Björgólfur Thor Björgólfsson
Encyclopedia
Björgólfur Thor Björgólfsson (born 19 March 1967 in Reykjavík
Reykjavík
Reykjavík is the capital and largest city in Iceland.Its latitude at 64°08' N makes it the world's northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay...

, Iceland
Iceland
Iceland , described as the Republic of Iceland, is a Nordic and European island country in the North Atlantic Ocean, on the Mid-Atlantic Ridge. Iceland also refers to the main island of the country, which contains almost all the population and almost all the land area. The country has a population...

), known internationally as Thor Bjorgolfsson, is an Icelandic businessman and entrepreneur
Entrepreneur
An entrepreneur is an owner or manager of a business enterprise who makes money through risk and initiative.The term was originally a loanword from French and was first defined by the Irish-French economist Richard Cantillon. Entrepreneur in English is a term applied to a person who is willing to...

, and former chairman of the financial firm Straumur-Burðarás
Straumur Investment Bank
Straumur-Burdaras Investment Bank hf. was a regional investment bank headquartered in Reykjavik, Iceland, that was closed by regulators in March 2009.The company was mainly owned by Björgólfur Guðmundsson and his son Björgólfur Thor Björgólfsson...

 and chairman of investment firm Novator Partners.

He has been declared "Iceland's first billionaire
Billionaire
A billionaire, in countries that use the short scale number naming system, is a person who has a net worth of at least one billion units of a given currency, usually the United States dollar, Euro, or Pound sterling. Forbes magazine updates a complete list of U.S. dollar billionaires around the...

", and was ranked as the 249th-richest person in the world by Forbes magazine in 2007—up from 350th the previous year—with a net worth of $3.5 billion. The Sunday Times
The Sunday Times (UK)
The Sunday Times is a Sunday broadsheet newspaper, distributed in the United Kingdom. The Sunday Times is published by Times Newspapers Ltd, a subsidiary of News International, which is in turn owned by News Corporation. Times Newspapers also owns The Times, but the two papers were founded...

Sunday Times Rich List
Sunday Times Rich List
The Sunday Times Rich List is a list of the 1,000 wealthiest people or families in the United Kingdom, updated annually in April and published as a magazine supplement by British national Sunday newspaper The Sunday Times since 1989...

 (2007) lists his net worth at £2,000 million. However, following the financial crisis of 2007–2010, Björgólfur's net worth declined to $1 billion (as of March 2009).

Early life

He is heir to a long lasting family legacy in Icelandic business and politics; his great-grandfather was the legendary Danish-born Icelandic entrepreneur Thor Jensen, who all but introduced the term "big business" to the country in the early years of the 20th century. Thor Jensen was a popular figure in Iceland and when Thor was buried, most companies in Iceland closed in respect of the entrepreneur.

His mother is Þóra Hallgrímsdóttir, ex-wife of George Lincoln Rockwell
George Lincoln Rockwell
George Lincoln Rockwell was the founder of the American Nazi Party. Rockwell was a major figure in the neo-Nazi movement in the United States, and his beliefs and writings have continued to be influential among white nationalists and neo-Nazis.-Early life:Rockwell was born in Bloomington,...

, the founder of the American Nazi Party
American Nazi Party
The American Nazi Party was an American political party founded by discharged U.S. Navy Commander George Lincoln Rockwell. Headquartered in Arlington, Virginia, Rockwell initially called it the World Union of Free Enterprise National Socialists , but later renamed it the American Nazi Party in...

.

Björgólfur chose to go to the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 in 1986 when his father Björgólfur Guðmundsson
Björgólfur Guðmundsson
Björgólfur Guðmundsson was the chairman and former owner of West Ham United FC. Björgólfur was Iceland's second businessman worth more than a billion dollars — his son, Björgólfur Thor Björgólfsson being the first. He was ranked by Forbes magazine in March 2008 as the 1014th-richest person in the...

's bankrupt firm, Hafskip
Hafskip
Hafskip was Iceland's second-largest shipping line before its collapse which became a national scandal.The firm had fallen deep into debt and might have sunk quietly had it not been for its ties to Iceland's finance minister, who was its former chairman and still a shareholder...

, was embroiled in a financial scandal involving fraud
Fraud
In criminal law, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation...

 and embezzlement
Embezzlement
Embezzlement is the act of dishonestly appropriating or secreting assets by one or more individuals to whom such assets have been entrusted....

.

In 1991, he graduated with a B.S. from New York University
New York University
New York University is a private, nonsectarian research university based in New York City. NYU's main campus is situated in the Greenwich Village section of Manhattan...

.

