Iskander Makhmudov’s Entry into Commerce

During the 1980s, Soviet leader Gorbachev introduced political and economic reforms as part of perestroika. These advances permitted the formation of new cooperatives that were privately owned and operated to turn a profit.

The larger and more successful cooperatives produced goods the Soviet system could not or did not produce.  It was in this environment that Makhmudov met another entrepreneur and investor in cooperatives, Mikhail Chernoy, in 1989.

Together they responded to the call for privatization by blending their specialties and joining forces on behalf of an aluminum producer, Trans World Group.   In 1993, Makhmudov and Chernoy ended their aluminum industry affiliation.

In the late 1990s, the chief Russian prosecutor opened an intensive investigation into the Russian aluminum industry with special attention to a revenue avoidance practice known as tolling.  After a lengthy inquiry, the investigation found no information suggesting impropriety on Makhmudov’s part.  That finding marked the first of several occasions when Makhmudov’s individual associations and growing success drew criticism, resulting in repeated findings that the allegations were groundless.



  1. […] Iskander Makhmudov’s Entry into Commerce ( […]

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