Mikhail Fridman

Mikhail Fridman
Mikhail Fridman
Born	April 21, 1964 (age 62); Lviv, Ukrainian SSR, USSR
Occupation(s)	Businessman, oligarch
Known for	Co-founder of Alfa Group, co-founder of Alfa-Bank, chairman of LetterOne

Mikhail Maratovich Fridman (also spelled Mikhail Friedman; ; born 21 April 1964) is a prominent Ukrainian-born Russian–Israeli billionaire and influential oligarch. He is a co-founder of Alfa Group, a major Russian multinational conglomerate. According to Forbes, he ranked as the second wealthiest Russian in 2013 with a net worth of $16.5 billion, and by 2023, he was ninth with $12.6 billion. In May 2017, bne IntelliNews recognized him as Russia's leading businessman. As of February 2024, the Bloomberg Billionaires Index estimated his fortune at $13.1 billion, while in February 2025, Forbes placed him at #150 worldwide with $13.3 billion.

Fridman co-established Alfa-Bank in 1991, which became one of Russia’s largest private banking institutions. After nine years as CEO of TNK-BP, a joint venture equally owned by partners, he sold his shares in 2013 and went on to co-found the global investment firm LetterOne (L1). Up until 2022, he served as chairman of the supervisory board at Alfa Group Consortium and held board positions at both Alfa-Bank and ABH Holdings.

Prior to 2022, Fridman was a member of the supervisory boards for VEON (formerly Vimpelcom) and X5 Retail Group. Additionally, he sits on the supervisory board of DEA AG, a company owned by LetterOne. His public engagements have included membership in the Russian Union of Industrialists and Entrepreneurs, participation in the Public Chamber of Russia, and affiliation with the Council on Foreign Relations.

Following the 2022 Russian invasion of Ukraine, Fridman became subject to European Union sanctions. He rejected these accusations and resigned from his roles on the boards of LetterOne and Alfa Group to help shield them from sanctions. He has actively contested these measures through legal channels multiple times.

In December 2022, an individual identified by Russian media as Fridman was detained in London by the UK's National Crime Agency on allegations including money laundering and conspiracy; however, he was subsequently released on bail. The investigation was eventually scaled down and closed in September 2023.

Reports in October 2023 indicated that Fridman intended to make a return to Russia.

Early life and education

Born in 1964 in Lviv, then part of the Ukrainian SSR within the USSR, Fridman spent his formative years there. He completed secondary school in Lviv in 1980. Due to his Jewish heritage, he was denied admission to Moscow’s premier physics university and instead enrolled at the Moscow Institute of Steel and Alloys, graduating with honors in metallurgical engineering in 1986. During his studies, he held various jobs such as window washing and co-owned a student nightclub named Strawberry Fields.

Initial ventures and formation of Alfa entities (1980s–1990s)

After finishing university, Fridman worked as a metallurgical design engineer at Elektrostal Metallurgical Works between 1986 and 1988. With economic reforms under Mikhail Gorbachev opening new opportunities, he launched several enterprises in 1988: a window-cleaning business, an agency renting apartments to foreigners, a used computer sales firm, and an importer of cigarettes and perfumes. He developed close business ties with Armenian entrepreneur Robert Yengibaryan, whose family became connected to Fridman's ventures.

In 1988, together with German Khan and Alexey Kuzmichev, Fridman co-founded Alfa-Photo, focusing on importing photographic chemicals. The following year, they established Alfa-Eco, specializing in commodities and oil trading, alongside Alfa Capital, an investment company. These businesses eventually merged into Alfa Group Consortium, which expanded from dealing in computers and copy machine servicing into one of Russia’s largest private financial-industrial conglomerates with interests spanning telecommunications, banking, retail, and oil sectors.

Using capital amounting to $100,000 generated from his prior businesses, Fridman helped launch Alfa-Bank in January 1991. The bank grew rapidly into one of Russia’s foremost private banking institutions. Over time, Alfa Group’s holdings extended to include Rosvodokanal (a private water utility), AlfaStrakhovanie (insurance), A1 Group (investment), and X5 Retail Group (a food retail chain).

The expansion of Alfa Group accelerated following the recruitment of Petr Aven—former Russian Minister for Foreign Economic Relations—who took on roles as president and chairman of Alfa-Bank starting in 1994. By late 1996, Boris Berezovsky identified Fridman and Aven among seven businessmen dominating much of Russia’s economy and media; they also contributed financially to Boris Yeltsin’s successful re-election campaign that year. Fridman maintained close connections with Berezovsky during this period.

