Andrey Melnichenko & family

Andrey Melnichenko & family: Career Highlights

Andrey Melnichenko's entrepreneurial journey began while he was still at university. He opened a currency exchange booth on campus, marking the start of his business ventures. In 1993, at the age of 21, he co-founded MDM Bank. Under his leadership as Chairman of the Board of Directors from 1993 to 1997, MDM Bank expanded through acquisitions, integrating seven regional banks. Melnichenko's bold move to buy out his partners' shares in 1997 made him the sole shareholder and chairman of the management board.

Melnichenko's banking success continued as MDM Bank weathered the 1998 Russian financial crisis due to conservative credit policies and a lack of exposure to government bonds. He served as the bank's chairman of the board of directors from 2001 to 2005, during which time MDM Bank received numerous accolades, including "Bank of the Year" by The Banker and "Best Russian Bank" by Euromoney and Global Finance.

In 2000, Melnichenko co-founded MDM Group with Sergei Popov, venturing into industrial investments. They acquired over 50 independently run businesses, leading to the formation of three separate companies: SUEK, EuroChem, and TMK (later exiting TMK through an IPO at the London Stock Exchange in 2006).

Melnichenko served as President of MDM Group from 2001 to 2004.

Melnichenko's involvement in the fertilizer industry began when he became EuroChem's majority shareholder in 2007. He previously served as chairman of OJSC EuroChem. Under his leadership, EuroChem acquired several nitrogen plants and a phosphate mine with Soviet-era equipment. The company embarked on a modernization journey, building new manufacturing facilities and acquiring laboratories in Germany, leading to the development of second-generation fertilizers.

Melnichenko's strategic acquisitions included licenses for potash deposits in Volgograd and Perm, planning to develop two large potash industrial plants. He further expanded EuroChem's reach by acquiring BASF SE plant in Antwerp, Belgium, for new technologies, and K+S Nitrogen, a company marketing nitrogenous fertilizers. In 2015, EuroChem's headquarters were moved to Switzerland for better access to capital markets and international operations.

Melnichenko also played a significant role in the coal industry. He became a director of SUEK JSC (Siberian Coal Energy Company) in February 2005 and its chairman in June 2011. Under his leadership, SUEK underwent significant modernization, repaying debts, paying wages and taxes, and launching a comprehensive modernization program. Melnichenko transformed old mines and outdated equipment into modern enterprises, building enrichment factories and modules for highly enriched coal production.

Melnichenko's contributions to SUEK included constructing modern bulk terminals, upgrading seaports, and building a coal mine methane processing station. He also created the Siberian Generating Company (SGC) based on SUEK's electricity assets and became its chairman. In 2013, he became the primary shareholder of SUEK and SGC after acquiring his ex-partner's shares.