Iskander Makhmudov

Iskander K. Makhmudov
Native name	Искандар (Искандер) Кахрамонович Махмудов
Born	(1963-12-05) December 5, 1963 Bukhara, Uzbek SSR
Citizenship	Russian
Education	Degree, Oriental Studies
Alma mater	Tashkent University
Occupation	Founder/Owner of Ural Mining and Metallurgical Company
Net worth	US$ 8 billion (2013)[1]

Iskander Makhmudov (born 1963) is an Uzbek businessman based in Russia. He was born to an ethnic Uzbek Muslim family.^[2] Mr. Makhmudov has been referred by Yekaterinburg News as "One of Russia’s most prominent and civically involved industrialists" who has contributed more than $1 billion to social, civic and philanthropic causes since 2001.^[3] One profile describes him as, "By choice he is not well-known yet he is one of the Russia’s wealthiest citizens."^[4]

Career History

Mr. Makhmudov graduated from Tashkent University with a degree in Oriental Studies. He is also a translator by educational background. 

He worked for various Soviet military organizations in Libya and Iraq. His first position in business was with the Trans-World Group, which was at that time the largest metal trader in Russia.^[2]

He has worked in several other business positions:^[2]

• 1991-1994 Deputy Marketing Director, JSC Alice
• 1994-1996 Director, JSC Industrial-Financial Company Meta Service.
• 1996 CEO, Ai (mining and processing plant)

In 1999, he created UMMC.^[2]

Now Makhmudov is the main owner of Uralskaya Gorno-Metallurgicheskaya Kompaniya (UGMK) Holding. This is the fourth largest non-ferrous metallurgical company in Russia, Russia's second-largest copper producer in terms of output. With his partner Makhmudov also acquired a 50% stake in Izdatelskiy Dom Rodionova (Rodionov Publishing House), which publishes the Russian version of BusinessWeek.

According to Forbes Magazine, Iskander Makhmudov is the 15th richest businessman in Russia and the 86th richest businessman in the world. According to RussianCapitalists.com, Makhmudov estimated worth in 2012 is $11.9 billion.^[5]

Forbes Profile

As of December 1, 2012, Mr. Makhmudov has the following Forbes rankings:^[6]

• #16: The richest businessmen of Russia - 2012
• #110: Billionaires in the world ranking Forbes - 2012
• #12: The richest businessmen of Russia - 2011

Philanthropy

2014 Winter Olympics

Mr. Makhmudov owns an ice arena in the city of Sochi, Russia, which will host the 2014 Winter Olympics. It was reported in February 2013 that he will give the arena to the Russian government, free of charge, for use in the Olympics.^[7]

Clinics, Orphans, & Veterans

Mr. Makhmudov has given over one billion dollars to charitable causes over the past decade, including medical clinics, housing programs, orphanages, and programs for war veterans. According to the Yekaterinburg News: “As of 2011, those clinics expanded their operations to serve free of charge not only the children of UMMC employees, but also disabled children, orphans and children from disadvantaged families in the community.”^[8]

Remote Area Medical Services

Additionally, it was reported that Mr. Makhmudov’s company plans to send five L-410 UVP E20 planes to the Orenburg region to help the area with regional cargo shipments by the end of next year. “Three of the planes from the Czech aircraft factory are passenger airplanes and the remaining two are convertible aircraft that can provide the region with medical services in remote areas, RusBusinessNews reports.” ^[9]

Rusfonda partnership

After a few partnership agreements, Makhmudov’s company LLC Transoil has become the first official partner of Rusfonda, one of the largest charity funds in Russia. The partnership is focused at uniting efforts to save ill children who need expensive medical care and advancing medical technology. Transoil has also agreed to work towards financing health projects to help children with cancer. Its first tranche of aid amounted to $170 million.^[10]

Business Enterprises

Makhmudov’s ascension to success began in 1991 when the state economy was replaced with capitalism after the fall of the USSR.^[4]

Aeroexpress

Mr. Makhmudov owns 17.5% of Aeroexpress.^[11]

