Iskander Makhmudov

Iskander K. Makhmudov
Native name Искандар (Искандер) Кахрамонович Махмудов
Born (1963-12-05) December 5, 1963
Bukhara, Uzbek SSR
Citizenship Russian
Education Degree, Oriental Studies
Alma mater Tashkent University
Occupation Founder/Owner of Ural Mining and Metallurgical Company
Organization Rusfonda
Net worth Increase US$ 6.5 billion (2013)[1]
Board member of Transmashholding

Iskander Makhmudov is an Uzbek-born Russian businessman and philanthropist. Yekaterinburg News called him "One of Russia’s most prominent and civically involved industrialists" who has contributed more than $1 billion to social, civic and philanthropic causes since 2001, adding “During the period of Russian rebuilding and economic liberalization, or perestroika, Makhmudov helped lead the country’s transition into a free market, capitalist, wealth- and prosperity-producing economy.”[2]

According to Forbes Magazine, Iskander Makhmudov is the 22nd wealthiest person in Russia. Forbes reported his net worth at $6.5 billion as of June 22, 2014.[1]

Makhmudov, as chief executive of UMMC, serves as an industry model of corporate social responsibility. UMMC has contributed approximately one billion dollars to a range of established social and charitable programs, providing services in nineteen towns.

The Russian Capitalist Wiki Project[3]

Charitable giving

Makhmudov has given over one billion dollars to charitable causes over the past decade, including medical clinics, housing programs, orphanages, and programs for war veterans. According to Yekaterinburg News: “As of 2011, those clinics expanded their operations to serve free of charge not only the children of UMMC employees, but also disabled children, orphans and children from disadvantaged families in the community.”[4]

Program Beneficiaries Details Image
2014 Winter Olympics Olympic athletes

Russian people

Makhmudov built an ice arena in the city of Sochi, Russia, which hosted the 2014 Winter Olympics. He planned to give the arena to the Russian government, free of charge.[5]
UMMC medical center Employees Makhmudov's company, Ural Mining and Metallurgical Company (UMMC), built a medical center that provides health care to UMMC's employees. Employees can get medical consultations, diagnostic exams, and medical tests, therapeutic treatment and even surgeries. This center provides consultation, diagnostic examinations and tests, therapies and surgery.[3]


Disabled children, orphans and poor kids In 2010, UMMC opened a group of medical clinics called "polyclinics." The clinics were built to serve special children's populations. The clinics provide all their health care services free of charge.[3]
Culture and theater Russian people Makhmudov provides financial and logistical support for art exhibits, theaters, dance programs and music festivals in the areas of Russia where UMMC's facilities are located.[3]
UMMC Olympics Employees Ural Mining hosts an annual event called "UMMC Olympics." Around thirty percent of the company's employees participate in the event. The company provides equipment and training and has paid for the building of sports stadiums.[3]
Housing subsidies Employees In 2004, UMMC launched an employee housing program. When a new employee joins the company and moves from a different region in Russia for the job, the company subsidizes the cost of housing for the new employee. UMMC pays for the construction of new apartments and gives employees no-interest loans for housing.[3]
"Heart to Heart" Orphans Makhmudov has created several charitable programs that aim to help special children populations, especially children living in orphanages and residential treatment centers. Makhmudov and his company sponsor sports tournaments, help provide educational programs, give money directly to orphanages, and collect clothes, books and supplies for children in orphanages.[3]
Child delinquency At-risk children Makhmudov and his business partners chose to address child delinquency because of their concern over the Russian child welfare crisis. The company works with local agencies to identify children who are at risk of becoming violent offenders later in life. Together, UMMC and the agencies help the children by providing education and health programs.[6]

Skolkovo Foundation

Makhmudov, along with one of the companies he owns (Transmashholding), are part owners of the Skolkovo Foundation. Makhmudov takes an active role in the Foundation's leadership.[7]

Makhmudov, through the Foundation, operates a business area near Moscow to help Russian startup companies develop and market their companies. In June 2014, the Foundation hosted a competition, called "2014 Startup Village", for startup companies in Moscow. The competition awarded investment money to 21 companies. Around 750 companies entered the competition. The Foundation said that the startup competition is the largest of its kind in the world.[8] Makhmudov created a fund of money through the foundation, called the Skolkovo Fund. In May 2014, the Fund hosted an international meeting of biomedical research scientists in Russia. According to Yekaterinburg News, the event was the "first-ever international biomedical conference."[9]

