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#226 Victor Rashnikov $7.00B

Random fact: Defended plant from a hostile takeover in 1990s.

Overview

Rashnikov is the chairman and biggest shareholder of Magnitogorsk Iron & Steel Works, a Russian steel and pipe producer with revenue of $5.6 billion in 2016. He amassed an 87 percent stake in the 1990s by buying shares distributed by the Russian government to plant workers following the fall of the Soviet Union.

As of July 23, 2017:
Last change -$145M (-2.0%)
YTD change +$608M (+9.5%)
Industry Industrial
Biggest asset MAGN RX Equity
Citizenship Russian Federation
Age 68
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Victor Rashnikov's net worth of $7.00B can buy ...

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troy ounces of gold
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barrels of crude oil

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of the GDP of the United States
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of the total wealth of the 500 richest people in the world
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of the top 100 U.S. college endowments
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of the top 200 U.S. executives’ total awarded compensation
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of U.S. existing home sales
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times the median U.S. household income

Latest News

Net Worth Summary

Cash
Private asset
Public asset
Misc. liabilities
Confidence rating:

The majority of Rashnikov's fortune is derived from his 87 percent stake in publicly traded Magnitogorsk Iron & Steel Works, a formerly state-owned steel maker, which had revenue of $5.6 billion in 2016, according to its website.

Employed by the company in 1967, he began buying shares in the plant during Russia's post-Soviet privatization era. Rashnikov listed the company on the London Stock Exchange in April 2007. He controls the shares through Cyprus-based holding company Mintha.

The billionaire began diversifying into real estate in 2004, investing over $300 million in commercial properties in Moscow.

The value of his cash investments is based on an analysis of dividends, taxes, insider transactions and investment expenses.

Through Magnitogorsk spokesperson, Kirill Golubkov, Rashnikov denied to comment on his net worth.

Biography

Birthdate: 10/13/1948
Family: Married, 2 children
Education: 1974, Magnitogorsk Institute of Mining & Metallurgy, Graduated

Victor Rashnikov was born in 1948, in Magnitogorsk, an industrial city located in the Chelyabinsk region of southern Russia, just north of Kazahkstan. He began working as a fitter at the city's biggest plant, Magnitogorsk Iron and Steel Works, in 1967, and graduated from Magnitogorsk Institute of Mining and Metallurgy at age 22 seven years later.

Rashnikov was appointed chief engineer and deputy general director of the plant in 1991, a year before it was reorganized into a joint-stock ownership structure, setting the stage for its subsequent privatization. Rashnikov accumulated a controlling stake in the plant by buying workers' shares that were distributed by the post-Soviet Russian government as part of a program aimed at bringing private ownership to Russia. He was named general director in 1997.

Rashnikov defended the plant from a hostile takeover organized by future Russian billionaire, Iskandar Makhmudov, in 2001, and paid more than $2.3 billion to buy additional shares from the Russian state and Moscow-based steel maker Mechel, from 2004 to 2007. He disclosed that he held an 86 percent stake in 2007, the year he sold its shares in an initial public offering on the London Stock Exchange.

The billionaire has since attempted to diversify his investments. He borrowed about $300 million in 2004, which he used to help fund the development projects of another Russian businessman Shalva Chigirinsky, according to a July 16, 2010 report in Russian newspaper, Vedomosti. The partners planned to build a luxury hotel opposite the Kremlin and an office tower in Moscow City, a commercial district in central Moscow. Chigirinskiy fled Russia in the aftermath of the 2008 financial crisis and Rashnikov secured his ownership of the development projects in negotiations with Moscow authorities.

He lives in Magnitogorsk with his wife.

Milestones
  • 1948 Rashnikov is born in Magnitogorsk, Russia.
  • 1967 Starts working as a fitter in Magnitogorsk Iron and Steel Works.
  • 1991 Named chief engineer and deputy general director of Magnitogorsk.
  • 1997 Appointed general director of Magnitogorsk works.
  • 2004 Begins buying Magnitogorsk shares from steelmaker Mechel and the state.
  • 2005 Appointed chairman of the board for Magnitogorsk.
  • 2007 Magnitogorsk is listed on the London Stock Exchange.
  • 2011 Completes construction of Magnitogorsk's first steel plant in Turkey.