Beverage businessman in Saint Petersburg

He went to Russia
Russia
Russia or , officially known as both Russia and the Russian Federation , is a country in northern Eurasia. It is a federal semi-presidential republic, comprising 83 federal subjects...

 along with his father and his friend Magnús Þorsteinsson
Magnús Þorsteinsson
Magnús Þorsteinsson is a businessman and chairman of Avion Group. He was a high profile investor and entrepreneur with interests in aviation and financial services.-Beverage businessman in Saint Petersburg:Magnús began his investments in St...

.

A report published in Denmark noted that the Committee on External Economic Relations in Saint Petersburg Mayor's office was responsible for foreigners. The committee's chairman was Vladimir Putin
Vladimir Putin
Vladimir Vladimirovich Putin served as the second President of the Russian Federation and is the current Prime Minister of Russia, as well as chairman of United Russia and Chairman of the Council of Ministers of the Union of Russia and Belarus. He became acting President on 31 December 1999, when...

 between 1991 and 1996.

The Icelandic businessmen, together with Russian partners, founded bottling company
Bottling company
A bottling company is a commercial enterprise whose output is the bottling of beverages for distribution.Many bottling companies are franchisees of corporations such as Coca-Cola and PepsiCo who distribute the beverage in a specific geographic region...

 Baltic Bottling Plant, which was sold to Pepsi. Next they founded a brewing company. ООО "Торговый дом "РОСА" was registered in March 1995 and changed its name to Bravo OOO in February 1996 (address was also changed). It further changed its name to Bravo International OOO in August 1996 and Bravo International JSC in December 1997. Founders of Bravo were six companies registered in Limassol, Cyprus - Björgólfsson was president of all of them. Bravo Brewery became a success on the premium beer Botchkarov.

An article in The Guardian (2005) wondered where Björgólfsson's money comes from and noted that in the 1990s the Icelanders "were not only ploughing money into the country but doing it in the city regarded as the Russian mafia
Russian Mafia
The Russian Mafia is a name applied to organized crime syndicates in Russia and Ukraine. The mafia in various countries take the name of the country, as for example the Ukrainian mafia....

 capital. That investment was being made in the drinks sector, seen by the mafia as the industry of choice." Competitors in the Saint Petersburg brewing market faced problems. For instance, Ilya Weismann, deputy director of competing beverage company Baltic, was assassinated on January 10, 2000. Later Baltic director general Aslanbek Chochiev was also assassinated. One competing Saint Petersburg brewery burned to the ground.

The company became the fastest growing brewery in Russia. Heineken
Heineken
Heineken is a Dutch beer which has been brewed by Heineken International since 1873. It is available in a 4.6% alcohol variety in countries such as Ireland. It is the flagship product of the Heineken company and is made of purified water, malted barley, hops, and yeast. In 1886 H...

 bought the brewery for $400m in 2002.

He returned to Iceland to gain interest in numerous ventures there.

Consul of Russia

In 2000, Saint Petersburg opened an honorary consulate in Iceland. Thor Bjorgolfsson was appointed Consul
Consul (representative)
The political title Consul is used for the official representatives of the government of one state in the territory of another, normally acting to assist and protect the citizens of the consul's own country, and to facilitate trade and friendship between the peoples of the two countries...

 and Magnus Thorsteinsson was appointed Honorary Vice-Consul. The opening ceremony was held on March 10, 2000.

Novator

Novator Partners, which is managed by Björgólfsson, has bought assets around Eastern Europe. The company's owners are unknown.

Landsbanki

In 2002, his holding company gained 45% share of Landsbanki
Landsbanki
Landsbanki, also commonly known as Landsbankinn in Iceland, is a private Icelandic bank with international operations...

, Iceland's second largest bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...

, in a controversial privatization. Landsbanki was declared to be acting contrary to the interests of the United Kingdom and placed on a watchlist usually used for the blocking of funds to terrorist organizations by the British government after bankruptcy in October 2008.

Straumur Investment Bank

He was the main owner as well as the chairman of the Straumur Investment Bank
Straumur Investment Bank
Straumur-Burdaras Investment Bank hf. was a regional investment bank headquartered in Reykjavik, Iceland, that was closed by regulators in March 2009.The company was mainly owned by Björgólfur Guðmundsson and his son Björgólfur Thor Björgólfsson...

.

Financial crisis

Two of Björgólfur's companies, Landsbanki
Landsbanki
Landsbanki, also commonly known as Landsbankinn in Iceland, is a private Icelandic bank with international operations...

 and Straumur, left the Icelandic people with several billions of dollars in debt, when they went bankrupt following the Icelandic Financial crisis.

He has been heavily criticized for his actions leading to the 2008–2011 Icelandic financial crisis.

External links

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