Mikhail Gutseriyev

Saad Gutseriev, Commissary of Western Georgia and Sukhumi, 1908

Father, Safarbek Saadovich, 1973

His paternal grandfather, Saad Gutseriev, was born in 1882 in the outskirts of Vladikavkaz. At nine-years-old, he crossed the Cross Pass and moved to Tbilisi, Georgia. He completed a non-classical secondary school, was trained at the Special Gendarme Corps of the Russian Imperial Army, and subsequently was educated in law. Saad Gutseriev served as a Commissary of Western Georgia and Sukhumi. During this time, he moved to Vladikavkaz, where he ran a business, owning the starch and distilling factories. After the Russian Revolution, Saad Gutseriev occupied management positions in various enterprises under the Commissariat of Local Industry. In 1944 Saad was repressed, his house was confiscated and his whole family was exiled to Kazakhstan, where he remained until his death in 1948. Nowadays, the most contemporary and chic hotel in Astana, erected by funding from the Gutseriev family, bears the name of Gutseriev's grandfather – Saad-Mariott.

Mikhail Gutseriev`s father, Safarbek Saadovich, was born in 1920, graduated from Law School in 1941, and in 1971 graduated from the North Ossetian State University with a degree in Economics of Trade. During World War II, he served in the procuratorial offices and at the age of 23 headed the district prosecutor's office. After the deportation of Ingush people to Kazakhstan in 1944, Safarbek Gutseriev served as a senior investigator for special cases of the Akmolinsk Regional Administration of the Russian Ministry of Internal Affairs. In 1948 he was illegally repressed and sentenced to 25 years imprisonment and a subsequent 5-year exile settlement, having been fully deprived of his rights. "For seven years, day by day, my father had been sending two letters to Stalin. One of them was written from his own name. The other one, signed by my mother, was composed by his friend, also a convict. My father sent over 5 000 letters in total", recalls Mikhail Gutseriev. Half a year after Stalin's death, Safarbek Gutseriev was freed, reinstated in the Party, and in 1955, he was fully rehabilitated. After the War, he took up various management positions of a regional level: Head of Production and Processing Equipment Agency of Tselinstroy, Head of Construction and Erection Directorate, and of number of other industrial and retail enterprises. He was given 11 state awards.

Gutseriev's mother, Marem Yakubovna Akhil`gova (1924—1998), was a housewife. She held an honorary title "Mother-heroine" for giving birth and educating 9 children.

Safmar, the name of the industrial and financial group, was composed of the letters of the names of his parents, Safarbek and Marem.

Mikhail Gutseriev was born on 9 March 1958 in a large Ingush family in Akmolinsk. His family was repressed and exiled to Kazakhstan. He finished high school No. 23 in Grozny, Checheno-Ingushskaya ASSR. The school, completely destroyed during the First Chechen War, in 2005 was rebuilt with Gutseriev`s financial support.[9][10][11][12]

In 1975 Gutseriev started his labor activity as a loader, working for an import company in Grozny. From 1976 he worked as a reel operator of a silkscreening workshop at the Dzhambul Factory of Folk Arts and Crafts, then till 1982 – as a supervising foreman of a sewing workshop at the same factory. Simultaneously he studied at the evening department of the Chemical Processing Faculty of the Institute of Technology, Dzhambul, Kazakh SSR, majoring in "Leather and Furs".

From 1982 Gutseriev worked as a process engineer, later on – as a senior process engineer of Grozny Production Association at the RSFSR Ministry of Local Industry, Grozny. It took him only four years to advance from a process engineer to the CEO of the Association, having become the youngest CEO among managers of manufacturing enterprises of the USSR.[13]

In 1988 Mikhail Gutseriev founded a Russian-Italian joint venture, the first one in the Northern Caucasus, the CHIITAL furniture factory. He also became a pioneer of private banking business in the USSR: in the same year, he founded "Kavkaz", one of the first cooperative banks in this country.[14] In 1991, Gutseriev was elected Chairman of Businessmen Association of Checheno-Ingush ASSR.

