Basic Element Ltd. ( rus, Ба́зовый элеме́нт, Bazovy element, ˈbazəvɨj ɨlʲɪˈmʲent, or simply ) is one of the largest diversified industrial groups in

Russia Russia (, , ), or the Russian Federation, is a transcontinental country spanning Eastern Europe and Northern Asia. It is the largest country in the world, with its internationally recognised territory covering , and encompassing one-eigh ...

. The company was founded in 1997 and is owned by

Oleg Deripaska Oleg Vladimirovich Deripaska (russian: Олег Владимирович Дерипаска; born 2 January 1968) is a Russian billionaire and an industrialist. Deripaska enriched himself on previously state-owned assets that were privatized in ...

. It is based in the

British British may refer to: Peoples, culture, and language * British people, nationals or natives of the United Kingdom, British Overseas Territories, and Crown Dependencies. ** Britishness, the British identity and common culture * British English ...

tax haven A tax is a compulsory financial charge or some other type of levy imposed on a taxpayer (an individual or legal entity) by a governmental organization in order to fund government spending and various public expenditures (regional, local, o ...

Jersey Jersey ( , ; nrf, Jèrri, label=Jèrriais ), officially the Bailiwick of Jersey (french: Bailliage de Jersey, links=no; Jèrriais: ), is an island country and self-governing Crown Dependencies, Crown Dependency near the coast of north-west F ...

and is headquartered in

Moscow Moscow ( , US chiefly ; rus, links=no, Москва, r=Moskva, p=mɐskˈva, a=Москва.ogg) is the capital and largest city of Russia. The city stands on the Moskva River in Central Russia, with a population estimated at 13.0 million ...

. It was known as Siberian Aluminum until 2001.

Overview

Basic Element manages Oleg Deripaska's investments into the six economic sectors of

energy In physics, energy (from Ancient Greek: ἐνέργεια, ''enérgeia'', “activity”) is the quantitative property that is transferred to a body or to a physical system, recognizable in the performance of work and in the form of hea ...

and

mining Mining is the extraction of valuable minerals or other geological materials from the Earth, usually from an ore body, lode, vein, seam, reef, or placer deposit. The exploitation of these deposits for raw material is based on the economic ...

manufacturing Manufacturing is the creation or production of goods with the help of equipment, labor, machines, tools, and chemical or biological processing or formulation. It is the essence of secondary sector of the economy. The term may refer to a ...

financial services Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companie ...

construction Construction is a general term meaning the art and science to form objects, systems, or organizations,"Construction" def. 1.a. 1.b. and 1.c. ''Oxford English Dictionary'' Second Edition on CD-ROM (v. 4.0) Oxford University Press 2009 and ...

and

real estate Real estate is property consisting of land and the buildings on it, along with its natural resources such as crops, minerals or water; immovable property of this nature; an interest vested in this (also) an item of real property, (more genera ...

agribusiness Agribusiness is the industry, enterprises, and the field of study of value chains in agriculture and in the bio-economy, in which case it is also called bio-business or bio-enterprise. The primary goal of agribusiness is to maximize profit w ...

, and

airport and airline management Airline and airport management is the administration of airports and airlines. It includes the activities of setting the strategy of airports to gather and provide information on airline commercial and operational priorities. It covers a broad over ...

. Over 150,000 people work at the group's companies in Russia and the CIS, Africa, Australia, Asia, Europe, and Latin America as of 2014. In 2007 the company's revenues were

US$ The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...

26.8 billion, representing 45% growth relative to the previous year, and it had US$45 billion worth of assets. In 2012 the company's revenues were US$27 billion. Basic Element built several Olympic facilities for

2014 Winter Olympics The 2014 Winter Olympics, officially called the XXII Olympic Winter Games (russian: XXII Олимпийские зимние игры, XXII Olimpiyskiye zimniye igry) and commonly known as Sochi 2014 (russian: Сочи 2014), was an international ...

in Sochi, including the Coastal Olympic Village, Imeretisnkiy sea port, Doubler of Kurortny Avenue in Sochi, renovation of the

Sochi International Airport Sochi International Airport (russian: Международный Аэропорт Сочи; ) is an airport located in Adler District of the resort city of Sochi, on the coast of the Black Sea in the federal subject of Krasnodar Krai, Russia. S ...

. The total investments account for over $1.4 billion. In June 2016, after the

United States Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...

listed Basel on its list of '' Russian Oligarchs, Officials, and Entities in Response to Worldwide Malign Activity'', Valery Pechenkin (russian: Валерий Печенкин) became the general director of Basel, replacing Gulzhan Moldazhanova (russian: Гульжан Молдажанова). Moldazhanova had been the general director from 2005 until 2009, when Deripaska became general director, and then again from the summer of 2012 until June 2018.) was in the

Russian intelligence community The intelligence agencies of the Russian Federation, often unofficially referred to in Russian as ''Special services'' ( rus, Спецслужбы), include: * Federal Security Service (FSB), an agency responsible for counter-intelligence and othe ...

for 30 years. He was the head of the FSB directorate for the

Novosibirsk Oblast Novosibirsk Oblast (russian: Новосиби́рская о́бласть, ''Novosibirskaya oblast'') is a federal subject of Russia (an oblast) located in southwestern Siberia. Its administrative and economic center is the city of Novosibi ...

before becoming in charge of counter intelligence as the deputy director of the FSB from 1997 to 2000. Pechenkin supported Deripaska when Deripaska obtained billions in Russian money from

Minatom Ministry for Atomic Energy of the Russian Federation and Federal Agency on Atomic Energy (or Rosatom), were a Russian federal executive body in 1992–2008 (as Federal Ministry in 1992–2004 and as Federal Agency in 2004–2008). The Min ...

