Ukrainian businessman and former Economy Minister Valeriy Khoroshkovsky has been appointed senior vice president of Russia's Evrazholding steel conglomerate.
ate. Khoroshkovsky’s arrival at Evrazholding, Russia’s largest steel producer, marks the first time a prominent Ukrainian businessman and political figure has joined the ranks of Russia’s business elite. In recent years, Ukraine’s largest holdings have hired Russians to help them manage their growing business empires – not the other way around.
Evrazholding told the Post on Nov. 10 that Khoroshkovsky, notable for his boyish good looks and charm, is expected to help improve the company’s corporate governance and operations.
Evrazholding, ranked as the 12th largest steel producer in the world, produced 13.8 million tons last year, equivalent to 22.5 percent of all Russian output.
The conglomerate, which includes three metallurgical plants in Siberia, was founded by Russian steel tycoon Alexandr Abramov, who serves as the group’s president.
In a statement to the Post, Abramov described Khoroshkovsky as a well-established professional whom he has known for years. “I have known him for 12 years,” Abramov said. “In the early 1990s, he was a very successful Ukrainian metals trader. His capabilities as a manager do not raise any doubts.”
Evrazholding officials said Abramov is beneficiary owner of a controlling stake in their company, but they refused to identify the other shareholders and declined to answer whether Khoroshkovsky is a shareholder.
The 35-year-old Khoroshkovsky gained acclaim in the 1990s as one of Ukraine’s most successful young businessman. Before long he was mixing in politics and succeeded in entering the political arena himself, holding the posts of government advisor, parliament deputy and first deputy head of the Presidential Administration.
Khoroshkovky resigned in January 2004 from the position of Economy Minister; he said his resignation was due to differences of opinion between himself and government officials who supported closer economic ties with Russia.
Khoroshkovsky, founder of the Merx-Mebli furniture company, raised eyebrows several months ago when he sold a controlling share in Ukrsotsbank holding company, through an intermediary. Ukrsotsbank holding is one of Ukraine’s five largest banks, with net assets exceeding $1 billion.
Sources close to Khoroshkovsky have confirmed the validity of news reports that alleged Khoroshkovsky sold his stake in Ukrsotsbank to companies controlled by President Leonid Kuchma’s son-in-law, Viktor Pinchuk, a prominent business mogul and parliament deputy.
Supervisory board chairman of Ukrsotsbank Igor Yushko declined to comment.
In past interviews with the press, Khoroshkovsky has said that he initially co-owned his controlling share in Ukrsotsbank with a major Russian metallurgical group, but he claimed to have bought out his partner. Ukrainian media reports have linked companies affiliated with Evrazholding to offshore companies listed as Ukrsotsbank’s shareholders, including Ferrotrade International.
Khoroshkovsky was not available for comment.
Presently, Evrazholding does not have any business projects in Ukraine. The company did, however, unsuccessfully bid for a controlling stake in Kryvorizhstal, Ukraine’s largest steel mill, which was auctioned off by the state over the summer.