In 1992, when Dzhokhar Dudayev took power, Gutseriev had to leave his business and moved to Moscow, where he founded industrial and financial company "BIN" (Bank of Investments and Innovations), uniting industrial, trading and financial enterprises. In 1993 he founded and headed the Joint Stock Commercial Bank BIN.

1994 marked Gutseriev's development of the free economic zone for residents, the first one in the post Soviet countries, called the Zone of economic well-being Ingushetia" (ZEWI). On 19 June 1994 the Government of the Russian Federation issued Resolution No. 740 on establishing ZEWI and appointed Gutseriev as the Head of its Financial sector. Within 4 years, the Republic received investments exceeding 200 mln USD, started construction of Magas, the capital of the Republic, an airport, vehicle roads and railway stations, university, lyceum. It also established television and radio companies as well as many other infrastructure and producing objects.[15]

In 1995 he graduated from Finance Academy under the Government of Russian Federation, majoring in "Finance and Credits", Gubkin Russian State University of Oil and Gas, majoring in "Methods and Technology of Oil and Gas Engineering", St. Petersburg University of Law, majoring in "Civil Law" and Post graduate course at St. Petersburg University of Law, having received master's degree in "Criminal Procedural Law". Eventually he pursued Doctoral studies at the Plekhanov Russian University of Economics, majoring in "Free Economic Zones".

In 1996 he defended his PhD thesis on "Criminality in major cities: State of affairs and prevention problems on the materials of Moscow and Saint-Petersburg in Saint-Petersburg Law University, PhD in Law.[16]

In 1998 he defended his doctorate thesis on "Establishing and developing the zones of economic well-being: methodology and practice" in the Plekhanov Russian University of Economics, Doctor of Economics.

In 1995 he was elected as deputy to the State Duma, where he took up the post of Deputy chairman.[17] Due to his position, he sold a 100% stake of AKB B&N (BIN) and thus from the equity of the bank. In 1996 Mikhail Gutseriev initiated, developed and proposed for consideration of the State Duma a regulation on establishing a "Center for International Business", a standard offshore zone for non-residents. The State Duma approved the Federal Law on the ‘’Center for International Business" (No. 16-FZ), with the major provisions compiling with general regulations of the laws on international businesses. The president approved the Law on 30 January 1996. The Law was effective for 1 year and international non-residents started their registration. Unfortunately the economic crisis of 1998, a strong decline in the Ruble exchange rate, and further default made the government suspend the effect of the law which has been in a “sleeping mode” so far.

In 1999 for the second time Gutseriev was elected a State Duma Deputy for the Third Convocation of the Federal Assembly. However, on 14 January 2000, Gutseriev was elected as the President of Slavneft at the extraordinary meeting of shareholders of the Company and had to turn down the Deputy's mandate.

On 27 February 2001, Gutseriev was elected the Vice President of the Russian Union of Industrialists and Entrepreneurs.[18]

In February 2001, he was elected as the acting member of the public organization of the Russian Academy of natural sciences for an outstanding contribution into development of Economics and merits and influential role of oil the industry in Russia.

In 2002 the stocks of Slavneft were sold to Sibneft Consortium (now Gazpromneft) and Tyumen Oil Company for USD 1.86 bn, and Gutseriev established and became a head of OJSC NK “RussNeft” in 2002.

In September 2002, Gutseriev founded and ran RussNeft, the oil and gas company.

In 2007 he moved to London, due to fears of persecution and legal repercussions in Russia.

