At the age of 56, Ukraine’s wealthiest man, Rinat Akhmetov, continues to make a name as a successful businessman despite the many losses and challenges brought on by the recent war. He currently has a net worth of $4.3 billion, according to Forbes, and is known for his holdings in mining and steel companies.
Here is a look at the many businesses of Akhmetov.
System Capital Management
Akhmetov is the owner of System Capital Management (SCM), known as Ukraine’s largest and most prominent industrial conglomerate. Based in the southeastern city of Mariupol and established in 2000, SCM Limited has investments in various mining and metallurgy businesses.
The company, which is the country’s biggest and most diverse business group, is where much of Akhmetov’s wealth comes from. It operates in over 30 counties worldwide and employs about 200,000 people in its businesses. Based on the company’s website, SCM Limited operates its assets not just to add value to their businesses, but also to improve life for the communities.
Under its umbrella, SCM Limited manages sectoral sub-holdings and production assets of the following companies.
Metinvest is Ukraine’s largest steel manufacturer and SCM Limited’s most valuable asset. The company includes mining and steel companies inside and outside Ukraine, including those based in the United States and Europe. Metinvest manages all processes – from mining and processing of iron ore and coal to manufacturing of semi-finished and finished steel products.
The company uses its proximity to seaports and railway routes to ship steel products and raw materials to different parts of the world. According to its website, Metinvest’s sales offices and service centers cover over 80 countries worldwide.
DTEK is SCM Limited’s strategic holding that focuses on the energy sector. The company produces coal and natural gas and operates thermal and renewable energy plants to generate electricity. It provides heat, power and various energy-related solutions to consumers. The company is a member of the UN Global Compact, according to SCM’s website, which is why they adhere to sustainable social development standards.
The DTEK Group is one of Ukraine’s national investors, with its Eurobonds listed on the Irish Stock Exchange. The company has about 73,000 employees and is among Ukraine’s top employers based on the ratings of EY international auditing company and national business editions.
Media Group Ukraine
SCM’s media holding company, Media Group Ukraine, manages various television, print, publishing and new media projects. Aiming to build an integrated system where “all its assets complement one another,” the company invests in the country’s media industry. Media Group Ukraine is active in a broad spectrum of media areas, operating in production, broadcasting, advertisement sales and sponsorship, interactive digital TV and new media.
Assets of Media Group Ukraine include various national TV channels (Ukraina, Ukraine 24, Indigo and Futbol 1/ 2/ 3), regional channels (Donbas, Channel 34 and Sigma TV) and international channels (Ukraine 1/ Ukraine 2 and NLO TV 1/ NLO TV 2). Also included are some production companies, media agencies and websites.
Established in 2011, HarvEast Holding operates in the agricultural sector, with a focus on agricultural production, seed farming and animal husbandry. The company’s core businesses include:
- Ilyich Agro Donbas (animal husbandry and crop rearing)
- Agro Holding MC (crop rearing)
- HarvEast Irrigation Seeds (irrigation management and seed farming)
- HarvEast Logistics (produce transport)
- HarvEast Remservis (equipment and machinery repair)
The company raises crops such as wheat, corn, legumes and sunflower in over 127,000 ha of farmland. They also raise more than 1,500 cattle and produce premium quality milk, according to the company’s website.
The ESTA Group is one of the key players in the commercial real estate market of Ukraine. The company’s business covers class-A offices, shopping malls, club-type houses, countryside residences and hospitality real estate such as five-star hotels. Its managing company, ESTA Holding, is focused on prime investment projects, such as those with unique architecture or public value.
According to SCM’s website, ESTA Holding is keen on investing in projects in key Ukrainian cities and famous recreation areas. ESTA Property Management, which manages and operates real property facilities, is also part of the ESTA Group.
UMG Investments operates as an investment company that specializes in the development of portfolio businesses that are of high growth potential. Previously operating under the name United Minerals Group, the company was established by SCM in 2006 for the asset management of resource-based industries. The company has since experienced major growth and shifts from being a management company to an investment company.
UMG Investments now has portfolio companies operating in the fields of mining (VESCO Group Novotroitske Ore Mining), industrial goods and services (INTECH), as well as a by-product and production waste management (Recycling Solutions). Managing assets with a market value of over US$500 million, according to its website, the company seeks to broaden its scope and explore new investment opportunities.
Ukraine’s largest private rail operator, Lemtrans, is also part of SCM Limited. The company focuses on cargo transportation, with its rolling stock, transport and forwarding services, and rolling stock repair. Based on its website, the company has over 15,000 semi-wagons that annually transport over 52 million tons of cargo.
Established in 1999, Lemtrans works with the biggest names in the industrial sector, providing an impressive line of bespoke transport and logistics solutions. The company continues to bolster its market position and establish a reputation as a leader in the field of private rail transport.