Russian billionaire businessman Leonid Mikhelson is the CEO, chairman, and significant stakeholder of the Russian gas corporation Novatek.
Mikhelson acquired an interest in a privatized pipeline construction firm following the fall of the Soviet Union, and he went on to found Novatek.
Leonid Mikhelson Bio/Wiki
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Leonid was born to a Jewish family in Kaspiysk on August 11th, 1955. Son of Praskovia Fedorovna (Shirokova) Mikhelson and Viktor Zelmanovich. Victor Zelmanovich Mikhelson, his father, worked on building pipelines.
Mikhelson resides in Moscow and is married to Lyudmila Mikhelson. Viktoria Mikhelson is the name of Mikhelson’s daughter. Viktoria was not at all a fan of art during her teenage years, according to Mikhelson.
She eventually developed an appreciation for art and began assisting her father in changing his collecting habits. The V-A-C foundation was established by her father Leonid Mikhelson and is named in honour of Viktoria. Mikhelson is hoping that Viktoria, a student of art history, will eventually take over the management of the organization.
Leonid Mikhelson Controversies
After a difficult implementation period, Yamal LNG’s fourth line, or Train 4, came online this spring. The pandemic was a factor, but the equipment’s inability to function properly in the bitter Arctic cold was the source of more significant issues. The largest privately owned natural gas firm in Russia, Novatek, is led by Leonid Mikhelson.
The CEO of the Yamal LNG in Sabetta revealed Train 4’s poor performance to reporters last week when speaking to them at the Eastern Economic Forum in Vladivostok. “It’s not the technology itself; all of the apparatus is produced in Russia. Such equipment had not before been created by Russian enterprises”, Mikhelson told Interfax.
“Both the turbo-expanders and the compressors are fully new,” he explained. It must be acknowledged that our factories and manufacturers still lack expertise in producing high-quality goods. According to Leonid Mikhelson, we have lawsuits pending against practically all of the fourth line’s equipment suppliers. It is awful, but it works. However, the CEO claimed that the sporadic stops were happening less frequently. The plant’s initial opening date was set for December 2019.
Train 4 will produce 950,000 tons of liquefied natural gas (LNG) per year when it is operating at maximum capacity. Train 4 is a small-scale production line in comparison to the other three trains, each of which had a capacity of 5.5 million tons per year. All of the pipes and machinery for Yamal LNG’s three initial trains were made by European suppliers.
Both the first and second trains—the latter of which was launched up to six months earlier than expected—opened in December 2017 and July 2018, respectively. In December 2018, Train 3 was formally started, which was up a year earlier than expected. Meanwhile, Novatek is working nonstop to build the port infrastructure for its new Arctic LNG 2 plant on the Gydan Peninsula, which is across Ob Bay from Sabetta.
Currently being transported from Wison Offshore & Marine’s Zhoushan yard in China to Novatek’s Kola yard in Belokamenka, north of Murmansk, are the initial modules for what would be floating production facilities.
Before being towed to the coast of the far northern Gydan Peninsula in Ob Bay in Siberia, the enormous model will first be affixed to a sizable gravity-based structure at this location. The start of Train 1’s production is slated for 2023. Train 2 will begin production a year later, in 2024, while Train 3 will begin service in 2025.
Corrupt Relations With Russian Top Officials
Mikhelson allegedly receives assistance from obedient authorities and close allies in authority to acquire new assets for Novatek. As a result, Mikhelson first encountered Joseph Levinson in the early 1990s. Levinson was the CEO of the Purneftegazgeologiya company, which possessed gas reserves in the Yamal-Nenets Autonomous Okrug.
Mikhelson’s company worked on Purneftegazgeologiya projects in return for the shares of companies holding licenses for gas and oil deposits in the Yamal-Nenets Autonomous Okrug since Purneftegazgeologiya lacked the funding to develop these reserves. The estimated 235 million tons of oil reserves are in the Purneftegazgeologiya field. These assets consequently became the company’s core assets. Mikhelson acquired ownership of Purneftegazgeologiya in 2001.
Levinson served as the Yamal-Nenets Autonomous Okrug’s first deputy governor from 1996 until 2005. Levinson joined the Novatek board of directors in 2009. Gennady Timchenko, the well-known head of the oil trader Gunvor, joined Putin’s inner circle in 2009 and became a stakeholder in Novatek. Mikhelson bought Sibur, the biggest petrochemical holding in Eastern Europe, along with a few other companies in collaboration with Timchenko.
According to reports, Michelson and Timchenko successfully lobbied local officials to support their interests in the acquisition of businesses in conjunction with them. For instance, in 2015, the Bashkortostani government organized an auction to purchase stock in Polyef, the country’s sole producer of terephthalic acid.
The initial winner was the neighbourhood LLC Rebus. However, the Bashkiria government and Rebus LLC later cancelled the agreement, and Sibur acquired ownership of the Polyef assets. The Bashkirian Ministry of Land and Property Relations was in charge of the sale of Polyef shares. It is noteworthy that Leonid Mikhelson met with Rustem Khamitov, the leader of Bashkortostan, prior to the sale of Polyef.