On 7 May 2010 Mikhail Gutseriev came back to Russia in order to visit the tombs of his parents and son.[19][20][21]

Gutseriev is the biggest owner of the commercial real estate on Tverskaya Street in Moscow.[22]

In February 2015, bearing in mind massive expansion of the business of the two of his major oil companies JSC RussNeft and JSC Neftisa, he became the chairman of the board of directors both companies, having focused on the strategic management of his assets.[23]

Development of industrial companies owned by Mr. Gurtseriev allowed purchasing new assets leading to business great diversification. With the pursue of efficient management of the assets portfolio, the businessman established AO Safmar Group, a managing company. Mikhail Gutseriev became a head of the Group’s Board who defines the development strategy of the holding. Within the period from 2015 to 2020 Safmar was joined by M.Video, Eldorado, the leading retailers (Kuzbasskaya Toplivnaya Company, Krasnoyarskrayugol, etc.), oil producing assets (Sladkovsko-Zarechnoye located in Orenburg region), oil processing plants (Afipsky OPP), a number of construction and development holdings (A101), major logistics operators (MLP, etc.), non-government pension funds, leasing and insurance companies. Today Safmar is among Top-5 Russian major multi-sectoral holdings, its total revenue reached USD 1.5 tn, the number of staff exceeded 100 k people.

In 2017 Slavkaliy, another company owned by Gutseriev started to construct a potash complex in Belarus worth USD 2.1 bn. This is the greatest project being implemented by a private company in the CIS countries. The company owned by Gutseriev constructed Renaissance Hotel in Minsk. Mikhail Gutseriev also owns the business aviation terminal in the capital’s airport and former leisure center of the Presidents Administration Office “Krasnoselskoye”, transformed into the reception house.

In December 2017 Mikhail Gutseriev actively participated in approving the Decree No. 8 on the development of digital economy, which set a regulatory basis for a revolutionary IT development in the Republic of Belarus. The Decree included Innovative Laws, regulating in particular block chain and cryptocurrency technologies. Belarus became the first country in the world which legalized Smart contracts.

In January 2019, the first cryptocurrency exchange in the CIS countries was launched in Belarus under the abovementioned Decree. The investors in the project are Mikhail Gutseriev's son Said Gutseriev and technology entrepreneur Viktor Prokopenya.[24] The exchange allows trading and investing into traditional financial instruments using the cryptocurrencies Bitcoin and Ethereum. Currency.com became the first professional player at the cryptocurrency market in Russia.[25][26]

In January 2020, during another “oil conflict” between Minsk and Moscow, only Gutseriev`s companies provided the Russian oil before signing the contracts with the major suppliers. Herewith with that the volume of oil deliveries to Belarus by the companies owned by Gutseriev exceeded 500 thous. tons monthly, that is to say 25% of the total volume of oil deliveries to the Republic of Belarus.

Mikhail Gutseriev is the author of a monograph and an array of research publications on free economic free economic zones and offshore business issues in Russia.[27]

Since childhood Gutseriev has played music (violin, piano), and currently writes verses.[5] He is fluent in English.

Mikhail Gutseriev is married and has a son and a daughter[28] [29][30]

His elder son Chingiz, born in 1986, graduated from Harrow School and later from Warwick University in England. Later on he continued his studies in Gubkin State University of Oil and Gas. He died after car accident in 2007.[31][32]

Said, the younger son of Mikhail Gutseriev (born 18 April 1988) was educated at Harrow School, UK, and graduated from Oxford University (Archeology and Geology) and Plymouth University (Oil and Gas Faculty). He holds the British Passport He is an entrepreneur, CEO of Forteinvest, one of the Russian leading [[Oil refinery|refinery] companies, a shareholder of the Non-state "European Pension Fund." He is a BoD member of all the companies, owned by his father.

On March 26, 2016 Said married Hadizha Uzhakhova a 20-year student of Medical and Dental University. The wedding was held in Safisa Restaurant in Moscow. 600 guests enjoyed the performance by Jennifer Lopez, Sting, Enrique Iglesias and Alla Pugacheva. The wedding dress of the bride weighted 25 kg and cost tens millions of rubles. The wedding spiked controversial opinions, some called a fairy tale, others said it was fiddling while Rome burned.

