Beginnings
The second born of 5 children of Valerian Somkhishvili and Lili Melikishvili, Tamaz Somkhishvili is descended from a long Georgian line. His grandfather Amiran built the family homestead in Tbilisi in the mid-1930s, but as the family grew, Amiran moved to a larger home which was expanded to accommodate Valerian and his siblings. Initially, conditions were trying, but as Tamaz’s father had married, his grandfather Valerian accommodated him in two rooms, while his brothers shared one room and his parents and sister another. Tamaz recalls the home didn’t have running water until he was 6, which was not unusual in those days.
Tamaz’s father was a cobbler finding employment in both Ukraine and Russia, which made his absence especially felt by the family. Nonetheless, Valerian was able to support the family and visit during holidays at New Year’s and in May, while the children went to see their father in summer holidays when they had time to travel.
From this early time growing up under less than affluent conditions, Tamaz acquired the most fundamental principles of his young life: loyalty and honesty to family and friends, staying close to those we love, and heartfelt sincerity in all dealings, which he attributes to his parents.
Education
After completing his military service, Tamaz was able to finish his bachelor’s degree studies in cooking technology quicker than normal. The knowledge of nutrition and the aesthetic aspects of cuisine would prove useful later in his entrepreneurial career. Tamaz then began a degree in physics and math in the Tobolsk Pedagogical Institute, but later transferred to the faculty of finance in Tyumen State University. This would provide another key element in his later business development, but not before he completed a PhD on “The Conditions and Sources of Financing Investment for the Development of the Oil Industry”, which he successfully defended in 2002 at the National Academy of Economics and Public administration under the President of the Russian Federation in Moscow.
Military Service
In 1975, while still studying for his degree in culinary school, Tamaz received his military service draft. Fortunately, he was able to serve with his older brother Jemal with whom he did his basic training at the artillery bootcamp in Ukraine; however, Tamaz being skilled in the martial art sambo, in which he had already been victorious in competition, found he was to be assigned to the sports company. Instead of this option, Tamaz chose to stay near his brother and subsequently went with him to Czechoslovakia, where he led a squad under his brother’s platoon command. Due to his background in culinary arts, however, the military administration offered him a job as a cook which he adamantly refused as he had never imagined serving in anything but a military function. He finished his military service at a training facility and gained some local recognition through newspaper coverage of some of the shooting activities he participated in. After two years in the military, Tamaz had gained a sense of strength and confidence which would serve him well in his business life.
Early Business Career
Encouraged by the director of the cooking college where he had graduated, Tamaz decided to participate in a Komsomol building project in the Tyumen region of Siberia where he was tasked with procuring essential supplies such as food, etc. for the people working on the gas pipeline project Urengoy-Pomary-Uzhgorod, also known as the Trans-Siberian pipeline. Tamaz’s next career step was in 1978 with an assignment in the taiga forest of Tyumen, at the Demyanskoe station working on the pipeline to Chebutan, to be precise, where he had gone along with a former classmate Givi Guishvili, serving as labor procurement officer, but quickly becoming director. At this time, he traveled on a weekly basis to Tobolsk to commission supplies for the pipeline crews as well as building materials, etc. This experience allowed Tamaz to establish crucial networks in the supply and logistics industries which would be very important later in his career. This project, in the heart of Siberia, endured extreme weather conditions, with temperatures dropping to the minus 40s at times. After withstanding such harsh environmental conditions for some time, he and his friend, Beridko Tavshavadze, ended up being the only 2 remaining on the project from the original team. Eventually, the two decided to move to Tobolsk for new opportunities. Tamaz, in fact, found such opportunity working in the management of a local restaurant which led to further fortunate acquaintances such as Alexander Sheller, the manager of a famous restaurant named Vstrecha. Later in 1981, the two men decided to open a pub which ultimately led to Tamaz moving on to manage a famous restaurant known by the name, Druzhba.
1980 Olympics: Opportunity
Making money in the late Soviet era was still challenging, but Tamaz perceived another opportunity for a lucrative enterprise with the approach of the Moscow Olympics. Prior to the opening of the games, the Soviet Union was filled with images and Olympic symbols as enthusiasm for the games grew. With his keen aesthetic sense, this time in the field of apparel, Tamaz struck on the idea to produce T-shirts emblazoned with the Olympic emblem. However, there was an obstacle: he needed to obtain a patent for the production process. Making use of a key contact, he recruited a second world war veteran, much respected in that time, to apply for the patent. Having obtained the patent, Tamaz went on to hire seamstresses and designers, then commissioned the stylish materials and gear in Moscow. Needless to say, the whole project was enormously popular, thus earning a healthy return for Tamaz at the time.
