Oleg Vladimirovich Deripaska

Oleg Vladimirovich Deripaska (born 2 January 1968) is the Russian Chief executive officer
of Basic Element company and a member of the Board of Directors and CEO of United
Company RUSAL, a Russian aluminium industry company. Deripaska has a London home in
Belgrave Square, which was originally the town residence of the Dukes of Bedford.

Deripaska's estimated fortune was $28 billion in 2008, according to the Forbes wealthiest list,
making him the ninth richest man in the world. In 2009, Deripaska's ranking fell to a ranking
of #164, with Forbes stating: "he may not withstand collapsing markets and heavy
debts".However, in 2010 his fortune allowed him to rise to #57 of the World's Billionaires list
with an estimated $10.7 billion. According to Forbes magazine, he removed the heads of his
two largest companies and personally negotiated with the Russian government, banks and
other creditors to restructure his loan obligations.

Business interests
Basic Element

Deripaska is the sole owner and CEO of Basic Element, a diversified investment company
established in 1997, with assets in Russia and abroad. Basic Element's main assets are
concentrated in five sectors: energy, manufacturing, financial services, construction and
aviation. The major assets include United Company RUSAL the world's largest aluminium
and alumina producer, GAZ Group automotive company, Ingosstrakh, the country's oldest
insurance company, Bank SOYUZ , Aviakor aircraft manufacturer, Russian-Asian Investment
Company , EuroSibEnergo, an investment and energy supply company, Glavmosstroy, a
planning and construction company.

Basic Element owns companies and subsidiaries in Russia, the CIS countries, Africa,
Australia, Asia, Europe and Latin America. Basic Element employs as many as 250,000
people. In 2007, Basic Element's consolidated revenues exceeded US$26 billion. The market
value of the company's assets is estimated at US$ 45 billion. But according to Izvestia and
Wiener Zeitung, due to global financial downturns, Deripaska's companies have a debt that
may have reached as much as $14 billion by the end of 2008, probably the biggest loss in
Russia, as a result of the running global financial crisis.

Debt Burden
Rusal's placing in Hong Kong in January 2010 was clouded by controversy surrounding its
massive debt and a lawsuit against its owner Oleg Deripaska by Michael Cherney. The IPO
secured criticism that Hong Kong regulators were undermining the Chinese territory's
credibility as a financial region by allowing a company - Rusal - struggling with nearly $15
billion in debt to list shares. However, in spite of the fears, in January 2010 Russian aluminum
giant UC Rusal Ltd. raised US$2.24 billion by pricing its Hong Kong and Paris dual initial
public offering at a premium to its peers. The company sold 1.61 billion shares, or 11% of its

1
enlarged share capital, the midpoint of an indicative price range of HK$10.80 each. RUSAL
has become the first Russian company listed in Hong Kong.

Other Affiliations
In 2004, Deripaska was appointed by the President of Russia to represent the country in the
Asia-Pacific Economic Cooperation Business Advisory Council (ABAC). He has held the
position of Chairman of ABAC Russia since 2007. Deripaska is Vice President of the Russian
Union of Industrialists and Entrepreneurs, Chairman of the Executive Board of the Russian
National Committee of the International Chamber of Commerce and a member of the
Competitiveness and Entrepreneurship Council, an agency of the Russian Government.

He sits on the board of trustees of the Bolshoi Theatre, the School of Business Administration,
the School of Public Administration, and the School of Economics at Moscow State
University and the School of Business Administration at St. Petersburg State University.
Deripaska is a co-founder of the National Science Support Foundation and the National
Medicine Fund. In 1999, Deripaska received the Order of Friendship, a state award of the
Russian Federation. He was named businessman of the year in 1999, 2006 & 2007 by
Vedomosti, a leading business daily published in partnership with The Wall Street Journal
and The Financial Times.

Deripaska is one of 16 global business leaders who drafted CEO Climate Policy
Recommendations to G8 Leaders, a document outlining international business community's
proposals to tackle global warming. The proposals were signed by more than 100 of the
world's leading corporations and handed to Japanese Prime Minister Yasuo Fukuda on 20
June 2008. The G8 leaders discussed the recommendations during the summit in Japan on 7–9
July 2008. The process was coordinated by the World Economic Forum in collaboration with
the World Business Council for Sustainable Development.

