Business in Ukraine

Rank	Name	Citizenship	Age	Net Worth ($bil)	Residence
127	Rinat Akhmetov	Ukraine	41	7.3	Ukraine
203	Victor Pinchuk	Ukraine	47	5.0	Ukraine
253	Ihor Kolomoyskyy	Ukraine	NA	4.2	Ukraine
260	Henadiy Boholyubov	Ukraine	46	4.0	Ukraine
327	Kostyantin Zhevago	Ukraine	34	3.4	Ukraine
428	Vitaliy Hayduk	Ukraine	50	2.7	Ukraine
428	Serhiy Taruta	Ukraine	53	2.7	Ukraine

For billionaires with publicly traded fortunes, net worths were calculated using share prices and exchange rates from February 11, 2008.

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#127 Rinat Akhmetov

Age: 41

Fortune: self made

Source: steel, coal mines

Net Worth: $7.3 bil

Country Of Citizenship: Ukraine

Residence: Donetsk , Ukraine, Europe & Russia

Industry: Diversified

Marital Status: married, 2 children

Education: Donetsk National Technical University, Bachelor of Arts / Science

Son of a coal miner, built his Ukrainian coal-and-steel empire in the mid-1990s by forging ties with then prime minister Viktor Yanukovych. After his ally lost 2004 presidential election, had his key asset, Ukraine’s largest steel company, Kryvorizhstal, reprivatized. Things were looking up when his Party of Regions briefly was back in the majority for part of 2006 and 2007; but that changed this fall when the opposition, led by Yulia Tymoshenko, won elections and almost immediately began reviewing his energy holdings. Continues to reorganize assets for potential public offering. In December his metal-and-mining holding company Metinvest finalized plans to merge assets with SMART holding company; Akhmetov will retain a 75% stake in Metinvest. Pledged $50 million to Ukraine’s Foundation for Effective Governance.

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#203 Victor Pinchuk

Age: 47

Fortune: self made

Source: steel pipes

Net Worth: $5.0 bil

Country Of Citizenship: Ukraine

Residence: Dniepropetrovsk , Ukraine, Europe & Russia

Industry: Diversified

Marital Status: married, 2 children

Education: NA
Dniepropetrovsk Metallurgical Institute, Doctorate
Son-in-law of ex-president Leonid Kuchma, used his Ph.D. in pipe design to found Interpipe in 1990, now one of the world’s largest producers of steel pipes. Owned Ukraine’s largest steel company, Kryvorizhstal, with fellow billionaire Rinat Akhmetov until it was reprivatized in 2005. This year finalized sale of his Ukrsotsbank to Italy’s UniCredit Group for $2.2 billion. Planning to list 25% of Interpipe on the London Stock Exchange this spring after rumored talks to merge with steel pipe maker TMK fell through. Owns multimillion-dollar art collection that includes works by Damian Hirst, Jeff Koons and Andreas Gursky

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#253 Ihor Kolomoyskyy

Age: NA

Fortune: self made

Source: banking, investments

Net Worth: $4.2 bil

Country Of Citizenship: Ukraine

Residence: Kiev , Ukraine, Europe & Russia

Industry: Diversified

Marital Status: married, 2 children

Education: NA
Dniepropetrovsk Metallurgical Institute, Master of Science
With partner and fellow billionaire Henadiy Boholyubov controls Privat group, a banking and industrial conglomerate. Began with Privatbank, which was founded with $1 million of capital in the early 1990s; today bank is estimated to be worth $4 billion. This year sold iron ore and coke interests to Lanebrook Ltd., the major shareholder of Russian miner and steelmaker Evraz Group; received cash and shares in Evraz. Battling with government over stake in oil company, Ukrnafta; wants to either buy the government’s share or get the government to buy Privat’s share back. Trying to gain control of 1+1, one of Ukraine’s top television channels, in partnership with American billionaire Ronald Lauder’s Central Media Enterprises.

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#260 Henadiy Boholyubov

Age: 46

Fortune: self made

Source: banking, investments

Net Worth: $4.0 bil

Country Of Citizenship: Ukraine

Residence: Dneptopetrovsk , Ukraine, Europe & Russia

Industry: Diversified

Marital Status: married, 2 children

Education: NA

With partner and fellow billionaire Ihor Kolomoyskyy controls Privat group, a banking and industrial conglomerate. Began with Privatbank, which was founded with $1 million of capital in the early 1990s; today the bank is estimated to be worth $4 billion. This year sold iron ore and coke interests to Lanebrook Ltd, the major shareholder of Russian miner and steelmaker Evraz Group; received cash and shares in Evraz. Battling with government over stake in oil company, Ukrnafta; wants either to buy the government’s share or get the government to buy Privat’s share back. Via his private company, Palmary Enterprises, won control over Australia’s manganese ore miner Minerals.

