Mikhail Prokhorov

Mikhail Prokhorov
Mikhail Prokhorov
Born	May 3, 1965 (age 61); Moscow, Soviet Union
Occupation(s)	Businessman, politician
Known for	Proprietor of the Brooklyn Nets, founder of Civic Platform party, former chairman of Polyus Gold, president of Onexim Group

Mikhail Dmitrievich Prokhorov (; born 3 May 1965) is a Russian-Israeli businessman and political figure, previously the proprietor of the Brooklyn Nets basketball team.

After the dissolution of the Soviet Union, Prokhorov acquired government-owned metal assets at prices below their market value through Russia's contentious loans-for-shares privatization initiative. His enterprise, Norilsk Nickel, grew to become the leading global producer of nickel and palladium. Additionally, he held the position of chairman at Polyus Gold, Russia’s foremost gold mining company, and served as President of the Onexim Group. As of December 2021, his net worth was assessed by the Bloomberg Billionaires Index at approximately US$14.0 billion, ranking him 148th worldwide, whereas Forbes Magazine estimated it at US$11.5 billion, placing him 193rd globally.

Prokhorov entered the political arena in 2011 as an independent candidate in the 2012 Russian presidential election, securing third place with 7.98% of votes cast. Subsequently, in June 2012, he established the Russian political party known as Civic Platform.

In April 2022, Prokhorov relocated to Israel and acquired Israeli citizenship under the provisions of the Law of Return.

Early life

Born in Moscow to parents Tamara and Dmitri Prokhorov, Mikhail’s paternal grandparents were prosperous peasants (kulaks) who faced persecution during Bolshevik and Stalinist regimes. His father, one among eight siblings, experienced poverty following the family’s dispossession and relocation within Siberia. Mikhail has an older sister named Irina. On his mother’s side, his grandfather was ethnically Russian while his grandmother Anna Belkina was Jewish; she was a microbiologist who remained in Moscow during World War II to continue vaccine production while Tamara was evacuated eastward.

Dmitri Prokhorov practiced law and managed international relations for the Soviet Committee of Physical Culture and Sport. Tamara worked as a materials engineer at the Institute for Chemical Machine-Building. Both parents succumbed to heart disease in their late fifties within a year of each other. Irina oversees Mikhail’s charitable foundations, literary magazine, and publishing house from a section of his estate near Moscow.

Prokhorov graduated from the Moscow Finance Institute in 1989. Between 1989 and 1992, he held a managerial position at the International Bank for Economic Cooperation. He briefly headed MFK bank (International Finance Company) before joining United Export-Import Bank (Oneksimbank) in 1993 alongside college associate Alexander Khloponin and business partner Vladimir Potanin. Oneksimbank maintained close ties with MFK as part of the ONEKSIMbank-MFK banking group connected to Andrey Vavilov.

Business career

At age 27 in 1992, Prokhorov collaborated with Potanin to manage Interros, a holding firm through which they acquired control of Norilsk Nickel—one of Russia's premier nickel and palladium mining enterprises—in 1995. During the largely unregulated privatization period following the Soviet collapse, Prokhorov and Potanin (then serving as deputy prime minister overseeing privatization) obtained Norilsk Nickel shares from workers at significantly undervalued prices, thus gaining ownership stakes. By the time Prokhorov exited in 2007, his holdings were valued at approximately US$7.5 billion.

His early financial achievements originated at MFK bank, which functioned as a government depository institution acquiring Soviet assets worth between US$300–400 million. Prokhorov chaired MFK from 1992 to 1993 before assuming leadership at Potanin's Onexim Bank. By 1993, Onexim acted as a paying agent for Finance Ministry bonds and administered Moscow’s external economic operations. In 1994–95, it became authorized to handle Russian Treasury obligations and federal agencies managing bankrupt enterprises.

Banks entrusted with government funds earned considerable fees while disbursing minimal interest rates amidst rampant inflation exceeding triple digits.

