Iskander Makhmudov

Iskander Makhmudov
Iskander Makhmudov
Born	December 5, 1963 (age 62); Bukhara, Uzbek SSR, Soviet Union
Occupation(s)	Entrepreneur, businessman
Known for	Principal owner of Ural Mining and Metallurgical Company (UMMC)

Iskander Kakhramonovich Makhmudov (; born December 5, 1963) is a Russian entrepreneur originally from Uzbek descent.

As reported by the Bloomberg Billionaires Index, Makhmudov's fortune was valued at approximately US$9.41 billion as of May 25, 2021.

Biography

Makhmudov was born on December 5, 1963, in Bukhara, Uzbekistan (then part of the Uzbek SSR). He spent his early years in Tashkent and completed his studies at the Faculty of Oriental Studies of Tashkent State University in 1984, earning a degree in history and literature.

In 1985, he was assigned abroad to Libya and subsequently to Iraq while working for the Principal Engineering Directorate under the USSR's Ministry of Foreign Trade. His responsibilities included managing exports of military and dual-use goods. Additionally, he held a position at Uzbekintorg, where he handled trade involving metallurgical and chemical products alongside consumer goods.

Relocating to Moscow in 1991, Makhmudov took charge of coal trading at Trans Commodities, a company established by Tashkent natives Michael and Lev Cherney. He collaborated with the Cherneys at Trans-World Group (TWG), a partnership also involving David and Simon Reuben. After departing TWG in 1993, he preserved connections with Michael Cherney and shifted focus by 1994 toward copper mining ventures.

Partnering with Michael Cherney, Makhmudov played a key role in acquiring multiple enterprises within the metal sector, notably Uralelektromed, which formed the foundation of the Ural Mining and Metallurgical Company (UMMC) in 1999. They jointly owned Kuzbassrazrezugol as well. In 2002, Makhmudov purchased Cherney's interests in both UMMC and Kuzbassrazrezugol, capitalizing on the upward trends in copper and coal markets. By 2004, he appeared on Russia’s inaugural Forbes list with an estimated net worth of USD 2.1 billion.

Projects

Makhmudov is the principal proprietor of Uralskaya Gorno-Metallurgicheskaya Kompaniya (UGMK) Holding, which was founded with assistance from his longtime acquaintance Jalol Khaidarov (). UGMK ranks as Russia’s fourth-largest non-ferrous metallurgical enterprise and holds the position of second-largest copper producer by volume. Alongside his associate, Makhmudov acquired a half stake in Izdatelskiy Dom Rodionova (Rodionov Publishing House), known for publishing the Russian edition of BusinessWeek.

Economic Council of Russian and French Enterprises

In 2011, Makhmudov and his partner Bokarev succeeded Gennady Timchenko as leaders of the Economic Council of Russian and French Enterprises.

Aeroexpress

Makhmudov possesses a 17.5% ownership share in Aeroexpress, which operates rail services connecting Moscow to its principal airports (Sheremetyevo, Domodedovo, and Vnukovo). Russian Railways JSC holds a 50% stake and announced plans in 2012 to divest half of its shares (equivalent to a 25% stake) to TransGroup AS Ltd.

Ownership of CSKA Team

According to certain Russian news outlets, Iskander Makhmudov, who serves as president of UMMC, has secured a majority ownership interest in the football club CSKA.

International Space Services

The Russian Federal Space Agency (Roskosmos) intends to collaborate with organizations such as the European Space Agency. International Space Services, owned by Ural Mining Company, handles marketing for Zenit rocket launches conducted at the Baikonur Cosmodrome, which is situated in Kazakhstan but managed by Russian authorities.

Let Kunovice

Aleksandr Sukhorukov, Russia’s first deputy defense minister and fourth-ranking official in the Russian Army, recently visited the Let Kunovice Aircraft Industries facility to review the upgraded L-410 aircraft. The Russian military plans to utilize the L-410 for pilot training before transitioning to the larger Ilyushin Il-476 model.

Let Kunovice is currently negotiating a contract to supply eight aircraft to the Russian Defense Ministry in 2013. The company’s majority ownership lies with Makhmudov’s Ural Mining and Metallurgical Company.