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#327 Kostyantin Zhevago

Age: 34

Fortune: self made

Source: banking, mining

Net Worth: $3.4 bil

Country Of Citizenship: Ukraine

Residence: Kiev , Ukraine, Europe & Russia

Industry: Diversified

Marital Status: married, 2 children

Education: NA
Doctorate
Ukraine’s youngest billionaire started out as finance director of bank Finance & Credit in 1992 when he was just 19. Eventually gained a majority stake in its holding company, Finance & Credit Group. Planning to take public Finance & Credit Bank in the next two years; this follows the successful initial offering of iron ore producer Ferrexpo in London in May 2007. Also a deputy in Ukraine’s parliament; ally of current Prime Minister Yulia Tymoshenko.

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#428 Vitaliy Hayduk

Age: 50

Fortune: self made

Source: steel, coal

Net Worth: $2.7 bil

Country Of Citizenship: Ukraine

Residence: Kiev , Ukraine, Europe & Russia

Industry: Diversified

Marital Status: married, 2 children

Education: NA
Doctorate
With partner and fellow billionaire Serhiy Taruta controls steel, coal and energy conglomerate Donbass Industrial Union. The company was originally formed to supply gas to Donbass plants through highly lucrative barter arrangements; partners later bought shares in plants during privatization drive. Last year’s merger talks with Russia’s Gazmetall appear to have fizzled; but initial offering plans continue to be discussed. Reportedly considering selling shares to partner Taruta if his appointment to deputy prime minister for energy issues is approved.

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#428 Serhiy Taruta

Age: 53

Fortune: self made

Source: steel, coal

Net Worth: $2.7 bil

Country Of Citizenship: Ukraine

Residence: Donetsk , Ukraine, Europe & Russia

Industry: Diversified

Marital Status: married, 2 children

Education: NA

With partner and fellow billionaire Vitaliy Hayduk controls steel, coal and energy conglomerate Donbass Industrial Union, which he joined in 1995. The company was originally formed to supply gas to Donbass plants through highly lucrative barter arrangements; partners later bought shares in plants during privatization drive. Last year’s merger talks with Russia’s Gazmetall appear to have fizzled; but a public offering is still being discussed.

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Rank-previous year 99
GDP Growth 6.9%
GDP/Capita $6,900
Trade Balance $-3.9 bil
Population 46.0 mil
Unemployment 2.5%

After Russia, the Ukrainian republic was far and away the most important economic component of the former Soviet Union, producing about four times the output of the next-ranking republic. Its fertile black soil generated more than one-fourth of Soviet agricultural output, and its farms provided substantial quantities of meat, milk, grain, and vegetables to other republics. Likewise, its diversified heavy industry supplied the unique equipment (for example, large diameter pipes) and raw materials to industrial and mining sites (vertical drilling apparatus) in other regions of the former USSR.

Shortly after independence was ratified in December 1991, the Ukrainian Government liberalized most prices and erected a legal framework for privatization, but widespread resistance to reform within the government and the legislature soon stalled reform efforts and led to some backtracking. Output by 1999 had fallen to less than 40% of the 1991 level.

Ukraine’s dependence on Russia for energy supplies and the lack of significant structural reform have made the Ukrainian economy vulnerable to external shocks. Ukraine depends on imports to meet about three-fourths of its annual oil and natural gas requirements. A dispute with Russia over pricing in late 2005 and early 2006 led to a temporary gas cut-off; Ukraine concluded a deal with Russia in January 2006 that almost doubled the price Ukraine pays for Russian gas. Outside institutions - particularly the IMF - have encouraged Ukraine to quicken the pace and scope of reforms.

Ukrainian Government officials eliminated most tax and customs privileges in a March 2005 budget law, bringing more economic activity out of Ukraine’s large shadow economy, but more improvements are needed, including fighting corruption, developing capital markets, and improving the legislative framework. Ukraine’s economy remains buoyant despite political turmoil between the Prime Minister and President. Real GDP growth reached about 7% in 2006-07, fueled by high global prices for steel - Ukraine’s top export - and by strong domestic consumption, spurred by rising pensions and wages. Although the economy is likely to expand in 2008, long-term growth could be threatened by the government’s plans to reinstate tax, trade, and customs privileges and to maintain restrictive grain export quotas.

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