Throughout the 1990s, Prokhorov and Potanin utilized Onexim to conduct government auctions that extended loans to Russia’s financially strained state apparatus. Winning bidders received shares in privatized companies as loan collateral; failure to repay resulted in Onexim acquiring ownership stakes. This "loans for shares" scheme transferred controlling interests in major energy, telecommunications, and metallurgical firms to select private banks at prices well below market value. These businessmen also backed Yeltsin’s 1996 re-election campaign, thereby strengthening their political influence.

Onexim acquired assets including Sidanko, part of Novolipetsk metallurgical complex; Novorossiisk marine shipping company; and a substantial portion of Northwest marine shipping operations.

In April 1996, Prokhorov joined Norilsk Nickel’s Board while it remained state-owned. In November 1995, Onexim won a loans-for-shares auction securing a 38% stake in Norilsk Nickel for US$170.1 million—just above the minimum bid—even though Norilsk accounted for 25% of global nickel production with annual profits near US$400 million. The auction process involved reserved pricing and disqualification of higher bids on grounds of bidder capital requirements; this approach faced widespread criticism as manipulated but was legally permissible under Russian regulations.

The program was spotlighted by 60 Minutes, where correspondent Yulia Latynina described it as rigged yet emblematic of Russia’s oligarchic system.

In December 2011, Prokhorov declared his independent candidacy for the 2012 Russian presidential election, finishing third with nearly 8% of votes. In June 2012, after stepping down as Chairman of Polyus Gold and President of ONEXIM Group to concentrate on politics, he founded the “Party of Civic Platform.”

In August 2017, Prokhorov agreed to sell a 7% share in Rusal to billionaire Viktor Vekselberg for $503.9 million following an earlier sale of 3.3% via accelerated bookbuilding. By October that year, both sold an additional 3% stake for $315 million; consequently, Prokhorov’s ownership decreased to 6%.

Norilsk Nickel

Following the divestiture of most of Norilsk's non-core mining assets, Prokhorov concentrated on upgrading the extensive mining operations, which required icebreaker vessels to transport metals through Arctic routes. He invested in a Finnish cargo ship capable of navigating without icebreaker assistance. Based in Moscow, Norilsk Nickel operates under severe environmental and labor challenges, with persistent pollution issues despite Prokhorov’s substantial funding for environmental controls. He restructured Norilsk’s gold division into Polyus Gold, valued at US$8.5 billion and recognized as Russia’s leading gold producer. In 2003, he spearheaded the acquisition of Stillwater Mining, marking his initial venture into international markets. Prokhorov stepped down as CEO of Norilsk in February 2007 and began disentangling his business relationship with longtime associate Vladimir Potanin, initiating talks to divide their joint conglomerate, Interros.

ONEXIM Group

After departing from Interros in May 2007, Prokhorov established ONEXIM Group, a private investment fund managing assets worth US$17 billion. The group rapidly expanded its investment portfolio as Prokhorov explored diverse sectors. In April 2008, he divested his 25% plus two shares stake in Norilsk Nickel to United Company RUSAL—controlled by billionaire Oleg Deripaska—in return for roughly 14% equity in Rusal, US$5 billion in cash, and US$2 billion in payment commitments. This well-timed exit was highly advantageous, considering the subsequent market downturn that halved the value of Russian firms. Nevertheless, declines in other investments and delayed Rusal payments negatively impacted his total wealth.

In September 2008, ONEXIM acquired half ownership of Renaissance Capital, a prominent Russian investment bank experiencing liquidity difficulties. The group also bought a smaller bank, later renamed IFC, echoing Prokhorov’s early 1990s banking enterprise. ONEXIM has made significant investments in nanotechnology and advanced technology initiatives such as white LEDs and novel materials for energy and healthcare sectors; the acquisition of Optogan in 2008 supported this strategic focus.

