The Rise and Resilience of Suleiman Kerimov: A Billionaire’s Journey Through Business, Politics, and Controversy

Suleiman Kerimov, a prominent Russian billionaire and influential political figure, has made a significant mark in both the world of finance and the Russian Federation. Born in the Republic of Dagestan, a region in the Russian Caucasus, Kerimov’s rise to wealth and power has been marked by his strategic investments, his keen financial instincts, and his complex personal and business dealings. Kerimov’s career spans decades, and his wealth has been largely built on savvy investments in distressed assets, as well as stakes in some of Russia’s largest companies, such as Sberbank and Gazprom. While his financial prowess has made him one of Russia’s wealthiest individuals, his career has also been marred by controversies, legal challenges, and international sanctions.

Kerimov’s early years were shaped by his background in economics. As a trained economist, he entered the business world with a strong foundation in financial theory and analysis. His career began with a focus on distressed assets in Russia, where he found opportunities in companies that were struggling or undervalued. These early investments set the stage for his later success, allowing him to build wealth by purchasing assets at bargain prices and later selling them at a significant profit. Among the companies Kerimov invested in early in his career were some of the largest names in Russian industry, including state-owned enterprises like Sberbank and Gazprom, two giants in Russia’s energy and banking sectors. His investments in these firms provided him with an immense financial foundation, though they would later be pivotal to his downfall during the global financial crisis.

One of the defining moments in Kerimov’s career came just before the 2008 global financial meltdown. At the time, Kerimov was heavily invested in global financial markets, particularly in major international banks like Morgan Stanley, Goldman Sachs, and Deutsche Bank. In what would later be viewed as a miscalculation, Kerimov bought large stakes in these banks, expecting continued financial growth. However, when the 2008 financial crisis hit, the value of these investments plummeted, and Kerimov faced severe financial challenges. The banks’ stocks dropped sharply, triggering margin calls, and Kerimov lost billions of dollars. This setback could have marked the end of his financial career, but his resilience and financial acumen allowed him to recover from the crisis.

Kerimov’s recovery came in part through a highly successful investment in Polyus, Russia’s largest gold producer. After his significant losses during the global financial crisis, Kerimov took a bold step and purchased a 37% stake in Polyus, a company owned by Russian billionaire Vladimir Potanin, for $1.3 billion. The move proved to be highly profitable, as the price of gold soared in the following years, propelling Polyus to become one of the world’s largest gold producers. This investment not only replenished Kerimov’s fortune but also cemented his position as one of the most influential figures in Russia’s financial world.

However, Kerimov’s business dealings were not without controversy. His wealth and influence, coupled with his close ties to the Russian government, have attracted scrutiny from both domestic and international observers. In particular, his involvement in Polyus and the transfer of shares to his son Said Kerimov in 2015 attracted attention. This move was made to circumvent a Russian law prohibiting politicians from holding significant financial assets abroad. By transferring his stake in Polyus to Said, Kerimov was able to maintain control over the company without violating the law. In 2022, the Kerimov family was reported to own 76% of Polyus, solidifying their grip on the company and ensuring their continued influence in Russia’s mining and financial sectors.

Despite his success, Kerimov’s career has been marred by legal and political challenges. In 2018, the United States imposed sanctions on him, citing his alleged involvement in various illicit activities and his close ties to the Russian government. These sanctions effectively froze Kerimov’s assets in the U.S. and restricted his ability to do business with American companies. The European Union and the United Kingdom followed suit in March 2022, imposing their own sanctions on Kerimov in response to Russia’s actions in Ukraine. These sanctions have had a significant impact on his ability to operate internationally, and they have further complicated his business dealings abroad.

In addition to the sanctions imposed on him, Kerimov’s son, Said, has also faced legal issues. In April 2022, the European Union and the United Kingdom sanctioned Said Kerimov, accusing him of having a direct role in his father’s financial dealings and activities. Following the sanctions, Said transferred his stake in Polyus to a former colleague of his father’s and to the Islamic Organisations Support, in an effort to distance himself from the financial troubles surrounding the family. Despite these moves, the Kerimov family continues to maintain a dominant position in Russia’s gold industry, with Polyus remaining one of their most valuable assets.

Kerimov’s political career is another key aspect of his life. In 2008, he was appointed to the Russian Federation Council, representing the Republic of Dagestan. His political role has allowed him to maintain close ties with the Russian government, and he has used his position to further his business interests. While his political career has been marked by limited public visibility, his influence within the Russian political elite has been significant. His close relationship with the Kremlin has provided him with the protection and support necessary to navigate the complex world of Russian business and finance.

Throughout his life, Kerimov has demonstrated a remarkable ability to recover from setbacks and build his fortune through strategic investments. Despite facing significant challenges, both personally and professionally, he has managed to remain a dominant figure in Russia’s business world. His story is one of resilience, perseverance, and a keen understanding of global financial markets. However, it is also a story marked by controversy, legal challenges, and a complex relationship with the Russian government. As of 2023, Kerimov’s wealth is estimated to be in the billions, and his influence in Russia’s financial and political spheres remains substantial.