How Alexey Mordashov became the “Steel King” of Russia

On this day, September 26 in the year 1965, one of the richest men in Russia was born in Cherepovets, 230 miles north of Moscow. His name is Alexey Mordashov, the chairman of Severstal, a steel and mining company.

Alexey Mordashov
Alexey Mordashov (Credit: Facebook Page)

Alexey Mordashov was the son of a couple who worked in the steel mill that was going to become Severstal. He received his degree in economics from the Leningrad Engineering and Economic Institute in 1988 and his MBA from Newcastle Business School of the University of Northumbria in 2001. He started working at the Cherepovets steel mill as an economist, rising to the position of financial director in 1992, just after the Soviet Union collapsed.

When the steel mill was reorganized as a joint-stock company, Alexey Mordashov accumulated shares by buying the shares distributed to workers. At age 31, he became the CEO of the steel mill which later on renamed as Severstal. He went on to build a conglomerate by investing in coal, gold mining, power machines, airline, telecommunication, and tourism. He also invested in steel assets in the United States but sold them later at a loss. He tried to merge his company with Arcelor but lost out to Lakshmi Mittal. Nevertheless, he received a $175 million breakup fee.

Alexey Mordashov is an active philanthropist, having donated funds for the building of theatres and museums. He is also an avid supporter of Russian sports. He setup the Cherepovets hockey team and built many sports facilities.

Alexey Mordashov has 6 children. In 1996, he divorced his wife Elena.


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