Motoring Mishap
Though being a skilled driver and auto-enthusiast, Tamaz was involved in a car accident while driving back from a visit with his father in Tyumen in 1984. While careening around a corner on a rainy stretch of road, Tamaz’s brand new Zhiguli hit a large pothole, sending him straight into an on-coming truck. This left him with several injured cervical vertebrae forcing him to spend time in hospital, though not long, as Tamaz was a natural athlete and thus recovered faster than expected.
Late Soviet Era restructuring: more opportunities
By 1987, several Soviet economic policy reforms allowed for the establishment of cooperative enterprises. With an invitation from the Tobolsk City Executive to set up a cooperative, Tamaz founded the Kolkhida trading and restaurant business. With his understanding of the food and business financing aspects, Tamaz went to work hiring trucks and managing the logistics for fresh produce delivery from regions as Siberia and the Central Asian republics. In Tyumen he had opened the famous Druzhba restaurant thus well-stocked with produce, which became a successful dining establishment. But Tamaz was not satisfied with the return on his investment and, recognizing the limits of the restaurant business, he decided to convert the dining establishment to a pastry production facility and retail shop, producing the region’s most popular pastry known as ‘Ptichye Moloko” (Bird’s Milk) cake. He now set out to procure the required raw materials for large-scale production, basic foods such as sugar, butter, eggs, all needed in large quantities, but in short supply during the Soviet period. With his family in mind, he recruited his brother Anzor to manage the facility.
The production depended on securing a large supply of sugar which was not easy to find or purchase at that time. Tamaz knew he had to contract with a number of sugar factories across Ukraine, but found he would need documents approving the enterprise from the Tyumen Trade Administration. After negotiating and receiving the required permissions, Tamaz proceeded to locate and contract for the supply of 5000 tons of sugar from across Ukraine, which then had to be stored in warehouses in the Tyumen region. With these efforts and his keen business sense for how and where to locate required materials for a large business, Tamaz developed the Druzhba cooperative Ptichye Moloko production facility into a popular shop which brought in once again, a significant profit for his efforts.
Petrochemicals
Throughout the late Soviet era, oil production infrastructure was still being developed and opportunity soon arose in the Tyumen area with the arrival of a branch of Lukoil, a company which was engaged in both oil refining and retail gas outlets. Tamaz was fortunate to have made the acquaintance of the Deputy president of Lukoil, Viktor Dolgov, at this time, thus leading to a joint venture project – CJSC ‘Lukoil S’ (Lukoil Service). Tamaz was both part owner and director of the company which controlled several gas stations as well as the Perm Oil Refinery. This successful enterprise spun off into another business called ‘Lukoil Market” which aided in supplying the region with oil products, in addition to supplying cities such as, Uray and Kogalym, with merchandise and foods imported from western European countries such as France and Germany.
Refining and Exporting
Tamaz’s next oil sector enterprise was the company Rosnefteexport CJSC of which he owned a15% stake. This company was mainly involved in sending crude oil for refining in Mozyr and Novopolotsk in Belarus for sale in both the Russian and other European markets via the trading firms Vitol and Glencore. Within a year or so of his engagement with Rosnefteexport CJSC, it became apparent to Tamaz that Rosneft, owner of a 50% stake, was not performing as expected, so he decided to buy out its share, thus ending up controlling an 85% stake in the company which had expanded to include refineries in Omsk, Perm and other locations in Belarus.
Combatting Criminality
It is a popular image of the early post-Soviet era of the early 90s that widespread criminal enterprises flourished in the chaotic reorganization of the Russian economy. With his established connections to the business world, and a shrewd sense for business development, Tamaz realized a security firm, able to provide a crime-proof environment for business to operate effectively, was much needed at the time. Thus, along with Vladimir Dmitriev assigned as its head, Tamaz formed the Main Directorate for Combating Organized Crime within the Ministry of Internal Affairs in 1993. Acting as its deputy head, the agency facilitated the activities of his other enterprise Rosnefteexport CJSC which continued to prosper.
Oil for Debt Swap
With his joint stock company booming, Tamaz realized another opportunity resulting from the difficult years of the early post-soviet economy. As there was a shortage of capital, many small and large enterprises, for instance, agriculture, energy, gas, and transport companies, began to accummulate largely unpayable debts. Thinking about the problem, Tamaz had the prescience to realize a debt-purchase arrangement could be a solution, and certainly welcome among many cash-strapped businesses. Thus, he proceeded to acquire the debts of oil producers to energy producers, at a considerable discount, by sometimes as much as18%. Specifically, he started with large companies, Lukoil and Nizhnevartovskneftegaz’s debts owed to Tyumenenergo, then proceeded to the debts of Tyumenenergo owed for gas consumed to Surgut GRES.