Career History

December 5, 1963
Iskander Makhmudov is born in Bukhara, Uzbekistan
Creates Ural Mining and Metallurgical Company (UMMC), the second largest copper producer in Russia.
Acquires a controlling stake in the Kachkanar iron ore smelter, "a formerly productive enterprise that had languished under Soviet management and almost ceased production in 1997."[10]
Establishes a housing program for UMMC employees.[10]
Brings the first Wendy’s restaurant to Russia.
Lauded for charitable giving, which provides free health care to children of his employees, disabled children and orphans.
Net worth estimated at $11.9 billion by Forbes magazine.
Helps build the ice arena, which he later gives to the Russian people for free, for the 2014 Winter Olympics in Sochi, Russia.

Makhmudov graduated from Tashkent State University with a degree in Oriental Studies. He is also a translator by educational background.

In 1986, the U.S. military ran an operation called El Dorado Canyon in Tripoli, Libya. U.S. forces dropped 60 tons of bombs and missiles on Libya's military facilities. During the bombing campaign, a number of Soviet government specialists were stationed in Tripoli. They were woken up by the noise of the bombing campaign, and went out to their hotel balconies to watch. Makhmudov was one of these men. At that time, his job was to servea as an Arabic-Persian translator.[11]

He worked for various Soviet military organizations in Libya and Iraq. His first position in business was with the Trans-World Group, which was at that time the largest metal trader in Russia.[12]

He has worked in several other business positions:[12]

In 1999, he created UMMC.[12]

Now Makhmudov is the main owner of Uralskaya Gorno-Metallurgicheskaya Kompaniya (UGMK) Holding. This is the fourth largest non-ferrous metallurgical company in Russia, Russia's second-largest copper producer in terms of output. With his partner Makhmudov also acquired a 50% stake in Izdatelskiy Dom Rodionova (Rodionov Publishing House), which publishes the Russian version of BusinessWeek.

Business Enterprises

Makhmudov’s ascension to success began in 1991 when the state economy was replaced with capitalism after the fall of the USSR.[13]


Makhmudov owns 17.5% of Aeroexpress.[14]

Aeroexpress provides rail transportation services between Moscow and surrounding airports (Sheremetyevo, Domodedovo, and Ynukovo).[15]

Russian Railways JSC owns 50% of Aeroexpress. In November 2012, it was reported that Russian Railways intends to sell half of its shares (25% ownership in Aeroexpress) to TransGroup AS Ltd.[15]

CSKA Team Ownership

"According to some [Russian] media, President of the Ural Mining and Metallurgical Company ("UMMC") Makhmudov bought a controlling stake in the football club CSKA." [16]

International Space Services

Russia's Federal Space Agency (Roskosmos) plans to coordinate international space activities with other national space agencies, such as the European Space Agency. In 2011, Roskosmos announced plans to promote Russian launch services to other countries.

Many companies within Russia already work in the foreign market space. International Space Services, which is owned by Ural Mining Company, sells Zenit-operated launches from Baikonur. Baikonur, formerly known as Leninsk, is a city in Kyzylorda Province of Kazakhstan that is rented and administered by the Russian Federation.[17]

Let Kunovice

Russia's first deputy defense minister Aleksandr Sukhorukov, who is ranked number four in the Russian Army, recently toured the Let Kunovice Aircraft Industries plant to express interest in the updated L-410 aircraft. The Russian Army plans to use the L-410 aircraft to train pilots, who would then train on the newer, bigger aircraft called the Ilyushin Il-476.

Let Kunovice is currently negotiating a deal to delivery 8 planes to the Russian Defense Ministry in 2013. Makhmudov's Ural Mining and Metallurgical Company is the majority owner of Kunovice.[18]

Moscow Passenger Company

Makhmudov and his partner Bokarev own Moscow Passenger Company (MPC).[19]

In 2011, MPC purchased a 25% stake in Central Suburban Passenger Company (CSPC). CSPC accounts for 56% of all suburban transportation in Russia.[19]

In December 2012, MPC won a bid to purchase another 25% stake in CSPC. This purchase will increase MPC’s equity position to 50%.[19]

Over 500 million passengers rode trains operated by CSPC in 2011. In 2011, CSPC had 24 billion rubles in revenue and 4.7 billion rubles in profit.[19]


CJSC Transmashholding (TMH), a holding company owned partially by Makhmudov, is Russia's largest producer of rolling stock for railways and subways. The company owns plants in St. Petersburg, Bryansk, Penza, and the Moscow, Rostov and Tver regions.[20]

