Banking and investments While at university, Melnichenko began his entrepreneurial ventures by opening a currency exchange booth on the campus. From the late 1990s to the early 2000s, MDM Bank expanded through acquisition, integrating seven regional banks. MDM Bank did not participate in any post-Soviet
privatization programs or the
loans-for-shares auctions of the 1990s. Bloomberg reported that "unlike many bigger rivals, MDM came through the
1998 Russian financial crisis nearly unscathed, thanks to a conservative
credit policy, the lack of
illiquid assets, and no exposure to
government bonds. As competitors went under, the lender snagged some of the biggest Russian companies as clients." From 2001 to 2005, he chaired MDM Bank's board of directors. These industries were derelict, risky, and not subject to the political influence that dominated other sectors. Following Melnichenko's decision to step down from MDM Bank in 2007, the
International Finance Corporation (IFC) purchased 5% of MDM Bank shares for US$185 million, valuing the bank at US$3.7 billion. Earlier, in April 2004, he had become the chairman of the mineral and chemical company OJSC
EuroChem. EuroChem produces commodity and specialty fertilizers including inhibitor products that allow slow release of nutrients into crops. According to Melnichenko, his strategy on fertilizers can be described as "taking advantage of the wide range of mineral resources found in Russia and the
CIS," with a particular focus on logistics and a diverse range of products. New manufacturing facilities were built in
Novomoskovsk,
Nevinnomyssk, and
Kovdor (including a complex for processing
apatite and
shtaffelite ores). In 2011, EuroChem acquired
laboratories in
Germany, leading to the creation of similar facilities in Russia and other countries for the development of second-generation fertilizers, including advanced slow-release products aimed at reducing the
environmental footprint of the
agricultural sector. EuroChem bought licenses for
potash deposits in
Volgograd in 2005, and in
Perm in 2008, launching plans to develop two large potash industrial plants. EuroChem's two potash mines are indended to produce 8 million metric tons of the fertilizer a year, a 10th of current world output. In 2015, EuroChem moved its headquarters to
Switzerland for access to the capital markets and international operations. It has manufacturing, logistic and distribution facilities in Russia, Belgium,
Lithuania,
Estonia,
China, Germany,
Kazakhstan, and the
United States. EuroChem's products are sold in more than 100 countries. EuroChem Group has raised funds on the international
capital markets. In 2016, EuroChem invested in biological crop nutrition company Agrinos for research and development into a new generation of products. Elsewhere, EuroChem expanded its distribution network, buying operations in the US,
Argentina,
Brazil, and
Hungary. In 2019, EuroChem launched its US$1 billion
ammonia plant, EuroChem Northwest, in
Kingisepp, Russia. With a production capacity of 1 million tonnes (1MMT) per year, this ensured its full self-sufficiency in ammonia production, a further step towards
vertical integration. The plant was built on a
brownfield site and is equipped with a closed
water recycling system to prevent water discharge into the
Baltic Sea, using 75% of wastewater from its own
Phosphorite phosphate plant nearby. The company is also reportedly building EuroChem Northwest 2, a new 1.1 MMT ammonia and 1.4 MMT
urea plant on an adjacent site in Kingisepp, Russia. Melnichenko announced at
SPIEF 2021 that "EuroChem was investing $4.4 billion into modern high-tech ammonia, urea and
methanol plants" in Kingisepp, of which "10% were being invested into the innovative environmental technologies, which exceed Russia’s
regulatory standards", referring to carbon capture and water recycling. EuroChem reportedly was also interested in acquiring an ammonia and urea plant in
Louisiana. In 2020, EuroChem's Usolskiy Potash Project in Perm produced 2.223 MMT of potash. Melnichenko was the effective beneficiary of 100 percent of EuroChem. SGC produces 25% of electricity in Siberia (6% of Russia's electricity). It is a global supplier of high-calorific value coal with distribution in 48 countries including in the
Asia-Pacific, where it supplies coal for HELE (high efficiency, low emission) power plants. The assets that formed SUEK were initially distressed. At that time, production capacity was less than 30 million tons per year, and despite employing around 70,000 miners,
productivity was low and virtually none of its output was exported. The average equipment depreciation was 90%. During the early years of the business, SUEK's assets were modernized, debts were repaid, wages as well as tax payments were regularized, and a modernization program was launched with new machinery. Several enrichment factories and modules were put into operation, allowing SUEK to produce highly enriched coal. SUEK built modern bulk terminals, upgraded
seaports, and built a coal mine
methane processing station to generate power within the framework of the
Kyoto Protocol. According to the
International Energy Agency's Clean Coal Centre, "SUEK, Russia's main exporter of higher-quality thermal coal, has invested in modern high-capacity washing plants and has ash control technologies at all its coal ports". SUEK assets produce more than 100 million tons of coal annually, holding an estimated 7.6 billion tons of coal in reserve. According to S&P Global Ratings, "SUEK's mining segment outperforms peers on greenhouse gas (GHG) emissions", noting its compliance with local and international standards. According to The Financial Times, SUEK pays its workers "more than four times the salary ordinary workers in neighbouring mines say they get." According to an ESG ranking of Russian companies 2021 by
RAEX, SUEK ranks 11th out of 110 companies in Russia. On the long term sustainability of
fossil fuels, Melnichenko publicly stated that "given the current level of technology, it will only be possible for alternative energy sources to reduce carbon emissions in some regions", adding that "companies and governments will need to develop other solutions to expand alternatives energy and that’s unlikely to happen in the next few decades." From April 2015 to 2022, Melnichenko served as Non-Executive Director of SUEK JSC On March 9, 2022, he resigned from all positions and withdrew as its beneficiary. == Business record ==