Khamzat, the elder brother of Mikhail, is a Police General–Lieutenant, Doctor of Law, Professor. Starting from 1985 he headed the Criminal Investigation office of the Police, from 1990 to 1995 he was Deputy Minister of Internal Affairs, the Head of Criminal Investigation Police of the Ministry of Internal Affairs in Ingushetia. In 1995 he started working in St. Petersburg Institute of Law, from 1998 to 1999 he was the Deputy Director of St. Petersburg Academy of the Ministry of Internal Affairs of Russia, from 1999-2002 he occupied the post of Minister of Internal Affairs in Ingushetia. In 2002 he planned to participate in the presidential elections in the Republic, but his candidacy was dropped and he moved to Moscow. From 2004 to 2010 he used to be a member of the Federation Council from Aginsk Buryat Autonomous District.

The younger brother of Mikhail, Sait-Salam (born 1959) is also a prominent businessman, Doctor of Economics. Use to be a Deputy of the State Duma of the Third and Fourth Convocation (1999 - 2007).

In the end of July 2007 Mikhail Gutseriev in an open letter announced that authorities made an unprecedented pressure on him, and he was forced to sell RussNeft to the Basic Element holding, owned by loyal to the Kremlin Oleg Deripaska. Gutseriev stepped down as a President of RussNeft and announced his suspension of entrepreneurial activity (apart from RussNeft he owned Russian coal and many other companies) and his decision to move on to scientific endeavor.[33][34]

On 28 August 2007 The Tverskoy court of Moscow issued arrest warrant in absentia for Gutseriev, meeting the request of the Investigative Committee under the Ministry of Internal Affairs. Russia issues an international arrest warrant for Gutseriev.[35][36] At that moment Gutseriev had already been in London, having got US$3 billion from Oleg Deripaska from the RussNeft sale.[37]

On 16 October 2007 Gutseriev applied for political asylum to the Border and Immigration Agency of the Home Office[38][39] but this information was officially refuted.[40]

Near the end of October 2010, the Investigative Committee varied the preventive measure for Gutseriev from arrest in absentia on undertaking not to leave his usual place of residence.[41]

In January 2010 Gutseriev regained his control over the 100% of the oil company. By the mid-April 2010 all the charges against Gutseriev were dropped, the criminal cases were dismissed. In April 2010 it was announced that Gutseriev has sold 49% of the company to Joint-Stock Financial Corporation Sistema and 2% more to Sberbank of Russia.[42]

In the summer of 2013 Mikhail Gutseriev once again became the sole owner of JSC RussNeft.[43]

In 2010 Mikhail Gutseriev became the key player in the broadcasting market of the Russian Federation, owning a total of eight Media and Radio stations.[44]

In June 2012 he acquired broadcasting stations "Просто Радио" (Moscow, 94 FM) and "Dobriye Pesni" (Moscow, 94.4 FM) from Alexander Lebedev.[45] Subsequently, on the first frequency there appeared the station "Vostok FM" and on the second frequency – "Vesna FM".

On 30 January 2013 it became known that 75% of the shares of Krutoy Media Holding (Love Radio, Radio Dacha and Taxi FM) were purchased by Mikhail Gutseriev`s structures, while the remaining 25% were kept by Igor Krutoy. At the moment of the transaction, Mikhail Gutseriev had already owned two broadcasting stations "Vostok FM" and "Vesna FM"and the new owners announced the preservation of the old program policy of holding the value of which was estimated then at USD 50–60 million.[46][47]

In November 2013 he acquired Finam FM Broadcasting station (Moscow, 99.6 FM),[48] which together with"Vostok FM" and "Vesna FM" formed Izyum Holding.[44]

For two years Mikhail Gutseriev managed to create a big media holding, occupying the leading positions in the Moscow Region by respect of the frequencies number (the second place after Gazprom-Media).[47]

In April 2015 Mikhail Gutseriev purchased 100% of "Radio Shanson". The transaction was estimated at US$50–60 million, while Gutseriev said it was 60 million. For three years Mikhail Gutseriev managed to create a big media holding, occupying the leading positions in the Moscow Region by respect of the frequencies number (the second place after Gazprom-Media).

