The man who married Putin's daughter and then made a fortune

Katerina Putin, younger daughter of Russian
President Vladimir Putin got married to Kirill
Shamalov, son of an old friend of Putin.
Their wedding celebrations took place in February
2013, at Igora, a small ski resort that combines
beauty and discretion, five people who were there
told Reuters. Set amid woodland with a
picturesque lake, the resort is co-owned by the
family of Yuri Kovalchuk, another old friend of
Putin, and a Cyprus company with undisclosed
shareholders.
One person who attended the event said staff
were told the bride and groom were named Kirill
and Katerina, and that guests wore white scarves
embroidered with the letters "K&K" in red thread.
When shown a photograph of a woman known as
Katerina Tikhonova, the source identified her as
the bride. Tikhonova is Putin's younger daughter,
as Reuters confirmed in November.
"Guards were behind every corner, (they)
didn't let anyone close to the celebration,"
said a staff member at the resort, which
has a luxurious spa complex. "But we knew
it was Kirill and Katerina - Putin's daughter
- celebrating marriage."
At the time of the wedding, Kirill - a tall, dark-
haired man with rimless glasses - was a rising
star of Russian business, but still only 31. His
fortunes began to skyrocket soon after his
wedding to the president's daughter, a
competitive acrobatic dancer who is now helping
to oversee a $1.7 billion expansion of Moscow
State University.
Within 18 months, Kirill acquired a large chunk of
shares in a major Russian oil and petrochemical
processor called Sibur - a stake now worth an
estimated $2.85 billion, based on the value of
recent share deals. He also quit his job as a
business manager and set up a company to run
his personal investments.
How did such a young businessman go so far, so
fast? A Reuters examination of Shamalov's career
shows that in the summer of 2013, months after
he married Putin's daughter, Kirill opened
discussions about buying shares in Sibur from one
of the president's wealthiest friends.
A year later, he was able to borrow more than $1
billion, judging by the published accounts of his
investment company. The loan came from a bank
headed by another longtime associate of Putin,
and where Shamalov's brother holds a senior
position. The money was used to make an
investment in Sibur that within months proved
highly profitable for Kirill.
Asked about his business deals and the wedding,
Kirill Shamalov and Sibur declined to comment.
The trajectory of Kirill's fortunes sheds new light
on how people close to Putin have taken
commanding positions in key companies - and
how such opportunities are now being extended
to a new generation. Like the wedding, much of
this transfer of riches has occurred away from
public scrutiny.
Vladimir Milov, a former Russian deputy energy
minister and now an opposition campaigner, said
Putin's friends had acquired major assets with
the help of lenders with links to the state, such
as Gazprombank.
"It's extremely non-transparent, so it is
hard to get to and judge the specifics of
the loan agreements," Milov said. "They
consider Gazprombank their pocket bank."
He added: "They are looking to pass on their
power and privileges to a new generation."
Asked about the wedding celebrations and
business deals, Dmitry Peskov, spokesman for the
Russian president, said: "Putin's daughters are
not involved in politics or business. The
businessman, Shamalov, is well known. As far as
we are aware, all his activities are in line with the
laws of the Russian Federation. For many years
he has been in the management of the company
Sibur, and along with other senior managers is a
shareholder. His career and business are not
within the sphere of interest of the Kremlin. We
do not give comments on the private lives of
Putin's close relatives."