An Oligarch in London
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The Krasnoyarsk aluminum smelter, operated by Mr. Deripaska’s company Rusal in Krasnoyarsk, Russia.CreditAndrey Rudakov/Bloomberg
Mr. Deripaska’s troubled reputation derives in large part from what was also his greatest triumph: his bare-knuckled victory over rivals and partners during the 1990s, when well-connected Russians were competing to win control of state assets after the collapse of the Soviet Union.
That competition, the so-called aluminum wars, was a corpse-filled struggle for control of Siberian smelters and other state-owned Soviet assets that was so violent that even some of Russia’s toughest tyc00ns gave it a wide berth.
“There were so many murders that I refused to go into this business,” recalled Mikhail Khodorkovsky, a billionaire former oil magnate who now lives in self-exile in London and who during the 1990s forbade his associates from pursuing a smelter deal.
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“I told them: ‘Don’t go out there. I need you to stay alive.’”
Mr. Deripaska, who once studied physics at Moscow State University, became a billionaire. But he was left with a ruthless image, especially as claims later emerged in legal battles in London and the United States that he engaged in theft, intimidation, bribery and even murder, notably of a Russian banker in 1995. (None of the accusations have been substantiated.)
One complaint filed in Delaware cast Mr. Deripaska as a member of a criminal gang that seized control of an iron-ore mining complex in the Ural Mountains in the late 1990s. The previous manager claimed that at a meeting attended by Mr. Deripaska, a mafia leader and five armed thugs, he was told to transfer a majority share or “this is the last time you will leave here alive.”
The case was dismissed for lack of jurisdiction, and Mr. Deripaska’s lawyers have routinely responded to lawsuits with counterclaims that his accusers were themselves crooks and lacked credibility. (A London arbitration tribunal did order him to pay $95 million in 2017 for knowingly lying to the tribunal while finding he had “acted oppressively” to his former partner in a Moscow property venture.)
His dominance of the Russian metals markets gave him the resources to look abroad. By 2000, he commenced a decade of overseas expansion, buying a smelter in Montenegro, an aluminum factory in Ireland and bauxite mines in Africa.
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Then he turned his eyes to London.
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Mr. Deripaska’s home in Belgravia, one of London’s most expensive areas.CreditAndrew Testa for The New York Times
Mr. Deripaska was now a global figure, and London was becoming the money-soaked fulcrum for a glitzy, international business and the social elite. He bought a six-story mansion on
Belgrave Square, as well as a country house in Surrey. He married Polina Yumasheva, a British-educated daughter of the chief of staff of
Boris N. Yeltsin, Russia’s former president. (The couple has since divorced.)
Ensconced in society, Mr. Deripaska befriended Nathaniel Rothschild, a British-born financier whose father is a British peer, and through him met the Conservative Party politician George Osborne, a future chancellor of the Exchequer, as well as Lord Peter Mandelson, a leading figure in the Labour Party.
Mr. Deripaska reveled among global movers and shakers, and he remains a regular figure at the World Economic Forum in Davos. He has always argued that these relationships were simply friendships, but soon questions would arise about whether he was really trying to buy influence.
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The
British news media revealed that the oligarch had flown Mr. Rothschild and Lord Mandelson on his private jet in 2005 for a jaunt in Siberia. At the time, Lord Mandelson was the European Union’s trade commissioner, and in this role, he oversaw a cut in tariffs on aluminum imports from Russia requested by Poland and other members of the bloc. It was a boon to Rusal. (The European Commission has denied that Mr. Mandelson personally intervened in the matter.)
Mr. Rothschild sued a British newspaper for libel for suggesting that the trip was anything more than an act of friendship, but the judge ruled against him. In the summer of 2008, Mr. Deripaska again played host, this time on his yacht, Queen K, off the Greek island of Corfu. Onboard were Mr. Osborne, Lord Mandelson and Andrew Feldman, a Conservative Party fund-raiser.
The yacht meeting caused a media and political storm in Britain, after claims in a letter to The Times of London by Mr. Rothschild, who was also in Corfu, that Mr. Osborne had sought a contribution from Mr. Deripaska to the Conservative Party. Mr. Osborne denied requesting what would have been an illegal donation.
“Deripaska does not hang around with people like this for social reasons,” said Mark Hollingsworth, an author of “Londongrad,” a book about Russian oligarchs in the British capital. “He is not mesmerized by the historical legacy of the British elite. He is not really interested in high society and parties. It is much more hard-nosed commercial calculation: ‘Who are the big names, who has the power and who can help me?’”
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And London unquestionably had lawyers, bankers, consultants and former politicians willing to earn generous fees by working in the service of Russian oligarchs with unseemly pasts.
“To outsiders, it seems extraordinary that reputable banks and people would ever get involved,” said Tom Keatinge, a former banker with J. P. Morgan who now directs the Center for Financial Crime and Security Studies at the Royal United Services Institute, a British research organization. “But when there are big fees on the table, people’s point of view is not the same.”
A Chill in Washington
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Paul Manafort, President Trump’s former campaign chairman, was an adviser to Mr. Deripaska. He is cooperating in the special counsel’s investigation into Russian interference in the 2016 election.CreditErin Schaff for The New York Times
Mr. Deripaska also had his eyes on the United States, where he had acquired property and had business links with Alcoa, the world’s sixth-largest aluminum producer. But in Washington, the reception was much chillier.
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The State Department, worried that he had connections to Russian organized crime, has restricted his travel to the United States for years, mostly forcing him to rely on occasional American visas or a Russian diplomatic passport. Despite the barriers, he has managed visits to New York, Los Angeles, San Francisco and Hawaii, people familiar with his travel said.
Annoyed, and cognizant of the potential effect on his business, Mr. Deripaska has pursued winning easier and more regular access to the United States with near-obsessive zeal. One moment of success came in 2005, when he was given a multiple-entry American visa, after hiring Mr. Dole, the former presidential nominee who had gone into lobbying.
Mr. Dole’s firm, Alston & Bird,
reported receivingan upfront lobbying fee of $300,000 from Mr. Deripaska, followed by at least $270,000 in additional payments over the next few years, according to congressional lobbying reports. In the end, the victory was short-lived:
The visa was revoked not long after being granted at the request of the F.B.I., a person briefed on the process said.
Around the time his visa was being revoked, Mr. Deripaska hired Mr. Manafort and signed his firm to a $10 million-a-year contract in 2006 to advise him.
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One of Mr. Manafort’s associates lobbied President George W. Bush’s administration to reconsider the visa issue, but the efforts went nowhere, according to David Merkel, who worked on Russia-related issues in Mr. Bush’s White House and State Department.
“Deripaska has spent years trying to mainstream himself into the political and financial elite,” Mr. Merkel said.
Mr. Manafort and his business partner at the time, Rick Davis, arranged a meeting in 2006 on the sidelines of the Davos forum between Mr. Deripaska and Senator John McCain, Republican of Arizona, who was preparing a campaign for president. There is no evidence anything came of the meeting, though it became a liability for Mr. McCain’s campaign.
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Mr. Deripaska eventually fired Mr. Manafort and his partner. He later sued them after a dispute over a telecommunications deal they had pursued together.