Biography
Education and early career

Deripaska was born in Dzerzhinsk, Nizhny Novgorod Oblast, but grew up in Ust-Labinsk,
Krasnodar Krai. According to certain sources, he is of Belarusian origin.[20][21] He graduated
with honors in physics from Moscow State University in 1993, and in 1996, he earned an
economics degree from the Plekhanov Russian Academy of Economics. He was general
manager of the Sayanogorsk Smelter (1994–97) and held the post of president of Sibirsky
Aluminium Investment Industrial Group (1997–2001), which later became a core of Basic
Element Investment Company.

The Guardian mentions:

(…) The Soviet Union had just collapsed, the country was in turmoil and "decay";
“ Deripaska worked on building sites across Russia to prevent himself from
starving. "We had no money. It was a very practical question every day. How do I
get money to buy food and keep studying?" he recalls. There was little future in
his university subject, theoretical physics. He abandoned his studies and started ”
2
 business as a small-time metals trader. Between 1993 and 1994 he accumulated a
20% stake in the Siberian aluminium factory - to the annoyance of the plant's
communist-era bosses. "I was expecting they would treat me as a shareholder. But
they said, 'No, you have the shares, but we run our business. And it's separate.'"
[Deripaska persuaded the workforce not to go on strike and boosted production, in
ways which are still not entirely clear.]

Later career

In 2005, he was included in the Sunday Times Rich List with an estimated wealth of £4,375m,
but was not listed in 2006; however, according to an August 2006 article in the New York
Times, the Russian business newspaper Vedomosti estimated Deripaska's total wealth at $14
billion, which, if true, would either have made him Russia's richest man or possibly tied for
the spot with Roman Abramovich.

He was said to have been the richest person in Russia, according to an 18 April 2008 Forbes
report, with "a fortune of $28.6 billion -- $11.8 billion more than he was worth last year".
Deripaska himself has consistently said that the estimate of his wealth was exaggerated,
which did not completely account for the amount of debt he incurred, and that he should be
ranked far below the top ten on the list of the Russian billionaires. In the 2009 Forbes report
his net worth was calculated as $3.5 billion - a drop of $24.5 billion.

In 2006, GAZ Group, purchased all the shares of LDV Holdings (producer of light
commercial vehicles, the city of Birmingham, Great Britain) from an American fund Sun
Capital. The main product of LDV is the light commercial vehicle Maxus. In May 2009 GAZ
Group signed an agreement to sell its UK/LDV van business to Malaysia automobile
manufacturer and distributor Weststar.

In April 2007, Deripaska acquired 25 percent (€1.05 billion) of the Austrian construction
company Strabag SE, which is owned by Hans-Peter Haselsteiner. Strabag is the sixth largest
construction company in Europe.] In May 2007, Magna International chairman Frank
Stronach announced that Deripaska was becoming a strategic partner in Magna.

On 25 July 2008 GAZ Group launched the serial production of sedan, which is based on a
platform acquired from the American corporation Chrysler and was designed by the British
studio UltraMotive. Engineers and specialists from Magna International played an active role
in the installation and fine tuning of the cars assembly line, as well as in the training of the
Group's employees. plans to add other models to the production at the assembly line.

On 3 October 2008 Magna International announced that Russian Machines terminated its
participation as a shareholder of the Canadian auto parts maker. However the companies said
that development of autocomponents business in Russia, as well as other joint projects, would
continue.

On 30 April 2009 Basic Element announced that it has transferred its 25% stake in Strabag to
other shareholders of the company. It will also hold a call option to buy back the stake until
20 December 2009 with an opportunity of its extension to October 2010. Basic Element also
retains one registered share of Strabag and keeps two places on Strabag nine-seat supervisory
board.

3
On 30 November 2010 Basic Element bought back 17% stake in Strabag from other
shareholders of the company for € 373 mln. Deripaska was also provided with an extension of
the call option for the remaining 8% until 15 July 2014.

