Rinat Akhmetov (A Brief Biography: Ukraine)

 Rinat Akhmetov (A Brief Biography: Ukraine)

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The founding father and the president of System Capital Management, Rinat Akhmetov is the richest man in Ukraine. On the Forbes Billionaires List of 2021, he is ranked 327^th richest man in the world and the richest man of Ukraine, with a net worth of US 7.5 Billion Dollars.

Born on September 21, 1966, in a working-class family, Rinat Akhmetov is a son of a coal miner and his mother was a shop assistant. He and his family are the residents of Donetsk, Ukraine and are ethnic Tatar. Rinat also has a brother named Igor, who is also a coal miner.

In the year 2001, Rinat completed his education and acquired the degree of Bachelor in Economics from the Donetsk National University. The starting of his professional career is quite controversial and unclear. There is no accurate justification of how he acquired his initial funds and wealth. It is believed that, after the fall of Communism in Ukraine, he was linked with organized crimes through which got the breakthrough for his professional career.

Personal Life and Status:

Date of Birth	September 21, 1966
Age	55 Years
Full Name	Rinat Leonidovych Akhmetov
Residence	Donetsk, Ukraine
Citizenship	Ukrainian
Marital Status	Married
Spouse Name	Liliya Nikolayenva Smirnova
No. Of Children	2
Names of Children	Damir Akhmetov and Almir Akhmetov
Education	Bachelor of Arts/Science in Economics, Donetsk National University

 

Early Career:

As stated above, the initiating point of Rinat's career is questionable. It is reported that he acquired his starting wealth through organized crimes. There is no record of how he got his initial wealth between 1985-1995. Although, his own claims differ. In a public statement, he declared that after the fall of Communism, risky investments helped him to acquire wealth. But, there are certain pieces of evidence that proved him guilty. First of all, his link with Akhat Bragin, a powerful mafia boss. Rinat was an assistant to him during the 1989s. Secondly, it is believed that in the 1990s, he started buying real estate properties across his own city Donetsk, by means of extortion.

In 2000, Rinat set the foundation of the System Capital Management Groups and after that, there is no going back. His company has assets in more than hundreds of businesses (mostly industrial). He also owns one of the largest private companies of Ukraine, Metinvest, which is involved in the mining and steel business. Along with that, he possesses a variety of companies, ranging from telecommunication to real estate.

Current Business:

Currently, Akhmetov is responsible for half of Ukraine’s coal, steel and electricity business. He has established a huge business on his own. His company Metinvest is the largest steel and mining company in Ukraine. He is the largest electricity supplier and the owner of the most-watched TV channel of Ukraine and a football club.

His company has a hold over more than half of Ukraine’s iron-ore market and almost extract 72% of Ukraine’s coal. A sharp increase in the prices of iron-ore makes Akhmetov even wealthier. He has a monopoly over the state-owned railway, by which he transports his coal and iron economically.

He is powerful to overcome any possible threat to him and his empire.

Reasons for Success:

Rinat Akhmetov is a self-made man, born to a working-class family but still managed to set the mark. He is a hard-working, willful person with an ability to overcome any obstacle in his way of interests. It was the willfulness of Akhmetov, that enabled him to operate the worth of $6.7 billion even during the period of war in 2014.

Akhmetov generates his wealth primarily from coal, steel and electricity production. About a quarter of the population works in his coal mines. He provides jobs, electricity and aid through his humanitarian work to a majority of Ukraine’s population. His companies provide more than 300000 jobs across the country. He is a strong pillar of Ukraine’s economy and pours hundreds of millions in taxes into government coffers. Steel production is also a major source of his success. Akhmetov's investment in energy through DTEK, a firm with coal mines, thermal power generation and the largest wind farm in the country, largely contributes to his success. His company DTEK provides half of the entire coal produced in Ukraine and runs three giant power plants. Ukraine is dependent on Akhmetov for taxes, power generation and coal mines in rebel lands. In Donetsk, he is not just a businessman, but a father figure, due to his philanthropic activities.

Limitations:

It is said that “Behind every great fortune, there is a crime”. It seems true for Rinat Akhmetov too. After the collapse of the Soviet Union, the sudden rise of Akhmetov says a lot about his illegal activities and crimes. His start in the industrial business and coal mining is also foggy, but the 55 year-olds starts is often linked to October 15, 1995, bombing. The bomb blast at Donetsk’s Shakhtar football stadium killed a mafia boss, Akhat Bragin. Akhmetov succeeded Bragin as the chairman of a football club and also alleged to have taken over his local businesses. It basically enabled him on his way to building an empire. With the passage of time, his name becomes synonymous with Ukraine’s dependence on its oligarchs.

Suggestions:

Although, Akhmetov is the richest man in Ukraine, here are few suggestions for him and his business group;

·         He must put an end to his illegal business activities.

·         His linkages with organized crimes and other illegal activities must be ended.

·         Akhmetov’s alleged role in the separatist movements of Ukraine also needs to be revisited and amended.

·         He must put an end to any kind of association with the rebels as any cooperation with would be an end to his career. 

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