Mikhail Fridman

Mikhail Fridman
Fridman in 2015
Mikhail Fridman
Born	21 4, 1964
Birthplace	Lviv, Ukrainian SSR, Soviet Union
Nationality	Russian, Israeli
Occupation	Businessman, investor
Known for	Co-founder of Alfa Group, Alfa-Bank, and LetterOne
Children	4
Awards	Golden Plate Award (2003)

Mikhail Maratovich Fridman (Template:Lang-ru; born 21 April 1964) is a Ukrainian-born Russian-Israeli businessman and one of the co-founders of Alfa Group, a multinational Russian conglomerate with interests spanning banking, telecommunications, retail, and energy. He co-founded Alfa-Bank in 1991, which grew into one of the largest private banks in Russia, and later served as the chief executive of TNK-BP, a major joint venture between Russian and British energy interests. In 2013, following the sale of his stake in TNK-BP, Fridman co-founded LetterOne (L1), an international investment firm based in Luxembourg. He held the position of chairman of the supervisory board of Alfa Group Consortium until 2022, when the European Union imposed sanctions on him in connection with Russia's invasion of Ukraine. Fridman has contested these sanctions through legal channels, including investment arbitration proceedings against EU member states and the United Kingdom. His career has placed him among the wealthiest individuals in Russia; Forbes ranked him as the second-richest Russian in 2013 with an estimated fortune of $16.5 billion, and as of February 2025, Forbes listed him at number 150 globally with a net worth of $13.3 billion.

Early Life

Mikhail Maratovich Fridman was born on 21 April 1964 in Lviv, then part of the Ukrainian Soviet Socialist Republic within the Soviet Union. He was born into a Jewish family. His father, Marat Fridman, was an engineer, and his mother worked in a research institute.

Fridman grew up in Lviv, a city in western Ukraine with a complex historical and cultural heritage. As a young man, he displayed an entrepreneurial inclination. During his student years, he reportedly engaged in various informal business activities characteristic of the late Soviet period, when the rigid planned economy was beginning to show cracks and small-scale private enterprise was starting to emerge on the margins of official economic life.

After completing his secondary education in Lviv, Fridman moved to Moscow to pursue higher education. This move to the Soviet capital in the early 1980s placed him at the center of the country's economic and political life at a time when the Soviet system was entering its final decade. Moscow provided not only academic opportunities but also access to the networks and nascent commercial activities that would become significant as the Soviet Union transitioned toward a market economy.

Fridman has spoken publicly about his family's Jewish heritage. He has been involved with various Jewish cultural and historical initiatives, including supporting the Babi Yar memorial efforts in Ukraine and projects related to Yad Vashem, the World Holocaust Remembrance Center in Jerusalem. He holds both Russian and Israeli citizenship.

Education

Fridman attended the Moscow Institute of Steel and Alloys (MISiS), one of the Soviet Union's technical universities, where he studied metallurgy. He graduated from the institute in 1986. The technical education he received at MISiS, while not directly related to the business career he would later pursue, was typical of the path taken by many of the generation of Russian businessmen who rose to prominence during the economic liberalization of the late 1980s and 1990s. Many future Russian entrepreneurs and business leaders of that era had backgrounds in engineering, science, or technical fields rather than in business or economics, as formal business education was largely unavailable in the Soviet Union.

Career

Early Business Ventures and Founding of Alfa Group

Fridman began his business career in the late 1980s during the era of perestroika, when Soviet leader Mikhail Gorbachev's economic reforms opened limited space for cooperative enterprises and private business activity. Like many aspiring entrepreneurs of the period, Fridman started with small-scale trading and service ventures. His years active in business date from 1986, coinciding with his graduation from university and the beginning of the perestroika reforms.

In 1989, Fridman co-founded Alfa Group Consortium, which would become one of Russia's largest privately owned conglomerates. The group's initial activities were in trading, but it rapidly diversified as the Soviet economy underwent radical transformation in the early 1990s. Alfa Group expanded into banking, oil, telecommunications, and retail, becoming one of the most significant private business empires in post-Soviet Russia.

Alfa-Bank

In 1991, Fridman co-founded Alfa-Bank, which grew to become one of the largest private commercial banks in Russia. The bank was established during the turbulent early years of Russia's transition from a command economy to a market-based system, a period marked by hyperinflation, institutional collapse, and rapid privatization. Alfa-Bank distinguished itself by maintaining relative stability through several financial crises, including the 1998 Russian financial crisis. Fridman served on the board of directors of Alfa-Bank and was involved in its strategic direction for decades. He also served on the board of ABH Holdings, the parent structure for the group's banking operations.