In anticipation of the 1998 Russian financial crisis, Fridman and Aven divested most of their holdings in Russian government securities, thereby reducing their exposure to losses. During the crisis itself, Alfa-Bank utilized its stake in TNK to avoid insolvency and remained one of the few banks permitting customer withdrawals throughout the turmoil.

Retail Investments and X5 Retail Group (1995 to Present)

In 1995, Fridman's Alfa Group initiated the Perekrestok supermarket chain in Moscow. Alfa Group later merged this chain with Pyatyorochka, which was established in St. Petersburg in 1999 by Alexander Girda and Andrey Rogachev, leading to the creation of X5 Retail Group in 2006. X5 Retail expanded its market presence by purchasing the grocery chain Kopeyka for $1.65 billion in December 2010. Currently, X5 stands as Russia’s largest food retailer by sales volume and aims to open thousands of new outlets annually.

Alfa Telecom and Altimo (2001–2015)

Alfa Group acquired a 44% ownership in Golden Telecom, a prominent telecommunications provider in Russia and the CIS, in 2001. That same year, Alfa secured a strategic stake in the Russian mobile operator Vimpelcom, with Fridman joining its board of directors. The group consolidated its telecom holdings under Alfa Telecom, which was rebranded as Altimo in 2005. Altimo’s asset portfolio encompassed MegaFon, Vimpelcom, Golden Telecom, and Kyivstar. Additionally, in December 2005, Altimo acquired a 13.2% share in Turkey's leading telecom operator, Turkcell.

Fridman’s attempts to merge Vimpelcom with Kyivstar faced initial resistance from Norwegian partner Telenor, which held stakes in both companies. Despite Fridman’s assertive approach, the merger was finalized in 2010 after a protracted seven-year dispute over control rights.

Between 2003 and 2007, Altimo was involved in a complex legal confrontation with Bermuda-based IPOC International Growth Fund regarding a 25.1% MegaFon stake formerly owned by LV Finance. The conflict included allegations of fraud and bribery but ultimately concluded favorably for Altimo. During this period, Altimo engaged public relations and security firms to investigate IPOC’s operations.

In 2012, Fridman divested his entire holding in MegaFon for $5 billion, marking a major exit from the telecommunications sector.

TNK-BP Joint Venture (2003–2013)

In 1997, Fridman joined forces with Len Blavatnik and Viktor Vekselberg to acquire the state-owned Tyumen Oil Company (TNK) located in Siberia for $800 million. In 2003, British multinational BP partnered with the AAR consortium—which included Alfa Group, Access Industries, and Renova Group—to establish the TNK-BP joint venture. This alliance positioned TNK-BP as Russia’s third-largest oil producer and ranked it among the world’s top ten private oil companies. Fridman served as chairman of TNK-BP for nine years and held the CEO role for three years.

Prior to TNK-BP’s formation, Fridman employed aggressive tactics including bankruptcy maneuvers to block BP’s stake acquisition in Siberian oil firm Sidanko in 1999. Despite TNK-BP’s financial achievements, Fridman maintained a tense relationship with BP, notably opposing BP's 2011 Arctic exploration collaboration with Rosneft.

Fridman stepped down as CEO in May 2012. In 2013, TNK-BP was acquired by state-owned Rosneft for $56 billion, with Fridman and his partners receiving $28 billion for their half ownership during peak oil market conditions.

Establishing LetterOne and L1 Energy (2013–2015)

After divesting from TNK-BP, Fridman along with Alfa Group partners Khan and Kuzmichev founded the international investment firm LetterOne (L1) in 2013, appointing Fridman as chairman. Other co-founders included Petr Aven and Andrei Kosogov. Based in Luxembourg, LetterOne focuses on investments spanning energy, telecommunications, finance, technology, and additional sectors. By the close of 2013, the firm managed assets totaling $29 billion. In May 2015, Mervyn Davies was named deputy chairman while former Swedish Prime Minister Carl Bildt joined as an advisor to the board.

Also launched in 2013 under LetterOne was L1 Energy, concentrating on undervalued global oil and gas assets amid declining oil prices. John Browne joined its advisory board and became chairman in March 2015.

