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 country spanning Eastern Europe and North Asia. It is the list of countries and dependencies by area, largest country in the world, and extends across Time in Russia, eleven time zones, sharing Borders ...

. The company was founded in 1997 and is owned by Oleg Deripaska. 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. * British national identity, the characteristics of British people and culture ...

tax haven A tax haven is a term, often used pejoratively, to describe a place with very low tax rates for Domicile (law), non-domiciled investors, even if the official rates may be higher. In some older definitions, a tax haven also offers Bank secrecy, ...

Jersey Jersey ( ; ), officially the Bailiwick of Jersey, is an autonomous and self-governing island territory of the British Islands. Although as a British Crown Dependency it is not a sovereign state, it has its own distinguishing civil and gov ...

and is headquartered in

Moscow Moscow is the Capital city, capital and List of cities and towns in Russia by population, largest city of Russia, standing on the Moskva (river), Moskva River in Central Russia. It has a population estimated at over 13 million residents with ...

. It was known as Siberian Aluminum until 2001.

Overview

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

energy Energy () is the physical quantity, quantitative physical property, property that is transferred to a physical body, body or to a physical system, recognizable in the performance of Work (thermodynamics), work and in the form of heat and l ...

and

mining Mining is the Resource extraction, extraction of valuable geological materials and minerals from the surface of the Earth. Mining is required to obtain most materials that cannot be grown through agriculture, agricultural processes, or feasib ...

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 the secondary sector of the economy. The term may refer ...

financial services Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...

construction Construction are processes involved in delivering buildings, infrastructure, industrial facilities, and associated activities through to the end of their life. It typically starts with planning, financing, and design that continues until the a ...

and real estate,

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 ...

, and airport and airline management. 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 (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...

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 in

Sochi Sochi ( rus, Сочи, p=ˈsotɕɪ, a=Ru-Сочи.ogg, from – ''seaside'') is the largest Resort town, resort city in Russia. The city is situated on the Sochi (river), Sochi River, along the Black Sea in the North Caucasus of Souther ...

, including the Coastal Olympic Village, Imeretisnkiy sea port, Doubler of Kurortny Avenue in Sochi, renovation of the Sochi International Airport. The total investments account for over $1.4 billion. In June 2016, after the United States Treasury listed Basel on its list of '' Russian Oligarchs, Officials, and Entities in Response to Worldwide Malign Activity'', Valery Pechenkin () became the general director of Basel, replacing Gulzhan Moldazhanova (). 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.

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 (or aluminum in North American English) is a chemical element; it has chemical symbol, symbol Al and atomic number 13. It has a density lower than that of other common metals, about one-third that of steel. Aluminium has ...

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

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, 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 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 an island country and city-state in Southeast Asia. The country's territory comprises one main island, 63 satellite islands and islets, and one outlying islet. It is about one degree ...

an Changi Airports International, Basic Element, Sochi International Airport and the Russian Sberbank, is a company-operator of airports in

Krasnodar Krasnodar, formerly Yekaterinodar (until 1920), is the largest city and the administrative centre of Krasnodar Krai, Russia. The city stands on the Kuban River in southern Russia, with a population of 1,154,885 residents, and up to 1.263 millio ...

, and Anapa. 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 * Krasnodar Airport * Anapa Airport

Financial services sector

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

Construction sector

JSC Glavstroy is a vertically integrated construction holding corporation. Management functions are carried out by Glavstroy-Management.

Other businesses

Agribusiness

* Kuban AgroHolding * AquaDin (LLC), manufacturer of non-alcoholic beverages * Voskhod Stud Farm

Port business

* Imeretinsky Port, Sochi

Real estate

* BasEl Real Estate

Owners and management

The owner of the "Basic Element" is entrepreneur Oleg Deripaska. Legally most of the assets of the companies included in the "Basic Element" belong to one degree or another to Basic Element Ltd (registered on the island of Jersey), which is 100% owned by A-Finance, a company registered in the

British Virgin Islands The British Virgin Islands (BVI), officially the Virgin Islands, are a British Overseas Territories, British Overseas Territory in the Caribbean, to the east of Puerto Rico and the United States Virgin Islands, US Virgin Islands and north-west ...

, the

beneficiary A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary of a life insurance policy is the person who receives the payment of the amount of ...

of which is Deripaska. CEO is Valery Pechenkin.

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 U.S. Department of the Treasury sanctions