Charity
In 1998, Deripaska established Volnoye Dyelo (Вольное дело, 'Free Business'), Russia's
largest private charity foundation (Russian Forbes magazine, May 2009). The fund supports
over 400 initiatives across Russia aimed at developing education and science, preserving
spiritual and cultural heritage, and improving standards in public health. It helps children, old
people, talented youths, teachers, eminent scientists and other participants of the programs.
Over the last three years the fund has coordinated a budget of $180 million and $65 million in
2008 alone. According to the fund's general director, Tamara Rumyantsyeva, the foundation
is funded by Oleg Deripaska himself.

Recent quotations
 APEC Summit, Lima (Peru), 22 November 2008:

Oleg Deripaska made the following comments following the meeting of APEC Leaders in
Lima, Peru, where he accompanied Russian President Dmitry Medvedev and led the Russian
delegation to the APEC Business Advisory Council.

“
Today we have a huge stock of exchange goods, which are still being produced,
because you can't shut the production capacity at once.... [And] until the world
uses up the stock, there won't be a phase of growth in the real economy. Now it's
important to come through the period before the supply meets the demand. In
March–April we'll touch the bottom and we'll have a clear understanding of the
demand and supply proportions. ”
 Bloomberg News: "Deripaska Urges Russia to Buy Metals, Revive Demand"

“
We have to live modestly for the next two years, helping the state to use resources
in a more efficient way. Our task is waste reduction. The crisis won't last long.
There is a crisis of overcapacity in production that each country will have to deal
with. We can expect a decrease in production capacity by between 20 and 50
percent globally and I am afraid Russia will see some of it too. ”
“
A new partnership between the state and the business community is needed. We
can bet on investment in housing and infrastructure. Investment in housing, roads,
schools and utility services will help to keep afloat a chain of other sectors such as
construction materials, machine-building, metallurgy. Such projects will also help
to employ people who will lose jobs in other sectors. There will be losses from the
crisis indeed; the task is to make them minimal. Businesspeople should trim their
businesses, leaving only structures that will be needed in the next 15 years, while
the government should attract new resources. The state should help those who
suffered most. We (businessmen) will survive one way or another, while the crisis ”
4
 may ruin many ordinary people. Some of them (other entrepreneurs) are trying to
save production capacities and keep prices high, waiting for a (recovery). This
makes it difficult for others to restructure. For instance, high domestic prices for
metals do not allow the production of cheaper cars.

The hand of the state should become visible and solid. It is the government's
responsibility to find the right balance between supply and demand, to find a price
balance. This requires manual control. We are a lucky country in a way. As
opposed to the West, where most basic consumer demands are already met,
Russians tend to spend rather than to save once they get money in their hands. For
instance, in more than 12 million families more than one generation live under the
same roof. There is a huge objective demand for housing, and people will buy
apartments if they are offered them at reasonable prices. The same goes for cars
and many other things.

Lawsuits

On 24 November 2006, Michael Cherney brought legal action against Deripaska in the
Commercial Court of the High Court in London. Cherney sought a declaration that he was the
beneficial owner of 20 percent of Rusal's stock which, he claimed, Deripaska held in trust for
him. The claim was denied. On 3 May 2007, Mr Justice Langley ruled that Deripaska had not
been properly served and that the court had no jurisdiction to try the claim under English law,
because Deripaska was not domiciled in England and Wales. On 3 July 2008, Mr Justice
Christopher Clarke ruled that the case should be tried in England, although "the natural forum
for this litigation is Russia", because, he held, "risks inherent in a trial in Russia... are
sufficient to make England the forum in which the case can most suitably be tried in the
interest of both parties and the ends of justice".On 22 July 2008, he granted Deripaska leave
to appeal. The Court of Appeal of England and Wales refused the appeal on 31 July 2009.