In 2016 he purchased Russian Hit internet station, its format formed the basis for the future like-named radio station..[49]

In January 2017 Mikhail Gutseriev became an owner of Bridge Media Group, one of the largest television holdings of the country that includes number of the popular music channels.[50]

In November 2017 Mikhail Gutseriev purchased one more major Russian federal radio station, its name was not disclosed.

In 2013 the Litera literary club, popularizing poetry in the Internet, posted on the net the cycle of video clips where young Moscow and Saint Petersburg actors recite poems by Mikhail Gutseriev. In 2014 this initiative was further artistically elaborated by a well-known film and theatre director Mikhail Levitin Jr. From 2014 to 2018 he, together with Mosfilm Studio, made several video series, based on the poet`s works, which are of great popularity both in literary and artistic circles and in the media of Internet. Among them are the following:

• 2014 – "Verses by Mikhail Gutseriev" video series, including 9 poems.
• 2015 – two films " The Last Love" and "Seventeen Years and Seven Weeks", in which 20 works of Gutseriev have been presented.
• 2016 – "This night is unforgettable" and "Me, from Disgrace to Thorns", which are based on 14 verses of the master.
• 2018 – "One day before the final" series with 10 poems.

In those films that are an exponents of the new form of fusion between poetry and movie making, the Gutseriev`s verses are recited by outstanding actors, such as Valentin Gaft.

Шт 2015 - 2019 the poetic works by Mikhail Gutseriev have been published in leading literary and artistic periodicals of the country, namely ("Our Contemporary", "Moscow" and others).

Projects sponsored by Mikhail Gutseriev and the companies managed by him:

• Orphanage at the monastery (Yaroslavl region)[83]
• Saint Michael Cathedral, Izhevsk[84][85]
• Saint Trinity Sergeev Monastery, renovation of the Refectory
• Church of Protection of the Holy Virgin in Megion
• Church of the Nativity, Nizhnevartovsk (KhMAO)
• Church of Transfiguration of the Savior (Novospassky district, Ulyanovsk region)
• Church of the Mother-of-God of Kazan, Balezino Village (Udmurtia)
• Ascension Cathedral, Ulyanovsk
• Church of the Saint Martyr Panteleymon at Central Military Hospital of FSS of Russia, Moscow[14]
• The Holy Trinity Church in Valamaz Village, Seltinsky district, Udmurtia[86]
• Church of the Saint Martyr and Healer Panteleymon (Karakulinsly district, Udmurtia)[87]
• Church of Protection of the Holy Virgin in Sarapul (Udmurtia)[88]
• Malo-Diveevsky Monastery in Norya Village (Malopurginsky district, Udmurtia)[89]
• The Bell Tower in the name of Archistratigus Michael in Synkovichi Village (Grodno region, Belarus)[90]
• Russian Center for Science and Culture in Bethlehem (the Palestinian National Authority)[91]
• Church of the Royal Martyrs (Izhevsk)[89][92]
• St. John of Kronstadt Church, Raduzhny, KhMAO
• Mosques in Raduzhny (Khanty-Mansi Autonomous Okrug)
• Mosques in Novospassky district in Ulyanovsk region
• Mosques in Solnechnogorsk
• Cathedral Mosque in Moscow[89]
• Moscow Jewish Community Center, Synagogues in Kaliningrad and Novosibirsk[89]
• Aginsk Lamaist Temple (Aginsk Buryatsky Autonomous Okrug)[89]
• Ministry of Health in Chechnya (purchased 106 ambulances, sponsored 250 operations for the children with heart problems, performed total overhaul in Urus-Martanovky District Hospital),[93][94][95]
• Medical Institutions in Udmurtia (purchased 25 ambulances with life support equipment)[96]
• Medical Institutions in Ulyanovsk region (20 ambulances were purchased)[97]
• School Marem in Magas, Ingushetiya; School 23 in Grozny (Chechnya)[89]
• Udmurtia State University of Oil and Gas[98]
• Dormitory at Udmurtia State University of Oil and Gas for 350 students with gym[98][99][100]
• Junior teams of Neftyanik football club, Novospasskoye Village, Ulyanovsk region[101]
• Orphanages at Tomsk region[102]
• National teams for biathlon, ski cross, cycling race and shooting[103]
• Belkammotosport, children's sports school and Udmurtia State Zoo in Izhevsk[104]
• Orenburzhye, Sports and Entertainment Center
• Cultural Center and city recreation park in Cherkessk[89]
• Kindergarten in Saratov (the largest junior preparatory institution in Saratov region hosting 300 children)[105]
• Educational facilities in the Udmurtia Republic (purchased 38 school buses)[106]
• Dormitory at Saratov Regional College of Art (One of the oldest educational facilities of Povolzhye). The dormitory hosts 160 students[107]
• Ice Hockey Stadium in Saratov (reconstruction of the main sports arena in the city will establish conditions for holding international hockey and basketball competitions)[108]
• Cathedral of Ascension in Ulyanovsk (sponsored one of the masterpieces of the Russian Art of Building)[109]
• The Dormition Monastery in Krasnoyarsk region (construction of courtyard for guests for guests and pilgrims of the monastery).[110]
• Orthodox Church of Holy Trinity in Yukamenskaya village (construction of the church at the place where the old church was destroyed in the 1930s)[111]
• The Church of Assumption in Vepreva pustin village of Rostovsky district of Yaroslavlskaya region (restoration of historical monument of the 14th century, the place of storage of unique church relics)[112]
• Sports center in Amur region (restoration of the indoor ice rink, provision of state of the art equipment)[113]
• Stadium in Izhevsk, construction and provision of equipment to a major sports and health center for popular sports events hosting up to 2000 people[114]
• Traditional annual international contest of cello players in the name of Sv. Knushevitsky in Saratov (patronage of the only Russian separate international contest of young singers)[115]
• Central mosque in Izhevsk (construction of mosque at the place where the old one was destroyed in the 1930s)[116]
• The Church of Epiphany in the village of Prislonikha in the Ulyanovsk region (restoration from fire of one of the Volga region's oldest orthodox churches)
• The building of Track and Field Hall in Moscow State University
• Central Stadium in Novospasskoye Village, Ulyanovsk region
• Purchasing accommodation for vulnerable social groups, Orsk, Orenburg region
• Construction of a 5-storey building with 40 flats, having a developed infrastructure in Luyban (Minsk region, the Republic of Belarus. The accommodation building was granted to the residents of the town
• Rehabilitation Centre in Izhevsk is one of the biggest Russian health centers for children and adolescents with disabilities, accommodating up to 1600 people
• Renovation of field-and-track center (the building is related to the cultural inheritance) of Lomonosov Moscow State University
• Annual support to Moscow Easter Festival, “White Nights” festival in Saint Petersburg and Mariinsky Festival in Samara, etc.
• Restoration of the Muslim cemetery Karaotkel, one of the oldest and well-known burial places in Astana (Kazakhastan).
• Construction of church and chapel and the bell tower in the name of Tatiana in Novospasskoye village (Ulyanovsk region).

Besides, Mikhail Gutseriev's SafMar charitable foundation annually allocates up to 2 bn Rubles for major charitable programs in the field of education, healthcare, culture, arts

In 2006 PJSC Russneft and Lomonosov Moscow State University opened Higher School of Innovative Business and Management, one of the five corporate universities of MSU.[117] The programs were developed by PJSC "RussNeft" and three faculties of MSU (Faculty of Chemistry, Faculty of Geology, Faculty of Management) taking into account the objectives of oil corporations within three MA programs: "Geological and physical studies of oil and gas fields", "Chemical refinery of hydrocarbons", "Management of mineral resources".

• List of Russian billionaires

• Official Biography
• NK Russneft
• Article by Gutseriev explaining reasons for leaving Russneft (in Russian)