L1 Energy's North Sea Oil Holdings (2015)

On 3 March 2015, L1 Energy completed the purchase of the international oil and gas firm DEA from German utility company RWE for $7 billion (€5.1 billion). Based in Hamburg, Germany, RWE DEA possessed significant assets in the British North Sea, with natural gas output reaching 2.6 billion cubic meters in 2013. The acquisition encountered resistance from UK Energy and Climate Change Secretary Ed Davey, who raised concerns that Fridman might be subject to international sanctions linked to the Russo-Ukrainian conflict, which could compel L1 Energy to cease North Sea operations—affecting approximately 5% of the UK's natural gas supply. On 4 March 2015, Davey issued Fridman a one-week ultimatum to avoid a forced divestment; by April, this deadline was extended by the UK government to six months.

In October 2015, Fridman and LetterOne sold their British North Sea holdings from L1 Energy to the Switzerland-based petrochemical company Ineos, owned by Jim Ratcliffe, for $750 million. The UK government clarified that this compelled sale did not reflect on LetterOne's capability to manage UK-based assets.

During the same month, LetterOne acquired equity stakes from German utility E.ON in 43 Norwegian oil and gas licenses, including interests in three producing fields in the North Sea, for $1.6 billion.

LetterOne's Telecommunications and Technology Investments (2015–Present)

April 2015 saw the launch of LetterOne Technology (L1 Technology) in London, with a strategic focus on investing in underperforming telecom and technology companies requiring capital support. The advisory board featured notable figures such as Brent Hoberman, Denis O'Brien, and Sir Julian Horn-Smith.

L1 Technology serves as the holding entity for a 48% stake in Vimpelcom owned by Fridman and associates. Additionally, it holds a 13.2% interest in Turkish telecom operator Turkcell, which has been involved in an extended shareholder dispute involving Cukurova (founded by Mehmet Emin Karamehmet), LetterOne through Alfa Telecom/Altimo, and Sweden's Telia Company.

In February 2016, Vimpelcom resolved bribery allegations brought by U.S. and Dutch authorities related to contracts in Uzbekistan by agreeing to an $800 million settlement. The company rebranded as VEON in 2017, pivoting towards mobile internet services encompassing banking, ride-hailing, and messaging platforms.

That same year, LetterOne invested $200 million into Uber and contributed $50 million to telecommunications start-up FreedomPop to foster its global expansion.

Other Ventures (2012–Present)

In 2012, Fridman partnered with American real estate developer Jack Rosen to form a joint venture aimed at investing $1 billion in distressed properties along the U.S. East Coast.

June 2016 marked the launch of L1 Health by LetterOne—a $3 billion fund based in the U.S.—dedicated to investments within the global healthcare sector.

In October 2016, Alfa Group acquired Ukrainian bank Ukrsotsbank by offering its parent company, Italian conglomerate UniCredit Group, a 9.9% minority stake in ABH Holdings.

December 2016 saw LetterOne establish L1 Retail in London with plans to invest $3 billion targeting emerging retail brands throughout Europe and the United Kingdom.

Fridman coined the term "Indigo Era" in 2016 to describe an economic transition emphasizing creativity and digital expertise over reliance on natural resources. In 2017, he sponsored a £100,000 Indigo Prize aimed at encouraging innovative economic measurement frameworks aligned with this concept.

In June 2017, LetterOne’s L1 Retail acquired Europe's leading health-food retailer, Holland & Barrett, for £1.8 billion ($2.3 billion). That year also included a $3 billion investment by Fridman through LetterOne into Pamplona Capital Management—a private equity firm founded by former Alfa-Bank CEO Alexander Knaster.

Amid potential U.S. sanctions in January 2018, Fridman declared that Alfa-Bank would gradually divest its holdings within Russia’s defense sector.

In May 2018, Fridman and Aven attended a private dinner at the Atlantic Council in Washington, D.C., drawing criticism due to their connections with Putin’s administration. The Atlantic Council defended the meeting as an open forum for dialogue; meanwhile, the Kremlin characterized the oligarchs as representatives of business interests.

In 2019, through affiliates of A1 investment company, Fridman acquired a 50% share in a supplier providing computing equipment to Russia’s defense industry.

Sanctions

On 28 February 2022, the European Union placed Fridman on its sanctions list and froze all his assets as part of measures targeting Russian oligarchs and officials in response to Russia's invasion of Ukraine. Fridman publicly condemned the conflict and urged an immediate cessation of hostilities. The United Kingdom followed suit by imposing sanctions on him on 15 March 2022.

