Early life and career

Abramovich lost his mother at the age of 18 months and his father, who was killed in a construction accident, at the age of four. He was raised by his paternal uncle in Komi and later by a second uncle in Moscow. By all accounts his upbringing was strict and harsh.

Abramovich attended the Industrial Institute in the city of Ukhta before being drafted into the Soviet Army.

Post-Soviet Privatization, New Wealth and Political Career

Abramovich started his commercial activity in the late 1980s when Soviet president Mikhail Gorbachev's reforms permitted the opening of small private businesses, known as co-operatives. In 1992-1995 Abramovich founded five companies that conducted resale and acted as intermediaries, eventually specializing in the trade of oil and oil products.

In July, 1992, the Moscow deputy prosecutor approved the questioning of Abramovich under article 90 of the Russian criminal code. This case was sent to Ukhta, Komi republic for further investigation. He was accused of stealing diesel fuel from an Ukhta enterprise worth 4,000,000 rubles. The investigation determined that this fuel was transported to Riga using forged documents (which said that the fuel was supposed to be delivered to the Army) and sold there. Abramovich was later cleared of wrongdoing.

Abramovich obtained the majority of his wealth thanks to assets acquired cheaply during president Boris Yeltsin's program of privatizing state companies in the mid-90's. With the help of his then-partner Boris Berezovsky, he became the majority shareholder in Sibneft, a major oil company. He later acquired aluminium assets from private owners and merged them with the metals assets of Oleg Deripaska to form Russian Aluminium, the world's second-largest aluminium producer.

Abramovich and Berezovsky acquired half their shares in Sibneft through the so-called "loans for shares" program, in which the state mortgaged and later sold shares in several major enterprises to obtain loans for the government. The other half of the company was privatized through a series of auctions in the mid-1990s.

In 1999 Abramovich was elected to the State Duma as the representative for the impoverished Far East region of Chukotka. He started the charity Pole of Hope to help the people of Chukotka, especially children, and in December 2000 was elected governor of Chukotka, replacing the corrupt Alexander Nazarov. Since then he has invested hundreds of millions of dollars in Chukotka, for example building a college, a hospital, a pre-school and hotels in Anadyr, renovating the airport, and funding new or renovated schools in many small towns and villages. He has also used Chukotka as a tax haven for Sibneft, though the company re-invested most of its tax savings in the region and has been exploring for oil there as part of the governor's drive to boost the local economy. Abramovich said that he would not run for governor again after his term of office expired in 2005, as it is "too expensive" - and he rarely visits the region. However, Russian President Vladimir Putin changed the law to abolish elections for regional governors, and on 21 October 2005 Abramovich was reappointed governor for another term. In 2006 Abramovich used his power as governor to help out the explorer Karl Bushby who was deported from the region for border violations after walking from Alaska into Russia during his attempt to walk round the world. [1]

In May 2006 he announced plans to buy a 40% stake in Evraz, Russia's biggest steel producer, for $3bn - his first big investment in Russia since he sold his aluminium and oil assets.

Abramovich and European Football

For more details on this topic, see Chelsea F.C..
In June 2003 he became the owner of the companies that control Chelsea Football Club in the United Kingdom. He had, apparently, investigated the possibilities of purchasing several other clubs before moving for Chelsea, who were financially vulnerable at the time.

The deal immediately raised his profile in Britain where the tabloids noted the Russian connection by humorously dubbing the club Chelski (something of a misnomer, as the suffix -ski is actually a Polish linguistic device). As soon as Abramovich took control, he poured massive investment into the club (estimated at GBP 440 million to January 2006), assuming the £80m debt burden and immediately making available substantial transfer funds. The club also embarked on an ambitious programme of commercial development, with the aim of making it a worldwide brand. The result was near-instant success: Chelsea finished their first season after the takeover in 2nd place in the Premiership (from 4th the previous year). The following season they moved into first place and also reached the semi-finals of the Champions League. They are now one of the dominant forces in English football. It is argued that Abramovich's involvement with Chelsea has distorted the football transfer market throughout Europe, as his wealth often allows the club to purchase players virtually at will (frequently at inflated prices), without regard to the effects on the club's financial outturn. The spending has, to some extent, seen wealth re-distributed throughout the game, with the combined fee of £12.5m paid to West Ham United for Glen Johnson and Joe Cole helping to avert administration.[2] In the year ending June 2005, Chelsea posted record losses of GBP 140 million and the club is not expected to record a trading profit before 2010 (Mosnews).

He is also present at almost every game Chelsea play and visibly shows his emotions during matches, a sign taken by supporters to indicate a love for the sport (though others still see it as a smart move in protecting his wider interests), and visits the players in the dressing room following each match.

In March 2004, Sibneft agreed a three-year sponsorship deal worth USD 58 million (approx. GBP 30 million, EUR 44.5 million, RUR 1.6 billion) with the Russian team CSKA Moscow. Despite the company explaining that the decision was made at management level, some viewed the deal as an attempt by Abramovich to counter accusations of being unpatriotic which were made at the time of the Chelsea purchase. UEFA rules prevent one person owning more than one team participating in UEFA competitions, so Abramovich has no equity interest in CSKA. Following an investigation, he was cleared by UEFA of having a conflict of interest. [3] Nevertheless, he was named most influential person in Russian football in the Russian magazine Pro Sport at the end of June 2004. In May 2005, CSKA won the UEFA Cup, becoming the first Russian club ever to win a major European football competition. However, in October 2005, Abramovich sold his interest in Sibneft and the company's new owner Gazprom, which sponsors St. Petersburg team Zenit, cancelled the sponsorship deal.

Family, other interests and activities

Abramovich married his first wife, Olga - a divorcee three years older than him, with a young child - in 1987. They divorced in 1989. In 1991 he married Irina, who worked as a stewardess for Aeroflot, the Russian airline, and met him when he was a passenger on one of her flights. Roman and Irina Abramovich have five children: Anna, aged 12, Arkady (11), Sonya (10), Arina (4) and Ilya (2).

Abramovich is known as a fan of Formula One and is often seen in the paddock at races; in 2004, after the sport's owner Bernie Ecclestone was seen giving Abramovich a tour of the pitlane at the Monaco Grand Prix, rumours circulated that he was considering investing in or purchasing an F1 team.

He owns his own private Boeing 767-300 known as "The Bandit" due to its paint scheme.

Of Jewish background, Abramovich is a firm supporter of Jewish causes, seen his funding of several projects in the Abramovich neighbourhood in Jerusalem, Israel and in Tel Aviv.

He owns four superyachts and is building a fifth that will be the largest in the world. Le Grand Bleu, previously owned by Paul Allen of Microsoft, is 108.3 metres long and carries a 22 metre yacht on board, a helicopter, speedboat and jet skis. Pelorus is a 114.5 metre yacht made by the Lurssen yard, and Ecstasea is an 85.95 Feadship vessel launched in 2004.

Quotes

"I love this game, I love this sport, I love this league. Why don't I get my own team?" - on buying Chelsea for 60M pounds.
"I'm realising my dream of owning a top football club. Some will doubt my motives, others will think I'm crazy." - after buying Chelsea
"If I ever wanted Thierry Henry, I would have bought him, thank you very much." - on the possibility of signing Thierry Henry
"Jose is a great manager, the best." - on Jose Mourinho
"I will never leave Chelsea. I have caught the football virus." - on leaving Chelsea
"The goal is to win. It's not about making money. I have many much less risky ways of making money than this (buying Chelsea football club). I don't want to throw my money away, but it's really about having fun and that means success and trophies." - on his vision for Chelsea