Mikhail Prokhorov

Mikhail Dmitrievich Prokhorov is a prominent Russian-Israeli oligarch and politician. An oligarch is a person with immense wealth and significant political influence. He is recognized for his massive holdings in the mining and banking sectors. Prokhorov also gained international fame as the former owner of the Brooklyn Nets basketball team. His financial standing is among the highest in the world. As of December 2021, the Bloomberg Billionaires Index estimated his wealth at $14.0 billion. Forbes Magazine provided a slightly different estimate of $11.5 billion.

Prokhorov's early life was shaped by the history of the Soviet Union. He was born in Moscow in 1965 to Tamara and Dmitri Prokhorov. His paternal grandparents were Russian peasant farmers known as kulaks. These families were persecuted as class enemies during the era of Stalin. His father grew up in poverty after his family fled across Siberia. On his mother's side, his grandmother, Anna Belkina, was a Jewish microbiologist. She remained in Moscow during World War II to produce vaccines. Prokhorov graduated from the Moscow Finance Institute in 1989.

His professional career began in the late 1980s within the banking sector. From 1989 to 1992, he held a management position at the International Bank for Economic Cooperation. He later moved to the MFK bank and then to the United Export-Import Bank, also known as Onexim Bank. At Onexim, he partnered with Vladimir Potanin and Alexander Khloponin. In 1992, at age 27, he helped run the holding company Interros with Potanin. This partnership became the foundation for his massive industrial empire. He worked to build these financial institutions during a period of intense national change.

Prokhorov achieved major success through the privatization of Russian state assets. After the Soviet Union collapsed, the government began selling state-owned industries to private owners. This process was often unregulated and highly controversial. Through a program called "loans-for-shares," Prokhorov and his partners acquired large stakes in vital companies. The government needed loans to operate and used shares as collateral. Because the government could not repay the loans, the banks took ownership of the companies. This allowed businessmen to acquire massive assets at prices far below their actual market value.

One of his most significant acquisitions was Norilsk Nickel. In 1995, Onexim Bank won 38% of the company in a loans-for-shares auction. The winning bid was $170.1 million, which was only slightly above the starting price. At the time, Norilsk Nickel was a massive producer of nickel and palladium. It accounted for 25% of the world's total nickel output. Some observers, including journalists on the program "60 Minutes," suggested the auction was not fair. They argued the process gave insiders an advantage to buy valuable state assets cheaply.

Prokhorov later expanded his business interests into gold and international ventures. He converted his gold-mining interests into Polyus Gold, which is Russia's largest gold producer. This corporation was valued at approximately $8.5 billion. In 2003, he led the acquisition of Stillwater Mining in the United States. He also managed the ONEXIM Group, a private investment fund. In 2007, he began separating his assets from Vladimir Potanin. In 2008, he sold his stake in Norilsk Nickel for a significant profit. This deal included $5 billion in cash and shares in the company Rusal.

In addition to business, Prokhorov entered the world of Russian politics. He resigned from his major corporate roles to focus on political activity. In 2011, he announced his candidacy for the 2012 Russian presidential election. He ran as an independent candidate and earned 7.98 percent of the total vote. This placed him third in the election results. Following this, he established a new political party called Civic Platform in June 2012.

His career demonstrates the intersection of massive industrial wealth and national political leadership.

Prokhorov's life reflects broader global shifts in economics and citizenship. In April 2022, he immigrated to Israel. He received Israeli citizenship under the Law of Return. His journey from the Soviet era to global business and international politics is a notable modern history. He has navigated complex environments, from the harsh mining regions of the Arctic to the halls of political power. His legacy remains tied to the rapid transformation of the Russian economy.