's uranium deals. He then started working for Deripaska and Deripaska's SibAl. Valery Pechenkin headed the security services of the Mikhail, Lev, and David Cherneys-Deripaska- Makhmudov- Tokhtakhunov and the Sergei Aksyonov (russian: Сергей Аксёнов), Sergei Popov (russian: Сергей Попов), and Anton Malevsky (russian: Антон Малевский) associated Izmaylovskaya and Podolskaya Bratvas. Pechenkin has former heads of both the FSB and the

Ministry of Internal Affairs An interior ministry (sometimes called a ministry of internal affairs or ministry of home affairs) is a government department that is responsible for internal affairs. Lists of current ministries of internal affairs Named "ministry" * Ministr ...

(russian: Министерство внутренних дел) working in these private security services.

Operations

Energy and mining sector

En+ Group is Russia-based diversified mining, metals, and energy group. En+ Group holds: * a 47.41% stake in alumina and

aluminium Aluminium (aluminum in AmE, American and CanE, Canadian English) is a chemical element with the Symbol (chemistry), symbol Al and atomic number 13. Aluminium has a density lower than those of other common metals, at approximately o ...

producer UC RUSAL * a 100% stake in EuroSibEnergo PLC power company * a 100% in Strikeforce Mining and Resources Ltd (SMR) ( ferromolybdenum producer) * a 100% in En+ Downstream (includes aluminium downstream assets) * a 100% in En+ Coal * Central European Aluminium Company (CEAC), which has run the Kombinat Aluminijuma Podgorica (KAP) aluminium smelter in

Montenegro ) , image_map = Europe-Montenegro.svg , map_caption = , image_map2 = , capital = Podgorica , coordinates = , largest_city = capital , official_languages = ...

, and the Rudnic Boxita Niksic bauxite mine, which supplies raw materials for the smelter, since 2005. * Dmitrov Pilot Plant for Aluminium Canning Tape (DOZAKL) strip with a polished surface for the manufacture of lamplight reflectors and lath ceilings.

Machine building sector

JSC Russian Machines Russian Machines (russian: Русские машины, /Russkie mashiny/) is a Russian conglomerate that consists of industrial and engineering divisions. The group currently operates 27 plants throughout 12 regions in Russia and produces mechani ...

was established in 2005 to unite Basic Element's machine building assets.

Airport management

Basel Aero, a joint venture between the

Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, borde ...

an Changi Airports International, Basic Element,

and the Russian

Sberbank PJSC Sberbank (russian: Сбербанк, initially a contraction of russian: сберегательный банк, translit=sberegatelnyy bank, lit=savings bank, link=no) is a Russian majority state-owned banking and financial services compan ...

, is a company-operator of airports in Sochi,

Krasnodar Krasnodar (; rus, Краснода́р, p=krəsnɐˈdar; ady, Краснодар), formerly Yekaterinodar (until 1920), is the largest city and the administrative centre of Krasnodar Krai, Russia. The city stands on the Kuban River in south ...

, and

Anapa Anapa (russian: Ана́па, ) is a town in Krasnodar Krai, Russia, located on the northern coast of the Black Sea near the Sea of Azov. Population: History The area around Anapa was settled in antiquity. It was originally a major seaport (Sin ...

. As of 2015 the company handles 9.5% of total passenger traffic and 3.5% of the total cargo traffic in Russia.

Basel Aero Airports

Sochi Airport Sochi International Airport (russian: Международный Аэропорт Сочи; ) is an airport located in Adler District of the resort city of Sochi, on the coast of the Black Sea in the federal subject of Krasnodar Krai, Russia. S ...

Krasnodar Airport Krasnodar International Airport (russian: Международный аэропорт Краснодар), also known as Pashkovsky Airport (russian: Аэропорт Пашковский), ( IATA: KRR, ICAO: URKK) is the main airport serving the ...

Anapa Airport Anapa Airport (russian: аэропорт Анапа) , also known as Vityazevo Airport (russian: аэропорт Витязево) is an international airport located near Vityazevo village in Anapa, Russia. It serves the resort town of Anap ...

Financial services sector

Basic Element has been managing Oleg Deripaska's personal stake in the amount of 10% of

Ingosstrakh IPJSC Ingosstrakh (Russian: СПАО «Ингосстра́х») is one of the major insurance companies of Russia, insurance public joint-stock company. Headquartered in Moscow, Russia. Ingosstrakh is the legal successor of the Chief Agency of ...

's ordinary shares.

Construction sector

JSC JSC may refer to: * Jane Street Capital, a global proprietary trading firm * Johnson State College, one of the Vermont State Colleges, and located at Johnson, Vermont, United States * Jeffree Star Cosmetics, an American cosmetics franchise * Joi ...

Glavstroy is a

vertically integrated In microeconomics, management and international political economy, vertical integration is a term that describes the arrangement in which the supply chain of a company is integrated and owned by that company. Usually each member of the suppl ...

construction holding corporation. Management functions are carried out by Glavstroy-Management.

Other businesses

Agribusiness

* Kuban AgroHolding * AquaDin (LLC), manufacturer of

non-alcoholic beverages An alcohol-free or non-alcoholic drink, also known as a temperance drink, is a version of an alcoholic drink made without alcohol, or with the alcohol removed or reduced to almost zero. These may take the form of a non-alcoholic mixed drink (a "vi ...

* Voskhod Stud Farm

Port business

* Imeretinsky Port, Sochi

Real estate

* BasEl Real Estate

Notes

References

External links

Basic Element company website
{{Authority control Conglomerate companies of Russia Investment companies of Russia Multinational companies headquartered in Russia Russian brands Conglomerate companies established in 1997 Russian companies established in 1997 Companies based in Moscow Russian entities subject to the U.S. Department of the Treasury sanctions