Allegations of ties to organized crime

In July 2006, whilst Deripaska was involved in a bid to buy the Daimler Chrysler Group, it
was reported that he United States canceled his entry visa; the unnamed official declined to
give a reason for the revoking of the visa. The Wall Street Journal reported that it could have
been because Deripaska has been accused of having links to organized crime in Russia and
cited as their sources two unnamed U.S. law enforcement officials. Deripaska had received a
multi-entry visa in 2005; an FBI spokesman refused to comment. Lobbying on his behalf had
been done by former Senate Republican leader and 1996 presidential candidate Bob Dole and
his Alston & Bird law partners, Senate records show. Alston & Bird was paid about $260,000
in 2005 for work on "Department of State visa policies and procedures" tied to Deripaska. In
2009 Deripaska was again allowed entry and visited the USA twice; The Wall Street Journal
reported that according to two unnamed FBI administration officials Deripaska had met with
agents regarding a continuing criminal probe, the details of the probe were not known or
reported. During Deripaska's visits he visited leading management figures from investment
banks Goldman Sachs and Morgan Stanley . The Aluminum company that Deripaska heads,
United Company RUSAL, was in preparations for an initial public offering. The easing of
Deripaska's visa issues which were an issue for possible investors heped to reassure bankers.
The State Department who controls the issuing of visas has never said why it revoked his visa

5
and refused to comment on his 2009 visits. The visits were arranged outside of the usual
process as the US continues to have concerns about Deripaska's business associations.
Deripaska has repeatedly denied a connection to any organized crime and said business rivals
have caused the visa to be revoked by smearing him. When interviewed by the BBC in July
2009, Deripaska said that the authorities in America had been attempting to blackmail him by
revoking his visa and thus affecting possible investors in a negative way and thereby hoping
to push Deripaska into cooperating with them.

According to an article in El Mundo, Deripaska and Iskander Makhmudov (head of UGMK)

were asked by Spanish police to answer questions in relation to a money-laundering enquiry.
In response, a spokesman for Deripaska commented that: "Mr Deripaska has never been
approached by the Spanish law enforcement authorities" and highlighted "Mr Deripaska's
willingness to assist the Spanish authorities in this matter and to answer all their questions in
line with legally-established procedures".

While Deripaska has been investigated previously in Spain and England and by the FBI over
claims of money laundering, he has never been convicted with any crimes in those probes.

On 25 January 2010, the Financial Times published a story "Rusal: A lingering heat"
exploring Deripaska's business relations with Sergei Popov and Anton Malevsky, alleged
heads of Russian organized crime groups. Deripaska has accused Michael Chernoy of using
Malevsky and the Izmailovskaya syndicate to extort $250 million from him as part of a
protection racket. However Deripaska has himself been accused of having similar links to
Malevsky, who along with his brother Andrei owned a 10% stake in Deripaska's company.
Deripaska denies the claims.

Relationship with Peter Mandelson

Deripaska, who is a friend of Nathaniel Rothschild (a major investor in both United Company
RUSAL and Glencore), together with Rothschild hosted George Osborne and Lord Peter
Mandelson on his yacht in Corfu in the summer of 2008.There was considerable controversy
over the relationship between Peter Mandelson and Oleg Deripaska after it emerged that
Mandelson had spent time on Deripaska’s yacht, the Queen K, whilst on holiday in Corfu.
Mandelson, then EU Trade Commissioner, had presided over the reduction of EU aluminium
tariffs, which benefitted Deripaska and led many to suggest there was a conflict of interest
and even that Mandelson had intervened in EU policy on the aluminium tycoon's behalf.

In response to the allegations, David O'Sullivan, Director-General for Trade, European

Commission, wrote a letter to The Sunday Times in which he stated:

"I am very surprised by the allegations in the British press about Peter Mandelson, Oleg
Deripaska and aluminium. The claims hint at Mandelson's personal intervention, in his
capacity of European commissioner for trade, in favour of the Russian aluminium company
Rusal. I would like to clarify that no such intervention took place. One allegation relates to a
nine-year debate in the EU over tariffs on raw aluminium. The other relates to anti-dumping
duties on Russian aluminium. In both instances, decisions were made after the usual
consultation procedures."

6
According to Nathaniel Rothschild, George Osborne, a friend of Rothschild's from school and
university, was also present on the yacht, and trying to solicit a donation from Deripaska for
the Conservative Party.

Personal life
Deripaska is married to Polina Yumasheva, daughter of Valentin Yumashev; the couple have
two children