Leonid Viktorovich Mikhelson is one of the most important people in Russia’s energy sector, which is a harsh and unforgiving place. Mikhelson grew up in the shadow of the Soviet Union and worked his way up from the muddy trenches of pipeline construction to become the head of Novatek, Russia’s top independent natural gas producer. As of 2025, he is worth an incredible $29.5 billion, making him the 64th richest person in the world and the second richest person in Russia. This rise is not just a story about being good with money; it also involves changes in world politics, strategic alliances, and a surprising love of modern art. Mikhelson’s journey shows how unstable post-Soviet Russia has become, where greed meets oligarchic power.
Mikhelson was born on August 11, 1955, in Kaspiysk, a small town in the Russian SFSR on the Caspian Sea. He was raised in an Ashkenazi Jewish family during the Cold War, when ideas were very rigid. He didn’t have a lot of money or a lot of good things happen to him as a child, just the hard work of Soviet youth. But when he started going to the Kuibyshev Civil Engineering Institute (now Samara State Technical University), a fire of ambition lit up in him. Mikhelson graduated in 1977 with both a Bachelor of Engineering and a Master of Engineering in Industrial Civil Engineering. These degrees gave him the practical skills that would shape his career.
He started his career in the cold, empty areas of Siberia. Mikhelson, who was young and full of hope, became a foreman at a state-run construction company in the Tyumen region in 1977. He worked on the huge Urengoi-Chelyabinsk project, which was 4,500 kilometers long and represented Soviet industrial power. His job was to put together gas pipelines. It was hard work: it was freezing cold, there were no nearby towns, and the machines were always running. By 1985, his hard work had earned him a promotion to Chief Engineer at Ryazantruboprovodstroy, a major player in the USSR’s pipeline system. In 1987, two years later, he became the General Director of Kuibyshevtruboprovodstroy, where he was in charge of huge infrastructure projects that kept the Soviet energy machine running.
This world fell apart when the Soviet Union broke up in 1991. In the middle of hyperinflation, economic chaos, and the race to privatize, Mikhelson saw a chance where others saw disaster. Kuibyshevtruboprovodstroy was one of the first companies to go private. It changed its name to Samara People’s Enterprise Nova. Mikhelson kept a controlling stake and sailed through the dangerous waters of Russia’s new capitalism. By October 1994, he had started an investment branch called Novafinivest that focused on finding oil and gas. This company would grow into Novatek, which would become the foundation of his empire.
It wasn’t fate that brought Novatek into being; it was a planned change. Mikhelson began his career as a pipeline builder, but he later branched out into extraction, taking advantage of Russia’s untapped northern reserves. In 2005, the company went public on the London Stock Exchange under his leadership. It raised $879 million, making Mikhelson a billionaire—he made over $300 million from his 7% stake alone. A year later, Gazprom, a state-owned company, bought 19.4% for $2.3 billion, proving that Novatek’s model could work as a private competitor to the monopoly. Novatek makes about 12% of Russia’s gas, which is second only to Gazprom. Mikhelson owns a 25% stake worth billions.
Mikhelson’s vision went beyond just making things. He led Arctic megaprojects and put a lot of money on liquefied natural gas (LNG) to win over markets around the world. The Yamal LNG terminal, which cost $27 billion and is located on the Yamal Peninsula, is a good example of this boldness. Even though the U.S. put sanctions on it in 2017, it exports gas to Asia and Europe through the Northern Sea Route, which cuts shipping times. Arctic LNG 2, which will be released in stages between 2023 and 2025, promises 19.8 million tonnes per year. It uses new modular technology from Germany’s Linde to get around sanctions. These projects have not only strengthened Novatek’s position, but they have also made Mikhelson a part of Russia’s geopolitical landscape.
You can’t talk about Mikhelson without mentioning his close relationship with Gennady Timchenko, another close friend of Putin’s. Mikhelson owns 57.5% of Novatek and Sibur, Russia’s largest petrochemical company, which they both own. They sold 12% of Sibur to management in 2013, making a lot of money while still keeping control. This partnership, which was formed in the cutthroat ’90s, is a good example of the oligarchic networks that make up Russia’s economy. Timchenko’s Volga Resources and Mikhelson’s holdings often work together on Arctic deals, such as the purchase of Yamal LNG assets in 2013. Their combined power goes beyond sponsorships; for example, Novatek is a backer of the Russian Football Union.
Still, Mikhelson has a wide range of investments. He is in charge of Sibur’s board and 26 production sites that turn gas byproducts into plastics and fertilizers. He is also on the supervisory board of OAO Russian Regional Development Bank and used to be in charge of Stroytransgas and Art Finance. His personal pleasures include the $150 million megayacht Pacific, which is 482 feet long and sails the Mediterranean. This is very different from his roots in Siberia.
This much wealth draws attention, especially in Russia, where sanctions are making things difficult. The 2017 Countering America’s Adversaries Through Sanctions Act (CAATSA) caught Mikhelson up in it because of his ties to Novatek during the annexation of Crimea. In 2022, the UK did the same thing, saying it was because of the Russo-Ukrainian War. By 2025, the accusations have grown: reports say that companies he controls help Russia’s Ministry of Defense hire contract soldiers for Ukraine, which has drawn criticism from anti-corruption groups. Mikhelson has given money to Dmitry Medvedev’s foundations and campaigns for United Russia, including Vyacheslav Volodin’s 2021 campaign. Even so, he shrugs off the risks of “major sanctions,” saying that new technologies will protect him. President Putin praised Novatek’s strength at a meeting in the Kremlin in 2020, which showed how important Mikhelson is.
There is a cultured soul beneath the tycoon’s armor. Mikhelson is a Russian citizen who also has Israeli citizenship. He is a big fan of contemporary Russian art, with 99% of his collection being works from after the Soviet Union. He started the V-A-C Foundation in 2010 to support this passion. He named it “Victoria, the Art of Being Contemporary” after his daughter, who studied art history at NYU and London’s Courtauld Institute. The foundation connects Russia with institutions around the world. It works with New York’s New Museum, London’s Tate and Whitechapel Gallery, and opened a Venice branch in 2017. The Moscow art center, designed by Renzo Piano and opened in 2021, is a crown jewel that combines industrial grit with beauty. Mikhelson funds exhibits around the world through V-A-C. These include U.S. and Russian shows that challenge stories of isolation.
Mikhelson is still private when it comes to his personal life. He lives in Moscow with his wife and two kids, far from the Caspian Sea where he grew up. His daughter Victoria shows off his softer side, while his son stays out of the spotlight. For helping the economy, he has received the Order of the Badge of Honor from Russia. Forbes has kept track of his rise, which started at $18.2 billion in 2017 and peaked at $29.5 billion in 2025.
As 2025 goes on, Mikhelson lives in a world that is always changing. Novatek wants to grow as Europe moves away from Russian gas. The modules of Arctic LNG 2 are getting around sanctions by working with Asian companies. There are rumors that he has deeper ties to the Kremlin, and his network is growing with people like former French Prime Minister François Fillon on corporate boards. But despite all the news stories, Mikhelson is still a mystery: a heartless businessman, a sanctioned outcast, and an art world expert.
Leonid Mikhelson’s legacy can be seen in both permafrost and canvas. He is the embodiment of Russia’s reinvention: a man who piped gas across tundras and funneled billions into beauty. His story whispers of connections that won’t break and dreams that won’t die in a time of isolation. As Novatek drills deeper into the Arctic, one wonders what other untapped resources this long-lasting oligarch will find.
