«Expert» № 36 (577)

On State Corporations

On September 10th, Mikhail Fradkov criticized the idea to created a new state corporation, although the project had already received approval. The then PM Fradkov also said Russia should be ‘careful’ about forming such corporations. Two days later, the PM resigned

Gale Warning

For thirteen years, Expert has been analyzing the list of Russia’s leading businesses. Unfortunately, the sinister number is not the only thing that makes us worry when studying the list. As the future crisis is approaching, the country needs to launch growth mechanisms in the priority industries of its economy.

Double Tithing for Future’s Sake

Major businesses in Russia invest every fifth ruble of their income.

Moving Towards Responsible Leadership

Aleksandr Chmel, the partner of PricewaterhouseCoopers, comments on the new Expert-400 rating and shares his vision of Russia’s business tendencies.

Denying the Oil

Gazprom’s share in the capitalization of Russia’s most expensive companies has dropped from one third to one fourth. Oil and gas business is challenged by energy industry and banking.

Investors vs. Budget

Investors regard oil and gas companies as milch cows of Russia’s budget. As a result, this sector is losing capitalization.

Talks Instead of Consolidation

The future of Russia’s metallurgic industry is vague. Its consolidation is hindered by high profitability.

The Riddle of Machine Industry

Thanks to efforts of the state and private enterprise, the industry has been consolidated. But this does not secure machine building from its main risks resulting from outdated and worn out equipment.

Fundamental Disadvantages

Although golden rain is pouring on Russia’s builders, the industry is not ready for high-scale investment. It lacks modern technology, resources and its level of corporate management is still low.

Growth in Exchange for Income

Tiny income, public borrowing, admittance of minority shareholders – retailers will do anything to have the market’s average 40 percent growth.

Foreigners Welcome

Active growth and changing of quality in Russian insurance market are attracting international businesses. The new look of the market will be born in the atmosphere of severe competition.

Liquidation of Liquidity

M&A transactions and two major banking IPOs have helped partly solve the problem of low capital in the country’s banking sector. From now on, sustainability of its growth will depend on the precise mechanisms of supporting liquidity.

His Magesty's Shadow

The manager of Gazprom Alexei Miller is an executive with no ambition. That is just what the country's leadership wants the head of its most profitable company to be.

Crisis Manager

One cannot but be impressed by Anatoly Chubais' success in solving the worst problems of Russia's energy monopolist. What is really surprising is the fact Chubais’ achievements as manager are a reverse of his strategic decisions.

To Absorb and to Forget

With the help of the country’s leaders, Sergei Bogdanchikov has managed to make Rosneft a leading oil company in Russia. In fact, that is his only achievement.

Manager, Virtuoso Bureaucrat

Semen Vainshtok managed to stay the head of Transneft during the reign of two Presidents. What helped him was his loyalty to the authorities and his new pipeline projects.

The Immaculate Face of LUKoil

Vagit Alikperov is remarkable for his longevity in business. He was one of the first people to head a private industrial company, and since then, he has been running it without a single flaw. It seems Alikperov would give his life to make LUKoil an ExxonMobil-style global oil and gas business.

An Illusion of Independence

One of the few effective manages in his field, Leonid Mihelson is locked in the prison of Gazprom’s practices and follows all the instructions of the gas monopolist. Both he and Gazprom seem to be quite happy with the situation.

A Therapist for a Troubled Patient

Dmitry Konov, the president of Sibur, is the company’s first ‘technical’ head. He will manage to solve the task of reforming this petrochemical giant into a presentable company only if shareholders don’t disturb him too much.

Bladerunner

Vyacheslav Kantor has created Akron, Russia’s first chemical holding, and he managed to keep the business together during all property redistributions in the country. Now the company needs investment, but its owner cares more for public activities rather than industrial assets.

Technocrat Going Like Hot Cakes

Vladimir Busygin has made Nizhnekamskneftekhim a leading plant in the industry by proper investment of its incomes. The question is whether the company’s new owners will appreciate his achievement.

The Hero of the Hard Times

Dmitry Rybolovlev, the head of Uralkaliy, wants to become the leader of potassium market. This young manager’s style is aggressive and Western.

Coal Pioneer

The head and owner of Belon coal company Andrei Dobrov was the first to open coal industry to investors and launch an IPO. In fact, he is only discovering the mining business for himself, too.

The Anxious Exploration Geologist

Prior to becoming head of Polimetall gold mining company, Vitaly Nesis was reforming old Soviet-styled structures, following McKinsey’s patterns to create effective businesses. His aim is to make Polimetall the best gold mining company in Russia.

Executive Function

Denis Morozov, the new CEO of Norilsk Nickel, has brilliant record as regular manager. But how will he manage the business in extreme conditions?

An Exemplary Student

Aleksandr Bulygin entered aluminum business right after graduation, and gave 14 years of his life to the industry. As a result, he is now head of one of the world’s largest metallurgic companies.