Aeroexpress provides rail transportation services between Moscow and surrounding airports (Sheremetyevo, Domodedovo, and Ynukovo).^[12]

Russian Railways JSC owns 50% of Aeroexpress. In November 2012, it was reported that Russian Railways intends to sell half of its shares (25% ownership in Aeroexpress) to TransGroup AS Ltd.^[12]

CSKA Team Ownership

"According to some [Russian] media, President of the Ural Mining and Metallurgical Company ("UMMC") Makhmudov bought a controlling stake in the football club CSKA." ^[13]

International Space Services

Russia's Federal Space Agency (Roskosmos) plans to coordinate international space activities with other national space agencies, such as the European Space Agency. In 2011, Roskosmos announced plans to promote Russian launch services to other countries.

Many companies within Russia already work in the foreign market space. International Space Services, which is owned by Ural Mining Company, sells Zenit-operated launches from Baikonur. Baikonur, formerly known as Leninsk, is a city in Kyzylorda Province of Kazakhstan that is rented and administered by the Russian Federation.^[14]

Let Kunovice

Russia's first deputy defense minister Aleksandr Sukhorukov, who is ranked number four in the Russian Army, recently toured the Let Kunovice Aircraft Industries plant to express interest in the updated L-410 aircraft. The Russian Army plans to use the L-410 aircraft to train pilots, who would then train on the newer, bigger aircraft called the Ilyushin Il-476.

Let Kunovice is currently negotiating a deal to delivery 8 planes to the Russian Defense Ministry in 2013. Mr. Makhmudov's Ural Mining and Metallurgical Company is the majority owner of Kunovice.^[15]

LLC Transoil

Mr. Makhmudov and his business partner Andrei Bokarev have purchased a 13% ownership in LLC Transoil. They purchased the shares from Gennady Timchenko, co-owner of the global commodity trading company Gunvor.^[16]

LLC Transoil is a railway operator in Russia. The company is one of the biggest railway transporters of oil and oil products in Russia.^[16]

Total sales for LLC Transoil for the first three quarters of 2012 amounted to 51.1 billion rubles.^[16]

Moscow Passenger Company

Mr. Makhmudov and his partner Mr. Bokarev own Moscow Passenger Company (MPC).^[17]

In 2011, MPC purchased a 25% stake in Central Suburban Passenger Company (CSPC). CSPC accounts for 56% of all suburban transportation in Russia.^[17]

In December 2012, MPC won a bid to purchase another 25% stake in CSPC. This purchase will increase MPC’s equity position to 50%.^[17]

Over 500 million passengers rode trains operated by CSPC in 2011. In 2011, CSPC had 24 billion rubles in revenue and 4.7 billion rubles in profit.^[17]

Transmashholding

CJSC Transmashholding (TMH), a holding company owned partially by Mr. Makhmudov, is Russia's largest producer of rolling stock for railways and subways. The company owns plants in St. Petersburg, Bryansk, Penza, and the Moscow, Rostov and Tver regions.^[18]

In November 2012, it was announced that TMH had increased its net profit by 9 percent to 2.69 billion rubles. The company also reduced its long-term liabilities by 39 percent.^[18]

In November 2012, Anatomy Ledovskikh, the former head of Russian’s Federal Agency for Subsoil Use, was elected Chairman of the Board at Transmashholding, one of the companies owned by Iskander Makhmudov. Transmashholding produces locomotives, freight cars, passenger cars, electrain train cars, and other train heavy machinery.^[19]

Alstom Stake

In November 2012, Alstom purchased a blocking stake in TMH for $422 million U.S. dollars. Alstom is a France-based engineering company serving the power generation and rail transportation industries.^[20]

Skolhovo Foundation

On November 16, Skolhovo Foundation and Transmashholding signed a memorandum of understanding. The two organizations will cooperate on issues of innovative research and development.^[21]