In November 2012, it was announced that TMH had increased its net profit by 9 percent to 2.69 billion rubles. The company also reduced its long-term liabilities by 39 percent.[20]

In November 2012, Anatomy Ledovskikh, the former head of Russian’s Federal Agency for Subsoil Use, was elected Chairman of the Board at Transmashholding, one of the companies owned by Iskander Makhmudov. Transmashholding produces locomotives, freight cars, passenger cars, electrain train cars, and other train heavy machinery.[21]

Alstom Stake

In November 2012, Alstom purchased a blocking stake in TMH for $422 million U.S. dollars. Alstom is a France-based engineering company serving the power generation and rail transportation industries.[22]

Skolhovo Foundation

On November 16, Skolhovo Foundation and Transmashholding signed a memorandum of understanding. The two organizations will cooperate on issues of innovative research and development.[23]

Zheldorremmash Stake

In February 2012, RBC Daily reported that Transmashholding—through its subsidiary TMH Service—purchased 75 percent holdings in Zheldorremmash, a subsidiary of OJSC Russian Railways. Zheldorremmash is considered a major player in the locomotive repair industry.[24]

Ural Mining and Metallurgical Company


In 2011, RusBusinessNews reported that UMMC had commissioned a new coal processing factory. The factory is known as Krasnobrodskaya-Koksovaya. UMMC invested 3.3 billion rubles into the project. According to the article, the factory will process 3 million tons of coal each year.[25]

Tyumen Steel Mill

In July 2012, Metal Mining Wire reported that UMMC had planned to build and run a new steel mill in the Tyumen region of Russia. The mill would cost $675 million. According to the article, UMMC expects the new mill to produce 540,000 metric tons of steel per year.[26]


In August 2011, the first Wendy's restaurant opened in Russia. The Wenrus Restaurant Group operates the Wendy’s chain in Russia.[27]

Wendy’s/Arby’s International and Wenrus are planning to develop 180 restaurants over the next 10 years in Russia. Each restaurant will contain a Wendy’s and Arby’s.[28]

The Wenrus Restaurant Group is an affiliate of Food Service Capital.[28] Food Service Capital’s businesses include:[29]

Makhmudov owns Food Service Capital, along with Mikhail Zelman and their business partners.[29]

Investment and growth

Hyatt Hotels

In June 2014, Makhmudov closed a deal with Hyatt Hotels to build a luxury apartment hotel in Yekaterinburg, Russia. Makhmudov and his business partner Andrei Kozitsyn met with the two head executives from Hyatt Hotels in Yekaterinburg to discuss the project.[30] According to Russian news sources, Ural Mining and Metallurgical Company (UMMC) and Hyatt Hotels Corporation have already agreed to build the hotel. A subsidiary of UMMC is currently constructing a building called the Iset Tower. If the UMMC-Hyatt deal is finalized, Hyatt will use the top six floors of the Iset Tower for the luxury apartments.[31]


According to Russia & CIS Business & Financial Daily, Makhmudov will budget approximately 60 billion rubles in 2013 for investments. "We're signing contracts for next year, and have started budgeting. The average copper prices will be around $8,000 a tonne in 2012. We're hoping it stays at that level next year. We're also planning the same investment program as this year - 60 billion rubles," said his business partner.[32]


According to SKRIN Market & Corporate News, Makhmudov plans to direct his company to develop a new regional jet by 2015. The aircraft will be manufactured in a Czech Republic-based plant. All tests are planned to be completed in 2013.[33]

Personal life

He was born to an ethnic Uzbek Muslim family.[12] He is married and has one child.[1]

