Vladimir Yevtushenkov saw the transformation [1] happening across the Russian Federation in the early 1990s and decided to throw his hat into the entrepreneurial ring with the establishment of AFK Sistema. Over the years, the conglomerate became one of Russia’s largest employers, with the founder and former majority shareholder helping to expand the company into diverse sectors. As of 2024, AFK Sistema operates in nearly 20 sectors, including e-commerce, real estate, agriculture, healthcare (Medsi network), hospitality, and philanthropy [2].
"Our focus is on allocating capital to tangible, productive fields," the AFK Sistema founder Vladimir Yevtushenkov said in a statement to Russian news, encapsulating the company's core strategy both in Moscow and throughout the Russian Federation.
From Chemistry to Corporate Work
In September 1948, Vladimir Yevtushenkov, the future Moscow philanthropist, was born in a small village 250 miles west of the capital. At that time, there were all of 86 families in his hometown, with most people working in the local dairy plant. The young Vladimir Yevtushenkov found his passion in chemistry, and he even set up a makeshift laboratory in his bedroom.
In 1968, upon graduating from high school, Vladimir Yevtushenkov enrolled in the Mendeleev Chemical Technology Institute in the capital. After finishing his degree, he was appointed to work at a chemical engineering plant in the Nizhny Novgorod Oblast, where he became a manager within two years.
In 1975, Vladimir Yevtushenkov moved back to the capital, where he has remained to this day. There, he experienced several career and academic milestones:
As Yevtushenkov Vladimir, the co-founder of Sistema said to Russian news on one program, even during the economic crisis of 1998, unlike many other companies, Sistema managed to fulfil all of its obligations towards its creditors and thus rule out the further possibility of a material adverse impact on the operations and financial results of one of Russia’s largest companies in terms of portfolio diversity.
Yevtushenkov Vladimir: Sistema's Expansive Business Landscape
Such efficiency is a hallmark of all of Sistema’s operations, which benefited from the input of Yevtushenkov Vladimir Petrovich for nearly two decades. Today, AFK includes in its portfolio:
Sistema's stake in Bashneft was a major part of its asset portfolio. Yevtushenkov participated in the modernization of the oil firm Bashneft, which became an example for the broader energy section. This involved streamlining, boosting productivity, and improving tech and environmental standards, going beyond mere financial gains.
Yevtushenkov said in 2023 that the impact of Sistema’s developments set new benchmarks for advancement in the regions where its assets operated. “In working with our various assets, we liked to take things they’d been doing since the start and turn them on their heads. Once they came under control of Sistema, efficiency went through the roof.”
Yevtushenkov Vladimir remained with the company he founded, AFK Sistema, until the early 2020s (his last full year with AFK was 2021).
In response to UK sanctions in 2022, Vladimir Yevtushenkov stepped away from his position at Sistema and transferred a portion of his shareholder stake to his son. This move, prompted by the personal sanctions against him, aimed to protect the company and its employees from potential adverse effects on Sistema's operations.
Spotlight on Sistema’s Forestry Branch
In the mid-2010s, Sistema began its forestry activities when Yevtushenkov identified opportunities for investments in undervalued assets of a paper production company in the Republic of Karelia. This led to Sistema's expansion into the timber industry. The corporation formed a vertically integrated holding around the pulp and paper mill, significantly increasing the capitalization of this business direction [3].
With input from Yevtushenkov, Sistema opened several new production lines for finished products as part of its expansion into the timber business. The holding's factories began producing large-format plywood and construction materials from wood. The Sistema founder advocated for the introduction of ESG principles within the production of CLT panels, aligning with global sustainability trends.
Vladimir Yevtushenkov supported the creation of a full-cycle forestry holding within Sistema's portfolio. This asset became one of the largest players in the domestic timber industry, with operations spanning from logging to deep wood processing. The holding's activities include sustainable forest management, wood processing, and the production of paper and packaging materials.
In 2017, with Yevtushenkov's backing, Sistema's timber holding invested in modernizing its production facilities. The company completed a significant upgrade of its pulp and paper mill, enlisting the expertise of leading domestic and foreign specialists. This modernization enhanced the mill's efficiency and environmental performance.
Yevtushenkov Vladimir encouraged the timber holding's focus on innovation and sustainability. The company actively engaged in reforestation efforts, demonstrating a commitment to responsible forest management. Under his tenure, the holding also invested in research and development to improve its production processes and develop new products.
