Originally Syndicated on August 7, 2023 @ 6:20 am
Alisher Usmanov is a prominent oligarch figure known for his controversial accumulation of power and wealth.
Table of Contents
Early Life & Background
Alisher Usmanov, a prominent oligarch, has been at the centre of both acclaim and controversy throughout his life. Usmanov, who is from Uzbekistan, has experienced significant milestones along the way to wealth and power, including imprisonment and a high-profile marriage.
Born in Chust, Uzbekistan, Usmanov’s upbringing was in the capital city of Tashkent, where his father held a prominent position as a state prosecutor. His aspirations for a diplomatic career led him to Moscow, where he eventually earned a degree in international law from the Moscow State Institute of International Relations.
However, Usmanov’s life took a dark turn in 1980 when he faced charges of fraud, corruption, and theft of state property in the Uzbek SSR. Following a controversial trial, he was sentenced to six years in a remote Uzbek prison. Decades later, the Supreme Court of Uzbekistan overturned his conviction, stating it was unjust and based on fabricated evidence.
In 1992, Usmanov tied the knot with Irina Viner, a well-known Jewish rhythmic gymnastics coach known for her close association with President Putin. However, in 2022, their marriage ended when Usmanov filed for divorce.
Usmanov’s life remains under scrutiny, with some questioning the accuracy of his version of events surrounding his imprisonment. His rise to oligarchic prominence and close connections with influential figures have made him a controversial figure in the world of power and wealth.
Alisher Usmanov: Business Ventures and Investments
Alisher Usmanov, a flashy representative in the world of business, is an oligarch with a remarkable and controversial career. From humble beginnings, he rose to become a millionaire before the collapse of the Soviet Union. Despite facing criticism, Usmanov claims to have never participated in the privatization of state property.
Business Career
Usmanov’s business career took off during the turbulent years preceding the dissolution of the Soviet Union. He established a for-profit company named Agroplast, which specialized in producing plastic bags. After the USSR’s collapse, Usmanov enriched himself significantly, but he consistently maintained that he never engaged in the privatization of state assets.
Throughout the 1990s, Usmanov held key positions in various enterprises. He served as the Deputy General Director of Intercross JSC and later headed Interfin Interbank Investment and Finance Company. Additionally, he was an Advisor to the General Director of Moscow Aviation Industrial Enterprise and held the position of First Deputy Chairman of MAPO-Bank.
In the late 1990s, Usmanov assumed the role of General Director of Gazprom Invest Holdings, a subsidiary of Russia’s state-owned gas company, Gazprom. He managed the company for over a decade before stepping down in 2014.
USM Holdings and Metalloinvest
Usmanov is a co-owner of USM Holdings, a global conglomerate with investments in the metals and mining industries, telecommunications, and technology. His 49% share in USM grants him diverse interests in various sectors, including iron ore and steel, media, and internet companies.
Notably, Usmanov co-founded Metalloinvest with business partner Vasiliy Anisimov, utilizing a different approach from other Russian tycoons who gained control of empires through privatization schemes. Instead, Usmanov built Metalloinvest through strategic acquisitions in the secondary market, which enabled the company to own multiple Russian metal and mining businesses.
In recent years, USM Holdings has invested in the competitive video game esports team Virtus Pro, highlighting Usmanov’s interest in diverse industries.
Udokan Copper
One of Usmanov’s significant achievements was the acquisition of the Udokan license, a massive copper deposit, in 2008. The Udokan mine, located in a remote and harsh environment, has been left untouched since 1949. However, under Usmanov’s ownership, Baikal Mining Company (rebranded to Udokan Copper) began strip mining and constructing a mining and metallurgical plant for the production of copper concentrate.
Mail.Ru Group and Megafon
Usmanov’s involvement in the media industry includes his purchase of Kommersant, a newspaper that Russian oligarch Boris Berezovsky previously owned. He also invested in Russian sports TV channel 7TV and bought 75% of the Russian TV music channel Muz-TV.
Additionally, Usmanov held a significant stake in Mail.Ru Group (later rebranded to VK), where he made notable investments in technology companies such as Facebook, Twitter, Groupon, Zynga, Airbnb, ZocDoc, Alibaba, and 360buy.
Retirement
In 2014, Usmanov announced his retirement from active management positions and shifted his focus towards philanthropy, promoting the development of Uzbekistan, and sports. In 2023, he also resigned from the board of the Russian Union of Industrialists and Entrepreneurs.
Both extraordinary success and controversy have characterized Alisher Usmanov’s business career. From his early years as a millionaire to co-owning USM Holdings and Metalloinvest, he has had a significant impact on various industries. His investments in technology companies and media ventures further solidified his position as a powerful oligarch. Despite stepping down from active management, Usmanov’s legacy continues to shape the business landscape in Russia and beyond.
