Alexei Kuzmichev and Alfa Raw Materials

The persona of our 63rd issue of ForTrader.org magazine is the third billionaire from the Alfa clan, ranked 16th in 2010 by Finance magazine Russian oligarchs with a fortune of $7.1 billion. Alexey Kuzmichev is one of the founders and co-owners of Alfa Group, and his priority has been the development of raw materials companies.

Alexei Viktorovich Kuzmichev was born in the city of Kirov on October 15, 1962. Immediately after his military service in the Transbaikal border troops, he entered the Moscow Institute of Steel and Alloys (MISiS), where he met his future colleagues Michael Friedman и Herman Khan. At the institute Kuzmichev was active and in his first year became secretary of the Komsomol organization and joined the Communist Party of the Soviet Union. A year after graduation, in 1989, he was already doing business together with Fridman and Khan in the cooperatives "Courier" and "Alpha-photo. Their main activity was the purchase of scarce goods (carpets, copy machines, computers, cleaning supplies, etc.) abroad and reselling them in Russia.

However, the partners wanted to develop and expand the business, and in 1990 a second Alfa was opened - the "Alfa Eco"The choice of what to do was there, but Kuzmichev insisted on his idea, and they went into raw materials. There was a choice of what to do, but Kuzmichev insisted on his idea and with Friedman and Khan they went into commodities. A little later, another oil and gas company named Crown Trade and Finance, Ltd. was created, later renamed Crown Resources AG. In 1999, it was registered in Switzerland and exported oil mainly to Iran, Cuba, Venezuela and Iraq. In 1992, Kuzmichev joined its Board of Directors, and four years later he left his post at Alfa-Eco to focus on the development of Crown Resources, eventually becoming Chairman of the Board.

"Alfa-Eco and Crown Resources AG worked quite successfully for a long time until the holding company bought Tyumen Oil Company (TNK)The TNK, unlike Crown Resource,s, was able to transact competitively, allowing it to give the world market 21.5 million tons of oil and million tons of petroleum products in 2000. TNK, unlike Crown Resource,s was able to conduct transactions under more competitive schemes, which allowed it to give the world market in 2000 21.5 million tons of oil and 9 million tons of petroleum products and become one of the leaders in exports of raw materials abroad.

But the most black spot for Crown Resources, in the literal sense of the word, was the 2002 environmental disaster caused by the sinking off the coast of Spain of the tanker Prestige laden with company-owned fuel oil. After that the decision was made to sell the company. Note that Crown Resources management bought out the company and renamed it first to ERC Trading Company, and later to Expertica. Alexei Kuzmichev remained its owner, but the company was no longer selling oil.

After this event, Kuzmichev returned to Alfa-Eco as Chairman of the Board of Directors. And this company was renamed in 2006. The name chosen was laconic А1Kuznetsov was the Chairman of the Board of Directors of A1, while continuing to oversee and coordinate the commodities business of the Alfa Group Consortium. By 2009, Kuzmichev rose through the ranks from Chairman of the Board of Directors at A1 to Chairman of the Advisory Cabinet. In addition, as of 2010, he was a member of the Board of Directors of Alfa Finance Holdings SA, which managed the oil and financial assets of the Alfa Group Consortium, and ABH Holdings SA, which managed Alfa Bank.

Apart from exporting directly, Alexei Kuzmichev also tried himself in other projects. For example, in 2006 he and his company Expertica were engaged in the activation of exchange trading in futures for Russian oil on the New York Mercantile Exchange (NYMEX)as well as the creation of of the oil exchange in St. Petersburg. Both projects took place, but the oligarch was not among the founders of the International Mercantile Exchange in the northern capital.

Kuzmichev also tried his hand at technology, creating the possibility of access to the Internet through an electrical outlet. However, two years after the creation of the corresponding venture fund Russian Technologies, the project was closed.

Kuzmichev is rightly considered one of Alfa's most modest owners. In his few interviews, he rarely talks about himself and his role in the consortium, spending more than half a day on the job.

Since 2001, the billionaire has lived permanently in England, while being a citizen of Russia. One of his hobbies is the history of Mesopotamia.

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