New face of Russian philanthropy

Russian billionaire Vladimir Potanin pledged to leave almost all of his fortune, estimated by Forbes magazine at $2.1 billion last year, to charity within a decade.

Potanin, 49, controls assets including 25 percent of OAO GMK Norilsk Nickel, Russia’s biggest mining company, 30 percent of lender OAO Rosbank, and the $1.5 billion Rosa Khutor Olympic ski development in the south of the country. He could become the first Russian billionaire to give his fortune to charity, said Olga Kryshtanovskaya, head of the Elite Studies Center at the Russian Academy of Sciences. More wealthy Russians will follow and start charitable funds, she said.

“The mentality of Russian business is changing and it’s starting to resemble the Western elites more and more,” Kryshtanovskaya said by telephone.

Potanin is following the example of Western businessmen, such as Bill Gates. The co-founder and former chief executive officer of Microsoft Corp. said last week the Bill and Melinda Gates foundation will commit $10 billion over the next decade to help develop vaccines for the world’s poorest countries, a project that may save the lives of 8.7 million children.

Potanin’s Interros Holding Co. will continue to manage his assets until they’re transferred to a “special charity fund” in about 10 years, he said. In the meantime, Potanin will raise contributions to his 11-year-old charitable fund to at least $25 million a year, from $10 million, he said.

Forbes magazine ranked Potanin as the fifth-biggest charity donor in Russia by 2008 contributions. Billionaire Oleg Deripaska ranked first with $65 million in charity spending, while OAO Severstal owner Alexei Mordashov ranked second, having spent $26.6 million on charity, according to Forbes.

Source: www.bloomberg.com