In June 2007, Prokhorov was appointed to Russia’s Government Council for Nanotechnology, chaired by First Deputy Prime Minister Sergei Ivanov.

By July 2009, ONEXIM agreed to purchase an additional 51% interest in RBC Information Systems for US$80 million; half of the proceeds were allocated to debt repayment. The transaction was completed in 2010. Prokhorov’s diversified portfolio spans mining and metallurgy (Polyus Gold, Intergeo, Rusal stake), financial services (IFC-Bank, Soglassye insurance company, Renaissance Capital), utilities (Quadra stake), nanotechnology, media (JV!), and real estate development (Open Investments).

In 2016, ONEXIM divested its 20% holding in Uralkali and considered selling stakes including United Company Rusal, Opin PJSC, and Quadra.

In January 2022, ONEXIM transferred an 82.47% equity interest in energy firm PJSC Quadra to a subsidiary of Rosatom.

International investments and patronage

Prokhorov maintains several overseas investments, including ownership of two private hospitals located in Israel, where he has also financed medical treatments for acquaintances such as Alla Pugacheva.

In March 2004, he established the Cultural Initiatives Foundation under the Mikhail Prokhorov Foundation, managed by his sister Irina Prokhorova, a prominent figure in Russian publishing. He has provided financial backing for CSKA Moscow’s basketball, hockey, and football squads; is a member of the Supreme Council of Sport Russia; and serves as president of the Russian Biathlon Union. Additionally, he is an accomplished freeride jet skier.

In September 2009, Prokhorov proposed acquiring a controlling interest in the New Jersey Nets basketball team of the National Basketball Association along with investing in a new arena development project in Brooklyn. The NBA approved the transaction on 11 May 2010, granting him an 80% ownership share of the team and a 45% stake in the Barclays Center. This made him the first NBA team owner from outside North America. Following his announcement to run for Russian president in December 2011, the NBA confirmed he could maintain ownership. The franchise relocated to Brooklyn in April 2012 and was rebranded as the Brooklyn Nets.

By October 2017, Prokhorov was close to finalizing a deal to sell nearly half (49%) of his Nets stake. On 27 October that year, ESPN reported he had agreed to transfer this share to Taiwanese-Canadian businessman Joseph Tsai, co-founder of Alibaba Group, valuing the transaction at $1.2 billion. On 18 September 2019, Prokhorov sold his remaining majority (51%) interest to Tsai. According to Dmitry Razumov, CEO of Onexim Group, Prokhorov initially invested less than $1.5 billion and earned approximately $3.5 billion from total sales proceeds—resulting in around $2 billion profit.

Prokhorov is also a significant investor in Sensorium Corp., a company specializing in virtual reality.

Controversies

In January 2007, Prokhorov was detained at an upscale event in Courchevel on allegations of organizing prostitutes for attendees but was released without any charges after three days. By September 2009, the investigation was closed, with prosecutors clarifying that the women involved were not professional prostitutes, although Prokhorov had covered their travel expenses.

In March 2010, Prokhorov forfeited a £36 million deposit on the £360 million Villa Leopolda located in the French Riviera after a French court upheld the seller's right to keep the deposit and accrued interest due to regulations preventing refunding deposits once the cooling-off period expired.

Detractors of Prokhorov’s political involvement with the Right Cause party argue that it functioned as a Kremlin-controlled initiative, with Prokhorov appointed as leader rather than elected through an independent process. The party was perceived as a "puppet" entity designed to siphon opposition votes by employing liberal rhetoric.

Between 2008 and 2014, Prokhorov served as head of the Russian Biathlon Union and reportedly offered legal assistance to Russian athletes disqualified amid doping controversies.

Prokhorov is included among Russian oligarchs sanctioned under the Countering America's Adversaries Through Sanctions Act (CAATSA), introduced by President Donald Trump in 2017.