In October 2022, Fridman proposed transferring $1 billion of his personal funds to Ukrainian Sense Bank, a financial institution he helped establish. Authorities interpreted this as a potential effort to influence the UK’s sanctions policy, although Fridman denied any exchange of favors. Sense Bank itself contributed millions from its own resources to support Ukraine’s Armed Forces and territorial defense units.

By September 2023, the UK Treasury revised its sanctions statement concerning Fridman, removing references to his close association with President Putin and referring to him merely as "an involved person under the Russia regulations."

On 5 September 2023, Ukraine’s Security Service accused Fridman, in absentia, of financing activities aimed at destabilizing the country. They alleged he invested approximately 2 billion rubles in Russian defense companies such as the Tula Cartridge Plant.

In April 2024, the General Court of the European Union ruled that there was insufficient evidence to justify Fridman’s inclusion on the EU sanctions list. The following month, Fridman initiated legal action against the Luxembourg government, becoming the first Russian billionaire to contest European sanctions and seek restitution for frozen assets. After an unfavorable ruling in Luxembourg, he commenced arbitration proceedings at the Hong Kong International Arbitration Centre in August 2024.

In March 2025, Hungary’s EU ambassador threatened to block the renewal of the EU’s sanctions list, which includes around 2000 individuals, unless Fridman’s name was removed. This position was backed by Luxembourg.

Controversy in Spain

Fridman first attracted attention in Spanish media in November 2002 when the Liberian tanker Prestige sank off Galicia’s coast. The vessel was transporting 77,000 tons of Russian heavy oil owned by Crown Resources, a company within Fridman’s Alfa Group. The resulting spill caused an environmental catastrophe with damages estimated at €1.5 billion. Spanish outlets dubbed Fridman ‘Dirty Michael’.

In 2016, Spanish entrepreneur Javier Perez Dolset, founder of ZED Corporation (a mobile app developer), filed a lawsuit against his Russian partners affiliated with VimpelCom Ltd., accusing them of unlawfully seizing joint venture assets and driving the company into bankruptcy. El Confidencial accused Fridman of masterminding an illegal takeover that financially devastated Dolset.

On 16 January 2017, Peter Wakkie, Fridman’s Dutch lawyer and close associate, was detained at Madrid’s Barajas Airport on suspicion of business fraud linked to ZED. Additionally, allegations have surfaced claiming Fridman supported Russian interference in the 2016 US presidential election.

In October 2019, Spain’s National Court interrogated Fridman as a subject under investigation for activities leading to Zed Worldwide’s insolvency and its acquisition at a low valuation. Prosecutors characterized this as a 'raid'—a term denoting illicit business takeovers. Although his legal team denied direct involvement, prosecutors argued that he concealed control through intermediaries. Following the hearing, the lead prosecutor confirmed that charges against Fridman remained active. However, on 15 December 2020, Spain’s National Court dismissed the case due to insufficient evidence and upheld his presumption of innocence. Appeals filed by Zed Group in February 2021 were also rejected because they failed to establish a direct connection between Fridman and wrongdoing beyond indirect references.

In mid-2017, LetterOne, controlled by Fridman, acquired Dia—a prominent Spanish supermarket chain formerly listed on the IBEX 35 until December 2018. Economy analyst Sergio Avila observed that after LetterOne’s takeover, Dia experienced significant declines in sales and profitability alongside falling share prices on Madrid’s stock market; he characterized Dia’s outlook as highly unfavorable. El Confidencial described these maneuvers as raider-style attacks on Spanish enterprises. In January 2021, Spain’s National Court dismissed accusations that Fridman manipulated Dia’s market valuation, attributing its decline instead to poor management and inadequate marketing investment.

Current roles

Fridman is a board member of ABH Holdings, the Luxembourg-based parent company of Alfa Banking Group. Since L1 Energy's acquisition of DEA Deutsche Erdoel AG in 2015, he has served on its supervisory board.

He also holds positions within various public organizations, such as Russia’s National Council on Corporate Governance and the Russian Union of Industrialists and Entrepreneurs. In 2001, he became part of the Council for Entrepreneurship under the Russian Government and was elected to the Public Chamber of Russia in 2005. Additionally, he has represented Russia on the international advisory board of the Council on Foreign Relations.