TNK-BP

One of the most prominent chapters of Fridman's business career was his involvement with TNK-BP, a major oil company formed as a 50/50 joint venture between the Russian consortium TNK (Tyumen Oil Company), in which Alfa Group held a significant stake, and the British energy giant BP. The joint venture, established in 2003, became one of the largest oil producers in Russia and one of the most significant foreign investments in the Russian energy sector.

Fridman served as the chief executive of TNK-BP for nine years. The joint venture was marked by periods of significant tension between the Russian and British partners, with disputes over corporate governance, strategy, and the appointment of senior personnel. These conflicts drew international media attention and highlighted the challenges of large-scale foreign investment in the Russian energy sector.

In 2013, the TNK-BP joint venture was dissolved when the Russian state oil company Rosneft acquired the entirety of TNK-BP in a deal valued at approximately $55 billion. Fridman and the other Russian partners in the AAR consortium (which included Petr Aven and German Khan through Alfa Group, as well as the Access Industries group of Len Blavatnik and the Renova Group of Viktor Vekselberg) sold their 50 percent stake in the venture. The proceeds from this sale provided the capital for Fridman's next major business endeavor.

LetterOne

In 2013, Fridman co-founded LetterOne (L1), an international investment company based in Luxembourg. LetterOne was established to invest the proceeds from the sale of the AAR consortium's stake in TNK-BP. The firm focused on investments in the energy, technology, health, and retail sectors across international markets, with a particular emphasis on operations outside Russia.

LetterOne's initial major investment was in the energy sector. The firm acquired DEA Deutsche Erdoel AG, a German oil and gas exploration and production company, from the German utility RWE. Fridman became a member of the supervisory board of DEA. The acquisition attracted scrutiny from European regulators and government officials, given sensitivities about Russian investment in European energy assets.

In 2015, reports indicated that LetterOne was planning to sell certain UK gas fields that DEA had acquired as part of its portfolio.

LetterOne also recruited prominent international figures to its leadership. Former British trade minister Lord Davies of Abersoch joined the firm, lending it international credibility and connections.

Following the imposition of EU sanctions on Fridman in 2022, he stepped down from the boards of LetterOne and Alfa Group to prevent the sanctions from affecting those companies' operations. As of August 2025, LetterOne had set aside $300 million because sanctions on its founders, including Fridman and Aven, blocked dividend payments to them.

Telecommunications and Retail

Prior to 2022, Fridman served on the supervisory board of directors of VEON (formerly known as VimpelCom), one of the world's largest telecommunications companies, with operations spanning Russia, Central Asia, Southeast Asia, and other regions. Alfa Group was a major shareholder in VEON.

Fridman was also connected to X5 Retail Group, one of the largest food retailers in Russia, through Alfa Group's investment. He served on the supervisory board of X5 Retail Group prior to 2022. These positions reflected the breadth of Alfa Group's business portfolio and Fridman's role as a central figure in its governance.

Public and Industry Roles

Over the course of his career, Fridman held positions in a number of public-facing and industry bodies. He was a member of the Russian Union of Industrialists and Entrepreneurs, a prominent lobbying and advisory organization for Russian business interests. He also served in the Public Chamber of Russia, a consultative civic body established by the Russian government.

Internationally, Fridman was a member of the Council on Foreign Relations, the New York-based think tank focused on international affairs and U.S. foreign policy. In May 2017, bne IntelliNews ranked Fridman as Russia's most important businessman.

Sanctions and Legal Challenges

EU Sanctions (2022)

In February 2022, following the Russian invasion of Ukraine, the European Union imposed sanctions on Fridman as part of a broader package of measures targeting Russian businesspeople and officials. Fridman was listed among individuals considered to have close ties to the Russian government or to be benefiting from it. Fridman publicly denied the EU's allegations, calling them false and defamatory. He subsequently stepped down from the boards of LetterOne and Alfa Group to shield those entities from the impact of sanctions.

Fridman filed legal challenges against the EU sanctions. Lawsuits were reported in July 2022 and December 2022. His legal team pursued multiple avenues to overturn the sanctions, including proceedings before the Court of Justice of the European Union.