In this way, Lukoil’s electricity costs were reimbursed through oil installments of up to a quarter million tons per month.
With the success of this scheme realized, and the subsequent profits earned, Tamaz continued to acquire large stakes in the Odessa Oil Refining Plant from the owner of Synthesis Company. So again, Tamaz’s oil refineries were exporting more and more to both the domestic and foreign markets.
From Oil Success to Oil Success
Although the refining and export businesses Tamaz was pursuing were successful, by the end of the 1990s, he expanded his oil sector horizon to exploration and production. This would be a new field for Tamaz, but a potentially even greater prize if he could succeed. With extensive contacts in the oil industry, he gathered a team of experts, from geologists to mechanics and engineers to begin a new business venture. But this would require more extensive alliances so Tamaz brought in specialists from an American joint venture: Polar Dawn, a director of Megionneftegaz and a number of experienced technical people from Toblosk Oil and Chemical to help with construction, exploration and extraction of oil reserves discovered. Success came fairly quickly, first from the Tomsk region with the discovery of 16m tons of oil and 11bcm of gas by Tomsk Oil. This endeavor required a huge investment in ground facilities and pipeline technologies in the remote taiga forest in Siberia, with the construction of new roads, up to 17 wells, a power station, etc. Providing the physical equipment for such a huge undertaking involved the seasonal use of barges on the Ob river. Though it was a complex development project in a distant location, with a cooperative spirit and dedication, the 50-plus workers created an effective exploration and production team.
Exploration
Tamaz was not only concerned with the Tomsk development, challenging as it was. He set his sights on finding new fields to develop with surveys in the Nenets Autonomous district of Arkhangelsk on lands licensed under the Danao Engineering company. Here, a major find with several times the flow-rate of the Tomsk wells was secured. Development of this new discovery was tough however, as the permafrost required surface-only pipelines. With reserves of 35 m tons compared to the 30 m tons of the Tomsk wells, this gambit was a huge success.
Environmental Concerns
A significant source of fossil fuel pollution occurs when associated petroleum gas (APG) is lost to the environment during the extraction process. Again, with his keen business acumen and foresight, seeing the increasing appetite for electricity, Tamaz arrived at the idea of an energy producing facility with pistons powered by APG. As a result, in 2004 he proceeded to build plants on Lukoil’s fields to supply oil companies with much needed electricity. One such generating facility, using Jenbacher (GE) gas piston technology, was producing 36 megawatts of power after one year of implementation.
In recognition of his efforts to limit fossil fuel waste, in March of 2006, Tamaz was the first to come to an agreement with the World Bank to provide energy which reduced emissions from APG, thus conforming to the landmark Kyoto Protocol to reduce greenhouse gases.
Moscow Housing Project
Tamaz was occupied with work on the Moscow government commissioned joint residential and business complex known as Family House from 2008-10. Once the massive 29,000 square meter complex was completed his obligations in Russia ended.
Aviation Industry in Georgia
Not one to retire early, Tamaz turned his attention to the airplane maintenance sector with the founding of Airplane Technics, with Vincent Morelli as Chief Manager. Shortly thereafter, an airplane maintenance facility was opened at Tbilisi Airport, mostly for the many civilian Boeing and Airbus aircraft landing there.
Pursuant on this enterprise, Tamaz established an Aviation College, believing it would provide opportunities for Georgians to study in an international educational institute leading to professional qualification in aircraft maintenance. The college provided a joint training program, based in Tbilisi, with the Istituto Scolastico San Carlo, a European Aviation Safety Agency recognized school in Verona, Italy. Participating students received courses in a variety of European countries including Germany, Turkiye, Switzerland and Italy and Dubai.
Unfortunately, though successful prior to the Covid pandemic, the company’s business was negatively affected by the losses incurred throughout the airline industry since 2020.
Ongoing Business Interests
Tamaz current business pursuits include metallurgy with focus on the latest technologies and telecommunications.
Philanthropy
Tamaz has made significant endowments to St. Andrews University of Georgia of the Patriarchate of Georgia in addition to purchasing the Georgian Orthodox Church in London in 2009.
Contributions to Sports
Sport shooting has always interested Tamaz so it is not surprising that he served as president of the National Federation of Sporting Shooting of Georgia from 2017 until 2021. In addition to martial arts, shooting is a source of national pride in international tournaments as well as the Olympics for Georgia. Tamaz has also established an internationally competitive Shooting club in Tbilisi complete with shooting ranges and armories for serious athletes to train.
Pastimes
Tamaz has loved sport pistol and long gun shooting since he was a young man. He also became an expert practitioner of sambo and judo and a fan of tennis which he plays well.