LLC Transoil

In December 2012, Makhmudov and his business associate Andrei Bokarev purchased a 13% share in LLC Transoil from Gennady Timchenko, who co-owns the global commodities firm Gunvor.

LLC Transoil operates as a leading Russian rail transport company specializing in the movement of oil and petroleum products. Its revenue for the first nine months of 2012 totaled 51.1 billion rubles.

By 2019, Timchenko maintained an 80% ownership stake in Transoil, while Bokarev and Makhmudov held minority positions.

Moscow Passenger Company

Makhmudov and Bokarev are proprietors of Moscow Passenger Company (MPC), which acquired a 25% interest in Central Suburban Passenger Company (CSPC) in 2011. CSPC manages 56% of suburban rail traffic across Russia.

In December 2012, MPC successfully bid to increase its stake by another 25%, elevating its ownership share in CSPC to 50%. In 2011, CSPC transported more than 500 million passengers and generated revenues of 24 billion rubles along with profits amounting to 4.7 billion rubles.

Transmashholding

CJSC Transmashholding (TMH), partly owned by Makhmudov, stands as Russia’s largest manufacturer of railway and metro rolling stock, operating production facilities in multiple regions including St. Petersburg and Moscow.

In November 2012, TMH reported a 9% rise in net profit reaching 2.69 billion rubles and achieved a 39% reduction in long-term debt. Anatomy Ledovskikh, previously head of Russia’s Federal Agency for Subsoil Use, was appointed chairman of TMH’s board. The company produces locomotives, freight and passenger cars, as well as electric multiple units.

Alstom Investment

During November 2012, French engineering corporation Alstom acquired a blocking interest in TMH for $422 million.

Skolkovo Foundation Partnership

On 16 November 2012, Transmashholding entered into a memorandum of understanding with the Skolkovo Foundation to jointly pursue innovative research and development initiatives.

Zheldorremmash Acquisition

In February 2012, TMH Service—Transmashholding’s subsidiary—purchased a controlling 75% stake in Zheldorremmash, a key locomotive maintenance firm formerly affiliated with Russian Railways.

Ural Mining and Metallurgical Company

Krasnobrodskaya-Koksovaya

In 2011, UMMC launched the Krasnobrodskaya-Koksovaya coal processing plant, committing an investment of 3.3 billion rubles. This facility has the capacity to handle 3 million tons of coal each year, significantly boosting UMMC's coal production output.

Tyumen Steel Mill

In July 2012, UMMC revealed plans to establish a steel mill in the Tyumen region of Russia with a $675 million investment. The plant is designed to produce 540,000 metric tons of steel annually, aimed at expanding the company’s steel manufacturing capabilities.

Wendy's

The initial Wendy's outlet in Russia began operations in August 2011 under the management of the Wenrus Restaurant Group. Wendy's/Arby's International and Wenrus intend to roll out 180 combined Wendy's and Arby's locations across Russia within the next ten years.

Wenrus is linked to Food Service Capital, which is owned by Makhmudov, Mikhail Zelman, and their associates. Food Service Capital’s holdings include Arpikom (operating brands like Goodman Steak House and Mama's Pasta), Komfis (a catering company), and food delivery services such as Legion and Yedinaya Set Pitania.

Hyatt Hotels

In June 2014, Makhmudov secured an agreement with Hyatt Hotels to develop a luxury apartment hotel in Yekaterinburg. Together with his partner Andrei Kozitsyn, he engaged with Hyatt representatives locally to finalize project details. Ural Mining and Metallurgical Company (UMMC), owned by Makhmudov, committed to constructing the hotel through a subsidiary responsible for building the Iset Tower. Hyatt intends to utilize the top six floors for upscale residential apartments if the arrangement proceeds.

Investment

According to Russia & CIS Business & Financial Daily, Makhmudov’s investment budget for 2013 was approximately 60 billion rubles. His business partner indicated plans to sustain this level of investment, assuming copper prices remain steady at about $8,000 per tonne.

Aircraft

SKRIN Market & Corporate News reported that Makhmudov aimed to develop a regional jet by 2015, to be manufactured at a facility in the Czech Republic, with flight testing expected to conclude in 2013.

Personal life

Makhmudov was born into a Muslim family of Uzbek descent.

External links

Uralskaya Gorno-Metallurgicheskaya Kompaniya