Vagit Alekperov

Vagit Yusufovich Alekperov (Azerbaijani: Vahid Yusuf oğlu Ələkbərov, Russian: Вагит Юсуфович Алекперов; born 1 September 1950) is an Azerbaijani and Russian oligarch, businessman, and the president of the leading Russian oil company LUKOIL.[2]

Vagit Alekperov
Вагит Алекперов.jpg
Born
Vagit Yusufovich Alekperov

(1950-09-01) 1 September 1950 (age 71)
NationalityAzerbaijani
Alma materAzerbaijan State Oil Academy
OccupationChairman of the supervisory board of Basic Element Company
Spouse(s)Larisa Victorovna Alekperova
Children1
Awards

First Deputy Minister of the Oil and Gas Industry of the USSR (1991-1992).

Owner of 36.8% stake in Spartak Football Club (Moscow). Business partner of Vagit Alekperov is Leonid Fedun.

Vagit Alekperov is a Doctor of Economics.

As of 16 April 2021, according to Bloomberg Billionaires Index by Bloomberg L.P., Alekperov has an estimated net worth of USD $19.6 billion ranking him the 94th richest person in the world[1] and the 5th wealthiest person in Russia.[1]

BiographyEdit

Alekperov was born on September 1, 1950 in Baku, Azerbaijan SSR, one of the earliest centers of the international petroleum industry. His father, who died when Vagit was a boy, worked in the oilfields all his life and inspired Alekperov to follow in his footsteps. Alekperov's father was an Azerbaijani Muslim and his mother, Russian Orthodox. Alekperov is religious, but does not define himself as either Muslim or Orthodox.[3] He was eighteen when he landed his first job in the industry.

Alekperov graduated in 1974 from Azerbaijan Oil and Chemistry Institute. As a student he also worked as a drilling operator in Kaspmorneft, a Caspian regional production company.

After graduation, he continued to work there, and by 1979 he had advanced from engineer to deputy head of a production unit. He had to work in extreme conditions on oil platforms. On one occasion, an explosion on his rig threw him into the stormy Caspian sea, and he had to swim for his life.

Western SiberiaEdit

Alekperov moved to Western Siberia in 1979 and worked at Surgutneftegaz between 1979 and 1985, earning his reputation as an industry expert. He was ascending positions and by 1985 became first deputy general director of Bashneft production company. In 1987, he became general director of the newly created production company Kogalymneftegaz.

The media wrote that thanks to Alekperov the welfare level in Kogalym during his work in the company was considered to be almost the highest in the USSR. He managed to ensure that the employees of the directorate were paid in cash rather than barter (which was quite common in the second half of the 1990s in USSR) for the delivered oil. In addition, in different years Alekperov was elected deputy of the Surgut District and Kogalym City Councils of Deputies, a member of the Kogalym City Bureau and a member of the Khanty-Mansiysk District Committee of the CPSU.

MoscowEdit

In 1990, Alekperov was appointed deputy minister of the Oil and Gas Industry of the Soviet Union and became the youngest deputy energy minister in Soviet history. At that time, Alekperov promoted the establishment of vertically integrated state-owned energy companies, which would bring together the wide range of organizations in the energy sector that were, at the time, reporting to different Soviet bureaucratic institutions.[4]

Just at this time Western oil companies began to actively look for partners in Russia. During a visit to British Petroleum facilities in Great Britain in 1990 Alekperov personally headed the Russian delegation at the negotiations. Rondo Fehlberg, an executive at BP, told NY Times that Alekperov took control of the agenda during that 1990 trip, sternly asking the BP executives to explain how a modern oil company should be set up.[5]

After his trip to Great Britain Alekperov began to prepare the conditions for the creation of a vertical oil company that would become engaged in oil prospecting, production, refining and sales. Alekperov realized that it was important not just to privatize the oil industry, but to do it in such a way as to create financially sustainable enterprises.

