from Alaska into Russia during his attempt to walk round the world.^[5]

Abramovich was awarded the Order of Honor for his "huge contribution to the economic development of the autonomous district [of Chukotka]", by a decree signed by the President of Russia.^[6]

[edit] Abramovich and European football

[edit] Chelsea F.C.

In June 2003 he became the owner of the companies that control Chelsea Football Club in the United Kingdom. He had, apparently, investigated the possibility of purchasing several other clubs before deciding on Chelsea, who were financially vulnerable at the time.

The deal 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 (estimated at £440 million to January 2006), assuming the £80m debt burden and immediately making available substantial transfer funds. The club also embarked on an ambitious programme of commercial development, with the aim of making it a worldwide brand. The result was near-instant success: Chelsea finished their first season after the takeover in 2nd place in the Premiership (from 4th the previous year). The following season they moved into first place and also reached the semi-finals of the Champions League. They are now one of the dominant forces in English football. It is argued that Abramovich's involvement with Chelsea has distorted the football transfer market throughout Europe^{[citation needed]}, as his wealth often allows the club to purchase players virtually at will (frequently at inflated prices), without regard for the effects on the club's financial outturn. The spending has, to some extent, seen wealth re-distributed throughout the game, with the combined fee of £12.5m paid to West Ham United for Glen Johnson and Joe Cole helping to avert administration.^[7] In the year ending June 2005, Chelsea posted record losses of £140 million and the club is not expected to record a trading profit before 2010, though this did decrease to reported losses of £80.2 million year ending June 2006.^[8]

Abramovich has huge ambitions for Chelsea, which are matched by his spending. However, in a recent interview he stated that he expects Chelsea's transfer spending to fall in years to come.^[9] Recently, Chief Executive Peter Kenyon stated that he believes that Chelsea will be recognised as the biggest team in the world by 2014.^{[citation needed]}

He is also present at almost every game Chelsea play and shows visible emotion during matches, a sign taken by supporters to indicate a love for the sport (though others see it as a smart move in protecting his wider interests)^{[citation needed]}, and usually visits the players in the dressing room following each match, although this has not happened for a few months as rumours of a feud between Abramovich and Chelsea manager Jose Mourinho persist in various newspapers.^{[citation needed]}

[edit] CSKA Moscow

In March 2004, Sibneft agreed to 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. Following an investigation, he was cleared by UEFA of having a conflict of interest.^[10] 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, in October 2005, Abramovich sold his interest in Sibneft and the company's new owner Gazprom, which sponsors St. Petersburg team Zenit, cancelled the sponsorship deal.

[edit] Russian national team

Abramovich also played a large role in bringing Guus Hiddink to Russia to coach the Russia national football team.^[11] Piet de Visser, a former head scout of Hiddink's club PSV Eindhoven and now a personal assistant to Abramovich at Chelsea, recommended Hiddink to the Chelsea owner.^[12]

[edit] Relationship with Kremlin

Abramovich's close relationship with Boris Yeltsin and his family is well known.^{[citation needed]}

The proposed merger of Sibneft with Yukos was seen by most as a move to distance 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.^[13]

The Kremlin press service reported that Abramovich's name had been sent for approval as governor for another term to Chukotka's local parliament, which confirmed his appointment on 21 October 2005.

Chris Hutchins, a biographer of Vladimir Putin, claims that the relationship between the Russian president and Abramovich is like that between a father and a favourite son; when rumours began about the latter's relationship with Zhukova, Putin reportedly told him "to clean up his act".[2]

[edit] Family, other interests and activities

Abramovich has been married twice, to Olga (divorced 1990), and to Irina (née Malandina) in 1991 (divorced 2007).

On 15 October 2006, the News of the World reported that Irina had hired two top UK divorce lawyers, following reports of Abramovich's close relationship with a 23-year old beauty called Daria Zhukova, the former girlfriend of tennis player Marat Safin. It was speculated that a future divorce settlement (amounting to a conjectured £5.5 billion) might be the highest ever on record. They divorced in Russia in March 2007, with a settlement reported as being $300 million^[14].

Being Jewish, Abramovich is a firm supporter of Jewish causes in Russia and Israeli causes, and has funded several projects in the Abramovich neighbourhood in Jerusalem, and in Tel Aviv. He is known to be the biggest donor of the Jewish organization Chabad-Lubavitch.^{[citation needed]} In addition, he is the richest Jewish person in Great Britain.^[15]

Roman Abramovich sponsored an exhibition of photographs of Uzbekistan by Max Penson (1893–1959) which opened on 29 November 2006 at the Gilbert Collection at Somerset House in London. It is also reported that he funded the exhibition "Quiet Resistance: Russian Pictorial Photography 1900s-1930s" at the same gallery in 2005.^[16]

[edit] Boats and planes

Abramovich has become the worlds greatest spender on luxury yachts, and had four boats in what the media have called "Abramovich's Navy":^[17][18]

• Eclipse - Currently he is having it built in Germany by Blohm + Voss. Informed sources say it will measure 525ft / 160 meter long or even longer. It is believed to cost Abramovich £200 million.^[19]
• Ecstasea (282 feet / 85 meter long) ^[20]
• Pelorus (377 feet / 115 meter long)
• Le Grand Bleu (370 feet / 112 meter long) – commissioned by a Saudi businessman, Abramovich bought her in 2002 and had her completely refitted including a 16ft swim platform and sports dock. He gave her away to friend Eugene Shvidler in June 2006.
• Sussurro (163 feet / 50 meter long) - built by Feadship, De Vries in 1998 with the interior designed by Terence Disdale.

Abramovich, a regular visitor to the Principality of Monaco, made a request to register his yacht(s) in the Principality, but his request was rejected: "for maintaining the peace of the country, and the safety of its citizens".^{[citation needed]}

He owns a private Boeing 767-33A/ER (registration P4-MES, registered in Aruba), known as "The Bandit" due to its cockpit area paint detail. Originally the aircraft was ordered by Hawaiian Airlines but the order was cancelled. The Boeing 767 replaces a smaller Boeing 737-7CG BBJ, registration P4-GJC. Abramovich also owns several Eurocopter helicopters (EC-145, registration P4-LGB, EC-135T1, registration P4-XTC and EC-155B, registration LX-HEC) based on his superyachts or at his home in Sussex.

Mr. Abramovich also owns a Ferrari FXX, a $2.2 million dollar race-only car, of which only 30 were built.

Abramovich also recently brought 2 maybach 62. He had these customized to be bomb proof and have bullet-proof glass. It has reported to have cost him £1 million.

[edit] References

[edit] External links

• The Official Chelsea Football Club website
• Pravda: Chelsea's owner Roman Abramovich tops Russia's richest men list
• BBC News article "Chasing Mr Chelski"
• Roman-Abramovich.com
• Mosnews' profile of Roman Abramovich, with a collection of articles
• Forbes:Roman Abramovich
• RIA Novosti Image Library:Roman Abramovich
• Foreign Owners in Football

Government offices
Preceded by Alexander Nazarov	Governor of Chukotka 2000 – present	Succeeded by Current Incumbent