Media coverage of the discussions between Mikhelson and the leader of Bashkortostan is extensive. Other regional leaders and Michelson continue to have cordial connections. Dmitry Kobylkin, 38, who started his career at Khancheyneftegaz (a Novatek subsidiary) and Purneftegazgeologiya, was named governor of the Yamal-Nenets Autonomous Okrug in 2010.
Before the gubernatorial election, Kobykin had been referred to as “a nominee from Novatek” in the media since the leader of the Yamal-Nenets Autonomous Okrug had already been suspected of being loyal to Mikhelson. Since then, the area has granted Novatek a number of exceptional administrative and political benefits.
Leonid Mikhelson Education
Mr Mikhelson earned his main degree in Industrial Civil Engineering from the Samara Institute of Civil Engineering in 1977. The first segment of the Urengoi-Chelyabinsk gas pipeline was being built when Mr. Mikhelson started his career as a foreman of a construction and assembling firm in Surgut, Tyumen region.
Mr Mikhelson was chosen as Ryazantruboprovodstroy’s Chief Engineer in 1985. He was appointed general director of Kuibishevtruboprovodstroy in 1987. This organization was the first in the area to sell its shares and transform into a private firm, AO SNP NOVA, in 1991. From 1987 through 1994, Mr. Mikhelson served as the managing director of AO SNP NOVA. He then rose to the position of General Director at the management firm “Novafininvest.
Leonid’s gas company, Novatek, is the source of his enormous wealth. Leonid Mikhelson began working on the Urengoi-Chelyabinsk gas pipeline project in his early years. He rapidly began ascending the ladder of prosperity. Mikhelson was chosen to lead Kuibishevtruboprovodstroy as its general director in the year 1987.
Leonid served as the Managing Partner of Kuibishevtruboprovodstroy when it was privatized and renamed NOVA. Leonid Mikhelson founded Novatek, a billion-dollar business, in the year 1994. The business was once known as OAO FIK Novafininves until changing its name to OAO NOVATEK. The largest gas producer in the nation is Leonid Company Novatek.
He accomplished excellent things for his business. Shares of Novatek are now officially a publicly traded business and are traded on stock exchanges. Leonid Mikhelson owns 25 per cent of Novatek and 57.5 per cent of Sibur. The plan devised by Leonid Mikhelson brought in billions for the business. Leonid works hard to earn the top spot on Forbes’ list of the wealthiest men in Russia for the year 2016.
Gennady Timchenko and Leonid have been spotted working together on investing and business matters. They own sizable stakes in Sibur and Novatek. They collaborate to support the Russian Football Union. Mikhelson has also committed a portion of his riches to exporting Russian modern art. Mikhelson founded the V-A-C Foundation in 2009 and gave it his daughter’s initials.
Anatoly Osmolovsky, Arseny Zhilyaev, Sergey Sapozhnikov, Mark Dion, Pawe Althamer, Mike Nelson, Fiona Banner, James Richards, Lynette Yiadom-Boayke, and Tino Sehgal are just a few of the modern artists whose works are organized and displayed by the foundation.
Mikhelson frequently collaborates on business and investing endeavours with Russian billionaire Gennady Timchenko. They are partners and the majority owners of Sibur and Novatek, respectively. Mikhelson and Timchenko sold managing partners 12% of Sibur in 2013. Mikhelson and Timchenko are both listed as billionaires by Forbes.
According to Bloomberg, Mikhelson was ranked as the second-richest Russian in 2012. The Russian Football Union’s primary sponsors are Mikhelson and Novatek. Mikhelson has been awarded the Order of the Badge of Honor by the Russian Federation.
Leonid Mikhelson Net Worth
One of the biggest producers of natural gas in Russia is the corporation, Novatek. It ranks as the seventh-largest natural gas producing firm in the world. Its headquarters are in West Siberia, and it has a sales office in Moscow.
It was formerly known as the OAO FIK Novafininvest. The South-Rambeyskoye field’s manager, Volga Resources, sold it a 51 percent interest in Yamal LNG. Novatek made numerous other gas company acquisitions over the ensuing years and is now planning to build a port in Sabetta. Together with the Russian government, the project will be carried out.
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Leonid Mikhelson Recent News
After over two weeks of radio quiet, the superyacht connected to Leonid Mikhelson, the second-richest person in Russia after President Vladimir Putin, has surfaced. The $150 million, 85-meter-long Pacific vessel first showed up cruising by the Canary Islands on May 20 after going 12 days without broadcasting its whereabouts, according to Bloomberg. More recently, the vessel has been spotted close to Malta in the Mediterranean Sea.
International maritime law is broken when a boat is in operation but the transponder is off. Although the ship has stated that Port Said in Egypt will be its next stop, observers believe the ship will proceed from there toward one of the countries that are friendlier to the very large boats owned by Russian oligarchs: Turkey or the Maldives.
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