5 Things You Might Not Know About Russian Billionaire Roman Abramovich

Russian billionaire Roman Abramovich is known to many around the world.

Residents in the U.K. and the U.S. are probably familiar with Abramovich as the owner of the Chelsea Football Club, which plays in the English Premier League.

Other people may recognize Abramovich for his business ventures or close ties to Russian President Vladimir Putin.

Here are five things you might not know about Abramovich.

1. Entrepreneurial Spirit: Abramovich was said to be interested in business ventures at a young age. This included selling toys and used car tires while in school.

While in the armed forces, Abramovich sold stolen gasoline to commanding officers.

Abramovich received 2,000 rubles as a wedding gift for his first marriage. The amount was invested in black-market goods and the investment tripled in value.

The Russian billionaire created a toy company with his wife that was successful. Abramovich also started five oil companies in the early 1990s.

2. Russian Governor: Abramovich was the governor of Chukotka Autonomous Okrug, a large area in Russia that's the least densely populated, from 2001 to 2008.

Abramovich was praised for helping build hotels and educational buildings in the region, while also refurbishing existing infrastructure.

Thanks to investments from Abramovich, including his own money, the GDP and income for residents of the region greatly improved during his time in office.

Related Link: Russian Billionaire Roman Abramovich To Sell Chelsea FC: What It Means, Who Could Buy It And 3 Stocks To Watch 

3. Relationship With Putin: Abramovich became friends with Putin over the years through business relations in Russia. When President Boris Yeltsin stepped down from office in 1999, Abramovich recommended Putin to become president of the country.

Abramovich is said to have benefitted from his relationship and public support for Putin. Abramovich received tax breaks and was able to sell his Sibneft oil company for $12 billion to the country.

4. Massive Wealth: Rumors over the years link Abramovich to allegations of fraud and blackmail. The billionaire is said to have used wealth and power to acquire some of his oil and aluminum business assets.

The collapse of the Soviet Union in 1991 led to state-owned businesses in Russia being transferred to private owners, which benefitted people such as Abramovich, who had strong ties to the government. Abramovich was able to buy companies on the cheap.

One company purchased by Abramovich was Sibneft, an oil company acquired in 1995 with friend Boris Berezovsky. The two bought the company for $200 million, despite a net worth value of around $3 billion for the company. The sale to the Russian government years later increased the valuation even further.

Abramovich ranks 129th on the Bloomberg billionaires list with a wealth of $13.5 billion at the time of writing.

Among Abramovich’s assets are the Chelsea Football club, aluminum and oil companies and a portfolio of yachts. Much of Abramovich’s wealth came from selling Sibneft and also creating Rusal, the second-largest aluminum company in the world.

5. Owning Chelsea: In 2003, Abramovich purchased Chelsea for 140 million pounds, the equivalent of $18 million at today’s prices. The Russian billionaire helped bankroll massive spending on the team to make it more competitive in the English Premier League.

With Abramovich as owner, Chelsea has won five English Premier League titles, two Champions Leagues and one Club World Cup.

The team had not won a league title for 48 years prior to Abramovich taking over.

Chelsea will be sold as Abramovich faces pressure from the U.K., which has been freezing assets of Russian billionaires who support Putin during the invasion of Ukraine. 

Photo: Marina Lystseva via Wikimedia Commons