Mikhail Khodorkovsky Net Worth

Mikhail Khodorkovsky: From Russian Oligarch to Vocal Kremlin Critic

Introduction: The Rise and Fall of an Oligarch

Mikhail Khodorkovsky is a name that resonates with both controversy and resilience. A former oil tycoon, once the richest man in Russia, and a vocal critic of Vladimir Putin and the Kremlin, Khodorkovsky’s life story is a compelling narrative of wealth, power, political intrigue, and personal transformation. This article delves into the key aspects of Khodorkovsky’s life, from his early beginnings to his dramatic fall from grace, imprisonment, and eventual exile, examining his impact on Russian politics and the global stage. The article examines his current net worth, his early life and career, his rise to power, his arrest and trial, his release and exile, and the establishment of Open Russia.

What is Mikhail Khodorkovsky’s Net Worth?

Mikhail Khodorkovsky’s current net worth is estimated to be around $100 million. This is a significant decrease from his peak net worth of $15 billion, when he was the richest person in Russia. The decline is largely due to the seizure of his assets and the bankruptcy of his oil company, Yukos, following his arrest in 2003. Despite the loss of a substantial fortune, Khodorkovsky remains a wealthy individual. He continues to use his resources to support philanthropic endeavors and political activism, primarily through his organization, Open Russia.

Khodorkovsky’s wealth is a stark reminder of the volatile nature of business and politics in post-Soviet Russia. While he initially amassed his fortune through shrewd business dealings, he ultimately lost it due to his political conflicts with the Russian government.

Early Life and Personal Background

Mikhail Borisovich Khodorkovsky was born on June 26, 1963, in Moscow, Russia. His parents, Boris and Marina, were engineers who worked at a factory that manufactured measuring instruments. Growing up, Khodorkovsky was raised in a family that was critical of the Soviet Union, but those views were kept private. In his youth, Khodorkovsky became a supporter of Communism and a patriot of the Soviet Union.

Khodorkovsky’s early life was marked by his academic achievements. He attended the D. Mendeleev University of Chemical Technology of Russia, graduating with a degree in chemical engineering in 1986. During his time at university, he was actively involved in the Communist Youth League, known as Komsomol, serving as the deputy head. Khodorkovsky’s personal life has seen its share of complexities. He married Yelena and had a son with her. However, he later married Inna, with whom he has three children. He has maintained a good relationship with his first wife and son, showcasing his ability to navigate personal relationships despite the changes in his life.

Early Career and Business Ventures

After graduating, Khodorkovsky began his career with the Komsomol, a common path for those seeking to enter Soviet politics. However, his entrepreneurial spirit soon became evident. He leveraged his connections within the Komsomol to launch his first business, a café, in 1986. This was made possible by Mikhail Gorbachev’s perestroika reforms, which encouraged the development of a free market in the Soviet Union.

In 1987, Khodorkovsky established the Center for Scientific and Technical Creativity of the Youth, which imported and sold computers and other goods. His business acumen allowed him to establish crucial relationships with large banks. This led to the founding of Bank Menatep in 1989, one of Russia’s first privately owned banks. Khodorkovsky’s business expanded rapidly. This was in part due to the government granting Bank Menatep the right to manage funds allocated for the victims of the Chornobyl nuclear accident. These actions were part of the “loans-for-shares” program, a key feature of the economic landscape of the time. Khodorkovsky’s wealth increased dramatically during this time.

Yukos, Loans-for-Shares, and the Rise of an Oil Tycoon

Khodorkovsky’s career took a pivotal turn when he acquired the Yukos oil company. This acquisition was made possible through the controversial “loans-for-shares” program, which allowed a select group of individuals to acquire state-owned assets at significantly undervalued prices. This program was implemented in the mid-1990s under President Boris Yeltsin, and it’s been viewed by many as a way to enrich a select group of individuals, effectively creating a class of oligarchs. Khodorkovsky, as a beneficiary of this program, became one of the most prominent of these oligarchs.

Yukos became one of the largest oil companies in the world under Khodorkovsky’s leadership, and his personal wealth skyrocketed. By 2003, he was the richest man in Russia and a significant political influencer. His influence extended to advising government officials, and he was known for his outspoken views on Russian politics.

Arrest, Trial, and Imprisonment

The trajectory of Khodorkovsky’s life took a dramatic turn in 2003. He began to openly criticize the government. This led to a confrontation with Vladimir Putin, who had him arrested on charges of fraud and tax evasion. The charges were widely seen by many as politically motivated. This was evident from the fact that the arrest coincided with Khodorkovsky’s increasing political activism and criticism of Putin’s government. At the time of his arrest, Khodorkovsky was Russia’s wealthiest man. The government froze Yukos’ shares on Russian stock exchanges, which led to a sharp decline in the company’s value. Khodorkovsky was found guilty in May 2005 and sentenced to nine years in prison.

While serving his sentence, Khodorkovsky was hit with further charges of embezzlement and money laundering, which extended his prison term. His imprisonment sparked international criticism, with many foreign governments and human rights organizations condemning the trial as politically motivated. Despite the criticism, Khodorkovsky remained in prison for over a decade.

Release from Prison and Life in Exile

After more than ten years in prison, Khodorkovsky was pardoned by President Putin in December 2013. His release came after significant lobbying from figures like Hans-Dietrich Genscher. Upon his release, Khodorkovsky left Russia, initially gaining residency in Switzerland. He later moved to London in 2015, where he has resided since. His wealth was significantly reduced following the Yukos affair and his imprisonment. However, he continued to be a wealthy man by most standards. His experiences in prison and his exile have shaped his views on Russian politics and his commitment to promoting democratic values.

Open Russia: Advocacy and Opposition

After his release, Khodorkovsky relaunched the Open Russia organization in 2014. The original Open Russia had been founded in the early 2000s to strengthen civil society in Russia. The new Open Russia aimed to serve as a nationwide community platform. The organization has been a source of significant friction with the Russian government.

Open Russia advocates for independent media, the rule of law, political education, and the release of political prisoners. The organization seeks to introduce sweeping reforms to Russia, including changes to law enforcement and election processes. Khodorkovsky has expressed his hope that Open Russia could facilitate a constitutional conference to shift power away from the presidency and towards the legislature and judiciary. In 2017, the Russian government designated Open Russia as an undesirable organization, effectively banning it and its activities within Russia. Despite these restrictions, Open Russia continues its work from abroad, advocating for democratic values and human rights in Russia.

Legacy and Lasting Impact

Mikhail Khodorkovsky’s life story is a complex one. It is filled with business success, political intrigue, and personal struggle. He is a symbol of the tumultuous period of post-Soviet Russia. He has left a lasting impact on Russian politics. His experiences, from his rise as an oligarch to his fall and subsequent exile, offer valuable insights into the dynamics of power, wealth, and political opposition. His continued activism and his advocacy for democratic reforms ensure that his legacy continues to evolve and to influence events in Russia and beyond. Khodorkovsky’s story serves as a reminder of the importance of human rights and the resilience of the human spirit in the face of adversity.