Bloomberg Billionaires Index

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# 92 Andrey Melnichenko $14.8B

Random fact: Yacht has 3 lap pools that can be switched from salt to fresh water.

Overview

Melnichenko is the largest shareholder of EuroChem, a fertilizer producer in the Europe, Middle East and Africa region. He also owns most of Suek, Russia's largest supplier of thermal coal. Melnichenko's other investments include stakes in publicly traded utilities Far-Eastern Energy and IDGC of Siberia.

As of :
Last change +$108M ( +0.7%)
YTD change +$2.36B ( +18.9%)
Industry Industrial
Biggest asset EuroChem
Citizenship Russian Federation
Age 47
Wealth Self-made
View net worth over:   Max 1 year 1 quarter 1 month 1 week

Relative Value

Andrey Melnichenko's net worth of $14.8B can buy ...

0
troy ounces of gold
0
barrels of crude oil

... and is equivalent to ...

0%
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 Melnichenko's fortune is derived from his stakes in two closely held Russian companies, EuroChem and SUEK. SUEK is headquartered in Moscow, Russia and EuroChem is based in Zug, Switzerland.

Melnichenko controls 90% of EuroChem, according to company's website. It's valued using the average enterprise value-to-sales multiple of four publicly traded peer companies: Phosagro, Yara International, Mosaic and Acron. This valuation used in this analysis was changed on Aug. 28, 2019 to incorporate the transaction value and this led to an increase in the net worth calculation of about $900 million.

He owns a 92.2% stake in SUEK, Russia's largest thermal coal supplier, according to its 2017 annual report. It's valued using the average enterprise value-to-sales multiple of three publicly traded peers: Adaro Energy, Banpu and Yanzhou Coal Mining.

The billionaire also has stakes in two publicly traded industrial companies: 40.4% of Far East Energy Co. and 40.4% of IDGC of Siberia. 

The value of the billionaire's cash investments and personal assets is based in part on local media reports and figures provided by his press representatives. He's netted more than $800 million based on available information about Suek and Eurochem dividends, the purchase and sale of stakes in those closely held business, and spending on personal assets. He's also collected more than $500 million from dividends and share sales of publicly traded companies through December 2017, based on an analysis company filings and Bloomberg data. Taxes and market performance are applied to these cash flows.

Biography

Birthdate: 3/8/1972
Family: Married, 2 children
Education: Plekhanov Russian University of Economics, Moscow State University

Andrey Melnichenko was born in Gomel, Belarus, in 1972. His first business was a currency exchange office he established in Moscow in the early 1990s. After the fall of the Soviet Union in 1993 he created closely held MDM Bank with two former classmates.

MDM had become one of Russia's largest non-state banks by 2000, when Melnichenko partnered with metals and oil trader Sergei Popov. The two started buying industrial plants and coal mines around Russia. Their acquisition spree resulted in three closely held companies: EuroChem, now Russia's largest fertilizer producer; SUEK, Russia's largest thermal coal producer; and TMK, a steel pipe manufacturer.

Popov and Melnichenko sold their TMK stakes to another partner, Dmitry Pumpyansky, in 2006. The following year, Melnichenko and Popov swapped assets: Popov took control of MDM Bank and Melnichenko became the sole owner of EuroChem. Melnichenko later bought Popov's stake in SUEK.

Melnichenko is married to Aleksandra Nicolic, a Serbian model.

Milestones
  • 1972 Andrey Igorevich Melnichenko is born in Gomel, Belarus.
  • 1991 Quits Moscow State University; starts money-lending business.
  • 1993 Co-founds MDM, eventually one of Russia's largest private banks.
  • 2001 Creates EuroChem, SUEK and TMK.
  • 2005 Marries Aleksandra Nikolic, a pop singer and model from Serbia.
  • 2006 Sells last of TMK stake to Dmitry Pumpyansky for $1.3 billion.
  • 2007 Swaps MDM Bank shares for Sergei Popov's EuroChem stake.