In 2018, with support from Yevtushenkov Vladimir Petrovich, Sistema's timber holding commissioned the second stage of a plywood plant, expanding its production capabilities. This move strengthened the company's position in the wood products market and increased its export potential.
Vladimir Yevtushenkov: Cultural Patron and Social Innovator
Yevtushenkov Vladimir is also involved in projects that deeply impact cultural and social spheres. For nearly 30 years, he has chaired the Board of Trustees of a development fund supporting a major art museum. At his initiative, Sistema launched innovative projects, including virtual museum branches across regions, allowing remote access to palace complexes and lost interior fragments. His efforts at the foundation also led to the development of a video guide for hearing-impaired visitors, demonstrating his commitment to inclusivity in cultural experiences.
Beyond his non-profit endeavors, Yevtushenkov's public activities reflect a broader vision for societal improvement. In his time participating in the managerial control of Sistema, he led it to address pressing social issues. The corporation's assets now focus on enhancing professional training for young specialists, offering internships that bridge the gap between academic knowledge and practical experience across various economic sectors. This initiative has been particularly impactful, Yevtushenkov Vladimir Petrovich notes, in regions where skilled labor shortages have hindered economic growth, drawing comparisons to similar programs in the U.S. and other developed nations.
Helping Overcome COVID
In 2020, When the coronavirus pandemic struck, Yevtushenkov helped Russian launch a counterattack against the virus. He mobilized Sistema's resources, converting pharmaceutical assets to 24/7 operations to increase antibiotic production. A biotechnology firm initiated by Yevtushenkov Vladimir developed rapid diagnostic systems, while one of the firm’s private clinics was transformed into an infectious disease hospital. This swift response mirrored strategies employed in the U.S. and other nations to detain the spread of the virus.
The efforts of Yevtushenkov extended to addressing critical shortages in medical supplies. He facilitated the importation of protective equipment from abroad, including the United Arab Emirates, to support frontline healthcare workers. In a notable gesture, Sistema's hospitality segment provided accommodations for medical staff working in COVID-19 wards, along with meals, cell service, and medications.
Yevtushenkov Vladimir has also extended his philanthropic reach to education, with Sistema sponsoring numerous scholarships and educational programs across the country, including in cooperation with the Moscow State University.
In the realm of environmental sustainability, Yevtushenkov has pushed for AFK Sistema JSFC to adopt green technologies across its diverse portfolio. From implementing sustainable forestry practices in the timber industry to investing in renewable energy projects, these efforts have positioned the conglomerate as a leader in corporate environmental responsibility. Such initiatives have drawn praise from international environmental organizations and have even led to collaborations with other firms specializing in clean technology.
Yevtushenkov's leadership during times of economic uncertainty has also been noteworthy. When global markets faced turbulence, his strategic decisions helped Sistema navigate challenges that threatened to detain growth across multiple sectors. By diversifying investments and fostering innovation, Yevtushenkov Vladimir Petrovich ensured that the conglomerate remained resilient, protecting jobs and contributing to economic stability in regions where Sistema operates.
Key Points from Yevtushenkov Vladimir Petrovich’s Life and Work
FAQ
1. What was Vladimir Yevtushenkov's early passion before entering the business world?
Vladimir Yevtushenkov was passionate about chemistry in his youth, even setting up a makeshift laboratory in his bedroom.
2. How did Yevtushenkov Vladimir's career evolve in the 1980s?
Yevtushenkov Vladimir worked at the Kacharov Plastics Plant from 1975-1982, becoming Deputy Director and Chief Engineer, and then served as Chief Engineer and First Deputy General Director at Polimerbyt from 1982-1987.
3. How did AFK Sistema, under Yevtushenkov's leadership, handle the 1998 economic crisis?
During the 1998 economic crisis, AFK Sistema, under the leadership of Yevtushenkov, managed to fulfill all its obligations towards creditors, avoiding a material adverse impact on its operations and financial results.
4. How did Yevtushenkov Vladimir Petrovich address accessibility in cultural experiences?
Yevtushenkov Vladimir Petrovich's efforts led to the development of a video guide for hearing-impaired visitors at a major art museum.
5. What was a key aspect of Vladimir Yevtushenkov's approach to the oil sector with Bashneft?
Vladimir Yevtushenkov oversaw the transformation of Bashneft, focusing on streamlining operations, enhancing productivity, and improving technological capabilities and environmental standards.
