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  SPIEGEL Interview with Russia's Richest Man: 'I Am an Extremist'

SPIEGEL Interview with Russia's Richest Man 'I Am an Extremist'

Part 2: 'Some find Russian business expansion sinister.'

SPIEGEL: Which companies have you set your sights on?

Prokhorov: Of course, I can't name any names. But our holding company has clear criteria. First we invest in competitive companies within Russia. These companies then look at diversifying internationally and they will scope out 20 to 30 candidates for a takeover bid. But we're only interested in what fits our strategy, which usually means companies that can achieve a market capitalization of at least a billion dollars.

SPIEGEL: Are you also considering Germany?

Prokhorov: An investment in the energy sector is a possibility there. Through TGK-4, a company we purchased for more than a billion dollars, we operate 25 power plants in the European part of Russia.

SPIEGEL: In Germany some find Russian business expansion sinister. You don't exactly have the best reputation.

Prokhorov: It can't be separated from the image of our country. We often share the same opinions with our partners in the West, but we express them more vehemently. You have to understand: Every country has its complexes, including Germany. Our complex is the eternal search for the answer to the question of whether or not we are a major power. I see this as the logical consequence of the breakup of the Soviet Union. Besides, the West and Russia don't listen to each other enough.

SPIEGEL: What do you propose?

Prokhorov: If the European Union is serious about rapprochement with Russia, it should lift visa restrictions, for example. They don't have to be afraid. It would help people in the East and West to get to know each other better and reduce prejudices. The criminals come anyway.

SPIEGEL: Will Russia and Europe even play a decisive role in the future global economic order?

Prokhorov: A good question. The crisis is accelerating something that was already recognizable. The world's gross national product is increasingly being earned in the rising BRIC nations -- Brazil, Russia, India and China. America has huge problems, but at least -- unlike Europe -- it is not addressing them decisively, not in a half-hearted way.

SPIEGEL: At least Russia has raw commodities that will also be in demand in the future. Will you continue to invest in this sector?

Prokhorov: Of course. Our company, Polyus Zoloto, is in the process of buying the Kazakh firm, KazakhGold. This will result in a group that will have the second-largest or third-largest gold reserves in the world. We have cash and no debt and, once the takeover has been processed, we want to expand further. I think commodities prices will rise. I am certain of that. However, I can't say whether -- or when -- they will reach pre-crisis levels.

SPIEGEL: But you became Russia's richest man by getting out of one commodity sector, the nickel business, at the right time -- that is, shortly before the markets collapsed. You sold your shares in Norilsk Nickel a year and a half ago. You received an estimated $7 billion (€5 billion) for the shares, as well as a 14 percent share in Deripaska's aluminum giant, RUSAL. Is that luck or skill?

Prokhorov: I'm no Nostradamus. However, I did expect the massive real estate crisis in the United States to affect all other branches of the economy, including the commodities sector. Of course, a little luck was also involved.

SPIEGEL: As a minority shareholder of RUSAL, what are your plans?

Prokhorov: I am in favor of merging RUSAL and Norilsk Nickel. This is the only way to compete with industry giants like BHP Billiton or Rio Tinto. The $4.5 billion (€3.2 billion) loan that the government issued to RUSAL could be converted into its own a stake.

SPIEGEL: It is hard to imagine the ambitious Mr. Prokhorov, the ambitious Mr. Deripaska and the ambitious Russian state agreeing on who should run such a large corporation.

Prokhorov: Perhaps, but it is necessary. In that sort of an alliance, each major shareholder would own no more than 15 to 20 percent. These strong shareholders would have to bring in independent management. Which would be a radical new strategy for the Russian economy.

SPIEGEL: What is your current relationship with your business partner of many years, (Vladimir) Potanin? You had quarreled with him.

Prokhorov: A neutral relationship. We meet once every quarter.

SPIEGEL: There are people who claim that Potanin was behind your having made headlines two-and-a-half years ago. You were arrested at the French ski resort of Courchevel on charges of procurement.

Prokhorov: One of these days I'll figure out how it came to that. At any rate, the accusations were absurd. We had a party. That was all.

SPIEGEL: Perhaps you should even be grateful to the French police. After all, the incident led to the falling-out with Potanin and the well-timed sale of your Norilsk Nickel shares.

Prokhorov: In fact that episode was a catalyst for our falling-out. But the deeper reason lay in our different strategies. Potanin wanted to invest everything in nickel, but I wanted to diversify.

SPIEGEL: What were your experiences in the French prison?

Prokhorov: You know, I like to engage in unusual sports: kickboxing, trampoline jumping, heli-skiing and jet-skiing -- and I like to take things to the limit. I'm an extremist, especially in my private life. That's why I felt that being arrested was interesting from a psychological point of view. It reminded me of the five days I spent in a military jail during my military service in Soviet days. It was because I had left the barracks without permission.

SPIEGEL: Mikhail Dmitriyevich, we thank you for this interview.

Interview conducted by Alexander Jung and Matthias Schepp. Translated from the German by Christopher Sultan.