Alisher Usmanov’s Net Worth
Alisher Usmanov stands tall among the elite, counted among Russian oligarchs’ net worth as one of the world’s 100 wealthiest individuals. His opulent lifestyle reflects his vast riches, with properties spanning the globe. The picturesque Grade I-listed Tudor mansion, Sutton Place, set in 120 hectares of Surrey, serves as one of his grand abodes, along with the Regency gem, Beechwood House, in London’s Highgate.
Not limited to land, Usmanov takes to the seas on his three luxurious yachts, named Dilbar in honour of his mother. These floating palaces come at staggering costs, with the third Dilbar, the largest yacht globally by gross tonnage, alone reported to have a jaw-dropping price tag of $800 million.
Despite his extravagant lifestyle, Usmanov faced financial setbacks when sanctions were imposed on him due to the 2022 Russian invasion of Ukraine, causing his net worth to plummet. A tale of grandeur and turbulence, the life of Alisher Usmanov remains one of intrigue and excess.
Oligarch Status and Influence
In the enigmatic world of Russian politics and business, few figures have garnered as much attention and controversy as Alisher Usmanov. As an influential oligarch with deep connections to Russian political elites, Usmanov’s rise to power and immense wealth has raised eyebrows and sparked debates on the extent of his influence on government policies. This article delves into the definition of an oligarch in Russia, explores Usmanov’s close ties to the country’s political elites, and scrutinizes his purported impact on Russian government policies.
Definition of an oligarch in Russia
In Russia, oligarchs represent a select group of wealthy individuals who wield significant economic and political power. These individuals often acquired their wealth through the privatization of state assets in the tumultuous 1990s. Oligarchs exercise considerable control over key industries, which enables them to influence national policies and shape the country’s economic landscape.
Oligarch’s economic influence: Usmanov, an Uzbek-born entrepreneur, emerged as a prominent figure among the Russian oligarchs’ list. His business empire spans diverse sectors, including mining, telecommunications, media, and technology. With such a broad portfolio, Usmanov possesses the means to impact various aspects of the Russian economy.
Oligarch’s political connections: Central to the definition of an oligarch is their proximity to political power. Usmanov’s ascent benefited from his close associations with prominent Russian politicians, including President Vladimir Putin. Such connections have sparked debates about the extent to which these affiliations shape the oligarch’s influence over government decisions and policies.
Usmanov’s connections to Russian political elites
- Ties with President Putin: Usmanov’s relationship with President Putin has come under intense scrutiny. Their association dates back to the early 2000s when Usmanov acquired a significant stake in Gazprom, the state-owned natural gas company. Subsequently, he collaborated with Putin on various cultural and philanthropic initiatives, which further solidified their bond.
- Media ownership and influence: One of the significant ways Usmanov has exerted his influence is through media ownership. He controls a substantial stake in Russia’s largest social media platform and has interests in mainstream media outlets. This control over information dissemination raises concerns about the potential manipulation of public opinion to suit his interests and those of the ruling elite.
Influence on Russian government policies
- Impact on economic policies: With vast business interests, Usmanov’s lobbying power within the Russian government cannot be underestimated. His interests align with crucial sectors, such as mining and telecommunications, giving him considerable leverage to sway economic policies in his favour.
- Allegations of corruption and cronyism: Critics argue that Usmanov’s influence over the Russian government extends to facilitating a culture of corruption and cronyism. His business dealings have faced allegations of impropriety, raising questions about the transparency and fairness of government contracts and tenders.
International Implications
As an oligarch with global investments, Usmanov’s actions and influence within Russia have ramifications beyond the country’s borders. His significant investments in international ventures and philanthropic endeavours raise questions about the potential use of his wealth and connections to further Russian foreign policy interests.
Alisher Usmanov’s status as an influential oligarch with close connections to Russian political elites places him in a position of immense power and wealth. Defined by his vast economic empire and ties to President Putin, Usmanov’s influence on Russian government policies has been the subject of intense debate. As Russia continues to navigate its complex political landscape, understanding the dynamics between oligarchs like Usmanov and the government remains crucial to comprehend the nation’s trajectory.
Controversial Practices and Allegations on Alisher Usmanov
Alisher Usmanov, a Russian billionaire, has risen to prominence in the world of business and politics. However, a number of contentious actions and allegations have tainted his success. Let’s delve into the controversies surrounding Usmanov, examining the accusations of corruption, human rights abuses, support for terrorism, and tax evasion, all while providing a balanced perspective on his staunch denials.
- Corruption Allegations
One of the most significant controversies surrounding Alisher Usmanov revolves around corruption allegations. He has faced investigations both within Russia and internationally. In 2004, the FBI probed Usmanov for potential money laundering, though no charges were ultimately filed. In 2017, the United Kingdom banned him for alleged ties to corruption. While Usmanov staunchly denies any involvement in illegal activities, these allegations have cast shadows on his business empire.