See also


  1. 1 2 3 "Iskander Makhmudov - Forbes". Forbes. 22 June 2014. Retrieved 22 June 2014.
  2. Louis Hamilton "Iskander Makhmudov a pillar of his adopted Yekaterinburg home", Yekaterinburg News, 25 Sep 2012
  3. 1 2 3 4 5 6 7 Russian Capitalist Wiki contributors (30 April 2014). "Iskander Makhmudov". Russian Capitalist Wiki. Retrieved 22 June 2014.
  4. Louis Hamilton, “Iskander Makhmudov a pillar of his adopted Yekaterinburg home”, Yekaterinburg News, 25 Sep 2012
  5. "Moscow press review for February 21, 2013", Russia & CIS Business and Financial Newswire, 21 Feb 2013, accessed 13 Mar 2013 via Nexis
  6. Hamilton, Louis. "UMMC, Makhmudov leading effort to help Russian orphans". Yekaterinburg News. Retrieved 23 June 2014.
  7. Hamilton, Louis (23 June 2014). "Russian Ministry of Energy to collaborate with Skolkovo on domestic energy". Yekaterinburg News. Retrieved 18 July 2014.
  8. Guthrie, Sam (4 June 2014). "Thousands take part in 2014 Skolkovo Startup Village competition". Yekaterinburg News. Retrieved 18 July 2014.
  9. Mills, Thomas (23 May 2014). "Skolkovo Fund to host international biomedical conference in Russia". Yekaterinburg News. Retrieved 18 July 2014.
  10. 1 2 Russian Capitalist Wiki contributors. "Iskander Makhmudov". Russian Capitalist Wiki. Russian Capitalist Wiki Project. p. 15 January 2014. Retrieved 9 April 2014.
  11. Igumenov, Valeril; Popov, Igor (20 May 2013). "Iskander Makhmudov: How an engineer-translator became a billionaire (Original: Искандер Махмудов: как инженер-переводчик стал миллиардером)". Forbes Russia (in Russian). Retrieved 19 November 2014.
  12. 1 2 3 4 "Iskander Makhmudov" Russian Capitalists
  13. Russian Capitalist Wiki contributors (8 November 2013). "Iskander Makhmudov". Russian Capitalist Wiki. Retrieved 11 November 2013.
  14. “Likistov Pulls out of Rail Business, Partners Buy New Assets,” Russia & CIS Business and Financial Newswire, 26 Dec 2012
  15. 1 2 “Russian Railways to Halve Stake in Aeroexpress,” M&A Navigator, 23 Nov 2012
  16. Karimov Cyril, "Makhmudov entrepreneur who bought a controlling stake in CSKA football club will help to cope with financial problems", Sobesednik, 28 Nov 2012
  17. "Federal Space Agency Competes with Foreign Contractors", RIA Novosti, 14 Nov 2012
  18. "Russian army to possibly place order for aircraft with Czech manufacturer", BBC Worldwide Monitoring, 5 Nov 2012
  19. 1 2 3 4 “Russian Railway Divests 25% in Suburban Operator” ROS Business Consulting Database, 24 Dec 2012.
  20. 1 2 "Transmashholding ups RAS net profit 9% to 2.69 bln rubles in 9M", Companies and Markets, Russia & CIS Business & Financial Daily, 14 Nov 2012
  21. Esmerk, "Russia: Ex-head of Rosnedra becomes new chairman of Transmashholding's board", Kommersant, 16 Nov 2012
  22. "Alstom pays around $422 mln for 25% in Russia's Transmashholding", Prime-Tass English-language Business Newswire, 7 Nov 2012
  23. "Memorandum of Cooperation signed between Skolkovo Foundation and Transmashholding", SKRIN Market & Corporate News, 19 Nov 2012
  24. Yevgeny Sergienko, "Structure "Transmashholding" buys 75% stake in "Zheldorremmash", RBC Daily, 11 Feb 2012
  25. "Ural Mining and Metallurgical Company completed the construction of the processing factory in the Kemerovo Region", RusBusinessNews, 30 Aug 2011
  26. Andrew Lair, "Ural Mining and Metallurgical Company to open new steel mill", Metal Mining Wire, 6 Jul 2012
  27. “Wendy's Opens First Fast-Food Restaurant in Russia”, Voice of America, 23 Aug 2011
  28. 1 2 “Arby's, Wendy's Prep Big Russian Expansion”, QSR Magazine, Retrieved 26 Jan 2013
  29. 1 2 Tatyana Romanova and Maria Rozhkova, “Wendy's to Enter Russia Next Year”, The Moscow Times, 06 Aug 2010
  30. Hamilton, Louis (19 June 2014). "Hyatt Hotel heads meet with UMMC to discuss apartment hotel". Yekaterinburg News. Retrieved 18 July 2014.
  31. "Hyatt Hotels Corporation to build apartment hotel in Yekaterinburg". UralBusinessConsulting. 17 June 2014. Retrieved 18 July 2014.
  32. "Metals Holding UMMC to Invest 60 Bln Rubles in 2013", Russia & CIS Business & Financial Daily, 18 Oct 2012
  33. "UMMC Plans to Develop a New Regional Jet by 2015", SKRIN Market & Corporate News, 5 Oct 2012

External links

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