In November 2025, an Advocate General of the EU's highest court issued a legal opinion stating that the sanctions against Fridman and his long-time business partner Petr Aven lacked sufficient legal justification, highlighting what the opinion described as an insufficient evidentiary basis for the sanctions. By September 2025, at least seven EU member states had reportedly backed Fridman's bid to overturn the bloc's sanctions, according to the Spanish newspaper El Mundo.

Investment Arbitration

Beyond the EU courts, Fridman pursued investment arbitration through the investor-state dispute settlement (ISDS) mechanism, invoking bilateral investment treaties. In November 2025, it was reported that the United Kingdom was facing an arbitration claim brought by Fridman, with a tribunal formed to hear the dispute. Reports also indicated that Fridman was bringing similar ISDS claims against Luxembourg.

Fridman's legal team for these proceedings reportedly included Cherie Blair, the British barrister and wife of former UK Prime Minister Tony Blair.

A December 2025 analysis by the Veblen Institute examined the broader phenomenon of sanctioned oligarchs and companies using investment arbitration to challenge Western sanctions, identifying 28 such cases or threats of cases, with Fridman's proceedings among those discussed.

Observers and analysts noted that Fridman's use of ISDS arbitration could establish precedents with implications for the broader sanctions framework applied by Western governments.

UK Criminal Investigation (2022–2023)

In December 2022, the UK's National Crime Agency arrested a man at a "multi-million-pound residence" in London on charges of money laundering, conspiracy to defraud the Home Office, and conspiracy to commit perjury. The agency did not publicly name the individual, identifying him only as a 58-year-old "wealthy Russian businessman." Russian state media reported the man to be Fridman. He was released on bail. The NCA subsequently scaled back its investigation, and in September 2023, the agency closed the probe entirely.

Reported Return to Russia

In October 2023, Fridman reportedly announced his intention to return to Russia, following the closure of the NCA investigation and the ongoing impact of EU sanctions on his ability to conduct business and manage his assets in Europe.

Personal Life

Fridman has four children. He maintained residences in London and Moscow for many years. His London residence was described in media reports as a multi-million-pound property. Following the imposition of EU sanctions in 2022 and the subsequent restrictions on his activities in Europe, and after the closure of the UK NCA investigation in September 2023, Fridman reportedly indicated his intention to relocate to Russia in October 2023.

Fridman holds both Russian and Israeli citizenship. He has been involved in philanthropic efforts related to Jewish culture and Holocaust remembrance. He was associated with initiatives related to the Babi Yar memorial in Ukraine and has participated in events connected to Yad Vashem. In 2012, The New York Times reported that Fridman was among a group of Russian businessmen who helped establish a $1 million Jewish prize in cooperation with Israel.

Recognition

In 2003, Fridman received the Golden Plate Award of the Academy of Achievement. He was ranked by Forbes as the second-richest person in Russia in 2013, with an estimated net worth of $16.5 billion. By 2023, his ranking had moved to ninth among Russians, with a net worth estimated at $12.6 billion. As of February 2024, the Bloomberg Billionaires Index placed his net worth at $13.1 billion. Forbes listed him at number 150 on its global billionaires list in February 2025, with a net worth of $13.3 billion.

In May 2017, bne IntelliNews ranked Fridman as Russia's most important businessman, reflecting his influence across multiple sectors of the Russian and international economy through Alfa Group, Alfa-Bank, and LetterOne.

In 2015, Fridman appeared at internet entrepreneur awards alongside former French President Nicolas Sarkozy.

Legacy

Fridman's career spans the entirety of post-Soviet Russian capitalism, from the cooperative enterprises of the perestroika era to the establishment of major banking, energy, telecommunications, and retail businesses. As a co-founder of Alfa Group and Alfa-Bank, he built one of the largest private business empires in Russia. His role in TNK-BP placed him at the center of one of the most significant and contentious foreign investment ventures in the Russian energy sector.

The establishment of LetterOne represented an attempt to deploy capital internationally and build a business presence outside Russia, a strategy that was significantly disrupted by the sanctions imposed following the 2022 Russian invasion of Ukraine. Fridman's legal challenges to these sanctions, particularly through investment arbitration under bilateral investment treaties, have drawn attention from legal scholars, policy analysts, and governments. A November 2025 analysis by the Carnegie Endowment for International Peace situated Fridman's actions within a broader pattern of Russian elites navigating the pressures of Western sanctions and domestic wartime conditions.

The outcomes of Fridman's legal proceedings against the EU and UK sanctions could have broader implications for the enforcement of sanctions regimes and the use of investor-state dispute settlement mechanisms in the context of geopolitical conflicts.