Philanthropic efforts and projects

In 1996, Fridman co-established the Russian Jewish Congress and has played an active role, including serving as vice president and leading its cultural committee. He is a significant contributor to the European Jewish Fund, which fosters interfaith dialogue. Together with Stan Polovets, Alexander Knaster, Petr Aven, and German Khan, he launched the Genesis Philanthropy Group in 2007 to reinforce Jewish identity among Russian-speaking communities worldwide. This organization created the annual Genesis Prize in 2012, awarding one million dollars to honor exceptional Jewish achievements benefiting humanity. Fridman was also a principal supporter of the Holocaust memorial initiative at Babi Yar in Kyiv, initiated in 2016.

In 2011, he inaugurated the yearly Alfa Jazz Fest in Lviv, Ukraine, with sponsorship from Alfa-Bank. Three years later, he introduced the Alfa Future People Festival—an electronic music event held annually along the Volga River in Russia’s Nizhny Novgorod region.

Awards and recognition

Fridman was honored with the Golden Plate Award by the Academy of Achievement in Washington in 2003, presented by former U.S. President Bill Clinton. That same year, BusinessWeek included him among "The Stars of Europe: 25 Leaders at the Forefront of Change." In 2004, he featured on the Financial Times list of 25 executives recognized as "Leaders of the New Europe" and appeared in Fortune magazine’s Power 25 in Europe. GQ Russia named him Man of the Year in 2006, while Forbes Russia awarded him Russian Businessman of the Year twice—in 2012 and again in 2017.

Legal issues

In 2003, two government-owned elite dachas were sold below market value—one to Fridman and another to former Prime Minister Mikhail Kasyanov—raising concerns due to lack of auction transparency. Allegations of preferential loans were denied by Fridman, who attributed the low prices to property conditions and sales excluding land rights. A Moscow court ruled in early 2006 that these properties should be returned to state ownership but confirmed Fridman's entitlement to reimbursement. Following this decision, officials involved in the transactions faced charges related to misappropriation.

In 2005, a U.S. district court dismissed a libel case filed by Fridman and Petr Aven against the Center for Public Integrity concerning accusations linking them to drug trafficking and organized crime. The court found no evidence of actual malice and classified them as limited public figures amid post-Soviet corruption debates.

In May 2017, Fridman joined co-owners Petr Aven and German Khan of Alfa-Bank in filing defamation lawsuits against BuzzFeed over publication of the unverified Steele dossier alleging financial connections and collusion involving Putin, Trump, and themselves. Later that year, they pursued legal action against private investigation firm Fusion GPS and its founder Glenn Simpson for disseminating the dossier. In April 2018, they sued Christopher Steele in Washington D.C.; however, this case was dismissed with prejudice by August.

Subsequently, all three initiated defamation proceedings in the United Kingdom against Steele’s company Orbis Business Intelligence. The trial commenced in March 2020 with Steele citing national security concerns as part of his defense. In July 2020, the British High Court ordered Orbis to pay damages totaling $23,000 to Fridman and Aven for false allegations that they delivered illicit funds to Putin during his tenure as deputy mayor of St. Petersburg. The judge deemed these claims "demonstrably false" and highlighted inaccuracies regarding their purported influence over Putin’s foreign policy decisions. Fridman testified that Putin never requested political favors from him; the court concurred that such assertions were improbable given his business activities.

Reported Detention in London

On 1 December 2022, authorities from the UK’s National Crime Agency, specifically the Combatting Kleptocracy Cell, apprehended a 58-year-old male in London on allegations including money laundering, conspiracy to defraud the Home Office, and conspiracy to commit perjury. Several news organizations, among them Russia’s state-owned TASS, suggested the individual was Mikhail Fridman. Alfa-Bank refuted this assertion, and the Russian Embassy confirmed that Fridman had not requested consular support. By September 2023, the National Crime Agency concluded its inquiry and officially stated that no charges would be pursued against Fridman.

Private Life

While Fridman’s principal residence was in Moscow, he frequently spent time in European cities such as London, Paris, Amsterdam, and Hamburg. He made London his home in 2015 and acquired Athlone House for £65 million in 2016 to serve as his primary dwelling. Divorced and a father of four, Fridman declared in 2016 his intention to donate his entire wealth to charitable causes after his passing.

Fridman’s first marriage to Olga produced two daughters, Katya (Ekaterina) and Lora (Larisa). Olga attended the Moscow Institute of Steel and Alloys alongside Fridman before pursuing a career as an interior designer based in Paris; as of 2014, she and their daughters lived in France. With his second spouse, Oksana Ozhelskaya, he has two additional children.

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