Russian oligarchs slowly taking over Russian tech industry?

Written on 23rd September 2008                                                                                                              1 COMMENT
Ernst-Jan Pfauth, editor in chief

Russian business daily Kommersant reports that oligarch Alexander Mamut’s investment company ANN acquired the largest mobile phone retailer in Russia, Euroset. At first hand, this doesn’t seem to be a web-related topic, yet I decided to report about it as it symbolizes the growing influence of oligarchs on the Russian tech scene. Mamut, who owns a significant stake in LiveJournal-owner SUP, is well-known as a Kremlin loyalist.

Alexander Mamut

The deal valued Euroset at an enterprise value of $1,25 billion including $850 million in debts, Kommersant said.

Here come the oligarchs

In the beginning of August, Alisher Usmanov announced that he wanted to buy a 20 percent stake in Russian search giant Yandex. This man is the founder of Metalloinvest (mining company, €3.3 billion a year) and owner of publishing house Kommersant.

Gentlemen like these two keep buying stakes in Internet and tech companies. Many critics fear that at some point, these oligarchs might partner up with Putin to secure the government’s control on this booming and important industry. During the announcements of the LiveJournal and Kommersant acquisitions, storms of protest arose. All without any consequences.

I hope these critics are mistaking, but I’m afraid that in a few years, we have to admit they had been right all along.