Under Pressure of Someone Else’s Charisma

Aleksandr Frolov, the head of Evraz Group, is not just a brilliant manager, but also a billionaire. But all his talents are overshadowed by the personality of Aleksandr Abramov, the company’s founder.

One Man Show

Vladimir Lisin, head of Novolipetsk Metallurgic Plant (NLMK), has been running the business for ten years, and he used the time to get rid of all co-owners and take all the power in his hands. NLMK is now the world’s most profitable steel business.

All-in-One

Viktor Rashnikov is both the owner and CEO of the Magnitigorsk plant. Somehow, his personality combines the functions of a ‘red director’, a businessman, a strategist and a production manager.

The Outgoing King of the Hill

Aleksei Mordashov, head and owner of Severstal, is an outstanding manager. But when the steel industry consolidates, he may lose his powers, as there are other possible leaders.

The Unshakable

Aleksei Ivanushkin is the ‘everlasting’ CEO of Mechel Steel Group. While owners come and go, he has been steadily running the plant for eight years.

Knowing His Place

Vladislav Tetyukhin is the front liner of Russia’s titanium industry. All his moves are elegant and timely: he became the owner of VSPO-Avismy, and later handed the company over to the state.

Red Eminence

Boris Wainzikher is perhaps one of the nation’s most talented top-managers. He succeeds in both solving the most complicated technical problems of UES of Russia and leading the Power Machines corporation out of a financial crisis.

The Missionary in Uniform

Vladimir Yakunin’s past jobs in the intelligence agencies and the President’s team help him answer any challenges Russian Railways corporation has to face, no matter how big and expensive the issues are.

Romantic Wolf

Ten years of Valery Okulov's work as head of Aeroflot have shown him as a successful manager, rigorous business leader who knows no mercy for competitors

The Last Heavyweight on His Way to China

Volga-Dnepr cargo carrier has gained control over more than half of Russia's market with the help of Ruslan aircraft, and is now planning flights from Asia to the US and Europe.

Irkut Becoming Civilian

To keep its place in the market, Irkut company will have to reform its production.

Nordic Style

After becoming the head of GAZ Group, Eric Eberhardson chose the strategy of partnership with foreign car manufacturers.

Mission: Possible

Sergei Kogogin managed to save the KamAZ from collapse and bankruptcy. His experience, influence and the support from Tatarstan's government have so far helped maintain the plant's independence.

U-Turn

Vadim Shvetsov, the CEO and major shareholder of Severstal-Avto, started his career with metal trade, and later became top-manager of a car manufacturing company.

Hard-Line Executive

Goal-orientation and strict discipline to achieve the goals set – this is the style of Timur Goryaev. These principles have helped the Kalina cosmetic company one of the fastest-growing businesses in Russia's consumer goods market.

Team Work

After becoming Russia's no.1 in juice production, Lebedyansky sets a new goal to be among leading infant food producers. That is the task of the company's CEO Magomet Tavkazakov.

Beer Industry the Pacemaker

Anton Artemiev, the president of Baltika breweries, was one of the first Russians who managed to unite diverse businesses in one holding company.

Hawkish Management

Rigid, authoritarian management style of Igor Potapenko has made his Razgulyay company one of the country's leading agricultural holdings. His next task is to create an efficient management structure.

Tony Mayer's Personal Challenge

Tony Mayer is a rigid administrator and a workaholic who knows how to make a huge company develop: people should work a lot and their every step must be efficient.

SAN InBev's Energy Cluster

The leadership of Joseph Strella has made SAB InBer a no. 2 in Russia's beer market.

The Autocratic Patriot

An autocratic manager and a visioner, Igor Babaev has turned the dying Cherkizovsky plant into a meat empire.

The Capitalizator

Jean-Pierre Vandromme, the CEO of Golden Telecom, has got rid of his company’s ‘boring image’. As a result, investors are mesmerized by the Belgian manager’s ambitious plans.

The Silent Athlete of Russian Communications

It only took Sergei Soldatenkov a few years to make Megafon a leading cell phone operator.

Chocolate Leader

Aleksander Izosimov is a former Mars executive who now runs a telecommunications business, and his change of career was one of the boldest experiments of the industry. Other consumer goods specialist later followed him.

Bald-Headed Strategy

Aleksander Goncharuk, the president of AFK Sistema, can solve any management problems with the maximum possible speed and without thinking of the aftermath.

Dreaming of Innovations

Vladimir Evtushenkov uses Byzantine methods to run a modern holding that is worth 20 bln. dollars, and investors seem to like it.

Master of Synergy

Lev Khasis was one of the people behind Russia's greatest retail business merger of two supermarket networks. As a result, he now runs X5 Retail Group, the leading retail business.

Pharmacy as Destiny

The long friendship of Artem Bektemirov and Sergei Krivosheev is becoming firmer and firmer as they struggle for the future of their 36.6 pharmacy store network.

High Point for the USSR

Half a century ago, the planet’s first-ever artificial satellite took off the ground from the Soviet Baykonur space port.