Zheldorremmash Stake

In February 2012, RBC Daily reported that Transmashholding—through its subsidiary TMH Service—purchased 75 percent holdings in Zheldorremmash, a subsidiary of OJSC Russian Railways. Zheldorremmash is considered a major player in the locomotive repair industry.^[22]

Ural Mining and Metallurgical Company

Krasnobrodskaya-Koksovaya

In 2011, RusBusinessNews reported that UMMC had commissioned a new coal processing factory. The factory is known as Krasnobrodskaya-Koksovaya. UMMC invested 3.3 billion rubles into the project. According to the article, the factory will process 3 million tons of coal each year.^[23]

Tyumen Steel Mill

In July 2012, Metal Mining Wire reported that UMMC had planned to build and run a new steel mill in the Tyumen region of Russia. The mill would cost $675 million. According to the article, UMMC expects the new mill to produce 540,000 metric tons of steel per year.^[24]

Wendy’s

In August 2011, the first Wendy's restaurant opened in Russia. The Wenrus Restaurant Group operates the Wendy’s chain in Russia.^[25]

Wendy’s/Arby’s International and Wenrus are planning to develop 180 restaurants over the next 10 years in Russia. Each restaurant will contain a Wendy’s and Arby’s.^[26]

The Wenrus Restaurant Group is an affiliate of Food Service Capital.^[26] Food Service Capital’s businesses include:^[27]

• Arpikom, a company that owns and operates 28 restaurants under the brands Goodman Steak House, Filimonova and Yankel, Kolbasoff and Mama’s Pasta)
• Komfis, a catering company
• Legion and Yedinaya Set Pitania, a food delivery service

Mr. Makhmudov owns Food Service Capital, along with Mikhail Zelman and their business partners.^[27]

Future Business Plans

Investment

According to Russia & CIS Business & Financial Daily, Mr. Makhmudov will budget approximately 60 billion rubles in 2013 for investments. "We're signing contracts for next year, and have started budgeting. The average copper prices will be around $8,000 a tonne in 2012. We're hoping it stays at that level next year. We're also planning the same investment program as this year - 60 billion rubles," said his business partner.^[28]

Aircraft

According to SKRIN Market & Corporate News, Mr. Makhmudov plans to direct his company to develop a new regional jet by 2015. The aircraft will be manufactured in a Czech Republic-based plant. All tests are planned to be completed in 2013.^[29]

Personal Record

He keeps a low profile and is as non-transparent as the coal mined by Kuzbassrazrezugol where he holds a major stake. Makhmudov’s main asset is the Urals Mining and Processing Works.

Leadership

Mr. Makhmudov was lauded for his leadership in a 2012 article in Yekaterinburg News. “During the period of Russian rebuilding and economic liberalization, or perestroika, Makhmudov helped lead the country’s transition into a free market, capitalist, wealth- and prosperity-producing economy.”^[3]

See also

• List of Russian billionaires

References

External links

• Forbes Magazine
• Uralskaya Gorno-Metallurgicheskaya Kompaniya
• UGMK.info: бизнес-портал о реальном секторе экономики

v t e Iskander Makhmudov Corporate Empire Companies Aeroexpress Alstom Central Suburban Passenger Company Food Service Capital Kuzbassrazrezugol Let Kunovice LLC Transoil Moscow Passenger Company Rodionov Publishing House Russian Railways Transmashholding Ural Mining and Metallurgical Company Wenrus Restaurant Group Zheldorremmash Industries Airport rail link Coal Conglomerate Electricity generation Locomotive repair Metals Mining Publishing Rail transport Restaurant Subway Transportation Locations Astrakhan Chelyabinsk Krasnobrodskaya-Koksovaya Moscow Novosibirsk Orenburg Rostov-on-Don Tyumen Tyumen Ulan-Ude Ussuriysk Verkhnyaya Pyshma Voronezh Yaroslavl Yekaterinburg

Persondata
Name	Makhmudov, Iskander
Alternative names
Short description
Date of birth	1963
Place of birth	Bukhara, Uzbek SSR
Date of death
Place of death