In co-authorship with Leonid Filimonov, then minister of the oil and gas industry, Alekperov developed a scheme for the so-called vertical integration of oil companies. This scheme later became the basis of his doctoral dissertation defended in the summer of 1999. The essence of the concept was to combine into a single holding the whole chain of enterprises involved in oil production, refining and sales of the final product.

As deputy minister of the oil and gas industry of the Soviet Union, Alekperov was engaged in the formation of the first vertically integrated state-owned energy company, Langepas-Uray-Kogalymneft, which was established in late 1991 as a subsidiary of the Ministry of Fuel and Energy.

LUKoilEdit

In April 1993, Langepas-Uray-Kogalymneft became the joint-stock company LUKOIL, and Alekperov became its president and chairman of the board. By 2002 Alekperov owned 10.4% of the company. [6]

In 2000, Alekperov resigned as head of the board of directors of Lukoil, but retained his position as president of the company. In May 2008, Alekperov bought 11.13 million shares (1.3%) in Lukoil, thereby increasing his stake to 20.4% and becoming the company's largest shareholder. [7]

In 2016 Alekperov was re-elected president of the company for another five-year term. Employing more than 100,000 people, today LUKoil is among the world's most powerful[clarification needed] oil companies, with reserves second only to ExxonMobil.

LUKoil was the first Russian company to acquire an American company. In November 2000, LUKoil acquired Getty Petroleum Marketing and its 1,300 gas stations in the United States[8] Like many other Russian oligarchs, Alekperov has also moved into banking and media. In May 2006 Alekperov was one of the two main owners of IFD Kapital Group.[9]

In 2018, Alekperov first said in an interview that he was looking for a successor to his position, a staff reshuffle, he said, could take place at the company in 2023.[10]

Apart from Lukoil, Alekperov has a large business in Belarus. He owns one of the largest private oil traders engaged in oil supply, refining and export, as well as the largest private network of gas stations.

Alekperov is on the list of Russian "oligarchs" named in the CAATSA unclassified report to the U.S. Congress.[11]

Awards and research activitiesEdit

In 1998 Alekperov received the degree of Doctor of Economics. He defended his thesis on "Formation of Conditions and Ensuring Sustainable Development of Vertically Integrated Oil Companies" on the example of the enterprise he heads. Two of his books were published the same year.

Alekperov has a number of governmental awards, such as the Order of Merit for the Fatherland IV degree (2005), the Order "For Merit to the Fatherland" III degree (2010), the Order "For Merit to the Fatherland" II degree (2014).

He also has a number of international awards:

Order "Friendship" (Azerbaijan, August 31, 2020) - for special merits in the development of relations between the Republic of Azerbaijan and the Russian Federation.

Order "Dostyk" first degree (Kazakhstan, September 6, 2019)

Order of Friendship (Uzbekistan, 29 August 2018)

Order of Merit of the Italian Republic (Italy, 2009)

Order of the Crown (Belgium, 2011)

Order "Madar Rider" of I degree (Bulgaria, 2006)

Alekperov was the first Russian citizen who received the Woodrow Wilson Award. He was honored in 2005 for achievements in corporate citizenship.[12]

In 2014 Alekperov was awarded the title "Honorary Professor of Volgograd State University.

On 31 August 2020, ahead of Vagit Alekperov's 70th jubilee, Azerbaijani President Ilham Aliyev awarded him with the "Dostlug" order for his special services rendered to the development of mutual relations between Azerbaijan and the Russian Federation.[13]

Vagit Alekperov is also a full member of the Russian Academy of Natural Sciences. [14]

Personal lifeEdit

Alekperov is married to Larisa Victorovna Alekperova and has a son Yusuf born in 1990.[15]

Vagit Alekperov's hobby is numismatics. The exact composition of his collection is unknown, but according to some reports, it is one of the three largest private collections in Russia. According to Forbes, Alekperov's private Museum of Numismatics has more than 700 coins on display, which is about a quarter of the entire collection. It consists mainly of gold coins, from antiquity to modern Russia, some silver coins, as well as a few platinum coins of the Russian Empire. [16]

