Norilsk CEO freed from jail

Norilsk Nickel (NILSY-O, MNOD-L) CEO Mikhail Prokhorov was released by French police in early January after being held in jail for three days for his role in a suspected prostitution ring.

Prokhorov and four others were designated material witnesses in the investigation. That means no charges were laid but there is a slight chance some could be laid in the future.

A probe into the prostitution ring, conducted by French police during the previous six months, determined a pattern.

Investigators suspect Russian call girls, around age 20, were being brought to a resort in the French Alps through an Austrian travel agency. The women worked during the holidays and were paid in the form of expensive gifts from luxury boutiques.

Often described as Russia’s most eligible bachelor, 41-year-old Prokhorov was among 26 people arrested in the French ski resort of Courchevel, a spot where many wealthy Russians go to celebrate the Orthodox New Year.

Norilsk spokesperson Sergei Chernitsyn told the Bloomberg news agency the arrest was “absurd” and that Prokhorov was innocent.

“The heads of our company are law abiding citizens,” Chernitsyn said.

London’s The Guardian newspaper questioned Chernitsyn about Prokhorov’s reputation for being a playboy.

“Naturally he likes girls and treats them in a natural way. But this isn’t a pretext to accuse him of pimping,” he said.

Prokhorov, worth about US$7.6 billion, was ranked the world’s 89th richest man by Forbes magazine last year (see table). He holds 54.8% of Norilsk, the world’s largest nickel producer, and 51% of Polyus Gold (OPYGK-Q), Russia’s largest gold miner.

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Source: Forbes.com