Russian politics

In May 2011, Prokhorov revealed his intention to join the leadership of the pro-business party Right Cause, which was viewed as favoring President Dmitry Medvedev over Prime Minister Vladimir Putin ahead of the 2012 elections. The following month, he was elected party leader and openly criticized the Medvedev-Putin administration, committing to reviving Russia’s stable growth. However, by September 2011, he resigned, denouncing Right Cause as a "puppet Kremlin party" controlled directly from the president’s office.

In 2014, Prokhorov contemplated transferring ownership of the Brooklyn Nets to a Russian subsidiary to comply with Putin’s 2013 legislation mandating that Russian politicians hold assets domestically and pay taxes locally.

During 2016, Onexim, Prokhorov’s media group—especially RBC Media—published investigative reports concerning the Panama Papers and offshore holdings of Putin’s son-in-law Kirill Shamalov. Soon after, Federal Security Service and tax authorities raided Onexim’s offices amid probes into alleged tax violations across various commercial entities.

Following these raids, several RBC journalists and its editor-in-chief were dismissed amid reports suggesting Kremlin pressure influenced these actions.

Prokhorov also led the Civic Platform Party from June 2012 until his resignation and exit in 2015.

2012 presidential campaign

In December 2011, after the legislative elections, Prokhorov declared his independent bid for the 2012 presidential race opposing Vladimir Putin. He described this decision as "probably the most important decision of my life". Communist leader Gennady Zyuganov and opposition figure Boris Nemtsov regarded his candidacy as orchestrated by the Kremlin to safeguard Putin's regime. Prokhorov successfully collected the required two million signatures to qualify. He emphasized that his campaign would prioritize policy proposals instead of focusing heavily on criticizing Putin, limiting such criticism to under 10%.

In the election held on 4 March 2012, Prokhorov secured 7.98% of the vote. On election day, he acknowledged inherent bias in the process: "From the outset I had no illusions about participating in presidential elections that are essentially unfair. Clearly, advantages were granted to one candidate."

Lawsuit involving Grigory Rodchenkov

After Russia was barred from the 2018 Winter Olympics and several Russian athletes had their medals revoked, Prokhorov committed in February 2018 to fund a defamation case in New York against Grigory Rodchenkov, who was the former mastermind behind Russia's state-run Olympic doping scheme. The legal action accuses Rodchenkov of defaming three Russian biathletes — Olga Zaytseva, Yana Romanova, and Olga Vilukhina — by naming them among athletes allegedly involved in doping at the 2014 Sochi Winter Games. These athletes, whose relay silver medals were rescinded, are pursuing $10 million each in compensation.

In response, April 2018 saw Rodchenkov file a countersuit against Prokhorov under New York’s anti-SLAPP statute, arguing that the original lawsuit lacked merit and was designed to suppress his First Amendment rights to free expression. Media sources indicate that this countersuit may seek disclosure of other financial backers supporting Prokhorov’s case as well as information about his financial holdings.

Rodchenkov’s attorney, Jim Walden, claimed that Prokhorov’s legal action aimed to reveal Rodchenkov’s whereabouts within the United States, potentially exposing him to surveillance or pursuit by Russian operatives.

Personal life

Prokhorov remains unmarried but has been engaged on two occasions. Upon acquiring ownership of the Nets, he vowed to wed if the franchise failed to capture an NBA championship within five years. He retracted this promise in July 2015, humorously noting that NBA Commissioner Adam Silver had "taken his place" by marrying earlier that year. Despite media speculation linking him romantically with Ksenia Sobchak, Prokhorov has not publicly disclosed any intended marriage partner.

Awards

In August 2006, President Vladimir Putin bestowed upon him the Order of Friendship in recognition of his notable contributions to Russia’s economic development. Later, in March 2011, he was awarded the French Legion of Honour, presented by France’s ambassador to Moscow, Jean de Gliniasty.

External links

Article covering his January 12, 2007 arrest, MSNBC.
2007 Kommersant piece on Prokhorov's resignation as Norilsk CEO, kommersant.com.