PhilanthropyEdit

In 2007 Vagit Alekperov founded The Foundation "Our Future" to promote social entrepreneurship in Russia.[17]

Alekperov has repeatedly stated publicly and has confirmed that, according to his will, his stake in Lukoil (over 20% of the company) will be transferred to a specially created charitable foundation.[18]

In 2020 coronavirus pandemic, Lukoil has donated more than RUB 652 million in 22 Russian regions and almost $900 000 dollars in its operation countries abroad.[19] Vagit Alekperov also donated RUB 50 million of personal finances to fight coronavirus in the Republic of Komi.[20]

See alsoEdit

ReferencesEdit

  1. ^ a b c "Bloomberg Billionaires Index: Vagit Alekperov". Bloomberg L.P. Retrieved 25 June 2021.
  2. ^ "Vagit Yu. Alekperov, President of OAO LUKOIL". Archived from the original on 2015-09-06. Retrieved 2015-08-28.
  3. ^ Maass, Peter (2 August 2004). "The Triumph of the Quiet Tycoon". The New York Times Magazine. Archived from the original on 2 February 2014. Retrieved 3 February 2014.
  4. ^ "Vagit Y. Alekperov 1950— Biography".
  5. ^ Maass, Peter (2004-08-01). "The Triumph of the Quiet Tycoon". The New York Times (in American English). ISSN 0362-4331. Retrieved 2021-11-20.
  6. ^ Maass, Peter (2004-08-01). "The Triumph of the Quiet Tycoon". The New York Times (in American English). ISSN 0362-4331. Retrieved 2021-11-20.
  7. ^ "Бизнес-активы Вагита Алекперова. Справка". РИА Новости (in Russian). 2009-03-12. Retrieved 2021-11-20.
  8. ^ "Lukoil Americas Corporation website". Archived from the original on 2007-03-15. Retrieved 2007-03-12.
  9. ^ Teagarden, Michael (1 March 2006). "Lukoil Executives Alekperov and Fedun Own Russia's IFD Kapital". Bloomberg News. Archived from the original on 13 April 2014. Retrieved 11 April 2014.
  10. ^ "Глава ЛУКОЙЛа сообщил об изучении потенциальных преемников". РБК (in Russian). Retrieved 2021-06-18.
  11. ^ "Report to Congress Pursuant to Section 241 of the Countering America's Adversaries Through Sanctions Act of 2017 Regarding Senior Foreign Political Figures and Oligarchs in the Russian Federation and Russian Parastatal Entities" (PDF). January 29, 2018.
  12. ^ "Wilson Center to Honor Pickering and Alekperov for Contributions to U.S.-Russian Relations | Wilson Center". www.wilsoncenter.org. Retrieved 2021-06-18.
  13. ^ President Ilham Aliyev awards Lukoil CEO, AzerNews, 31 August 2020, Retrieved 4 September 2020
  14. ^ "Вагит Юсуфович Алекперов. Биографическая справка". РИА Новости (in Russian). 2009-03-12. Retrieved 2021-11-20.
  15. ^ "Вагит Юсуфович Алекперов. Биографическая справка". РИА Новости. 12 March 2009. Retrieved 20 March 2014.
  16. ^ "В Москве открыли первый частный музей нумизматики / / Независимая газета". www.ng.ru. Retrieved 2021-11-20.
  17. ^ Nielsen, Rachel (2012-11-28). "Alekperov's Social Enterprise Invests $4.8M Over 5 Years". The Moscow Times. Retrieved 2021-02-18.
  18. ^ "Алекперов передаст акции «Лукойла» в благотворительный фонд". Forbes.ru (in American English). 2015-01-16. Retrieved 2021-06-18.
  19. ^ "Lukoil delivered new consignment of medical equipment to Usinsk hospital". neftegazru.com. Retrieved 2021-02-18.
  20. ^ "Vagit Alekperov donates RUB 50 million of personal finances to fight coronavirus in the Republic of Komi". neftegazru.com. Retrieved 2021-02-18.

External linksEdit