- Human Rights Abuses in Uzbekistan
Usmanov’s mining operations in Uzbekistan have come under intense scrutiny due to allegations of human rights abuses. Accusations of employing forced labour and child labour have raised serious concerns about his ethical practices. These accusations have drawn the attention of human rights organizations and prompted further investigation into his business practices.
- Support for Terrorism
Usmanov’s financial ties to extremist groups have also faced accusations. In 2018, the United States Treasury Department sanctioned him for providing financial support to the Taliban. However, he refutes these allegations, claiming that his business transactions have been legitimate and unrelated to terrorism.
- Tax Evasion Claims
The billionaire has been accused of tax evasion in multiple countries. Notably, the Russian government fined him $80 million in 2017 for failing to pay taxes on his income. These allegations have raised questions about his compliance with tax laws and financial transparency.
- Usmanov’s Defense
Throughout the controversy, Alisher Usmanov has consistently maintained his innocence. He adamantly denies any involvement in corrupt practices, human rights abuses, or support for terrorism. He defends himself as a legitimate businessman who has faced false accusations intended to damage his reputation.
- Lavish Lifestyle and Ties to the Russian Government
Beyond the contentious business practices, Usmanov’s opulent lifestyle and close relationship with the Russian government have added to the public’s perception of him. His collection of expensive cars and ownership of luxury properties have been the subject of criticism, fueling the perception that he uses his wealth for self-indulgence.
Sanctions: A Closer Look at Alisher Usmanov’s Case
Sanctions have become a potent tool in the international arena, often deployed to address geopolitical conflicts and human rights violations. In the aftermath of the 2022 Russian invasion of Ukraine, Alisher Usmanov comes in as a Russian oligarch’s political influence list.
And, found himself at the centre of a sanctions saga that showcased the complexities and controversies surrounding such measures. This article delves into the events surrounding the sanctions imposed on Usmanov and the subsequent legal battles, shedding light on the implications and challenges of enforcing sanctions.
- The Imposition of Sanctions
In response to the Russian invasion of Ukraine, the European Union, the United States, and the British government took swift action against Usmanov. He was blacklisted, subjected to an EU-wide travel ban, and had his assets frozen. He was labelled a “pro-Kremlin oligarch with particularly close ties to Russian President Vladimir Putin.” However, Usmanov vehemently denied the allegations, claiming that the accusations were false and defamatory.
- The Legal Battle and Asset Search
In the face of sanctions, Usmanov decided to challenge the Council of the EU’s decision in court. He filed a lawsuit, aiming to prove the invalidity of the accusations and lift the sanctions. His legal team argued that his fame and fortune, rather than his links to President Putin, made him a target for sanctions. The case highlighted the importance of due process and the need for solid evidence to justify sanctions.
Furthermore, the German federal government established a task force to locate Usmanov’s assets in Germany. The authorities scrutinized several properties, including villas on the Bavarian Tegernsee, amid suspicions of money laundering.
However, the billionaire contested these claims, asserting that he did not owe taxes in Germany due to an agreement on the avoidance of double taxation between Russia and Germany. He also stated that he had transferred all properties to irrevocable family trusts long before sanctions were imposed.
- Landmark Rulings and Repercussions
In a significant development, the Land Court in Frankfurt is Main invalidated and annulled the search orders on properties linked to Usmanov. The court found the accusations of money laundering to be groundless, pointing out numerous formal violations. This ruling dealt a blow to the investigators and was deemed a “disgrace” by German media.
Additionally, Usmanov’s sister, Ismailova, who was the beneficiary of the trust owning the superyacht Dilbar, had the ship seized in Hamburg. However, investigations later revealed that data from “Suisse Secrets” falsely implicated another sister, Saodat Narzieva, leading to the lifting of sanctions against her.
- International Pressure and Reactions
Amid mounting pressure and calls for the lifting of sanctions, Hungary and the Uzbek government advocated for Usmanov’s reprieve. Hungary argued that the sanctions were unjustified, while Uzbekistan emphasized that the restrictions were hindering Usmanov’s ability to invest in his home nation.
- Ukrainian Court’s Seizure Order
In December 2022, a Ukrainian court ordered the seizure of ₴2 billion worth of Usmanov’s assets, specifically 160,000 metric tons of Ukrainian iron ore. However, Metalloinvest, a company in which Usmanov is involved, denied this claim, asserting that the Ukrainian authorities had blocked the export shipment in February 2022.
Conclusion
Alisher Usmanov‘s journey from a troubled past to becoming a powerful oligarch has been riddled with controversy. Numerous allegations of corruption, violations of human rights, and ties to political elites have accompanied his rise to wealth and influence. While he vehemently denies these accusations, the imposition of sanctions and legal battles highlight the complexities surrounding his case.
Usmanov’s lavish lifestyle and global investments have solidified his status as one of the world’s wealthiest individuals, but the shadow of controversy continues to loom over his legacy. As the world watches, the story of Alisher Usmanov serves as a cautionary tale about power, wealth, and the repercussions of actions in the opaque world of oligarchy.
